8X8 INC /DE/EGHT
8X8 INC /DE/ Revenue Disclosure
Revenue
Disaggregation of Revenue
The Company believes that the nature, amount, timing, and uncertainty of its revenue and cash flows are most appropriately depicted by (i) geographic region and (ii) type of revenue or service provided. Revenue is disaggregated between subscription and platform usage, as these categories reflect key differences in economic characteristics, including recurring, over-time subscription revenue and variable, usage-based revenue driven by customer consumption.
The following table sets forth the revenue geographic information based on the billing address of customers for each period (in thousands):
| Year Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| United States | $ | 447,309 | $ | 478,338 | $ | 507,507 | |||||||||||
| United Kingdom | 127,062 | 124,124 | 121,920 | ||||||||||||||
| Other international1 | 161,381 | 112,608 | 99,278 | ||||||||||||||
| Total revenue | $ | 735,752 | $ | 715,070 | $ | 728,705 | |||||||||||
Service revenue consists of communication services subscriptions and platform usage revenue and related fees from our UCaaS, CCaaS and CPaaS offerings. Subscription, platform usage, and other revenue were as follows (in thousands):
| Year Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Service revenue | |||||||||||||||||
| Subscription revenue | $ | 572,086 | $ | 601,162 | $ | 620,974 | |||||||||||
| Platform usage revenue | 143,173 | 91,761 | 79,605 | ||||||||||||||
| Total service revenue | 715,259 | 692,923 | 700,579 | ||||||||||||||
| Other revenue | 20,493 | 22,147 | 28,126 | ||||||||||||||
| Total revenue | $ | 735,752 | $ | 715,070 | $ | 728,705 | |||||||||||
Contract Balances
The following table provides amounts of contract assets and deferred revenue from contracts with customers (in thousands):
| March 31, 2026 | March 31, 2025 | ||||||||||
| Contract assets, current (component of Other current assets) | $ | 6,113 | $ | 7,009 | |||||||
| Contract assets, non-current (component of Other non-current assets) | 6,356 | 7,268 | |||||||||
| Deferred revenue, current | 36,699 | 37,751 | |||||||||
| Deferred revenue, non-current | 181 | 706 | |||||||||
Contract assets are recorded for contract consideration not yet invoiced but for which the performance obligations are completed. Contract assets, net of allowances for credit losses, are included in other current assets or other assets in the Company's consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. The allowance applied to our contract assets as of March 31, 2026 and 2025 and the activity in this account, including the current-period provision for expected credit losses for the years ended March 31, 2026, 2025 and 2024, were not material. As of March 31, 2024, contract assets, current and non-current were $9.5 million and $7.9 million, respectively. Accounts receivable, net, which also represents a contract balance arising from contracts with customers, including trade accounts receivable and unbilled trade accounts receivable, is disclosed in Note 4, Financial Statement Components.
The change in contract assets was primarily driven by billing customers for amounts that had previously been recognized in revenue but not yet billed. The change in deferred revenue was primarily driven by the recognition of subscription and professional services revenue on previously invoiced non-monthly contracts, partially offset by new non-monthly invoices billed during the year. As of March 31, 2024, deferred revenue, current and non-current were $34.3 million and $7.8 million, respectively. During the year ended March 31, 2026, 2025, and 2024, the Company recognized revenue of approximately $36.5 million, $34.7 million, and $38.7 million that was included in deferred revenue at the beginning of the fiscal year, respectively.
Remaining Performance Obligations
The Company's subscription terms typically range from one year to five years. Contract revenue from the remaining performance obligations that had not yet been recognized as of March 31, 2026, was approximately $660 million. This amount excludes contracts with an original expected length of less than one year. The Company expects to recognize revenue on approximately 87% of the remaining performance obligations over the next 24 months, including approximately 63% of the remaining performance obligations estimated to be recognized within 12 months, and approximately 13% estimated to be recognized over the remainder of the subscription period.
Deferred Contract Acquisition Costs
Deferred sales commissions are considered incremental and recoverable costs of acquiring customer contracts. Amortization of deferred contract acquisition costs for the years ended March 31, 2026, 2025, and 2024 was $33.1 million, $38.0 million, and $40.2 million, respectively. There were no material write-offs during the years ended March 31, 2026, 2025, and 2024.
The following table provides amounts of deferred contract acquisition costs from contracts with customers (in thousands):
| March 31, 2026 | March 31, 2025 | ||||||||||
| Deferred contract acquisition costs | $ | 25,193 | $ | 30,935 | |||||||
| Deferred contract acquisition costs, non-current | 34,562 | 44,239 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 22, 2026 | Showing above |
| 2025 | May 22, 2025 | |
| 2024 | May 21, 2024 | |
| 2023 | May 25, 2023 | |
| 2022 | May 27, 2022 | |
| 2021 | May 17, 2021 | |
| 2020 | May 19, 2020 | |
| 2019 | May 21, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.