Shares of 8x8 (NYSE:EGHT) have plunged today, down by 10% as of 11:30 a.m. EST, after the company reported fiscal third-quarter earnings results. 8x8 also reduced the high end of its fiscal year outlook.
Revenue in the fiscal third quarter came in at $89.9 million, which translated into a non-GAAP net loss of $5.5 million, or $0.06 per share. Analysts were modeling for the cloud-based communications company to generate $88.6 million in sales and post an adjusted net loss of $0.06 per share.
Service revenue increased 20% to $85.9 million, with sales from larger customers billing over $10,000 in monthly recurring revenue jumping 61%. Average monthly service revenue per business customer for midmarket and enterprise customers rose to $5,211.
"We delivered a solid quarter of overall growth, with service revenue excluding DXI and in constant currency up 22% and ahead of our financial outlook," CEO Vik Verma said in a statement. "More importantly, we are disrupting a $50 billion addressable market that is shifting toward cloud solutions with a preference for a single technology platform."
Investors could be disappointed that 8x8 slightly reduced its forecast for fiscal 2019. The company now expects fiscal 2019 service revenue to be in the range of $334 million to $335 million, down from prior guidance of $334 million to $338 million. 8x8 expects its non-GAAP pre-tax loss for fiscal 2019 to be $19 million.
In terms of the fiscal fourth quarter, the company is guiding service revenue to a range of $88.6 million to $89.6 million, with a non-GAAP pre-tax loss of $7 million to $8 million.