8×8 has sold Callstats to Spearline, the communications testing tool provider, for an undisclosed fee.
The deal comes less than three years after 8×8 acquired the quality monitoring and analytics technology for WebRTC from callstats.io.
At the time, Vikram Verma, former CEO of 8×8, described it as a “very interesting” technology that “analyzes all call stats and flows for WebRTC endpoints… It ensures we have end-to-end analytics.”
However, 8×8 is now bidding the solution farewell as it is “a better fit” for Spearline.
Indeed, in announcing the sale, Victor Belfor, Global VP of Business Development and Strategic Partnerships at 8×8, stated:
We are continuing to focus our innovation on our highly differentiated 8×8 XCaaS cloud communications and contact center solution, and believed Callstats was a better fit for Spearline’s capabilities.
While it may indeed align better with Spearline’s portfolio of communication testing tools, the move may also support 8×8 in combatting its rising debts.
Over the past year alone, these have risen by $317.3MN, taking its total debt to $516.7MN, according to a Simply Wall Street report released on Monday.
Moreover, the prominent CCaaS and UCaaS provider has liabilities of $169.0m due within the next year, per its last reported balance sheet.
Thankfully, it does have $130.9MN of cash and $70.7m worth of receivables due within the next 12 months. Yet, this sale may give the vendor more breathing room as its revenues grow.
Last quarter, these revenues increased by 23 percent YoY to $187.4MN. If they keep rising, the company may grow its way to profitability.
Yet, 8×8 will have to do so with a new CEO after it terminated the contract of David Sipes last week – who spent two years at the vendor’s helm.
Shortly after the announcement, 8×8 also disclosed the exit of Matthew Zinn, its Chief Legal Officer.
As such, there seems to be a fair bit of unrest at 8×8. Yet, in the case of Sipes, it is perhaps geared towards a change in strategy that will accelerate its growth through CCaaS.
Indeed, the CCaaS market is growing fast, with estimates suggesting it will double in size by 2027.
It is also less mature than UCaaS, meaning there is more space for innovation that moves the needle in ARPU.
To capture this opportunity and accelerate its growth, 8×8 likely wants a CEO with more of a CCaaS background.
However, this personnel change may not be the last piece of news from 8×8 before the end of the year, with the rumors circulating regarding a RingCentral take-over.
While the approach is likely to be more about RingCentral assessing its options, it seems 2023 will be a big year for both prominent CX vendors.
