8x8
8x8, Inc. (NASDAQ:EGHT)
Investor Presentation
19't Annual Needham Growth Conference
January 11, 2017Safe Harbor
This presentation includes forward-looking statements within the meaning of the federal securities |aws. These statements relate
0, among other things, our business strategy, goals and expectations conceming aur market position, the growth of the markets
in which we compete and the benefits that our customers will realize from our services.
Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these
assumptions could prove to be inaccurate and the forward-looking statements based on these assumplions could be incorrect,
Gur operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a. combination of
which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct.
Actual results and trends in the future may differ materially from those suggested or imptied by the fonward- looking statements
depending on a variety of factors including those that are described in greater detail under the heading “Risk Factors” in our
preliminary prospectus supplement and under the heading “Management's Discussion and Analysis of Financial Condition and
Results of Operations” and elsewhere in our Annual Report on form 10-K and Quarterly Reports on 10-Q, All future written and
oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the
previous statements. We undertake no obligation to update any forward-looking statements that may be made to reflect events or
circumstances that occur, or that we become aware of, after the date of this presentation.
This presentation contains: certain information that has not been derived in accordance with generally accepted accounting
principles ("GAAP"). Reconciliations of such information to the most directly comparable information derived in accordance with
GAAP are contained in this presentation. This information should not be considered a substitute for any measures derived in
accordance with GAAP.Addressing a $50B+ Market Opportunity
Shift to Cloud Telephony Adoption
S40Bn
2014 2015. 2016 2017. 2018 O19. 020 AOL 2022 Bre Market
Suet 8a, 2085High Quality Global Communications Network
12 Data Centers Serving Customers in 114 Countries |
Local numbers in 83 countries; toll-free numbers in 122 countries |
7 Global deployment/support teams: US, UK, Eurape, Singapore/Asia,
Australia (Philippines'and Romania new in 2016)
Patented Geo-Routing technology
for optimized media routing
Global SLA for availability
and call quality
Advaniced Routing/ Sophisticated PSTN/
Vendor Quality Management
Superior audio stack; Advanced audio
CODECs/ error correction
Localized branches with
global ext.-to-ext. dialing
Local language support for 14
languages; chat translation in 90
languages
Database of regulatory
requirements in 62 countriesReal-Time Analytics Engine
8x8 Big Data Environment originally
conceived to solve challenges with
OTT real time media and network
quality monitoring
Finding trends not easily detected -
transactional data not available
anywhere except the cloud
Proactive, transparent to the
customer
Collecting ~86 million analytics /
report events per day
Disinbiand each
nee
ney app?
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oma
acne entcss conor Wr Oe hora shone
‘ie Conc Cee nf honeEnterprise Communications as a Service (ECaaS)
8x8 Virtual Office (VO)
Cloud Business Phone Service &
Unified Communications
Mobile and desktop applications
for all users
Integration w/leading business
apps (Microsoft, Google, Zendesk,
Salesforce.com, Netsuite}
Presence, IM/Chat, SMS
Global Directories
Call Recording
Data + Media Encryption
8x8 MULT IRRY Tat peeuirees 10Virtual Office Meetings
Audio/ video/ web conferencing
and collaboration w/content
sharing
Seamlessly built into VO mobile
and desktop applications
HD Video (1080p) and HD Audio
(OPUS)
+ Highest resolution with
lowest latency over public
internet and WiFi
Modular User Interface
Microsoft Outlook and Google
Calendar plug-insCustomer Engagement (CCaaS)
Virtual Contact Center (VCC)
Multi-Channel Cloud Contact Center Solution:
Voice, Multi-Chat, Email, Fax
Multi-media Queuing; Skills-based Routing;
Real-time Monitoring and Reporting
Direct Agent Routing: Proactive Chat
Warkforce and Quality Management
Single Sign On with Netsuite, Salesforce
integration
Expert Connect (VO+VCC Interoperability)
Global Media Routing for 24/7 Follow-the-Sun
Powerful business performance analytics —
Customer Journey; Agent ProductivityQuality Management
* Call recording
& screen capture
* Live monitoring
+ Speech transcription and
analytics
* QA/ evaluations and
performance analytics
* Scalable for teams ofall sizesSales Acceleration - High Touch Sales Teams
Fully integrated into Salesforce
Drive adherence through automatic
call logging — in the office and out in
the field — even when not logged into
Salesforce
Seamless access to phone,
messaging, video for customer
interactions and team collaboration
Analyties/ visualizations to manage
agent productivity, customer status
and deal progressionSales Acceleration - Outbound Sales Teams
Preview, progressive and predictive dialing to
maximize connect rate and talk time
Call monitoring and recording
List and campaign management
Integration with Salesforce
Reporting and analytics — customer
interactions history and trends, agent
productivity
Pay-as-you-go model, scale upand down.
with business needsAPIs for Customers and Partners (CPaaS)
Automated provisioning with Active
Directory integration
CRM and business systems integration
Custom workflows via simple scripting
Reseller / partner portals
Vertical market / specialized solutionsCustomers of All Sizes Choose 8x8
PLR 1,000 to 5000 PS
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MERGE GRILLSignificant Opportunities for Sustained Growth
Build Seale
Expand Strategic
Partnerships.
Leveraging APIs
Drive Applications
+Analytics
Accelerate —
‘Continue eis
ibbiove xpansion
Upmarket .
__—_®
‘8x8 Myeriely THE woRstENEITiES aDFinancialsSecond Quarter Fiscal 2017 Highlights
* Total revenue grew 24% YoY (26% on constant currency basis) to $63.2M; service revenue grew 23% YoY
(25% on constant currency basis) to $57.7M.
* Service revenue from mid-market and enterprise customers grew 36% YoY (40% on constant currency
basis) and now represents 53% of total service revenue.
* New MRR sold to mid-market and-enterprise customers and by channel sales teams increased 30% YoY
(40% on constant currency basis) and accounted for 65% (67% on constant currency basis) of total MRR
booked in the quarter.
* GAAP net income was $27K, of $0.00 per diluted share; Non-GAAP net income was $5.3M, or $0.06 per
diluted share.
* Average monthly service revenue per business customer (ARPU) grew to $409; ARPU for mid-market
and enterprise customers grew to $4,351.
* Gross monthly business service churn on an organic basis was 0.6%, compared with 0.7% in the same
period last year.
* Cash from operating activities was $6.9M, compared with $2.5M in the same period last year.
+ Cash, cash equivalents and investments were $169.7M, compared with $149.1M in the same period last
year,Strong Revenue Growth; Continued Profitability
Revenue Growth Non-GAAP Net Income as % of Total Revenue
($ in millions) {$ in millions)
5032
$600 $54 ees
3573
$332
$509 es
mais 3016) AIG ao 2007 3016, anne 3017 2017
8x8 MULTIPLY THE Posstanuinies 20Increasing Revenue from Mid-Market/Enterprise Customers
Mid-Market Service Revenue Mid-Market % of Total Service Revenue
Mid-Market/Enterprise Service Revenue More than Doubled in 24 MonthsIncreasing Monthly Average Revenue per User (ARPU)
All Customers: Mid-Market/Enterprise Customers.
s435t
sao
$360,
5299 $4053
$3737
pons aus 2017 2a1s zane 7au7
8x8 MULTIPLY THE Posstanuinics aConsistently Low Gross Revenue Churn Rate
2015 3015, 4085 1016 2016 aQi6 aané 1017 2007Consistently Strong Non-GAAP MarginsStrong Balance Sheet
in millionsFiscal 2017 Financial Model*
MULTIPLY THE POSSHENKQITLES 26