8x8 Beats Q2 2027 Estimates as Usage Revenue Surges 51%

8x8 reported fiscal second-quarter 2027 non-GAAP EPS of $0.12 and revenue of $192.0 million, beating expectations on both lines. CEO Samuel Wilson noted it was the company's sixth consecutive quarter of year-over-year revenue growth, a streak that has now become a central part of management's investor narrative.

The standout driver was platform usage revenue, which covers communications APIs, digital and voice AI interactions, and telephony minutes. That segment grew 51% year over year and now accounts for roughly 28% of service revenue, up from 19% a year earlier, with management attributing much of the momentum to communications API demand in Asia-Pacific.

The mix shift carries a visible cost on the margin line. Non-GAAP gross margin compressed to 60.1% from 65.7% a year ago, a direct consequence of lower-margin usage revenue growing faster than the rest of the business. Disciplined expense management helped offset that pressure: sales and marketing spending fell to $56.15 million from $63.84 million, allowing non-GAAP operating margin to reach 10.8%.

On the strength of the quarter, management raised its full-year fiscal 2027 guidance to total revenue of $750 million to $770 million and non-GAAP EPS of $0.36 to $0.40. The outlook for Q3 FY2027 calls for total revenue of $188 million to $192 million, with non-GAAP gross margin guided to a range of 58.0% to 60.0%, signaling that the margin compression from usage-heavy mix is expected to persist in the near term.

One financial risk worth watching is the company's August 2027 term loan maturity, which management acknowledged it is working to refinance. The term loan is currently classified as current on the balance sheet, making progress on the debt refinancing a key item to monitor alongside the trajectory of usage revenue margins in coming quarters.