8x8 Reports Second Quarter Fiscal 2027 Results with Growth in Service Revenue and AI Adoption
8x8 (EGHT) reported its second-quarter fiscal 2027 earnings, highlighting a 4.9% year-over-year increase in service revenue to $187.8 million. The company is undergoing a strategic shift toward Communications Platform-as-a-Service (CPaaS), which has driven a 51% surge in platform usage revenue. While these usage-based offerings carry lower gross margins than traditional subscriptions, management expects scaling volume to drive total operating profit. Key growth drivers include the rapid adoption of artificial intelligence, with recurring revenue from AI solutions growing 58% year over year. Additionally, the company has demonstrated strong fiscal discipline by reducing its principal debt by more than $250 million since August 2022, representing a 46% reduction from its peak. This deleveraging is intended to lower interest expenses and provide flexibility for future refinancing.
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Topics: AI adoption CPaaS debt reduction earnings report revenue growth
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