Last quarter, 8x8 suffered a revenue drop of two percent year over year (YoY).
Reacting to the news, Samuel Wilson, CEO of 8x8, blamed: "Continued challenges in our CPaaS business in the Asia Pacific region and higher-than-expected churn in our Fuze customer base."
Moreover, he underscored increased carrier pricing for SMS and the pressing need to downsize Fuze contracts as significant obstacles to its CPaaS business.
Thankfully, this quarter, 8x8 bounced back to revenue growth, reporting a two percent rise (YoY) – while its stock increased by 31 percent after a 24-month slump.
Now, Wilson believes its CPaaS business and Fuze transformations are in a much better place.
Discussing the latter during an earnings call, Wilson stated:
I think last quarter is probably the worst. It got a little bit better this quarter… we saw a quarter-on-quarter significant improvement in the number of logo churn.
"We're still dealing with a little bit of rightsizing, especially as we upgrade the customers to 8x8. I think it will get better in the next quarter and the quarter after."
Wilson also described each of the top 400 Fuze customers as "a little bit of a snowflake" when going into more detail about the “upgrade” process.
Yet, he said defiantly: "I'm not going to force that top 400 to move over."
Moreover, Wilson was much more buoyant about 8x8’s CPaaS business, praising the performance of the APAC team after previously noting teething issues in the region.
"CPaaS killed it in Southeast Asia," he said. "Their pipeline activity is up. The revenue produced was up. It was a great quarter in CPaaS, and there's a lot of room to run there… We're in the box for just some super large CPaaS deals."
Importantly, Wilson also noted how CPaaS has become the backbone of its CCaaS and UCaaS platforms – helping each to grow new arms and legs.
Sharing an example, he said: “We recently introduced Remote Fix, a prepackaged second-generation video escalation solution targeting field service organizations.