8×8, Inc. (NYSE:EGHT) Q2 2024 Earnings Call Transcript

Definitely, with sort of a bent on airlines retail public sector in the UK. You obviously mentioned Westminster those kinds of things. Those are logical places for chatbots and those high-velocity common questions get answered over and over again. I think third is we saw a sizable improvement in pipeline in our North American value-added resellers or VAR community. We’ve been making more investments in that space as I’m sure a number of your channel checks show that we’ve been investing more in the VAR side of the business than the TSD agent side of the business. And we’re seeing some sizable pipeline increases there and I think that’s a pretty sizable benefit. And then in terms of verticals anything — I mean, we’ve had good last quarter or two in health care want to…

Lisa Martin: Yeah. I think health care field services. Field services is a great one where anyone rolls a truck or has someone like a car towing all those types of things have really been resonating with the video APIs that we’ve introduced as well.

Samuel Wilson: Yes. Yes.

Ryan Koontz: Yes. Thanks. That’s helpful. And on your comment on North America VARs, are you seeing increased kind of engagement on the contact center arena from these VARs? Or do you have to really change out to a new set of ours to drive that business?

Samuel Wilson: No, no. We see them very interested in the contact center side of the house and we’re adding new VARs. We’re actively bidding on a number of VAR. RFPs that are out there and recruiting new VARs in general. I think this actually plays or in the earlier answer around Microsoft, it plays into contact center and I think that Holy Grail of our community is really starting to open up.

Ryan Koontz: Got it. Thanks for the color.

Samuel Wilson: Thank you.

Operator: Our next question comes from William Power with Baird. Your line is open.

William Power: Okay. Great. Thanks. I guess a couple if I can squeeze in here. Sam, you just touched on this actually a bit. But on the CPaaS business, I think you noted upside in the quarter. I think you just indicated there was some go-to-market improvement. But anything else there that you’d point to that really drove the better performance? And I guess even more importantly, the confidence we going forward those improvements stick.

Samuel Wilson: Well, I mean I’d be remiss. I mean the guy we hired and I won’t mention his name, because it’ll probably get inbound recruiting calls, has done a phenomenal job. And so leadership matters and leadership matters right? On top of that we’ve announced new products. We’ve improved and streamlined our go-to-market activity. So as the company grew, its go-to-market activities need to synchronize with what it was doing. Yes, we can speak kindly enough about OmniShield and the new products and innovation we’re driving. We’ve launched a new platform over the last year. So, our stability our availability, our dynamic routing capabilities on our platform absolutely phenomenal. And we’ve been in the box because of those capabilities.

By the way because of that omnichannel and because of the platform capabilities, we’re in the box for just some super large CPaaS deals. I don’t know if we’re going to win them. They’re certainly not in the financial model but we’re planning the big leagues in CPaaS in Southeast Asia.

William Power: Okay. No. Great to see the improvement there. And I guess second question would be around teams, which I know it’s been a positive area for some time. Maybe just any other color you can share on trends, seat growth and kind of what you’re seeing competitively from others that are trying to go after that base of user too.

Samuel Wilson: So, keep me kicking in to the table, I’m sliding away from her to tell you we just passed 400,000 seats of Microsoft teams is in the slide, sorry, we got over 400,000 seats of Microsoft teams. I think we’re growing still…

Kevin Kraus: By 67%.

Samuel Wilson: 67% year-over-year. So those are all — like those are the — we have the quantitative stuff. Here’s what I’m most proud of to be fair. So Microsoft, I got a chance to see Microsoft’s partner slides. I think they presented in June. And we were listed as a strong partner of Microsoft versus our competitors which were all listed as Microsoft competitors. So I am very happy with our relationship with our relationship with Microsoft. And I wish them nothing but the best of luck every day of the week.

William Power: Yeah. Sounds great. Thanks.

Operator: Our next question comes from Matthew VanVliet with BTIG. Your line is open.

Matthew VanVliet: Thanks for taking the question. Maybe I’ll ask one in the interest of time here. But, Sam you talked about a number of years until the contact center may or may not be fully automated. And so maybe more importantly, what are your customers’ sort of goals over the next couple of years in terms of whether it’s called deflection or at least reduced time of the agent on the phone what’s realistic? What are the customers asking you to do? And then as you wrap that all together, how additive versus moving revenue from one pocket to the other can that be over the next couple of years as you embark on some of those goals for your customers?

Samuel Wilson: All right. So that’s a great question. Like when I talk to contact center leaders and Lisa chime in any time you want here. I think what I hear is like it be great if we could get overall like a 20%, 30% case deflection type of number to get the run-of-the-mill cases the simple use cases out of the system. Number two is we improve mean time to resolution through things like agent assist. And number three, three is — and — the Street never talks about this, but it’s such a day-to-day activity and a context on a leader is get attrition down. Almost every contact center leader I talk to deals with attrition at 40% to 50%. And through things like bots and agent assist and health scoring and those kinds of things if they can make the job better and bring attrition down, I mean, I don’t think anyone on this call can imagine what it’s like to literally turn over almost your entire workforce every other year.