8x8, Inc. EGHT shares have fallen 19.6% since it reported third-quarter fiscal 2025 results on Feb. 4. The stock has lagged the broader  Zacks Computer and Technology sector’s 6.2% decline and the Zacks Internet – Software industry’s 6.3% drop in the past month.

8x8 also underperformed its industry peers, including CLEAR Secure YOU, Olo OLO and Guidewire Software GWRE.

While YOU shares have returned 9.2% over the past month, OLO and GWRE shares have lost 8% and 14.3%, respectively, during the same period.

EGHT’s share price decrease resulted from a weakness in total revenues. Notably, revenues fell 1.2% both sequentially and year over year to $179 million in the third quarter of fiscal 2025. The expected revenue decline from customers still on the Fuze platform contributed to the downturn. 8x8 faced forex headwinds of more than $2 million in the reported quarter, which pressured its financial performance.

However, key drivers, including strategic partnerships, platform enhancements and advancements in AI-powered services, strengthen 8x8’s long-term expansion potential.

Customer Experience-Driven Platform Drives EGHT

The company is offering the industry’s most integrated platform for customer experience, seamlessly combining Contact Center, Unified Communications, and CPaaS. This comprehensive approach enables businesses to streamline customer interactions, enhance collaboration and drive operational efficiency.

8x8 Secure Pay has been expanded to support secure and compliant payments across voice, touch-tone, SMS and email. This enhancement enables a fully automated customer experience through interactive voice response (IVR) or allows payments with the assistance of an agent, ensuring convenience and security.

The 8x8 Intelligent Customer Assistant now features a Voice Intelligent Directory for faster, more natural interactions. Callers simply state their request and AI instantly connects them to the right contact, ensuring seamless service. Integrated with 8x8 Contact Center and 8x8 Work, this upgrade enhances customer experience by streamlining customer engagement.

The Interaction Retrieval widget in the 8x8 Supervisor Workspace enables supervisors to quickly access all contact center interactions, including calls, messages, transcriptions and voicemails. With bulk download and easy retrieval of archived interactions, it streamlines workflow and saves valuable time.

EGHT Gains From Acquisitions & Partnerships

The Fuze acquisition has played a key role in driving growth by strengthening 8x8’s Experience Communications as a Service (XCaaS) platform. This strategic move has expanded the company’s global footprint, particularly in continental Europe, by integrating Fuze’s enterprise expertise. EGHT has made significant progress on the integration during the fourth quarter of fiscal 2025, keeping the transition on track for a smooth and timely completion, and ensuring minimal disruption to customers.

CallCabinet, a leader in compliant call recording, has joined the 8x8 Technology Partner Ecosystem, enhancing compliance capabilities for 8x8 users on Microsoft Teams. This partnership strengthens 8x8’s Microsoft Teams portfolio, reinforcing its commitment to delivering seamless, certified solutions for business communications and contact centers.

8x8 continues to expand its international presence, with a strong focus on the Asia-Pacific region, driven by growth of Platform-as-a-Service offerings. In the third quarter of fiscal 2025, the region secured its largest deal to date with a leading auto manufacturer, underscoring increasing market penetration.

A major U.S. retailer closed the largest follow-on deal in 8x8's history, selecting the company for a new contact center and expanding its UCaaS commitment. The customer is also considering additional 8x8 products, signaling strong engagement and growth potential.

EGHT’ Sales & Earnings Estimates Show Downtrend

For the fourth quarter of fiscal 2025, the Zacks Consensus Estimate for earnings is pegged at 8 cents per share, unchanged over the past 30 days. The consensus estimate indicates no year-over-year change.

The Zacks Consensus Estimate for fourth-quarter fiscal 2025 revenues is pegged at $178.04 million, suggesting a 0.76% decline from the prior-year quarter’s actual.

The Zacks Consensus Estimate for 2025 revenues is pegged at $716.06 million, implying a 1.74% year-over-year decline.

The consensus mark for 2025 earnings is pegged at 36 cents per share, up 2 cents in the past 30 days. The estimate indicates a 23.40% year-over-year decline.

Zacks Rank

8x8 currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a favorable entry point to accumulate the stock.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report

8x8 Inc (EGHT) : Free Stock Analysis Report

Olo Inc. (OLO) : Free Stock Analysis Report

CLEAR Secure, Inc. (YOU) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research