Business communications software company 8x8 (NYSE:EGHT) fell short of analysts' expectations in Q1 FY2024, with revenue down 2.31% year on year to $183.3 million. Next quarter's outlook also missed expectations with revenue guided to $183 million at the midpoint, or 3.64% below analysts' estimates. 8x8 made a GAAP loss of $15.3 million, improving from its loss of $26 million in the same quarter last year.

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Founded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.

Work is becoming more distributed, both across geographies and devices. In order for businesses to keep functioning efficiently, they need to be able to communicate as well as they did when the teams were co-located, which drives the demand for integrated communication platforms.

Sales Growth

As you can see below, 8x8's revenue growth has been mediocre over the last two years, growing from $148.3 million in Q1 FY2022 to $183.3 million this quarter.

This quarter, 8x8's revenue was down 2.31% year on year, which might disappointment some shareholders.

Next quarter, 8x8 is guiding for a 2.34% year-on-year revenue decline to $183 million, a further deceleration from the 23.6% year-on-year decrease it recorded in the same quarter last year. Ahead of the earnings results announcement, the analysts covering the company were expecting sales to grow 3.72% over the next 12 months.

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Key Takeaways from 8x8's Q1 Results

Sporting a market capitalization of $541.1 million, 8x8 is among smaller companies, but its more than $138.2 million in cash on hand and positive free cash flow over the last 12 months puts it in an attractive position to invest in growth.

We struggled to find many strong positives in these results. On the other hand, its full-year revenue guidance was lowered and missed analysts' expectations and next quarter's revenue guidance also missed Wall Street's expectations. Overall, this was a mixed quarter for 8x8. The company is down 4.99% on the results and currently trades at $4 per share.

8x8 may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.

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The author has no position in any of the stocks mentioned in this report.