On its second-quarter fiscal 2027 earnings call, held on Nov. 4, 2026, 8x8 (NASDAQ:EGHT) announced that service revenue grew 4.9% year over year to $187.8 million. For long-term investors, the business is shifting toward lower-margin usage revenues while using expense discipline to expand operating profits and reduce long-term debt. Three takeaways from management explain how this transition is unfolding. Management is intentionally leaning into communications platform-as-a-service, or CPaaS, which provides software application programming interfaces that let apps send messages or enable calling. While usage-based products have a lower gross margin than traditional seat subscriptions, increasing volume can grow total operating profit as the business scales.
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