8x8 soars post-earnings; RingCentral, Vonage, BroadSoft also up

|By:, SA News Editor

Following a healthy FQ1, 8x8 (EGHT +10%) expects FY15 (ends March '15) revenue to grow "at least 25%." The company previously guided for FY15 revenue to grow "approximately 25%." Net income is still expected to account for a high-single digit % of revenue.

Average monthly service revenue per business customer rose to $293 from $287 in FQ4 and $263 a year ago. Notably, churn fell to just 0.4% from 1.2% in both FQ4 and the year-ago period.

Service revenue rose 29% Y/Y to $34.3M, product revenue rose 32% to $2.8M. A 94% increase in channel/mid-market sales helped fuel the growth.

GAAP opex rose 42% to $37.4M. Service margin was 80% vs. 79% in FQ4 and 82% a year ago.

Fellow VoIP/unified communications service providers RingCentral (RNG +4.2%) and Vonage (VG +2.4%) are also rallying, as is software supplier BroadSoft (BSFT +2.8%).

8x8's FQ1 results, PR, CC transcript