8x8 2016 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2016 8x8 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 149

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149

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, 2016. 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.
Years Ended March 31,
2016 2015 2014 2013 2012
(in thousands, except per share amounts)
Total revenues $ 209,336 $ 162,413 $ 128,597 $ 103,786 $ 83,372
Net income (loss) $ (5,120) $ 1,926 $ 2,514 $ 13,939 $ 69,228
Net income (loss) per share:
Basic $ (0.06) $ 0.02 $ 0.03 $ 0.20 $ 1.04
Diluted $ (0.06) $ 0.02 $ 0.03 $ 0.19 $ 0.99
Total assets $ 313,452 $ 295,624 $ 299,203 $ 152,611 $ 130,733
Accumulated deficit $ (109,859) $ (104,739) $ (106,665) $ (109,179) $ (123,118)
Total stockholders' equity $ 275,306 $ 272,211 $ 278,178 $ 137,033 $ 118,450
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
We are a provider of cloud-based, enterprise-class software solutions that transform the way businesses communicate and collaborate globally. Our comprehensive
software platform brings together the power of cloud, mobile, collaboration, video and data science technologies to enhance the way employees communicate with
each other, and how they connect and interact with their customers. Our integrated, "pure-cloud" offering combines global voice, conferencing, messaging and
video with integrated workflows and big data analytics on a single platform to enable increased team productivity, better customer engagement and real-time
insights into business performance. Since fiscal 2004, substantially all of our revenue has been generated from the sale, license and provision of communications
services.
SUMMARYANDOUTLOOK
In fiscal year 2016, we displayed continued momentum in four key areas of our business. First, our increased focus on mid-market and distributed enterprise
customers resulted in more than 48% of our total service revenue coming from this customer segment, compared with 42% in fiscal 2015. Over the course of the
fiscal year, we continued to show an increase in our average monthly service revenue per customer (ARPU). In the fourth quarter of fiscal 2016, our ARPU grew
20% to $385, compared with $320 in the same period of fiscal 2015. The increase resulted from our success in selling a greater number of subscriptions to larger,
more established customers.
Second, we continued the advancement of our technology and product innovation with the expansion and enhancement of our integrated communications software
suite. We released our new Virtual Office Meetings product, a high definition video conferencing and collaboration solution that enables secure, continuous
communication from any device, anywhere in the world. We also released next-generation capabilities for our Virtual Contact Center solution, including a global
tenant that seamlessly connects an organization's international agents over a single platform, cloud-native quality management, analytics that monitor and improve
the customer journey, and a pre-built CRM integration tool.
Third, we have made significant progress with our enterprise customer deployments. We continue to deploy our solutions for multiple global enterprise customers
with 1,000 - 10,000 seats in the US, Canada, Australia, Philippines, UK, Czech Republic, Uruguay, Singapore, Hong Kong, Japan, and many others. Our patent
pending "Elite Touch" professional services program employs a comprehensive success enablement methodology that ensures the fastest time to value for
customers with large and complex requirements that typically involve multiple sites, global implementations or integration with CRM or other back end systems.
Fourth, we continued to build on our Global Reach® initiative by broadening our presence and service delivery capabilities to support our customers who currently
are operating in 114 countries. Beyond serving the needs of existing customers, it is our intent to penetrate these markets through a variety of additional methods
including strategic alliances, partners and acquisitions.
34