• Usage-based CPaaS, digital and AI revenue drove rapid growth in 8×8’s Q3 results.
  • Gains largely offset churn tied to Fuze, stabilizing overall revenue mix.
  • The shift signals a broader move toward usage-based CX pricing and consumption models.
  • Watch for margin, integration and pricing impacts across contact-center vendors.

What 8×8 reported in Q3

8×8’s Q3 results revealed a clear change in what’s powering the company: fast-growing usage-based CPaaS, digital channels and AI-driven services are shouldering an increasing share of revenue. That growth helped blunt the impact of churn related to Fuze, keeping the company on steadier footing than headline numbers alone would suggest.

Executives framed the quarter as evidence that customers are moving from predictable seat-based contracts to consumption-led models — where CPaaS minutes, digital engagement and AI usage generate more variable but rapidly growing income.

Why the change matters

The shift from legacy seat licensing to usage-based billing is important for three reasons:

  • Revenue mix and growth profile: Usage-based services can expand quickly when customers scale digital channels or trial AI features, producing bursts of growth that seat-based models rarely match.
  • Competitive dynamics: Vendors that build flexible, metered offerings can capture customers who want to avoid large upfront commitments — creating FOMO for companies that lag behind.
  • Customer economics and retention risk: While usage revenue can grow fast, it can also be more volatile. Churn — like the Fuze-related attrition 8×8 experienced — remains a risk and can expose integration or product gaps.

What this signals about CX pricing

8×8’s quarter is an early signal of a broader market trend: CX buyers increasingly prefer consumption and outcome-driven pricing for communications, AI and digital channels. For vendors, that means product teams must instrument usage telemetry and tie features to clear value outcomes. For buyers, it offers flexibility but also requires governance to keep costs predictable.

This isn’t just a billing change; it reshapes product roadmaps. AI-driven features and CPaaS components need to be easy to meter, transparent to customers, and demonstrably tied to improved metrics such as resolution time or engagement rates.

Risks and what to watch next

Even as usage revenue grows, several questions remain:

  • Can 8×8 sustain growth from usage while reducing churn from legacy integrations and acquisitions like Fuze?
  • Will margins hold up as more services are priced consumption-first and customers optimize usage?
  • How quickly will competitors adapt their pricing and packaging to match buyer demand for flexibility?

Investors and CX buyers should monitor product adoption rates, net retention, and churn signals — plus any management commentary about pricing changes, bundling or new metering approaches.

Bottom line

8×8’s Q3 shows usage-based CPaaS, digital engagement and AI are emerging as the company’s growth engines. That shift is a practical example of how CX pricing is evolving toward metered, outcome-focused models — a development that will force vendors and customers to rethink contracts, product design and cost controls.

Image Referance: https://www.cxtoday.com/contact-center/inside-8x8s-q3-usage-based-cx-revenue-starts-to-carry-the-load/