Why 8x8 Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of 8x8 (NAS: EGHT) have soared today by as much as 14% after the company reported fiscal second quarter earnings.
So what: Revenue jumped 33% to $26.4 million, with 96% of sales coming from business customers. Gross margin increased to 68%, which helped the company generate non-GAAP net income of $3.7 million, or $0.05 per share. Those results were mostly in-line with analyst estimates.
Now what: 8x8 saw a big jump in average monthly revenue per customer, increasing from $207 a year ago to $256 last quarter. This was driven in part by each customer subscribing to more services, with the average number of services being 10.6. The company is seeing small- and mid-market customers adopting more services, as many of them have mobile workforces that tap into 8x8's applications.
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The article Why 8x8 Shares Soared originally appeared on Fool.com.Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.