Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

The number of shares of the Registrant's common stock outstanding as of May 16, 20192022 was 96,287,366.118,234,503.

Forward-Looking Statements and Risk Factors

Statements contained in this annual report on Form 10-K, or Annual Report,this "Annual Report", regarding our expectations, beliefs, estimates, intentions or strategies are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 ( the "Securities Act") and Section 21E of the Securities Exchange Act of 1934.1934, as amended (the "Exchange Act"). Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: industry trends; our number of customers; average annual service revenue per customer; cost of service revenue; research and development expenses; hiring of employees; sales and marketing expenses; and general and administrative expenses in future periods; and the impact of the COVID-19 pandemic. You should not place undue reliance on these forward-looking statements. Actual results and trends may differ materially from historical results and those projected in any such forward-looking statements depending on a variety of factors. These factors include, but are not limited to:

The forward-looking statements may also be impacted by the additional risks faced by us as described in this Annual Report, including those set forth under the section entitled "Risk Factors." All forward-looking statements included in this Annual Report are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this Annual Report, which attempts to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

Our fiscal year ends on March 31 of each calendar year. Each reference to a fiscal year in this Annual Report refers to the fiscal year ended March 31 of the calendar year indicated (for example, fiscal 20192022 refers to the fiscal year ended March 31, 2019)2022).

Unless the context requires otherwise, references to "we," "us," "our," "8x8""8x8," and the "Company" refer to 8x8, Inc. and its consolidated subsidiaries.

ITEM 1. BUSINESS

Overview

8x8 is transforming the future of business communications as a leading cloudSoftware-as-a-Service ("SaaS") provider of enterprise Software-as-a-Service (SaaS)voice, team chat, video meetings, contact center, and embeddable communication APIs powered by a global cloud communications solutions, that enable businessesplatform. 8x8 empowers workforces worldwide by connecting individuals and teams so they can collaborate faster and work smarter from anywhere. 8x8 provides real-time business analytics and intelligence, giving its customers unique insights across all interactions and channels on its platform so they can support distributed and agile workplace models while delighting their end-customers and accelerating their business. 8x8 has more than 2.5 million paid business users.

Until recently, the unified communications market had been one of all sizesthe last technology segments to transition to the cloud. The rapid acceleration of digital transformation, availability of broadband, and the global COVID-19 pandemic have boards and executive leadership teams increasingly looking towards secure cloud communications as a core element of business resilience. Through seamless, personalized engagement, these organizations are able to drive differentiated customer experiences. We believe the ability for employees to communicate fasterproductively from either a single, easy-to-use application or directly within their existing business applications is quickly becoming a fundamental differentiator in digital transformation.

The 8x8 XCaaS ("eXperience Communications as a Service") open communications platform is a highly available, fully redundant solution, supported by a single, standardized and smarterfinancially-backed Service Level Agreement across voice, video meetings, chatunified communications as a service ("UCaaS") and contact centers, transforming both employee and customer experiences with communications that work simply, integrate seamlessly, and perform reliably. Fromcenter as a service ("CCaaS"). The 8x8 XCaaS platform is one proprietaryof the industry’s most complete cloud technology stacks and operates as a SaaS business model. A consistent data layer across the platform customers have accesspowers 8x8 AI/ML (artificial intelligence/machine learning) algorithms to unified communications, team collaboration, video conferencing, contact center, datadeliver data-driven business insights and analyticsintelligent, comprehensive, and other services.

Our XCaaS solution is supported by 8x8 through its data security and compliance certifications, including HIPAA, FISMA and ISO 27001,which meet or exceed the requirements of government and industry agencies around the world.

We are committed to developingThrough our integrated technology platform, we offer our customers a portfolio of voice, video, contact center, chat and delivering the most innovative, reliable, scalableteam collaboration, communication APIs, and secure cloud communications software for global business communications. Our strategy is informed by evolving market dynamics and a broad market focus across all customer sectors, along with the unique attributes of our technology.

Designated X1 through X8, we offerthe 8x8 X Series offers the following service plans and capabilities in the 8x8 X Series:capabilities:

The result is a communication, meeting, and contact center engagement platform that enables businesses to move at the speed of employee and customer expectations, leading to less churn and more revenue. While we believe in and continue to emphasize the power of the platform as the collective offering of our solutions, we also make our solutions available independently to introduce customers to our platform and expand their platform engagement over time.

We introduced our first communications SaaS offeringhave a diverse and growing customer base of more than 60,000 organizations, with users in 2002, and have since heavily invested in expanding our platform, solutions, features and capabilities. Our services are powered by internally-owned and operated technologies and are delivered to our customers from our micro services based cloud communications platform. We hold more than 170 United States patents coveringcountries, including companies of every size and across a varietywide range of voiceindustries and video communications, signaling, processing, analytics, and storage technologies. Manyuse cases. No single customer represented 10% or more of our current patents apply to the communications software usedrevenues in our various SaaS solutions.fiscal 2022, 2021, and 2020.

We market our services directly to end users through a variety of means, including search engine marketing and optimization, third-party lead generation sources, industry conferences, trade shows, webinars, and digital advertising channels. We employprimarily sell our solutions and subscriptions through a direct sales organization, consisting of inside and field-based sales agents and we partner with an indirect channel partner network consisting of master agents and the sub agent community, value-added resellers (VARs), independent software vendors (ISVs), system integrators and service providers. We typically contract directly with the end customer and use these channel partners to identify, qualify and manage prospects throughout the sales cycle, although we also have arrangements with a number of partners who resell our services to their own customers, with whom we do not contract directly. For mid-market and enterprise customers, our sales professionals work closely with inside technical support, sales engineers and deployment specialists to develop customized solution proposals based on individual customer requirements.

The cloud communications market is characterized by rapid technological changes and advancements typical of most SaaS markets. Accordingly, we make substantial investments in the design and development of new products and services, as well as the development of enhancements and features to our existing products and services, and make these enhancements available to our customers frequently. Research and development expenses in each of the fiscal years ended March 31, 2019, 2018, and 2017 were $62.1 million, $36.4 million, and $29.0 million, respectively.

In the United States, VoIP and other software communications and collaboration services, like ours, have beenat the federal level, we are subject to less regulation atby the state and federal levels than traditional telecommunications services. The Federal Communications Commission (FCC) has subjected(the "FCC") as a provider of Voice over Internet Protocol ("VoIP"), as well as state and local regulations applicable to VoIP service providersproviders. For example, regulations we are subject to a subsetinclude E-911 services, porting of phone numbers under specific conditions, protection of customer data generated by the regulations that applyuse of our services, and obligations to traditional telecommunications service providers and has not yet classified VoIP services as either telecommunications or information. The FCC is currently examining the status of VoIP service providers and the services they provide in multiple open proceedings.

In addition to regulations addressing Internet telephony and broadband services, other regulatory issues relating toat the Internet generally could affect our ability to provide our services. Congress has adopted legislation that regulates certain aspects of the Internet including online content, user privacy, taxation, liability for third-party activities and jurisdiction. In addition, a number of initiatives pending in Congressfederal and state legislatures would prohibit or restrict advertising or sale of certain products and services on the Internet, which may have the effect of raising the cost of doing business on the Internet generally. Certainlevels, many states are also enacting privacy legislation. In particular,legislation that apply to companies like us, which collect, store, and process many types of data, including personal data. California has enacted the California Consumer Privacy Act (CCPA) which is scheduled to go into effect January 1, 2020.(the "CCPA") and adopted the California Privacy Rights Act (the “CPRA"). The CCPA imposesand the CPRA impose new obligations on for profitqualifying for-profit companies, includinglike us, doing business in California with annual gross revenue in excess of $25 million, and substantially increases potential liability for such companies for failure to comply with data protection rules applicable to California residents. In addition, Virginia, Colorado, and Utah have passed privacy laws that will be effective in 2023.

Internationally, we are subject to a complex patchwork of regulations that vary from country to country. Some countries have adopted laws that make the provision of VoIP services illegal within the country. Other countriesCountries have adopted laws that impose stringent licensing obligations on providers of VoIP services like ours. In many countries, it is not clear how laws that have historically been applied to traditional telecommunications providers will be applied to providers of VoIP services like us. On May 4, 2016,In the European Union (EU) formally adopted(the "EU"), the General Data Protection Regulation or GDPR, which became effective on May 25, 2018, replacing the Data Protection Directive 95/46/EC. The GDPR(the "GDPR") imposes new obligations on all companies like us that collect, store, and process many types of data, including us,personal data, and substantially increases potential liability for all companies, including us, for failure to comply with data protection rules.

The effect of any future laws, regulations, and orders or any changes in existing laws or their enforcement, including the application of new taxes and regulations on communication applications like ours running over the internet, on our operations cannot be determined. But as a general matter, increased regulation andSee the imposition of additional funding obligations increases service costs that may or may not be recoverable from our customers. An increasesection entitled “Risks Related to Regulatory Matters” in these costs could make our services less competitive with traditional telecommunications services, if we increase our prices, or decrease our profit margins, if we attempt to absorb such costs.

As of March 31, 2019, our workforce consisted of 1,4972022, we had 2,216 full time employees mostoperating around the world, of whomwhich 1,245 are located inoutside of the US, UK, and Romania.United States. None of our employees are represented by a labor union nor subject to a collective bargaining arrangement.

We were incorporated in California in February 1987 and reincorporated in Delaware in December 1996. We maintain a corporate Internet website at the address http://www.8x8.com. The contents of this website are not incorporated in or otherwise to be regarded as part of this Annual Report. We file reports with the Securities and Exchange Commission or SEC,(the "SEC"), which are available on our website free of charge. These reports include annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, registration statements, proxy statements, and amendments to such reports, each of which is provided on our website as soon as reasonably practicalpracticable after we electronically file such materials with or furnish them to the SEC. In addition, the SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including 8x8.

Our executive officers as of the date of this report are listed below.

ITEM 1A. RISK FACTORS

In addition, changes in regulations, accounting principles, and our interpretation of these and judgments used in applying them, could have a material effect on our results of operations. We also need to revise our business processes, systems, and controls, which require significant management attention and may negatively affect our financial reporting obligations. If any of these events were to occur, the price of our common stock would likely decline significantly.

We generate revenue primarily from the sale of subscriptions to our cloud communications services to our customers, which include small and mid-size businesses, mid-market and larger enterprises, government agencies and other organizations. We define a “customer” as the legal entity or entities to which we provide services pursuant to a single contractual arrangement. Our future success depends on our ability to significantlycontinue to increase the amount of revenue generatedwe generate, and the rate at which our revenues increase, from new and existing customers.

If our sales and marketing efforts are not effective in identifying and qualifying prospective new customers, demonstrating the quality, value, features and capabilities of our cloud software solutions, especially XCaaS, to businessthose prospects and promoting our brand generally, we may not be able to acquire new customers including small and mid-size businesses (SMBs) as well as mid-market and larger enterprises. To increaseat the rate necessary to achieve our revenue wetargets. We must add new customersalso continue to design, develop, offer and encourage existing customers to continue their subscriptions (on terms favorable to us), increase their usage of oursell services and/or purchase additional services from us. For customer demand and adoption of our cloud communications solutions to grow, thewith quality, cost, features and feature benefits of these services mustcapabilities that compare favorably to those of competing services. For example,offered by our cloud unified communications and contact center services must continue to evolve so that high-quality service and features can be consistently offered at competitive prices.competitors. As our target markets mature, or as competitors introduce lower cost and/or more differentiated products or services that compete or are perceived to compete with ours, we may be unable to renew or extend our agreements with existing customers or attract new customers, or new business from existing customers, on favorable terms, or at all, which could have an adverse effect on our revenue and growth.

The rate at whichIn addition to acquiring new customers, we generate new revenue by selling our existing customers purchase anyadditional quantities of subscribed services, or subscriptions to new or enhancedupgraded services. Particularly in the case of large enterprises, we often have opportunities to expand the sale of our services within an organization after we have completed an initial sale to one part of the organization (for example, a business unit, division or department, or personnel based in a particular country or region) and the organization has qualified us as a vendor. We invest in efforts to educate and train users on the features and capabilities of our services so that they can become advocates within their organizations and encourage increased adoption of our solutions. However, if existing users within an organization are dissatisfied with any aspect of our cloud services, or the technical support, training or other professional services we provide, we may offer depends onface challenges in up-selling or increasing our penetration of the organization.

The cloud communications industry is competitive and rapidly evolving. We expect the industry to be increasingly competitive in the future due to a number of factors including, general economic conditions,but not limited to, the importanceentry into the market of new competitors or the consolidation of existing competitors. Because we offer multiple services from a single platform, we compete with businesses in several overlapping industries, including voice, video meetings, chat, team messaging, contact center and enterprise-class API solutions.

We also face competition from Internet and cloud service companies such as Alphabet Inc. (Google Voice and Google Meet), Amazon Inc., and Microsoft Corporation. Some of these additionalcompetitors have developed software solutions for their respective communications and/or collaboration silos, such as Microsoft, which is investing significantly in its Microsoft Teams unified communication and collaboration product. Any of these companies could launch a new cloud-based business communications service, expand its existing offerings to compete with features andof our services, to our customers, the quality and performanceor enter into a strategic partnership with, or complete an acquisition of, one or more of our cloud communications solutions,competitors.

Many of our current and the price at whichpotential competitors have greater resources and brand awareness and a larger base of customers than we offer them. If our customers react negativelyhave. As a result, these competitors may have greater marketing credibility. They also may adopt more aggressive pricing policies and devote greater resources to our new or enhanced service offerings, such as our recently launched X Series suite of services, or our efforts to upsell are otherwise not as successful as we anticipate, our business may suffer. Our sales strategies must also continue to evolve and adapt as our market matures, for example through the offering of additional customer self-service tools and automation for the SMB sector and the development, promotion, and sale of newtheir products and services. Our competitors may also offer bundled service arrangements that present a more sophisticated sales channels that leverage the strengths of our partners. In addition, marketing and selling new and enhanced featuresdifferentiated or better integrated product and services may require increasingly sophisticated and costly sales and marketing efforts that mayto customers. Increased competition could require us to incur additional expenseslower our prices, reduce our sales revenue, increase our gross losses or cause us to lose market share. Announcements or expectations as to the introduction of new products and negatively impact the resultstechnologies by our competitors or us could cause customers to defer purchases of our operations.

Given the significant price competition in the markets for our services, we do not help our customers quickly resolve post-implementation issues and provide effective ongoing support, our ability to sell additional features and services to existing customers will suffer and our reputation may be harmed.at a disadvantage compared with those competitors who have substantially greater resources than us or may otherwise be better positioned to withstand an extended period of downward pricing pressure. The harm to our business may be magnified if we are unable to adjust our expenses to compensate for such shortfall, or if we determine that we need to increase our marketing and sales efforts in order to attract new customers and retain existing customers.

Our future business could be harmed.

We currently derive a majority of our revenuesnew revenue growth from sales of our cloud software solutions to mid-market and larger enterprises, and we believe that increasing our sales to these customers is the key to our future growth. Our sales cycle, which is the time between initial contact with a potential customer and the ultimate sale to that customer, is often lengthy and unpredictable for larger enterprise customers. Many of our prospective enterprise customers do not have prior experience with cloud-based communications and therefore, typically spend significant time and resources evaluating our solutions before they purchase from us. Similarly, we typically spend more time and effort determining their requirements and educating these customers about the benefits and uses of our solutions. Enterprise customers also tend to demand more customizations, integrations, and additional features than SMBsmaller customers. As a result, we may be required to divert more sales and engineering resources to a smaller number of large transactions than we have in the past, which means that we will have less personnel available to support other sectors, or that we will need to hire additional personnel, which would increase our operating expenses.

It is often difficult for us to forecast when a potential enterprise sale will close, the size of the customer's initial service order, and the period over which the implementation will occur, any of which may impact the amount of revenue we recognize or the timing of revenue recognition. Enterprise customers may delay their purchases from one quarter to another as they assess their budget constraints, negotiate early contract terminations with their existing providers, or wait for us to develop new features. Any delay in closing, or failure to close, a large enterprise sales opportunity in a particular quarter or year could significantly harm our projected growth rates and cause the amount of new sales we book to vary significantly from quarter to quarter. We also may have to delay revenue recognition on some of these transactions until the customer's technical or implementation requirements have been met.

We operate in an emerging market that is characterized by rapid changes in customer requirements, frequent introductions of new and enhanced products and services, and continuing and rapid technological advancement. To compete successfully in this emerging market, we must continue to design, develop, manufacture, and sell highly scalable new and enhanced cloud software solutions products and services that provide higher levels of performance and reliability at lower cost. If we are unable to develop new products and services that address our customers' needs, to deliver our cloud software solution applications in one seamless integrated service offering that addresses our customers' needs, or to enhance and improve our products and services in a timely manner, we may not be able to achieve or maintain adequate market acceptance of our services.

Our ability to grow is also subject to the risk of future disruptive technologies. Access and use of our products and services is provided via the cloud, which, itself, has been disruptive to the previous premises-based model.

Companies in the cloud communications industry compete aggressively for top talent in all areas of business, but particularly senior management, sales and marketing, professional services, and engineering, where employees with industry experience, technical knowledge and specialized skill sets are unable to develop new features and services internally due to factors such as competitive labor markets, high employee turnover, lack of management ability or a lack of other research and development resources, we may miss market opportunities. Further, manyparticularly valued. Some of our competitors are responding to these competitive pressures by increasing employee compensation, paying more on average than we pay for the same position or offering more attractive equity compensation. Consequently, we have historically spentseen attrition increase in the last 12 months. Any such disparity in compensation could make us less attractive to candidates as a greater amount of funds on their research and development programs, and those that do notpotential employer, which in turn may be acquired by larger companies that would allocate greater resources to our competitors' research and development programs. In addition, there is no guarantee that our research and development efforts will succeed, or that our new products and services will enable us to maintain or grow our revenue or recover our development costs. Our failure to maintain adequate research and development resources, to compete effectively with the research and development programs of our competitors and to successfully monetize our research and development efforts could materially and adversely affect our business and results of operations.

We haveIf an employee of 8x8 leaves to work for a history of losses andcompetitor, not only are uncertain of our future profitability.

If we increase employee compensation (beyond levels that reflect customary performance-based and/or cost-of-living adjustments) in response to competitive pressures, we may sustain greater operating losses than we predicted in the near term, and we may not achieve profitability within the timeframe we had expected, or at all. In addition, we willmay need to appropriately scale our internal business systemsissue equity at increased levels, now and our services organization,in the future, to attract and retain key employees and executives, including customer support and services and regulatory compliance, to serve our growing customer base. Any failure or delay in these efforts could cause impaired system performance and reduced customer satisfaction. These issues could reduce the attractivenessweighting a greater percentage of our cloud software solutionsemployees' total compensation in the form of equity as opposed to customers, resulting in decreased sales to new customers, lower renewal rates by existing customers,cash, which will have the issuanceadverse effect of service credits, or requested refunds, which could hurtincreasing dilution for our revenue growth and our reputation. These system upgrades and the expansion of our support and services have been and will continue to be expensive and complex, requiring management time and attention and increasing our operating expenses. We could also face inefficiencies or operational failures as a result of our efforts to scale our infrastructure and information technology systems. There are inherent risks associated with upgrading, improving and expanding our information technology systems and we cannot be sure that the expansion and improvements to our infrastructure and systems will be fully or effectively implemented on a timely basis, if at all. These efforts may reduce revenue and our margins and adversely impact our financial results.

The applicability of state and local taxes, fees, surcharges or similar taxes to our services is complex, ambiguous, and subject to interpretation and change. In the United States, for example, we collect state and local taxes, fees, and surcharges based on our understanding of the applicable laws in the relevant jurisdiction. The taxing authorities may challenge our interpretation of the laws and may assess additional taxes, penalties, and interests, which could have adverse effects on the results of operations. The loss of accessoperations and, to or requirement to change, the telephone numbersextent we providepass these through to our customers, demand for our services. Additionally, the applicability of sales and use, value added, or similar taxes may differ between services such as unified communication, voice, video, contact center, and platform communications so that the obligations to collect taxes from customers may vary between services and between companies such that we may be obligated to collect taxes at a higher rate that other services from our competitors, thereby impacting customer demand for our services. We currently file more than 1,000 state and municipal tax returns monthly. Periodically, we have received inquiries from state and municipal taxing agencies with respect to the remittance of state or municipal taxes, fees, or surcharges. Currently, several jurisdictions are conducting audits of 8x8; in the event our positions are unsuccessful, we may be subject to tax payments, interest, and penalties in excess of those that we have accrued for. As of March 31, 2022, we have accrued for state or municipal taxes, fees, or surcharges that we believe are required to be remitted.

As of March 31, 2022, we had federal net operating loss (“NOL”) carryforwards related to fiscal 2019 and later of approximately $1,322.1 million, which carryforward indefinitely, and carryforwards related to prior years of $490.5 million, which begin to expire in 2023. As of March 31, 2022, the Company had state net operating loss carryforwards of $1,067.9 million, which expire at various dates between 2023 and 2042. We also had research and development credit carryforwards for federal and California tax purposes of approximately $17.3 million and $19.6 million, respectively. The federal income tax credit carryforwards related to research and development will expire at various dates between the calendar years 2023 and 2042, while the California income tax credits will carry forward indefinitely, but are subject to an annual cap of $5 million for tax years beginning on or after January 1, 2020 and before January 1, 2022. Utilization of our NOL and tax credit carryforwards can become subject to a substantial annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. A Section 382 ownership change generally occurs if one or more stockholders or groups of stockholders who own at least 5% of the stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws. Such an ownership change, or any future ownership change, could have a material adverse effect on our business, financial conditionability to utilize the NOL or research credit carryforwards. In addition, under the Tax Cuts and Jobs Act, or the Tax Act, the amount of NOLs that we are permitted to deduct in any taxable year is limited to 80% of the taxable income in such year. Under the CARES Act, this 80% limitation has been eliminated for tax years beginning before January 1, 2021. There is a risk that due to changes under the Tax Act, regulatory changes, or other unforeseen reasons, the existing NOLs could expire or otherwise be unavailable to offset future income tax liabilities, which could have a material impact on our net income (loss) in future periods.

DueOur customers use our communications services to our reliance on these service providers, when problems occur in a network, it may be difficultmanage important aspects of their businesses, and any errors, defects, outages, or disruptions to identify the source of the problem. The occurrence of hardware and software errors, whether caused by our service or products or thoseother performance problems with our service, could hurt our reputation and may damage our customers' businesses, any of another vendor,which may result in the delay or lossour granting of market acceptance ofcredits to customers that in turn would reduce our products andrevenue. Our services and any necessary revisionsthe systems infrastructure underlying our cloud communications platform incorporate software that is highly technical and complex. Our software has contained, and may force usnow or in the future contain, undetected errors, bugs, or vulnerabilities to incur significant expenses. Underhackers, which have caused, and may in the terms of the "end-to-end"future cause, temporary service level commitments that we make for the benefit of qualifying customers, we are potentially at risk for service problems experienced by these service providers. Customers who do not qualify for these enhanced service level commitments may nevertheless hold us responsible for these service issues and seek service credits, early termination rightsoutages or other remedies. Accordingly, service issues experienced bydisruptions for some customers. Some errors in our service provider partnerssoftware code may harmnot be discovered until after the code has been released. Any errors,

bugs, or vulnerabilities discovered in our reputation as well as our business, financial condition or operating results.

Our leased network and data centers as well as public cloud infrastructure, are subject to various points of failure. Problems with cooling equipment, generators, uninterruptible power supply, routers, switches, or other equipment, whether or not within our control, could result in service interruptions for our customers as well as equipment damage. Because our services do not require geographic proximity of our data centers to our customers, our infrastructure is consolidated into a few large data center facilities. Any failure or downtime in one of our data center facilities could affect a significant percentage of our customers. While our data center facilities are currently operating as essential businesses exempt from current shelter-in-place orders, further tightening of business closure orders or social distancing or COVID-19 outbreaks could negatively impact these facilities. The total destruction, closure, or severe impairment of any of our data center facilities could result in significant downtime of our services and the loss of customer data. Because our ability to attract and retain customers depends on our ability to provide customers with highly reliable service, even minor interruptions in our service could harm our reputation. Additionally, in connection with the expansion or consolidation of our existing data center facilities from time to time, there is an increased risk that service interruptions may occur as a result of server relocation or other unforeseen construction-related issues.

We have experienced interruptions in service in the past. While we have not experienced a material increase in customer attrition following these events, theThe harm to our reputation is difficult to assess.assess, but has resulted and may result in the future in customer attrition. We have taken and continue to take steps to improve our infrastructure to prevent service interruptions, including upgrading our electrical and mechanical infrastructure. However, service interruptions continue to be a significant risk for us and could have a material adverse impact on our business.

Any future service interruptions could:

We may be required to transfer our servers to new data center facilities or public cloud load to a different public cloud provider in the event that we are unable to renew our agreement or leases on acceptable terms, or at all, or the owners of the facilities decide to close their facilities, and we may incur significant costs and possible service interruption in connection with doing so. In addition, any financial difficulties, such as bankruptcy or foreclosure, faced by our third-party data center operators, or any of the service providers with which we or they contract, may have negative effects on our business, the nature and extent of which are difficult to predict. Additionally, ifIf our data centers or our public cloud providers are unable to keep up with our increasing needs for capacity, our ability to grow our business could be materially and adversely impacted.

We rely on third-party vendors for IP phonesAs usage of our cloud software solutions by mid-market and software endpointslarger enterprises expands and as customers continue to integrate our services across their enterprises, we are required to utilizedevote additional resources to improving our service. We currently do not have long-term supply contractsapplication architecture, integrating our products and applications across our technology platform, integrating with any of these vendors.third-party systems, and maintaining infrastructure performance. As a result most of the COVID-19 pandemic, we have seen increased usage of our services from our existing customers. To the extent we increase our customer base and as our customers gain more experience with our services, the number of users and transactions managed by our services, the amount of data transferred, processed, and stored by us, the number of locations where our service is being accessed, and the volume of communications managed by our services have in some cases, and may in the future, expand rapidly. In addition, we will need to appropriately scale and modernize our internal business systems and our services organization, including customer support, sales operations, billing services, and regulatory, privacy and cybersecurity compliance, to serve our growing customer base. Any failure or delay in these third-party vendorsefforts could cause impaired system performance and reduced customer satisfaction. These issues could adversely impact our reputation and brand and reduce the attractiveness of our cloud software solutions to customers, resulting in decreased sales to new customers, lower renewal rates by existing customers, and the issuance of service credits, or requested refunds, which could hurt our revenue growth and our reputation.

An important component of our growth strategy involves the further expansion of our operations and customer base internationally. We have formed subsidiaries outside the United States, including a subsidiary in Romania that contributes significantly to our research and development efforts. Additionally, through acquisitions, we have expanded into the United Kingdom and Southeast Asia. The risks and challenges associated with sales and other operations outside the United States are not obligateddifferent in some ways from those associated with our operations in the United States, and we have a limited history addressing those risks and meeting those challenges. Our current international operations and future initiatives, including Southeast Asia, will involve a variety of risks, including:    

We have limited experience in operating our business internationally, which increases the risk that any potential future expansion efforts that we may undertake will not be successful. We expect to invest substantial time and resources to expand our international operations. If we are unable to do this successfully and in a timely manner, particularlyour business and operating results could be materially adversely affected.

Although we have acquired several companies and business units in recent years, including Fuze, we have limited experience with purchasing and integrating other businesses. We may not be availableable to identify suitable acquisition candidates in quantitiesthe future or negotiate and complete acquisitions on favorable terms.

If appropriate opportunities present themselves, we may decide to acquire such companies or their products, technologies or assets. Acquisitions involve numerous risks, and there is no guarantee that we will ultimately strengthen our competitive position or achieve other benefits expected from the transaction. Among other risks we may encounter in time framesconnection with acquisitions:

The functionality and popularity of our cloud software solutions depends, in part, on our ability to integrate our services with third-party applications and platforms, including enterprise resource planning, customer relations management, human capital management, workforce management, and other proprietary application suites. Third-party providers of applications and application programmable interfaces, or APIs, may change the features of their applications and platforms, restrict our access to their applications and platforms or alter the terms governing use of their applications and APIs and access to those applications and platforms in an adverse manner. Such changes could functionally limit or terminate our customers’ ability to use these third-party applications and platforms in conjunction with our services, which could negatively impact our offerings and harm our business. If we fail to integrate our software with new third-party back-end enterprise applications and platforms used by our customers, we may not be able to offer the functionality that our customers need, which would negatively impact our ability to generate revenue and adversely impact our business.

Our services also allow our customers to use and manage our cloud software solutions on smartphones, tablets, and other mobile devices. As new smart devices and operating systems are released, we may encounter difficulties supporting these devices and services, and we may need to devote significant resources to the creation, support, and maintenance of our mobile applications. In addition, if we experience difficulties in the future integrating our mobile applications into smartphones, tablets, or other mobile devices, or if problems arise with our relationships with providers of mobile operating systems, such as those of Apple Inc. or GoogleAlphabet Inc. (Google), our future growth and our results of operations could suffer.

We implement bug fixesrely on third-party network service providers to originate and upgradesterminate substantially all of the PSTN calls using our cloud-based services. We leverage the infrastructure of third-party network service providers to provide telephone numbers, PSTN call

termination and origination services, and local number portability for our customers, rather than deploying our own network throughout the United States and internationally. We use the infrastructure of third-party network service providers, such as part ofEquinix, Inc. and CenturyLink, Inc., and public cloud providers, including AWS and Oracle, to provide our regularly scheduled system maintenance, which may lead to system downtime. Even if we are able to implementcloud services over their networks rather than deploying our own network connectivity. These decisions have resulted in lower capital and operating costs for our business in the bug fixes and upgrades in a timely manner, any history of defects, or the loss, damage or inadvertent release of confidential customer data, could cause our reputation to be harmed, and customers may elect not to purchase or renew their agreements with us and subject us to service performance credits, warranty claims or increased insurance costs. The costs associated with any material defects or errors in our software or other performance problems may be substantial and could materially adversely affectshort-term, but have reduced our operating results.

We strive to comply with all applicable laws, regulations, policiesrely on third-party vendors for IP phones and legal obligations relating to privacy and data protection. However, if we fail to comply, we may

The FCC and foreign regulators require VoIP providers to support telephone number porting within specified timeframes. In order to port telephone numbers, we rely on third party telecommunications carriers to complete the process. Often, number ports take longer than the specified timeframes. For many potential customers, the ability to quickly port their existing telephone numbers into our service in a timely fashion is a very important consideration. To the extent that we cannot quickly port telephone numbers in, our ability to acquire new customers may be negatively impacted. To the extent that we cannot

A fundamental requirement for operating an Internet-based, worldwide cloud software solutionssolution and electronically billing our customers is the secure transmission of confidential information and media over public networks. Although we have developed systems and processes that are designed to protect consumer information and prevent fraudulent credit card transactions and other security breaches, failure to mitigate such fraud or breaches may subject us to costly breach notification and other mitigation obligations, class action lawsuits, investigations, fines, forfeitures or penalties from governmental agencies that could adversely affect our operating results.

The law relating to the liability of providers of online payment services is currently unsettled and states may enact their own rules with which we may not comply. We rely on third-party providers to process and guarantee payments made by our subscribers up to certain limits, and we may be unable to prevent our customers from fraudulently receiving goods and services. Our liability risk will increase if a larger fraction of transactions effectedaffected using our cloud-based services involveinvolves fraudulent or disputed credit card transactions.

We may also experience losses due to subscriber fraud and theft of service. Subscribers have in the past, obtained access to our service without paying for monthly service and international toll calls by unlawfully using our authorization codes or by submitting fraudulent credit card information. If our existing anti-fraud procedures are not adequate or effective, consumer fraud and theft of service could have a material adverse effect on our business, financial condition, and operating results.

We process many types of data, including personal data in the course of our ability to offer services.

We are also subject to the privacy and data protection-related obligations in our contracts with our customers and other third parties. Any failure, or theperceived failure, by us to comply with federal, state, or international laws, including laws and regulations regulating privacy, data, or consumer protection, or to comply with our contractual obligations related to privacy, could result in proceedings or actions against us by governmental entities, contractual parties, or others, which could result in significant liability to us, as well as harm our reputation. Additionally, third parties on which we rely enter into contracts to protect and safeguard our customers' data. Should such parties violate these agreements or suffer a breach, we could adverselybe subject to proceedings or actions against us by governmental entities, contractual parties, or others, which could result in significant liability to us as well as harm to our reputation.

Regulation of our services as telecommunications services may require us to obtain authorizations or licenses to operate in foreign jurisdictions and comply with legal requirements applicable to traditional telephony providers. This regulation may impact our ability to provide service. Our networkdifferentiate ourselves from incumbent service providers and imposes substantial compliance costs on us. In addition, the reform of federal and state Universal Service Fund programs and payment of regulatory and other fees in international markets could increase the cost of our service to our customers, diminishing or eliminating any pricing advantage we may have.

In June 2019, the FCC ruled that providers of voice services may by default (subject to opt-out by subscribers) block voice traffic based on reasonable analytics designed to identify unwanted calls. As of June 30, 2021, the FCC required all voice service providers to implement the STIR/SHAKEN caller ID authentication framework in the Internet Protocol ("IP") portions of their networks. 8x8 signs its originating traffic in the U.S. using the STIR/SHAKEN framework and is registered in the FCC Robocall Mitigation Database as signing its originating traffic using the STIR/SHAKEN framework. Canada has also required voice service providers to implement STIR/SHAKEN as of November 30, 2021. The STIR/SHAKEN framework will likely be used throughout the world. The standards to obtain STIR/SHAKEN signing authority in other countries will likely differ from the United States requirements. In addition, foreign regulators have allowed terminating voice service providers to block voice traffic to address robo-calling or other unwanted calls. If we do not have a solution in place for STIR/SHAKEN when STIR/SHAKEN becomes widely adopted, our business could be disruptedharmed, as we would be unable to authenticate originating calls from our subscriber’s telephone numbers under STIR/SHAKEN. Call recipients would be less likely to answer non-authenticated calls. In addition, the terminating voice service providers may block calls that are not authenticated under STIR/SHAKEN, as the lack of authentication could be viewed as a reasonable indication that the call is unwanted by circumstances outside ofthe recipient. Apart from STIR/SHAKEN, the analytics used by the terminating carrier to identify unwanted calls could lead to originating traffic from our control including natural disasters, acts of war, terrorist attacks or other malicious acts including, butcustomers being blocked. If our customers’ originating traffic is blocked by terminating carriers, our service would be less desirable for our customers. Further, if we do not limited to, cyber-attacks. Our headquarters, global networks operations center and one of our third-party data center facilities are locatedhave STIR/SHAKEN caller ID authentication in the San Francisco Bay Area, a region known for seismic activity. Should any of these events occur and interfere with our ability to operate our network even for a limited period of time,place when required, we could incur significant expenses, lose substantial amounts of revenue, suffer damagebe subject to our reputation, and lose customers. Such an event may also impede our customers' connectionsregulatory enforcement action.

We rely, in part, on patent, trademark, copyright, and trade secret law to protect our intellectual property in the United States and abroad. We seek to protect our software, documentation, and other written materials under trade secret and copyright law, which afford only limited protection. We currently have several United States patent applications pending. We cannot predict whether such pending patent applications will result in issued patents, and if they do, whether such patents will effectively protect our intellectual property. The intellectual property rights we obtain may not be sufficient to provide us with a competitive advantage, and could be challenged, invalidated, infringed or misappropriated. We may not be able to protect our proprietary rights in the United States or internationally (where effective intellectual property protection may be unavailable or limited), and competitors may independently develop technologies that are similar or superior to our technology, duplicate our technology or design around any patent of ours.

Our technology platform incorporates software licensed from third parties, including some software, known as open source software, which we use without charge. Although we monitor our use of open source software, the terms of many open source licenses to which we are subject have not been interpreted by U.S.United States or foreign courts, and there is a risk that such licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to provide our platform to our customers. In the future, we could be required to seek licenses from third parties in order to continue offering our platform, which licenses may not be available on terms that are acceptable to us, or at all. Alternatively, we may need to re-engineer our platform or discontinue use of portions of the functionality provided by our platform. In addition, the terms of open source software licenses may require us to provide software that we develop using such software to others on unfavorable license terms. Our inability to use third-party software could result in disruptions to our business, or delays in the development of future offerings or enhancements of existing offerings, which could impair our business.

Our ability to make scheduled payments of the principal of, to pay interest on, or to refinance our indebtedness, including the amounts payable under the notes, depends on our future performance, which is subject to economic, financial, competitive, and other factors beyond our control. Our business may not continue to generate cash flow from operations in the future sufficient to service our debt, including paying off the principal when due, and make necessary capital expenditures. Our convertible notes are currently significantly out of the money, and our stock price would have to increase significantly in order for our notes to convert prior to maturity. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous or highly dilutive. Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations.

Holders of the notes have the right to require us to repurchase their notes upon the occurrence of a fundamental change at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any. In addition, upon conversion of the notes, unless we elect to deliver solely shares of our common stock to settle such conversion (other than paying cash in lieu of delivering any fractional share), we will be required to make cash payments in respect of the notes being converted. However, we may not have enough available cash or be able to obtain financing at the time we are required to make repurchases of notes surrendered therefor or notes being converted. In addition, our ability to repurchase the notes or to pay cash upon conversions of the notes may be limited by law, by regulatory authority or by agreements governing our future indebtedness. Our failure to repurchase notes at a time when the repurchase is required by the indenture or to pay any cash payable on future conversions of the notes as required by the indenture would constitute a default under the indenture. A default under the indenture or the occurrence of the fundamental change may also lead to a default under agreements governing our future indebtedness. If the repayment of the related indebtedness were to be accelerated after any applicable notice or grace periods, we may not have sufficient funds to repay the indebtedness and repurchase the notes or make cash payments upon conversions thereof.

In the event the conditional conversion feature of the notes is triggered, holders of notes will be entitled to convert the notes at any time during specified periods at their option. If one or more holders elect to convert their notes, unless we elect to satisfy our conversion obligation by delivering solely shares of our common stock (other than paying cash in lieu of delivering any fractional share), we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our liquidity. In addition, even if holders of notes do not elect to convert their notes, we could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the notes as a current rather than long-term

For example, in August 2020, the FASB issued Accounting Standards Update, or ASU, No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplified the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. ASU 2020-06 which eliminates the beneficial conversion and cash conversion accounting models for convertible instruments, was effective for us as of April 1, 2022. In the future, this will reduce our non-cash interest expense, and thereby decrease our net loss. Additionally, the treasury stock method for calculating earnings per share will no longer be allowed for convertible debt instruments which principal amount may be settled using shares. Rather, the if-converted method will be required. Application of the ‘‘if-converted’’ method could reduce our reported diluted earnings per share. Other changes may be made to the current accounting standards related to the notes, or otherwise, that could have an adverse impact on our financial statements.

The application of any new accounting guidance is, and will be, based on all information available to us as of the date of adoption and up through subsequent interim reporting, including transition guidance published by the standard setters. However, the interpretation of these new standards may continue to evolve as other public companies adopt the new guidance and the standard setters issue new interpretative guidance related to these rules. As a result, changes in the interpretation of these rules could result in material adjustments to our application of the new guidance, which could have a material effect on our reportedresults of operations and financial results.

In connection with the offer and sale of thecertain notes, we entered into capped call transactions with one or more of the initial purchasers or affiliates thereof and/or other financial institutions (the “option counterparties”). The capped call transactions are expected generally to reduce the potential dilution upon conversion of the notes at maturity and/or offset any cash payments we are required to make in excess of the principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a cap.

In capped call transactions similar to the ones we entered into, the option counterparties or their respective affiliates typically enter into various derivative transactions with respect to the issuer's common stock and/or purchase shares of the issuer's common stock concurrently with or shortly after the pricing of the notes. The option counterparties or their respective affiliates in our capped call transactions may modify their hedge positions by entering into or unwinding various derivatives with respect to our common stock and/or purchasing or selling our common stock or our other securities of ours in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so during the valuation period for the capped call transactions, which is expected to occur during the 40 trading day period beginning on the 41st scheduled trading day prior to the maturity of the notes). This activity could also cause or avoid an increase or a decrease in the market price of our common stock.

In the future, we may sell additional shares of our common stock or equity-linked securities to raise capital. In addition, a substantial number of shares of our common stock is reserved for issuance upon the exercise of stock options, upon the vesting and settlement of restricted stock units and performance units, stock purchases in connection with our Employee Stock Purchase Program, and upon conversion of our notes. We cannot predict the size of future issuances or the effect, if any, that they may have on the market price for our common stock. The issuance and sale of substantial amounts of common stock or equity-linked securities, or the perception that such issuances and sales may occur, could adversely affect the trading price of the notes and the market price of our common stock and impair our ability to raise capital through the sale of additional equity or equity-linked securities.

Our restated certificate of incorporation and amended and restated by-laws contain provisions that could have the effect of delaying or preventing changes in control or changes in our management without the consent of our board of directors, including, among other things:

None.

Our principal operations are located in San Jose, California, in two facilities that consist of approximately 140,000 square feet of combined leased office space. The leases expire in 2019 and 2020, respectively.

In addition, we lease space from third-party datacenterdata center hosting facilities under co-location agreements in the United States and in a number of countries across the globe, including those in South America, Europe, Asia, and the SouthAsia Pacific.

Not applicable.

Since December 8, 2017, our common stock ishas been traded under the symbol "EGHT" and is listed on the New York Stock Exchange, Inc. (NYSE). Previous to December 8, 2017, our common stock traded under the symbol "EGHT" and was listed on the Nasdaq Global Select Market of the Nasdaq Stock Market national securities exchange.

We have never paid cash dividends on our common stock and have no plans to do so in the foreseeable future.

As of May 14, 2019,16, 2022, there were approximately 200276 holders of record of our common stock.

See Item 12 of Part III of this Annual Report regarding information about securities authorized for issuance under our equity compensation plans.

The graph below shows the cumulative total stockholder return over a five year period, assuming the investment of $100 on March 31, 20142017 in each of 8x8's common stock, the NASDAQNYSE Composite Index, the Russell 2000 Index, and the NASDAQ TelecommunicationsNasdaq Composite Computer & Data Processing Index. The graph is furnished, not filed, and the historical return cannot be indicative of future performance.

There was no activity under the 2017 Repurchase Plan for the three monthsyear ended March 31, 2019. The dollar2022.The value of shares that may yet to be purchased under the 2017 Repurchase planPlan is approximately $7.1 million.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

We are a leading cloudSaaS provider of enterprise Software-as-a-Service (SaaS) communications solutions, that enable businesses of all sizes to communicate faster and smarter across voice, video, meetings, chatcontact center, and contact centers, transforming both employee and customer experiences withcommunication APIs powered by a global cloud communications that work simply, integrate seamlessly, and perform reliably.platform. From oneour proprietary cloud technology platform, customersorganizations across all their locations and employees have access to unified communications, team collaboration, video conferencing, contact center, data and analytics, communication APIs, and other services.services, enabling them to be more productive and responsive to their customers.

We have a portfolio of cloud-based offerings that are subscription-based, made available at different rates, varying by the specific functionalities, services, and in fiscal 2019, we generated a majoritynumber of our new subscription servicesusers. We generate service revenue from customers in these business sectors.

In prior years, we made strategic investments in R&D and marketing, which we considered necessary and important for delivering a robust platform to our customers and establishing the appropriate demand generation channels to connect our customers to our solutions. In fiscal 2019, fiscal year was an important milestone year for 8x8. Wewe launched 8x8 X Series, our single-technology platform. Weplatform, and re-aligned our channel and marketing functions to support a more scalable, high-growth,higher-growth, go-to-market strategy. We continuedstrategy, in response to invest in Research and Development, consistent with our belief that ownership of the core technology behind our platform is an important competitive differentiator.

WeIn fiscal 2023, we plan to continue making significant upfront investments in customer acquisition. We planactivities to continueacquire more customers, including investing in our direct marketing efforts, which includes ourinternal and field sales forcecapacity, and digital marketing spend.research and development. We also intend to continue investing in our indirect channel programs to marketacquire more third-party selling agents to help sell our solutions. Should these upfront investmentssolutions, including VARs and master agent programs. Lastly, we are adding sales capacity to cross sell to our installed base, including both 8x8 and the recently acquired Fuze base.

The full extent of the impact of the COVID-19 pandemic on our business, operations and financial results will depend on numerous evolving factors that we may not resultbe able to accurately predict, including those set forth under the section entitled "Risk Factors." In an effort to contain COVID-19 or slow its spread, governments around the world have enacted various measures, including orders to close non-essential businesses, isolate residents to their homes, and practice social distancing. To protect the health and safety of our employees, our workforce has spent significant time working from home and travel has been curtailed for our employees as well as our customers. While we anticipate that the global health crisis caused by COVID-19 and the

Our management periodically reviews certain key business metrics to evaluate our operations, allocate resources, and drive financial performance in additionalour business.

Our management reviews Annualized Recurring Subscriptions and Usage Revenue (“ARR”) and believes it may be useful to investors to evaluate trends in future revenues of the Company. Our management believes ARR is an important indicator for measuring the overall performance of the business. Our management uses trends in ARR to assess our ongoing operations, allocate resources, and drive the financial performance of the business. We define ARR as equal to the sum of the most recent month of (i) recurring subscription amounts and (ii) platform usage charges for all CPaaS customers (subject to a minimum billings threshold for a period of at least six consecutive months), multiplied by 12. We are not aware of any uniform standards for calculating ARR and caution that our presentation may not be consistent with that of other companies. For example, to the extent our ARR is used to evaluate trends in future revenue, such an evaluation would assume a sustained level of usage from new or existing customers which may fluctuate in future periods.

Service revenue consists of communication services subscriptions, platform usage revenue, and related fees from our UCaaS, CCaaS, and CPaaS offerings. We plan to continue driving our business to increase service revenue through a combination of increased sales and marketing efforts, geographic expansion of our customer base outside the United States, and innovation in product and technology, and through strategic acquisitions of technologies and businesses.

Cost of service revenue consists primarily of costs associated with network operations and related personnel, technology licenses, amortization of capitalized internal-use software, other communication origination and termination services provided by third-party carriers and outsourced customer service call center operations, and other costs such as customer service, and technical support costs. We allocate overhead costs, such as IT and facilities, to cost of service revenue, as well as to each of the operating resultsexpense categories, generally based on relative headcount. Our IT costs include costs for IT infrastructure and personnel. Facilities costs primarily consist of office leases and related expenses.

(Benefit from) provision for income taxes consists primarily of foreign income taxes and state minimum taxes in the United States. As we expand the scale of our international business activities, any changes in the United States and foreign taxation of such activities may increase our overall provision for income taxes in the future. We have a valuation allowance for our United States deferred tax assets, including federal and state NOLs carryforwards. We expect to maintain this valuation allowance until it becomes more likely than not that the benefit of our federal and state deferred tax assets will be adversely impacted.realized by way of expected future taxable income in the United States.

The following discussion should be read in conjunction with our Consolidated Financial Statementsconsolidated financial statements and related notes included elsewhere in this Annual Report.

We have minimal seasonality in our business, but typically, sales of new subscriptions in our fourth fiscal quarter ending in March are greater than in any of the first three quarters of the fiscal year. We believe this occurs because theour enterprise and mid-market customers we target tend to spend a relatively greater portion of their annual capital budgets at the beginning of the calendar year compared with each of the last three quarters of the year. This is partially offset by seasonal weakness in our CPaaS revenue in the fourth quarter due to national holidays in the Asia-Pacific region.

Service revenue consists of revenues attributableincreased for fiscal 2022, as compared to the provision of our 8x8 cloud communication and collaboration software solutions, along with revenues from professional services.

No single customer represented more than 10% of our total revenues during fiscal 2019 or 2018.years 2022, 2021, and 2020.

Cost of service revenue primarily consists of costs associated with network operations and related personnel, communication origination and termination services provided by third-party carriers, and technology licenses, outsourced customer service call center operations, and amortization of internally developed software. Other costs suchincreased in fiscal 2022, as customer service, which includes deployment engineering and technical support, are also included in cost of service revenue.

The increase in costCost of service revenue forincreased in fiscal 2018 from2021, as compared to fiscal 2017  was2020, primarily due to a $7.0$33.6 million increase in payroll and related expenses,communication infrastructure costs incurred to deliver our services, including those in connection with CPaaS, a $1.9 million increase in third-party network service expenses (due to increased call volumes associated with our subscription revenue growth), a $1.7$6.4 million increase in amortization of capitalized internal-use software, and a $3.4 million increase in stock-based compensation expense. These increases were partially offset by a decrease of $5.3 million in employee and consulting related expenditures and a decrease of $2.5 million in depreciation and amortization of intangible assets.

Research and development expenses increased in fiscal 2021, as compared to fiscal 2020, primarily due to an $11.9 million increase in stock-based compensation expense, a $3.0 million reduction in capitalized internal-use software costs, and a $1.2 million increase in consultingdepreciation and outside service expenses,amortization of software. These increases were partially offset by a $1.0$1.2 million increasedecrease in licenses and fees, and a $0.7 million increase in depreciation expense.travel-related costs.

Sales and marketing expenses consistincreased in fiscal 2022, as compared to fiscal 2021, primarily due to a $23.0 million increase in personnel-related and consulting expenditures, including a $13.3 million increase in stock-based compensation expense, a $22.1 million increase in channel commissions including $3.7 million increase related to the acquisition of personnelFuze, a $6.9 million increase in amortization of deferred sales commission costs, and related overheada $5.3 million increase in marketing software and application costs. These increases were partially offset by a decrease of $1.3 million in the marketing program and public cloud expenses due to gained efficiencies in lead generation and brand awareness, along with a reduction in travel-related costs. Sales and marketing increased slightly as a percentage of revenue in fiscal 2022 compared to fiscal 2021 primarily due to increased investment in building brand awareness for our XCaaS integrated communications and collaboration platform.

Sales and marketing expenses increased in fiscal 2021, as compared to fiscal 2020, primarily due to a $14.9 million increase in channel commissions, a $13.7 million increase in stock-based compensation expense, a $8.3 million increase in amortization of deferred sales commission costs, for salesa $3.7 million increase in marketing software and marketing. Suchapplication costs, also include sales commissions, trade shows, advertising and othera $3.2 million increase in employee and consulting-related expenditures. These increases were partially offset by a decrease of $27.2 million in marketing demandprogram and public cloud expenses due to gained efficiencies in lead generation channel, and promotional expenses.brand awareness, along with a reduction in travel-related costs.

The increasechange in sales and marketing expenses forOther expense, net in fiscal 2018 from2021, as compared to fiscal 20172020, was primarily due to $4.0 million of lower interest income and a $7.7$3.1 million increase in allocatedexpense related to contractual interest, amortization of debt discount, and amortization of issuance costs a $5.4 million increaseassociated with additional convertible notes issued in payroll and related expenses fromNovember 2019. These amounts were partially offset by an increase in our sales force, a $5.0 million increase in advertising, a $4.3 million increase in third-party sales commissions, a $2.0 million increase in consulting and outside service expenses, a $1.7 million increase in stock-based compensation expenses, and a $1.5 million increase in travel expenses.other income of $0.6 million.

For fiscal 2020,With the adoption of ASU 2020-06, we expect sellingour interest expense, including amortization of debt discount and marketing expensesissuance costs, to increase in absolute dollars as wedecrease, and expect to continue to investbe in our sales, demand generation, channel and marketing programs.

As of March 31, 2022, we had $136.1 million of cash and cash equivalents and short-term investments. In addition, we had $9.5 million in restricted cash in support of letters of credit securing leases for office facilities and certain equipment.

On March 27, 2020, the period endedCoronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was passed into law, which amended portions of relevant tax laws and provided relief to certain qualifying entities. In connection with the CARES Act, the Company elected to defer certain employer payroll taxes, which reduced cash usage by approximately $5.0 million through December 31, 2017.

In June 2020, the Company offered its employees an opportunity to receive a portion of their fiscal 2021 cash compensation in shares of the Company's common stock, which reduced compensation paid in cash by approximately $4 million during fiscal 2021. In addition, for our foreign subsidiaries as our preliminary calculations concluded we do not have any untaxed foreign accumulated earnings.

In March 2021, the Company offered its employees another opportunity to receive a portion of their fiscal 2022 cash compensation in judgment about deferred tax valuation

Net cash used in operating activities for fiscal 2019 was $14.9 million, compared with $22.0 million provided by operating activities for fiscal 2018.2022 was $34.7 million, as compared to $14.1 million used for operations for fiscal 2021. Cash used in or provided by operating activities has historically beenis primarily affected by:

Net cash provided by financing activities was $13.2 million in fiscal 2021, as compared to $72.1 million provided by financing activities in fiscal 2020. The cash provided by financing activities in fiscal 2021 was primarily from the issuance of common stock under employee stock purchase plans. These inflows wereplans of $13.3 million, partially offset by $33.7 million in capped call transactions, $7.8$0.1 million to settle payroll tax obligations and $0.9 million to make payments for lease obligations.