8×8 has reported sales growth for its Q3, driven by its increasing presence in the enterprise space and its voice integration with Microsoft Teams.

The vendor’s sales climbed 15 percent year on year to $156.9m during the period ending 31 December 2021.

Annualised recurring revenue (ARR) from enterprise customers grew 30 percent year on year and accounted for over half of all ARR. More than 900 enterprise clients now contribute ARR of more than $100,000.

8×8 CEO Dave Sipes also picked out the vendor’s Teams integration as playing a key role in the growth.

“[With] 8×8 Voice for Teams, we are seeing increased adoption as organizations seek to provide their distributed workforces with the ability to interact with colleagues,” he said.

“In September, we announced that we had surpassed 100,000 business users for our team’s integration and we continue to see strong momentum.

“In the third quarter, we experienced business user growth of more than 30 percent quarter-over-quarter as a growing number of new and existing customers adopt 8×8 Voice for Teams”

Sipes highlighted the recently announced 270 million Teams monthly active user figures as validation of the opportunity, particularly given what he suspects is a low rate of voice integration with the platform.

“I think it’s early in that there are a lot of Microsoft Teams users when you look at the MAUs but they’re predominantly all using it for messaging,” he explained.

“Attaching enterprise communications to that is what’s early and I think just a small fraction have really attached enterprise communications.

“There are different ways to do it, whether it’s direct routing or Operator Connect or Calling Plans, I think what we see as the predominant solution today is direct routing, and that’s where we’re differentiated.”

8×8 also highlighted better than expected growth from its CPaaS and CCaaS, with CPaaS particularly strong in Southeast Asia.

Growth in these areas offset weaker hardware sales, with the global components shortage remaining an issue. 8×8 said that it expects hardware revenue to drop around $1m in the current quarter.

Sipes also gave an update on the Fuze acquisition which closed last month, with 8×8 expecting Fuze sales to contribute around $20m in the quarter. Loss-making Fuze will however be a headwind for the time being as 8×8 works through its synergies plan.

 

 



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