8x8 Achieves Record Revenue of $26.4 Million in Q2 2013
October 24, 2012
By Allison Boccamazzo
, TMCnet Web Editor
8x8 (News - Alert) has truly been making significant strides within the last year. Not only has the company essentially taken the reins on the IP telephony and unified communications (UC) market, but it also re-located to a new San Jose, C.A-based headquarters which doubles in size to accommodate its high demands. Clearly, the company has cemented its position in the cloud-based business communications landscape, and nothing further proves that fact than its Q2 2013 financial reveals, which show that 8x8 has achieved record revenue of $26.4 million - a 33 percent increase from that time last year.
8x8 CEO, Bryan Martin (News - Alert), explains that he’s very pleased to have achieved such an “outstanding quarter marked by solid revenue and profit growth alongside increased grossed margins.” He also confidently predicts that they will “continue to improve as a result of the operational efficiencies of our cloud-based, monthly recurring revenue business model.”
Some highlights from the financial reveal are as follows:
- Total revenue for the quarter increased 33 percent year over year to a record $26.4 million from $19.8 million in the same period of fiscal 2012.
- Revenue from business customers comprised 96% of total revenue for the quarter.
- Overall gross margin increased to 68 percent compared with 67 percent in the prior quarter and 66 percent in the same period last year. Service gross margin was 76 percent, compared with 75 percent in the prior quarter and 77 percent in the same period last year.
- Non-GAAP net income (as outlined in the reconciliation table below) was $3.7 million, or $0.05 per diluted share, compared with $1.7 million, or $0.02 per diluted share, in the same period a year ago.
- GAAP net income was $1.7 million, or $0.02 per diluted share, compared with $0.8 million, or $0.01 per share, for the same period last year.
- Ended the quarter with $40.1 million in cash, cash equivalents and investments compared with $19.1 million on September 30, 2011.
Some additional Q2 Fiscal 2013 business highlights include:
- Average monthly revenue per business customer was $256, compared with $207 in the same period last year and $250 in the prior quarter.
- Average number of services subscribed to per business customer grew to 10.6 from 9.0 in the same period last year and 10.1 services in the prior quarter.
- For new customers added during the September quarter, the average number of services subscribed to grew to 14.7 from 12.4 in the same period last year.
- Business service revenue churn was 1.0 percent, compared with 1.9 percent in the same period last year and 2.3 percent in the prior quarter.
- Ended the quarter with 30,498 business customers, up from 29,913 business customers in the prior quarter; net company additions for the quarter were affected by the departure of approximately 400 ‘one-number access' customers representing approximately $9,000 per month in recurring revenue that were previously acquired in 2008 from Avtex (News - Alert) Solutions.
- Awarded two new patents related to contact/call center technologies; company has been awarded 83 U.S. patents since inception.
- Received the 2012 North American Frost & Sullivan Award for leadership in Hosted IP Telephony and Unified Communications (News - Alert) in July.
- Introduced an enhanced smartphone and tablet app that incorporates video calling, presence, call recording, expanded PBX features and advanced audio compression technology.
Martin continued to express his contentment in the company’s accomplishments so far, saying that the company’s operating metrics for the most recent quarter “demonstrate the continued adoption of a greater number of [our] services for both small and mid-market customers, many of whom have multiple geographic locations and mobile workforces that are no longer served or supported by legacy premise-based or hybrid approaches.”
I think big congratulations are in order!
To learn more about 8x8’s offerings, visit www.8x8.com.
Edited by Amanda Ciccatelli