<SEC-DOCUMENT>0001023731-24-000004.txt : 20240227
<SEC-HEADER>0001023731-24-000004.hdr.sgml : 20240227
<ACCEPTANCE-DATETIME>20240126132400
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001023731-24-000004
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240126

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			8X8 INC /DE/
		CENTRAL INDEX KEY:			0001023731
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
		ORGANIZATION NAME:           	06 Technology
		IRS NUMBER:				770142404
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		675 CREEKSIDE WAY
		CITY:			CAMPBELL
		STATE:			CA
		ZIP:			95008
		BUSINESS PHONE:		4087271885

	MAIL ADDRESS:	
		STREET 1:		675 CREEKSIDE WAY
		CITY:			CAMPBELL
		STATE:			CA
		ZIP:			95008

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NETERGY NETWORKS INC
		DATE OF NAME CHANGE:	20000912

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	8X8 INC
		DATE OF NAME CHANGE:	19961023
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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<title>Document</title></head><body><div id="i52c7f3230ac0430f9f41b4c425979c4d_1"></div><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div style="text-align:center"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">January 26, 2024</font></div><div><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">VIA EDGAR</font></div><div><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Dave Edgar, Staff Accountant</font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Kathleen Collins, Accounting Branch Chief</font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Division of Corporate Finance</font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Office of Technology</font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">United States Securities and Exchange Commission</font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Washington, DC 20549</font></div><div><font><br></font></div><div><font><br></font></div><div style="text-align:justify;text-indent:44pt"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Re&#58; 8X8, Inc.</font></div><div style="text-align:justify;text-indent:63pt"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Form 10-K for the Year Ended March 31, 2023 </font></div><div style="text-align:justify;text-indent:63pt"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Form 10-Q for the Quarter Ended September 30, 2023</font></div><div style="text-align:justify;text-indent:63pt"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">File No. 001-38312</font></div><div style="text-align:justify;text-indent:63pt"><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Dear Mr. Edgar and Ms. Collins,</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Set forth below is the response of 8x8, Inc. (the &#8220;</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Company</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">&#8221; or &#8220;</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">we</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">&#8221; or &#8220;</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">us&#8221;</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">) to the comment of the staff of the U.S. Securities and Exchange Commission&#8217;s (the &#8220;</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">SEC</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">&#8221;) Division of Corporation Finance of the Commission (the &#8220;</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Staff</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">&#8221;) set forth in the Staff&#8217;s letter to the Company, dated January 24, 2024 (the &#8220;</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Comment</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%"> </font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Letter</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">&#8221;), with respect to the Company&#8217;s Form 10-K for the fiscal year ended March 31, 2023 and filed on May 25, 2023 (the &#8220;</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Form 10-K</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">&#8221;), and the Company&#8217;s Form 10-Q furnished on November 3, 2023 (the &#8220;</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:115%">Form 10-Q</font><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">&#8221;).</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">For ease of reference, the comment contained in the Comment Letter is printed below and is followed by the Company&#8217;s response. The Staff&#8217;s comment has been indicated in bold italics. </font></div><div style="text-align:justify"><font><br></font></div><div><font><br></font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%;text-decoration:underline">Form 10-Q for the Quarter Ended September 30, 2023</font></div><div><font><br></font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%;text-decoration:underline">Management's Discussion and Analysis of Financial Condition and Results of Operations</font></div><div><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%;text-decoration:underline">Summary and Outlook, page 19</font></div><div><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-36pt"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:102%">1.</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-style:italic;font-weight:700;line-height:102%;padding-left:27pt">We note from your response to prior comment 2 that in fiscal 2024, you began evaluating your operational performance based on change in ARR by customer size category and not specific customer counts. We also note that you rely on the growth percentage within the specific ARR customer size categories (i.e. enterprise, mid-market and small business) as a measure of potential future performance. Please confirm that you will include a discussion of period-over-period change in ARR by customer size category in future filings. In this regard, you refer here to the increase in enterprise customer ARR from fiscal 2019 to fiscal 2024 without discussing the decrease in enterprise ARR from the comparable period in fiscal 2023. Similarly, you refer to the percentage of ARR for small business customers in fiscal 2024 only and do not specifically discuss the percentage of ARR from mid-market customers for either period.</font></div><div style="padding-left:36pt;text-align:justify;text-indent:-36pt"><font><br></font></div><div style="padding-left:72pt;text-align:justify;text-indent:-36pt"><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:102%">Response&#58;</font></div><div style="padding-left:72pt;text-align:justify;text-indent:-36pt"><font><br></font></div><div style="padding-left:36pt;text-align:justify"><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:102%">We respectfully acknowledge the Staff&#8217;s comment and will revise future filings (including Form 10-Q &#38; 10-K filings) to include a discussion of period-over-period change in ARR by customer size category.</font></div><div><font><br></font></div><div style="padding-left:36pt"><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">For the Staff&#8217;s consideration, please see an illustrative example of the Company&#8217;s proposed disclosure (with proposed new text bold and underlined)&#58;</font></div><div><font><br></font></div><div style="padding-left:36pt"><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">&#8220;We use annualized recurring and usage revenue (&#34;ARR&#34;) to measure the success of our strategy to attract and retain customers. </font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%;text-decoration:line-through">Total ARR as of September 30, 2023 was $707 million and increased 2% from the end of the second quarter of fiscal 2023. ARR from mid-market and enterprise customers represented 76% of total ARR and remained flat compared to the end of the second quarter of fiscal 2023. </font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">We define enterprise customers as customers generating more than $100,000 in ARR, mid-market as customers with ARR between $25,000 and $100,000, and small business as customers with up to $25,000 in ARR. </font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%;text-decoration:underline">Customers can change categories over time based on individual ARR</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%"> </font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%;text-decoration:line-through">Mid-market customers may become enterprise customers over time as they expand their deployments and adopt more solutions from our XCaaS portfolio</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">. </font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%;text-decoration:underline">The Company continues to review ARR growth, as well as changes in the mix, within the Enterprise, Mid-Market and Small Business categories and relies on the growth percentage as one of the measures of potential future performance within the specific ARR by customer size categories.</font></div><div><font><br></font></div><div style="padding-left:36pt"><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%;text-decoration:underline">Total ARR increased 2% to $707 million during the three months ended September 30, 2023 from $692 million during the three months ended September 30, 2022. Enterprise ARR increased 1% to $407 million during the three months ended September 30, 2023 from $401 million during the three months ended September 30, 2022. Mid-Market ARR increased 3% to $131 million during the three months ended September 30, 2023 from $127 million during the three months ended </font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">2</font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div style="padding-left:36pt"><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:700;line-height:120%;text-decoration:underline">September 30, 2022.  Small Business ARR increased 4% to $170 million during the three months ended September 30, 2023 from $164 million during the three months ended September 30, 2022.</font></div><div style="padding-left:36pt"><font><br></font></div><div style="padding-left:36pt"><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%;text-decoration:line-through">ARR from enterprise customers has increased steadily as a percentage of total ARR, increasing from 35% of total ARR in fiscal 2019 to 58% of total ARR at the end of the second quarter of fiscal 2024. </font></div><div style="padding-left:36pt"><font><br></font></div><div style="padding-left:36pt"><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%;text-decoration:line-through">ARR associated with small business customers was 24% of total ARR for the second quarter of fiscal 2024.</font><font style="color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%"> We remain committed to retaining our installed base of small business customers but have reduced promotional programs and digital marketing to attract new small business UCaaS-only customers. See &#34;Key Business Metrics&#34; below for further discussion on how we define ARR.&#8221;</font></div><div><font><br></font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:102%">Should the Staff have additional questions or comments regarding the foregoing, please do not hesitate to contact the undersigned at suzy.seandel&#64;8x8.com or (231) 431-0249.</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Sincerely,</font></div><div><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%;text-decoration:underline">&#47;s&#47;Suzy Seandel</font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Suzy Seandel</font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">Chief Accounting Officer</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:115%">cc&#58;8x8, Inc.</font></div><div style="text-indent:13.5pt"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">Kevin Kraus, Chief Financial Officer</font></div><div style="text-indent:13.5pt"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">Larry Denny, Chief Legal Officer</font></div><div><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%"> </font></div><div><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">cc&#58;Skadden, Arps, Slate, Meagher &#38; Flom LLP</font></div><div style="text-indent:13.5pt"><font style="background-color:#ffffff;color:#1d2228;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">Thomas J. Ivey</font></div><div><font><br></font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div style="text-align:center"><font style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%">3</font></div></div></div></body></html>
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</SEC-DOCUMENT>
