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8x8 Investor Presentation

October 2013

8x8, Inc.
Corporate Overview 8x8 November 2013 Roadshow
October 21, 2013

Safe Harbor
This presentation includes forward-looking statements within the meaning of the federal securities laws. These statements relate to, among other things, our business strategy, goals and expectations concerning our market position, the growth of the markets in which we compete and the benefits that our customers will realize from our services. We use the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases to identify forward-looking statements in this presentation. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward- looking statements depending on a variety of factors including those that are described in greater detail under the heading Risk Factors in our preliminary prospectus supplement and under the heading Managements Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in our Annual Report on form 10-K and Quarterly Reports on 10-Q. All future written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. We undertake no obligation to update any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this presentation. This presentation contains certain information that has not been derived in accordance with generally accepted accounting principles (GAAP"). Reconciliations of such information to the most directly comparable information derived in accordance with GAAP are contained in this presentation. This information should not be considered a substitute for any measures derived in accordance with GAAP.

Company Overview
Overview $ Millions Revenue (1)

!! Leader in cloud-based unified communications and collaboration (UCC) !! Cloud Telephony !! Contact Center !! Virtual Meeting !! Virtual Desktop !! Over 35,000 business customers !! 14 consecutive quarters of growth and profitability !! Headquartered in San Jose, CA !! ~400 employees
FY2011
Note: Fiscal year ends in March. (1)! Pro forma for divestiture of dedicated server hosting business sold on September 30, 2013.

$103.8 $83.4 $68.6 $60.1

FY2012

FY2013

1H FY'14

Investment Highlights

Cloud and Mobility Changing Business Communications

Replacement Cycle of Legacy Solutions Driving Large and Growing TAM

Leader in Cloud-Based Unified Communications and Collaboration

Proven Growth, Predictability and Operating Leverage

Communications and Collaboration is Cumbersome

Hardware, Carrier and Sub-Carrier Complexity Long, Complex High-Touch Setup Device Proliferation / BYOD Globally Distributed Workforce Lack of Application Integration
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UCC in the Cloud Solves the Problem

!! Easy-to-Use !! Enhances Productivity !! Flexible & Scalable !! Cost-Effective !! Rapid Deployment !! Makes Global Local

8x8 Provides a Comprehensive UCC Suite in the Cloud

Virtual Office

Virtual Contact Center

Virtual Meeting

Virtual Desktop

Unified Software Platform Infrastructure Manager Integration Manager

8x8 Best of Breed Functionality in One Suite

Virtual Office !! Business phone service !! Virtual Office Mobile for smartphones and tablets !! Virtual Office Collaboration

Virtual Contact Center !! Skills-based routing !! Multimedia queuing !! Real-time monitoring and reporting

Virtual Meeting !! Unlimited meetings with unlimited durations !! Seamless Virtual Office integration !! Integrated VoIP and chat !! Meeting recording and management

Virtual Desktop !! Enterprise-grade secure H/A cloud infrastructure based on Vblock/VMware !! BYOD client support PC, Mac, iOS, Android !! Instant provisioning, easy management

Integration Manager

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UCC in the Cloud Growing at a 24.7% CAGR through 2016


UCC in the Cloud Market $ Billions > $30

$7.1
$0.7 $0.6 $0.9

Virtual Desktop (1) - $0.1 Virtual Meeting (2) - $0.4 Virtual Call Center (3) - $0.5 Virtual Office (4) - $2.0

$2.9

$4.9

2012
Note: Market figures may not sum due to rounding. (1)! Source: IDC. Worldwide Workspace-as-a-Service; Dec 2012. (2)! Source: Frost & Sullivan. Analysis of the Web Event Services Market; Sep 2012. (3)! Source: Gartner. Contact Center as a Service, North America; June 2012. (4)! Source: TechNavio. Global Unified Communication Market; September 2013.

2016
8x8 Market Penetration

Long-Term

Industry Research Validates 8x8s Leadership


UCaaS Only

Ability to Execute

Completeness of Vision
Source: Gartner. Magic Quadrant for Unified Communications as a Service, North America; Nov 2013.

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Customer Value Proposition Case Study


8x8 Provides More UCC Functionality at a Lower Cost than Traditional Providers

Plus: System Integration Costs

Savings $6,192 / Year 66% Lower Cost

$9,360 / Year

$3,168 / Year

Traditional Provider

Average Customer Services Average Price / Service / Month Average Price / Service / Year Total

12 $22 $264 $3,168

Average Customer Services Average Price / Service / Month Average Price / Service / Year Total

12 $65 $780 $9,360

Note: Analysis represents an average 8x8 customer with approximately 12 subscription services. (1) Represents an estimated subscription cost for a traditional on-premise telephony provider based on various sources including industry research, Wall Street research and the company.

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35K+ 8x8 Business Customers and 400K+ Subscriptions

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8x8s Underlying Technology


8x8s Infrastructure Manager Abstracts Complex Network Topology to Create a Unified Platform

!! Intelligent software analytics deliver quality connectivity !! Geographic redundancy / failover provides 99.995% availability !! Able to serve customers requiring compliance with major regulatory standards (e.g. FISMA, HIPAA, HITECH, PCI, DSS, CPNI) !! Seamless abstraction of complex SIP/PSTN gateways !! 90+ awarded patents; 60+ current patents
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High-Growth Low-Touch Go-To-Market Model


!! ~35% of new MRR (1) !! Large customer-focused account executives with minimal travel !! White label solutions through experienced partners and VARs
Mid-Market & Distributed Enterprises (> 50 Services)

!! Direct & Channel

!! Resellers include:

!! ~65% of new MRR (1)


!! Inside Sales Force SMB (< 50 Services)

!! Low-touch high-skill sales representatives !! No travel policy 100% of sales representatives have never met the customer

(1)! Figures as of Q2 fiscal 2014.

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Asset-Light Business Model


Capital Expenditure Far Lower than SaaS Industry Average
% of Revenue (1) 7.6%

2.0%(3)

SaaS Average

(2)

(1)! Figures as of fiscal year 2012 for BCOV, DWRE, FLTX, MKTG, MKTO, SPSC, RNG,TNGO and as of fiscal year 2013 for BV, EGHT and EOPN. (2)! SaaS Comps include: BCOV, BV, DWRE, EOPN, FLTX, MKTG, MKTO, SPSC, RNG and TNGO. (3)! Excludes one-time tenant improvements on new headquarters.

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Growth Strategy

New Product / Service Offerings on Platform

Expand Globally

Growth

Increase Mid-Market / Distributed Enterprise Adoption

Upsell Products and Services

Strategy
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8x8 Investor Presentation


October 2013

Financial Overview

8x8 Roadshow

October 21, 2013

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Financial Highlights

Strong Subscription Revenue Growth and Highly Visible, SaaS Model

Strong Key Performance Indicators

Compelling Subscription Economics (Lifetime Total Value)

Proven Growth, Predictability and Operating Leverage

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Strong Customer and Revenue Growth


Customers (1) Thousands $ Millions Revenue (1)

$103.8 34.7 32.2 28.4 24.3 $68.6 $60.1 $83.4

FY2011

FY2012 FY2013 Existing New

1H FY'14

FY2011

FY2012 Service

FY2013 Product

1H FY'14

Note: Fiscal year ends in March. (1)! Pro forma for divestiture of dedicated server hosting business sold on September 30, 2013.

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Strong Key Performance Indicators


Increasing ARPU (1) Increasing Services per Customer (1) Improving Revenue Churn (1)(2)

18.1 17.6 17.0 $268 17.7

$263 14.1

14.7

2.3%

2.3% 0.9%

$256 12.0 $252 10.8 $247 10.2


(0.4%)

12.2
1.2% 1.2% 1.2%

11.3

11.6

(0.3%) (0.8%) (0.6%)

(0.4%)

(0.2%)

$242

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q1'13

Q2'13 Q3'13 Net Churn

Q4'13

Q1'14 Q2'14 Gross Churn

Business Customer

New Business Customer

(1)! Pro forma for divestiture of dedicated server hosting business sold on September 30, 2013. (2)! Net churn defined as gross churn net of upsell / added services.

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A Scalable and Repeatable Business Model


Top 25 Customers Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Customer 10 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer 16 Customer 17 Customer 18 Customer 19 Customer 20 Customer 21 Customer 22 Customer 23 Customer 24 Customer 25 Q1 Q2 FY2012 Q3 Q4 Q1 Q2 FY2013 Q3 Q4 Q1 FY2014 Q2 Upsell Factor 3,312% 710% 1,466% 3,830% 14,909% 4,639% 2,224% 1,718% 2,500% 2,892% 1,755% (15%) 314% 1,842% 50% 57% 392% 977% 5,197% 403% 27% 77% 485% 49%

Initial Purchase

Upsell

Recurring Billing / Decline


Average Median

-2,075% 1,221%

Note: Top 25 companies starting services on or after Q1 FY12.

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Customer Lifetime Value Economics


$14,569

!! $268(1) ARPU per month, increasing over time !! $173(1) (65%) average contribution margin per month, increasing over time !! Current average tenure of 84.0 months, increasing over time
$2,080

!! 6.6 month payback !! Lifetime value does not account for upsell

($1,149) Year 1 Acquisition Cost


(1)! Figures as of Q2 fiscal 2014.

Lifetime Value of Customer Customer Contribution Margin

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Historical Financial Performance


FY2012
Revenue Growth (1) 21.5% (3)

FY2013
24.5% (3)

1H FY2014
21.2%

Business Revenue Growth (1)

29.7% (3)

30.8% (3)

24.4%

Gross Margin (1)

69.1%

69.4%

71.5%

Percent of Revenue

Sales & Marketing (1)

43.5%

43.9%

44.6%

Research & Development (1)

8.1%

7.8%

8.3%

General & Administrative (1)

7.2%

8.2%

9.8%

Non-GAAP Net Margin (2)

12.4%

14.1%

13.9%

Note: Fiscal year ending March 31. Business revenues defined as revenues from business customers. (1)! Pro forma for divestiture of dedicated server hosting business sold on September 30, 2013. Sales & Marketing includes customer support & billing services costs of ~15% of revenue. (2)! Calculated as a percentage of pro forma revenue. Pro forma reconciliation can be found in the appendix. (3)! Growth represents partial year impact of Contactual acquisition in September 2011.

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Non-GAAP Reconciliation
FY2012 Revenue Pro Forma Adjustments (1) Pro Forma Revenue Gross Profit Pro Forma Adjustments (1) Pro Forma Gross Profit Pro Forma Gross Margin (2) Sales & Marketing Pro Forma Adjustments (1) Pro Forma Sales & Marketing Pro Forma Sales & Marketing (2) General & Administrative Pro Forma Adjustments (1) Pro Forma General & Administrative Pro Forma General & Administrative (2)
(1)! Pro forma for divestiture of dedicated server hosting business sold on September 30, 2013. (2)! Metrics as a percentage of pro forma revenue.

FY2013 $107,614 (3,828) $103,786 $73,612 (1,555) $72,057 69.4% $46,244 (671) $45,573 43.9% $8,619 (61) $8,558 8.2%

$85,803 (2,430) $83,373 $57,916 (339) $57,577 69.1% $37,980 (1,753) $36,227 43.5% $6,012 (39) $5,973 7.2%

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Non-GAAP Reconciliation

FY2012 Net Income Gain on Patent Sale Loss on Investment Non-Cash Tax Adjustments Amortization Stock-Based Compensation Expense Acquisition Related Expense Facility Exit Expense Non-GAAP Net Income Non-GAAP Net Margin (1) $69,228 356 (62,422) 788 1,506 739 140 10,335 12.4%

FY2013 $13,393 (12,965) 9,308 1,428 2,634 35 305 14,684 14.1%

1H FY2014 $4,370 (589) 1,589 671 2,013 143 133 8,330 13.9%

(1)! Metrics as a percentage of pro forma revenue.

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8x8 Investor Presentation


October 2013

NASDAQ: EGHT

8x8 Roadshow

October 21, 2013

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