8x8 launched Packet8 VoIP service in Nov. 2002. The company has burned through tens of millions of venture money to create patents as well as acquire 8000 business clients. It posted a GAAP net income of $508,000 on $14.7M in quarterly revenue.
As of March 31, 2006, 8x8 had approximately 133,000 Packet8 lines in service. According to its 2007 annual report (fiscal years 2007 ended in 2Q07), "As of March 31, 2007, we had more than 100,000 Packet8 residential and videophone lines and approximately 7,000 business subscribers to our Packet8 Virtual Office service."
The 8K Biz clients represent 44% of the company's revenues. [source] So the 133k resi lines only contribute 50% of the revenues?? Packet8 offers Unlimited business lines for $50 and Unlimited Resi calling for $25. But then most of the accounting stuff they announced made zero sense to me. (Read it from the source at CNN Money).
Churn approximated 4.2% for the fiscal 2007.
Total revenues for 1Q2008 =$14.7 million ($14.4 in previous quarter)
Subscriber acquisition cost increased to $126 for fiscal 2007. (This may increase as 8x8 made a deal with Sherwood to be the preferred transition company for SunRocket customers - and to give them one free month and free CPE plus all the advertising and hand-holding and LNP).
As of May 30, 2007, 8x8 had 68 United States patents that had been issued and additional United States and foreign patent applications pending.
8x8 has 911 agreements with TCS (TeleCommunication Systems =) for roaming and Level(3). L3 and GX are its main backbones according to an interview on TMC about the SunRocket porting issue.
8x8 has partnered with YouSendIt to power Packet8 Dispatch, which "allows users to easily upload multiple files as large as 2GB each to multiple recipients, on-demand. Recipients receive an e-mail notification with a link to securely download the files." [source] There is a free, limited Lite version and a premium paid version.
Packet8 now offers install via CSI. [source]
Packet8 offers Business Voice Recording Services. "Powered by HOLDCOM, a leading provider of message on hold services and voice production for telecommunications and the Internet, the Packet8 Audio Production Store enables Virtual Office subscribers to tap into a network of professional audio production services to enhance the marketing effectiveness of their external communications. These services include Message-On-Hold, voice-prompt production and voicemail greetings in a wide range of languages and dialects. Additional services such as overhead music and announcements for retail and business applications are also available through a special arrangement with HOLDCOM." [CNN]
It's all about the value add.
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