William Blair Reiterates Outperform On 8×8 Following UC Sector Previews
July 22, 2014 2:08 PM EDT by Ben Weinberg in Exclusive Area, Technology
In a research note published yesterday, William Blair analyst Dmitry Netis reiterated an Outperform rating on 8×8 (EGHT), following Unified Communications (UC) sector previews.
Netis wrote, “We believe the company will slightly beat our and consensus revenue estimates of $37.5 million and deliver in-line EPS of $0.03. The shares have been under pressure since the start of the year (since theJanuary 22 earnings call to be exact) when the company missed EPS consensus and took on more spending to drive growth in the business. We believe that now with two full quarters after the follow-on offering, the company is at the stage where it must demonstrateorganic growth in the business or face more adverse consequences. We strongly believewe will see the former. Our channel partner interviews suggest the business is hitting an inflection point, with material traction coming from the midmarket segment (comprisingdirect and channel partner-sourced business with atleast 50 seats), which in the March quarter moved up substantially to account for 39% of new monthly recurring revenue (MRR). The backlog, comprising 75 midmarket customersand $3 million of annualized revenue last quarter, should also continue to expand, in our view”.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Dmitry Netis has a -0.8% average return and a 20% success rate. Netis is ranked #2499 out of 3207 analysts.
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