8x8 just announced earnings overview of 3Q fiscal 2013 ended December 31, 2012.
"8x8 finished calendar 2012 with a strong third fiscal quarter, recording a 22% year-over-year increase in revenue from business customers." This is fairly big. A couple of years ago 8x8 made a couple of big changes. One was to focus on sales not technology, so some of the execs that were replaced were replaced with sales/business/marketing folks as opposed to tech focused people. That means less patents, but more sales. The second change was to focus on SMB sales instead of residential. Bingo! ARPU goes up.
"Total revenue for the quarter was $27.3 million, up from $23.3 million in the same period last year."
The "net number of new businesses subscribing to our services by 975 companies during the quarter with the average new business subscribing to 17 lines and services. This increase in new customer size is substantial, up from 14.7 lines and services in the September quarter and 14.0 lines and services in the June quarter and demonstrates the continued success we’re having winning larger mid-market business customers." It's a big change. "Over the entire customer base, our average business customer subscribed to 11.2 lines and services, up from 10.6 in the prior quarter and 9.4 in the same period last year." They still have a lot of resi accounts. They have 31,473 business customers.
ARPU (the average monthly revenue per business customer) is $260.
8x8 took a big step into the channel in 2012 - ending 2012 with 101 channel partners....the "mid-market and channel team representing 17% of new monthly recurring revenue added."
Revenue churn was 2.6%!
Acquisition cost per new service is $98.