8x8 beats Q3 sales estimates as customers move from legacy platforms

New Relic, Snap and Seagate also posted their latest quarterly results.
Written by Stephanie Condon, Senior Writer

Cloud communications provider 8x8 posted its third quarter results on Tuesday, reporting accelerating business from customers migrating off legacy competitors like Avaya. 

Its non-GAAP pre-tax loss was $16.3 million, or 17 cents per share. Total revenue increased 31.9 percent year-over-year to $118.6 million. Service revenue increased 32.2 percent year-over-year to $113.6 million.

Analysts were expecting a net loss per share of 17 cents on revenue of $114.1 million. 

"8x8's third quarter was another strong performance, with record revenue growth of 32%," CEO Vik Verma said in a statement. "Our X Series platform continues to resonate strongly with the market, driving enterprise ARR year-over-year growth of 85%. In fact, all of our top 10 deals were bundled platform deals. And we are seeing acceleration in large customers migrating off of legacy solutions, with four of our top ten wins coming from Avaya replacements."

For the fourth quarter, 8x8 expects a non-GAAP loss of approximately $14.1 million on revenue in the range of $118.9 million to $119.4 million. 

New Relic also published its third quarter financial results.

The company reported non-GAAP net income per diluted share of 9 cents on revenue of $153 million, compared to $124 million for the third quarter of fiscal 2019.

Analysts were expecting earnings of 12 cents per share on revenue of $149.18 million. 

"We're pleased with the feedback and early signs of success we've seen from customers adopting the new capabilities across the New Relic One platform," CEO Lew Cirne said in a statement. "With the recent introduction of our platform innovations and new executives, we have the pieces of our strategy in place to capitalize on our immense opportunity to help customers create more perfect software."

As of Dec. 31, New Relic had 926 $100K+ paid business accounts, compared to 816 a year prior. Sixty-two percent of its annual recurring revenue is from enterprise paid business accounts. 

For the fourth quarter, New Relic expects non-GAAP net income between 2 cents and 6 cents on revenue between $154 million and $156 million.  

Seagate published its second quarter financial results, posting a non-GAAP EPS of $1.35 on revenue of $2.696 billion.

Analysts were expecting earnings of $1.32 per share on revenue of $2.72 billion. 

"We executed the company's fastest ever product ramp with our industry capacity leading 16-terabyte drives, which contributed to both sequential revenue growth and record exabyte shipments in the December quarter," CEO Dave Mosley said in a statement. "We are poised to benefit from ongoing demand for mass capacity storage which we expect to offset typical seasonal declines in the legacy markets in the first half of the calendar year."

Seagate's board of directors declared a quarterly cash dividend of 65 cents per share.

For the third quarter, Seagate expects to post non-GAAP diluted EPS of $1.35, plus or minus 7 percent, on revenue of $2.7 billion, plus or minus 7 percent. 

Snap published its fourth quarter financial results, with non-GAAP earnings of 3 cents per share on revenue of $561 million, up 44 percent. 

Analysts expected earnings per share of 1 cent on revenue of $563.03 million.

Snap's net loss for the quarter increased to $241 million, in part because of $100 million in legal charges it incurred. In January, Snap settled securities class actions charges related to its IPO. 

The company noted that it increased its Daily Active Users by 31 million in 2019. 

"In 2019 we saw momentum across the board. We grew our community by 31 million daily active users, accelerated our revenue growth, and progressed towards profitability by improving full-year Adjusted EBITDA by 65% year-over-year," CEO Evan Spiege said in a statement. "The strength in our core business gives us confidence in our long term growth and profitability and we're excited to build on these results in 2020 and beyond."

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