8x8 Inc. Reports Q3 FY2025 Revenue of $178.9M, Net Income Turnaround

8x8 Inc. reported its financial results for the third quarter of fiscal year 2025, revealing a total revenue of $178.9 million, a slight decrease of 1.2% from $181.0 million in the same period last year. The company's service revenue, which constitutes the majority of its income, was $173.5 million, down from $175.1 million year-over-year. The decline in service revenue was attributed primarily to a decrease in subscription revenue from customers on the Fuze platform, offset by a rise in platform usage revenue. The company recorded a net income of $3.0 million, a significant improvement compared to a net loss of $21.2 million in the prior year, marking a turnaround in profitability.

In terms of operational metrics, 8x8's total customer count remained stable, with a focus on expanding its mid-market and enterprise customer base. The company has been actively enhancing its product offerings, including the introduction of new features and services aimed at improving customer engagement and satisfaction. The total number of users on the platform has also seen a steady increase, reflecting the growing adoption of its cloud communication solutions. However, the company noted that macroeconomic conditions, including inflation and supply chain disruptions, continue to pose challenges to customer spending and overall market demand.

8x8 has made strategic moves to strengthen its financial position, including the successful completion of a $200 million delayed draw term loan, which was utilized to repay a previous term loan. This refinancing effort has reduced interest expenses significantly, with interest costs for the quarter dropping to $5.8 million from $10.0 million a year earlier. The company’s total liabilities decreased to $585.2 million from $654.0 million, while stockholders' equity increased to $113.0 million, reflecting improved financial health.

Looking ahead, 8x8 remains focused on innovation and expanding its product portfolio, particularly in the Asia Pacific region. The company plans to invest in research and development to enhance its cloud communication platform and improve operational efficiencies. Management expressed optimism about future growth, despite ongoing economic uncertainties, and anticipates that the strategic initiatives will drive revenue growth and profitability in the coming quarters. The company expects to continue leveraging its technology partnerships and expanding its market presence to capture new business opportunities.