On May 12, 8×8 announced their Q4 earnings results and the outcome was staggering. Driving through primarily through the telecom channel the fast growing silicon valley communications disrupter announced a total revenue of $446.2M. Interesting notes from the announcement include 50+% of bookings being driven from the channel.
The channel has had a resurgence over the last half decade as organizations rely more on trusted advisors like Cloud Communications Group and Master Agents like Planet One. It has become clear that organizations that strongly embrace the channel have had more success than their direct counter-parts. Expect additional focus on the the channel as Digital Transformation initiatives become increasingly complex.
Keith Hatley (Co-Owner of Cloud Communications Group) recently highlighted the landscape stating: ” You see there’s a movement in technology right now and the procurement model is changing. Rather than selling “a” service there is a new breed of solution providers called Trusted Advisors. A Trusted Advisor is an overall solutions provider that doesn’t represent a particular product but represents an entire industry of services. They act as an extension of your team, they focus on delivering business outcomes, and they help you navigate the confusion in the market caused by the accelerating pace of change in IT. They work side by side with your team to design, procure, implement, and support even the most complex IT solutions. Quite simply, a Trusted Advisor is the best friend a CIO will ever have. “
- Strong and Growing Large Deals With Annual Recurring Revenue (ARR) Greater than $100,000:
- 611 customers with Annual Recurring Revenue (ARR) greater than $100,000, 50% year-over-year growth
- Closed record 42 new customer deals with ARR > $100,000. These deals represented 34% of new bookings for the quarter. Annual Recurring Revenue (ARR): • Total ending ARR was $426.4m and grew 34% year-over-year
- Small business customers with revenue <$50m comprised 54% of ending (ARR) and grew 16% year-over-year
- Mid-market customers with revenue between $50m – $1b comprised 28% of ending (ARR) and grew 55% year-over-year
- Enterprise customers with revenue >$1b comprised 17% of ending (ARR) and grew 79% year-over-year Average Annual Service Revenue Per Customer*:
- Small business customers with revenue <$50m grew 4% year-over-year to $4,748
- Mid-market customers with revenue between $50m – $1b grew 25% year-over-year to $42,934
- Enterprise customers with revenue >$1b grew 26% year-over-year to $174,305 Introduced 8×8 X Series and 8×8 Contact Center in Canada. Introduced 8×8 Express in the United Kingdom.