8×8 has revealed several big Q2 wins, including a 20,000+ seat CCaaS and UCaaS megadeal.
Announced during the vendor’s most recent earnings call, 8×8 CEO Samuel Wilson pointed to his company’s “relentless focus on customer success” as a key driver behind the wins.
Indeed, Wilson stated that 8×8 was achieving “multiyear highs” in customer loyalty and revenue retention, and has maintained “world-class satisfaction metrics” for the past seven consecutive quarters.
By delivering for its existing customers, the company is helping to attract new business via recommendations.
The most notable example of this is the aforementioned megadeal, which was secured, in part, thanks to a recommendation from an affiliated in-store service provider who had successfully used 8×8’s CCaaS and UCaaS solutions in the past.
Described by Wilson as a “leading specialty retailer,” the new deal involved 8×8 helping the company transition from a “piecemeal Cisco on-premise solution” to a scalable, unified CCaaS and UCaaS cloud platform. 8×8 terms this combination “XCaaS”.
In total, the deal involved 1,600 locations and over 20,000 employees.
While the CEO believes that 8×8’s XCaaS offering was a “clear differentiator” in helping to secure the deal, he argues that the company would “not have had a chance to prove it if the service partner had not been satisfied with their 8×8 solution.
Their recommendation is not unique. This quarter, we earned the Customers Love Us Badge on G2 (the customer review site) because they do.
Away from the specialty retailer megadeal, Wilson presented 8×8’s Teams integrations business as a deal-winner.
Indeed, the company reported that its Teams division has experienced continuous quarter-over-quarter and year-over-year growth, with it currently supporting over 500,000 Teams users.
In addition, the CEO highlighted that 8×8 was the only Gartner UCaaS Magic Quadrant leader, aside from Microsoft, accepted into the Operator Connect program, which he believes reinforces the company’s credentials in delivering fully integrated Teams solutions.
In terms of Teams wins, healthcare revenue cycle management solutions provider Coronis Health chose to upgrade from a Fuze customer using Teams for collaboration to implementing the 8×8 platform.
In doing so, the healthcare company became “one of several” Q2 deals exceeding $1 million in annual recurring revenue.
While figures were not released, Wilson also praised the deal with Scandinavian Designs, a US-based furniture company with over 40 showrooms across 16 states.
The agreement included the deployment of the 8×8 Contact Center with Operator Connect for Microsoft Teams to help the business consolidate onto a single cloud platform.
In outlining some of the determining factors for the win, the CEO mentioned “differentiated features like Teams Chat Federation and presence visibility in agent workspace.
They also liked our robust analytics and dashboards with call transcriptions and evaluation capabilities thrown in.
AI Continues to Grow
In discussing the company’s R&D strategy, Wilson states that “innovation is the spark that gets the growth engine started.”
With this in mind, 8×8 confirmed that it is continuing to invest 15% of its revenue in R&D on a non-GAAP basis, with its AI department, in particular, more than delivering on its return.
Indeed, sales of AI-based products, such as the Intelligent Customer Assistant and solutions from 8×8’s technology partners, rose over 50% sequentially and over 200% year-over-year.
Since launching, the CEO claims that these products have hosted over 1 million interactions, with usage continuing to accelerate.
8×8’s “differentiated approach” to AI aims to enhance the overall CX by focusing on the following four pillars:
- Comprehensive AI-driven data processing for all voice and digital interactions across its platform.
- An ecosystem of top-tier AI applications seamlessly integrated into its CX solutions.
- Investing in AI insights to evaluate the entire CX deployment.
- Expanding the professional services team’s AI consulting offerings.
Despite describing AI as “just a tool,” Wilson was resolute about the potential of the technology to influence the customer service and experience sector:
We are focused on turning our AI technologies into the business outcomes that our customers want.
The use of AI and focus on business outcomes has also helped to accelerate new logo business.
In the second quarter, Wilson confirmed that new logo business represented a larger share of the company’s bookings – a continuation of the trend of growth over the past three quarters.
Moreover, the majority of 8×8’s top 20 new logo deals involved CCaaS in the initial commitment, with several including more than four products.
The Numbers
Described by Kevin Kraus, Chief Financial Officer at 8×8, as a “solid financial performance,” in fiscal Q2 2025, 8×8 reached the upper limit of its total revenue guidance and exceeded the top end of its projections for service revenue and non-GAAP operating margin.
Nevertheless, its year-over-year (YoY) revenue did drop by two percent, from $185.0 million to $181.0 million.
The execs cited a decline in revenue from customers remaining on the Fuze platform as a continued blocker.
