8x8 2015 Annual Report Download - page 39

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ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected consolidated financial data of 8x8 Inc. for each year in the five year period ended March 31, 2015. The
following selected consolidated financial data is qualified by reference to and should be read in conjunction with "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and with the consolidated financial statements, related notes thereto and other
financial information included elsewhere in this Annual Report on Form 10-K.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
We are a leading provider of VoIP and SaaS communication solutions in the cloud for SMBs and mid-market and distributed enterprises. We
deliver a broad suite of SaaS services including hosted cloud telephony, virtual contact center, and virtual meeting to in-office and mobile
devices through its proprietary unified SaaS platform. We currently serve approximately 41,600 business customers with over 650,000
subscriptions, making us a leading provider of UCC services in the cloud. Our integrated, "pure-cloud" services platform is developed from
internally owned and managed technologies and is uniquely positioned to serve mid-market and enterprise businesses making the shift to cloud
based Unified Communications. We make a full set of unified communications capabilities including cloud telephony, contact center, video and
web conferencing available from anywhere in the world. With 8x8 analytics and reporting, our customers have an unprecedented view into
company communications whether employees are mobile via the mobile client or in-office using a softphone, or a desk phone . Since fiscal
2004, substantially all of our revenue has been generated from the sale, license and provision of communications services. Prior to fiscal 2003,
our focus was on our Voice over Internet Protocol semiconductor business.
SUMMARY AND OUTLOOK
In fiscal year 2015, we displayed continued momentum in four areas. First, our continued focus on mid-market and distributed enterprise
customers resulted in 42% of our total service revenue coming from mid-market compared with 37% in fiscal 2014. We continued to show an
increase in our average monthly service revenue per customer to $320 in the fourth quarter of fiscal 2015 compared with $287 in the same period
of fiscal 2014, which is the result of our success in selling to larger, more established customers.
Second, we achieved efficiency and productivity improvements from our SMB sales group resulting from an increased focus on adding larger
SMB (> five employees) and smaller mid-market (50 - 250 employee) accounts. As we continued to focus on building a more profitable and
sustaining midmarket customer base, one that can contribute significantly greater lifetime value than the average small business customer, we
added fewer one - two line business customers.
34
Years Ended March 31,
2015
2014
2013
2012
2011
(in thousands, except per share amounts)
Total revenues
$
162,413
$
128,597
$
103,786
$
83,372
$
70,163
Net income
$
1,926
$
2,514
$
13,939
$
69,228
$
6,494
Net income per share:
Basic
$
0.02
$
0.03
$
0.20
$
1.04
$
0.10
Diluted
$
0.02
$
0.03
$
0.19
$
0.99
$
0.10
Total assets
$
295,624
$
299,203
$
152,611
$
130,733
$
26,584
Accumulated deficit
$
(104,739)
$
(106,665)
$
(109,179)
$
(123,118)
$
(192,346)
Total stockholders' equity
$
272,211
$
278,178
$
137,033
$
118,450
$
15,861