Shares of 8×8 (NASDAQ:EGHT) rose 11.1% in October, according to data from S&P Global Market Intelligence. The cloud communications stock popped near the end of the month thanks to better-than-expected earnings results.
8×8 published second quarter earnings results on Oct. 28, delivering sales and earnings for the period that came in significantly ahead of the market’s expectations. The earnings beat helped the stock close out the month with double-digit gains despite significant sell-offs for the broader market and growth-dependent tech stocks.
8×8 posted a non-GAAP (adjusted) loss of $0.03 per share on sales of $129.1 million in the third quarter. Total revenue climbed 17.9% in the period, and service revenue rose 19.3% year over year to reach $120.9 million. The average analyst target had called for a per-share loss of $0.29 on revenue of $126.28 million.
8×8 stock has continued to make gains early in November’s trading. The company’s share price has risen roughly 8% in the month so far.
8×8 is guiding for third quarter revenue to be between $132 million and $133 million, up roughly 11.5% year over year at the midpoint of the target. The company expects to post an adjusted pre-tax loss of approximately $3 million.
For the full year, management is targeting revenue between $519 million and $522 million — good for growth of roughly 16.5% at the midpoint. The team anticipates a pre-tax loss of roughly $16 million for the year.
8×8 has a market capitalization of roughly $2 billion and is valued at 3.8 times this year’s expected sales.