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Why 8x8 Shares Are Down 22% Today

By Chris Neiger – Updated May 13, 2020 at 11:31AM

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Investors weren't happy with the company's fourth-quarter results.

What happened

Shares of 8x8 (EGHT -1.08%), a software-as-a-service provider of voice, video, and chat technologies, were tumbling today after the company released its fourth-quarter financial results on Tuesday. 

As of 11:36 a.m. EDT on Wednesday, 8x8's stock was down 22%. 

A red stock chart with line going down.

Image source: Getty Images.

So what 

8x8's sales in the quarter jumped 29.6% to $121.5 million, which slightly beat analysts' consensus revenue estimate. Meanwhile, the company's adjusted loss per share of $0.12 was steeper than the $0.09 loss in the year-ago quarter, but it still beat Wall Street's consensus estimate of a loss of $0.14 per share.

Despite the revenue and earnings beat, investors weren't happy with the company's fourth-quarter results overall, causing 8x8's stock to slide significantly in the first few hours of trading. 

But CEO Vik Verma was optimistic, saying, "We delivered solid fourth quarter and full-year results exceeding our guidance range, driven by continued momentum in the channel, mid-market, and enterprise markets." 

Now what

Management provided guidance for its first-quarter fiscal 2021, with revenue in the range of $120 million to $121 million, which would represent about a 25% increase year over year. Additionally, the company forecasts an adjusted loss of about $12 million in the quarter. But it said that with the uncertainty surrounding COVID-19, it won't issue any full-year fiscal 2021 guidance.

 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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8x8, Inc. Stock Quote
8x8, Inc.
EGHT
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