8×8 Up for Sale?
8×8, the hosted VoIP provider, is considering a potential company sale, according to Reuters. 8X8 has been working with Morgan Stanley to field interest from other companies and private equity firms, the report said, though a sale isn’t guaranteed.
8×8 competes in the growing but crowded market for cloud-oriented IP phone systems and unified communications. Multiple Unified Communications as a Service (UCaaS) companies have been acquired over the past year, including GoDaddy’s buyout of FreedomVoice.
Rival ShoreTel also has been seeking a potential buyer since August 2016. And Avaya, which is trying to overcome a major debt load while transitioning from hardware sales, is currently navigating a Chapter 11 bankruptcy filing.
The potential competitive threats continue to rise, especially as Amazon’s AWS Chime counters Microsoft Skype and Cisco WebEx in the collaboration space.
8×8 Is Growing
Still, business over at 8×8 is growing — and many of the sales involve channel partners. For its Q3 ended December 31, 2016, 8×8 reported:
- Service revenue grew 23% year-over-year to $60.1 million.
- Service revenue from mid-market and enterprise customers grew 36% year-over-year and represented 55% of the company’s total service revenue.
- New monthly recurring revenue (MRR) sold to mid-market and enterprise customers and by channel sales teams accounted for 60% of total new MRR booked in the quarter.
At the time, 8×8 maintained its guidance for fiscal 2017 revenue in the range of $251.0 million to $254.0 million. The company also raised non-GAAP net income guidance to a range of $18.0 to $20.0 million, from previously issued non-GAAP net income guidance in the range of $16.0 million to $20.0 million.
8×8 and Morgan Stanley did not immediately respond to Reuters’ request for comment. ChannelE2E has followed up with additional outreach to 8×8, but received no reply