UCaaS Stats June 2023

ARPU isn’t talked about much anymore. There was a time, it was an investor deck metric. RingCentral included it recently to demonstrate that they are not giving it away. The ARPU is roughly $31. However, they have $300M+ in revenue from Contact Center which usually prices out at 3x-4x UCaaS seats. RNG total revenue is $2.2B. About 1/7 is CCaaS. There were a bunch of deals with sub $10 seats.

At $31 per seat times 5.2M users equals about $1.92M in revenue.

Zoom has $4.4B in ARR. 10% of that is phones ($440M). They have 5.5M phone subs. That is $6.67 ARPU. A lot of $5 seat Education deals have compressed that ARPU.


8×8 used to advertise a $15 seat.  Vonage has a $13 seat deal running now. Zoom is at $10. Direct Routing is sub-$10.

RingCentral has the most global telco partners. Yet their YoY growth is nothing to write home about. Avaya, Mitel, Atos, CDW, Verizon, Frontier, et al — and yet your growth is 14% YoY?!

And RNG claims to have 15,000 channel partners. That number is made up. In the US, most will agree that there are about 6,000 telecom agents. There are about 62,000 MSPs. They claim 15K+ which would be 22% of all partners. That is a made up number.

RNG Partners

That 15K is reduced from earlier investor decks that stated RNG had access to 200K sub-agents. There aren’t that many people globally selling UCaaS. Or we would be a far cry above 20% penetration.


MS Teams is 300M Monthly users out of about 400M business desktops.  Only about 90M have phone licenses.

8×8 Fiscal Year 2023 service revenue increased 18% percent year-over-year to $710 million, 3M paid business users, 60K+ customers; 60% YoY Channel driven ARR growth.  300K Voice users for MS Teams.  Full PSTN replacement in 58 countries/ territories. The ARPU calculation for 8×8 ($710M/12 months/3M subs) = $19.72. This is a mix of 300K $9 Teams licenses; CPaaS, UCaaS and CCaaS seats. Not a bad ARPU but this also means that UC+CC will mean price compression on CCaaS heavily.

In 2021, 8×8 reported ARPU for their fiscal 2022 as $268 and it took 6.6 months to get payback on customers. Acquisition cost was $1149.  Average sales size was 11 seats.

Wildix is at 1.6M users globally.

Netsapiens/CXDO is at 2M.

Ooma is one of the publicly traded UCaaS players. Total revenue 1Q2024 was $56.9 million, up 13% year-over-year. Ooma’s market cap today is $378M with $230M in ARR and $67M in debt.  1.225M users, $23 ARPU for Business.

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