SAN JOSE, Calif -- 8x8, Inc. (NASDAQ:EGHT), a provider of cloud-based unified communications , contact center and collaboration solutions, today reported financial results for the first quarter of fiscal 2015 ended June 30, 2014.
First Quarter Fiscal 2015 Financial Results:
Total revenue for the quarter increased 30% year-over-year to a record $37.9 million.
Channel and mid-market sales increased 94% year-over-year, representing 44% of new monthly recurring revenue sold in the quarter.
Average monthly service revenue per business customer was $293, up 11% compared with $263 in the same period last year.
8x8 delivered a very strong quarter with profitable 30% revenue growth driven largely by the continued adoption of our services by mid-market and distributed enterprise customers, said 8x8 CEO Vik Verma. With a 94% year-over-year increase in new mid-market and channel sales and 41% of our service revenues coming from the mid-market, 8x8 is clearly expanding its leadership position in this valuable market segment.
Mr. Verma continued. Given our strong first quarter performance, we now expect revenue to grow by at least 25% for the current fiscal year, with non-GAAP net income as a percentage of revenue in the high-single digit range.
Additional First Quarter Results:
GAAP net income for the first quarter of fiscal 2015 was $8,000, or $0.00 per diluted share, compared with GAAP net income of $2.1 million, or $0.03 per diluted share, in the first quarter of fiscal 2014.
Non-GAAP net income was $3.0 million, $0.03 per diluted share, compared with $4.3 million, $0.06 per diluted share, for the same period last year.
Service margin was 80%, compared with 79% in the prior quarter and 82% in the same period a year ago; overall gross margin was 71%, compared with 70% in the prior quarter and 72% in the same period last year.
Monthly business service revenue churn was 0.4%, compared with 1.2% in the same period last year.
Cash, cash equivalents and investments increased sequentially by $3.6 million for a total of $182.0 million in the first quarter of fiscal 2015, compared with a total of $57.8 million in the same period last year.
Ended the quarter with 39,340 business customers, up 1,407 customers sequentially and 5,966 compared with the same period a year ago.
Announced new channel partnerships with master agent MicroCorp and technology services distributor Telecom Brokerage Inc. to deliver cloud communications solutions to enterprise customers through a combined network of 3,500+ agents, system integrators, and VARs.
Accepted as a supplier on UK G-Cloud 5 Framework, a UK Government initiative to encourage the adoption of cloud services across the public sector.
Ranked #1 on Infonetics Research Sixth Annual North American Business VoIP Service Leadership Scorecard.
On July 22, 2014, 8x8's Board of Directors authorized the repurchase of up to an aggregate of $15.0 million of our Common Stock. The repurchases may be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. The repurchase program is expected to continue until July 22, 2015, unless extended or shortened by the Board of Directors.
8x8 also reported, in accordance with NASDAQ Listing Rule 5635(c)(4), that employment inducement awards were granted to 26 new employees in connection with their recent hiring. The employees received restrictive stock units for 136,769 shares of the Company's Common Stock, subject to their continued employment and other conditions. In addition, stock option grants for 96,684 shares were awarded.