8x8 (EGHT) Q1 Earnings Report Preview: What To Look For

Cloud communications provider 8x8 will be reporting results this Tuesday after market close. Here’s what investors should know.8x8 beat analysts’ revenue expectations last quarter, reporting revenues of $185.1 million, up 3.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter topping analysts’ expectations.Is 8x8 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.This quarter, the market is expecting 8x8’s revenue to grow 2.3% year on year, a reversal from the 1.3% decrease it recorded in the same quarter last year.The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 8x8 has missed Wall Street’s revenue estimates multiple times over the last two years.Looking at 8x8’s peers in the productivity software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Five9 delivered year-on-year revenue growth of 9.2%, beating analysts’ expectations by 1.8%, and RingCentral reported revenues up 5.3%, in line with consensus estimates. Five9 traded up 29.3% following the results while RingCentral’s stock price was unchanged.Read our full analysis of Five9’s results here and RingCentral’s results here.There has been positive sentiment among investors in the productivity software segment, with share prices up 3.5% on average over the last month. 8x8 is up 19.1% during the same time and is heading into earnings with an average analyst price target of $2.31 (compared to the current share price of $2.37).ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.