Friday, May 25, 2012

Packet8's Latest Numbers

Packet8 PR: "Average monthly revenue per business customer was $244, compared with $204 in the same period last year."

"Average number of services subscribed to per business customer grew to 9.8 from 8.0 in the same period last year."

In comparison, Cbeyond has average ARPU right now of about $650 and customers take about 7 apps.

8x8 is now bringing in $24M per quarter in revenue, of which $22.8 million is business. So about $100M per year!

27,000 business customers with churn of 2.0%.

Gross margin at 68.4%; service margin was 76.1%.

Investors are betting that Packet8 / 8x8 will be a take-over target - in March and in May. Research firms like Infonetics, Insight and AMI, all forecast more consolidation in Hosted PBX space as well as a number of failures.

RLEC's need to buy Hosted PBX for the revenue, tech, procedures and culture. Doesn't mean they are going to overpay like WVT did.

Comcast is the largest Hosted PBX provider in the US. Estimate is almost 300K seats and over $100M in revenue from Hosted PBX.

Smoothstone, now West IP Comm, is estimated to be at $40M. M5, recently acquired by ShoreTel, is at $48M. But looking at who owns a Broadsoft: Comcast, Cox, TWC, CableOne, Charter, VZ, XO, Paetec, WIND, CenturyLink, Sprint. That's some BIG competition in the Hosted PBX space.

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