UPDATE

8x8, Inc., provider of innovative business communications and cloud computing solutions, today reported record financial results for the third quarter of fiscal 2012, the period ended December 31, 2011.

The third quarter of fiscal 2012

Total revenue for the third quarter of fiscal 2012 was $23.3 million, a 31% increase compared to the same period last year and a 17% sequential increase compared to revenue of $19.8 million in the prior quarter. Total revenue from business clients, including hosted communications service revenue as then as cloud data revenue, grew 42% year-over-year and represented 93% of total revenue.

Hosted service margin from recurring revenue remained strong at 77% and capital expenditures as a percentage of total revenue was 2.3%.

Record low of 2

Business customer churn decreased to a record low of 2.0%, compared to a churn rate of 2.2% in the same period last year and 2.1% in the prior period. The Company ended the quarter with 27,677 business clients. The average new customer added while the December quarter purchased 14.1 services.

"We continue to see robust and accelerating growth in new business revenue, during simultaneously reducing churn, and this is contributing to strong overall organic growth across all segments of our business," said 8x8 Chairman & CEO Bryan Martin. "The acquisition of Contactual, which was completed at the end of the September quarter, has rounded out our portfolio of cloud communications services in the extreme well and now gives us the ability to better serve the needs of larger clients with both on-site and distributed call center operations. I am especially encouraged by the momentum we are seeing on the hosting side of our business and the continued success we are experiencing winning larger businesses and government organizations that are moving toward cloud-based solutions."

Conference call to discuss these results

Management will host a conference call to discuss these results and other matters related to the Company's business today, January 18, 2012, at 4:30 p.m. ET. The call is accessible via the following numbers and webcast links:

8x8, Inc. is a leading provider of cloud communications and computing solutions. With a portfolio of SaaS and IaaS solutions encompassing hosted communications, contact center, unified communications, video web conferencing, managed dedicated hosting, virtual private servers and more, 8x8 is uniquely positioned as a business' one-stop shop for everything cloud. 8x8 has been delivering cloud services since 2002 and has garnered a reputation for technological excellence and outstanding reliability, backed by a commitment to exceptional customer support. 8x8 clients include small to medium sized businesses, distributed enterprise organizations and government agencies. For additional information, visit www.8x8.com, or connect with 8x8 on Facebook and Twitter.