Guidance raised reflecting improved performance across key business metrics
Total revenue increased 4% year-over-year to $743 million
Avaya OneCloud™ ARR increased 38% sequentially to $262 million
Cloud, Alliance Partner & Subscription revenue grew to 34%
Dubai, UAE: Avaya Holdings Corp. (NYSE: AVYA) today reported financial results for the first quarter of fiscal 2021 ended December 31, 2020
First Quarter Financial Highlights
- Revenues of $743 million
- OneCloud ARR was $262 million, up 38% sequentially
- CAPS (Cloud, Alliance Partner and Subscription) revenue was 34%, up from 18% a year ago
- Software and services were 88% of revenue, up from 86% a year ago
- Recurring revenue was 65%, up from 59% a year ago
- GAAP Operating income was $62 million; Non-GAAP Operating income was $163 million
- GAAP Net loss was $4 million; Non-GAAP Net income was $85 million
- Adjusted EBITDA was $190 million, 25.6% of revenue
- Ending cash and cash equivalents were $750 million
- GAAP Loss Per Share of $0.06; Non-GAAP Earnings Per Share of $0.90
“We are pleased to report first quarter results that exceeded expectations across all key metrics. Navigating a very challenging business environment, we emerged from 2020 even stronger. This success reflects the significant progress we continue to make on our transformation into an enterprise leader in cloud-based communications and collaboration solutions,” said Jim Chirico, President and CEO of Avaya. “The investments we have made in the business are generating strong traction across all segments in which we operate and, as a result, we are increasing our guidance for revenue, ARR, profitability and CFFO for the fiscal year.”
Additional First Quarter Fiscal 2021 Highlights
- Total Contract Value (TCV) of $2.2B*
- Avaya OneCloud Subscription booked additional TCV of over $180 million during the December quarter
- Added over 1,600 new logos
- Significant large deal activity with 119 deals over $1 million TCV, 14 over $5 million, 6 over $10 million and 3 over $25 million
- Avaya Cloud Office™ launched in Austria, Belgium, Germany, Italy, and Spain.
- The Company is launching a Term Loan Amendment transaction today to extend the maturity of its outstanding Tranche B Term Loans due December 2024 to September 2027. In connection with the Amendment, the Company will make a $100 million prepayment of the existing Tranche B Term Loans.
- Avaya Spaces was chosen by Dubai World Trade Centre to be the workstream collaboration platform enabling blended conference experiences, beginning with Gitex Technology week in December 2020. Gitex is the largest technology event of its kind, and the only one to go live in 2020. In a truly global event, over 30,000 virtual attendees used Spaces to engage with 350 technology experts representing 30 countries.
- Avaya Earned the Frost & Sullivan Award for Excellence in Healthcare Solutions.
- Avaya named one of 2021 America’s Most Responsible Companies by Newsweek magazine based on key performance indicators derived from CSR Reports, Sustainability Reports, and Corporate Citizenship Reports, as well as an independent survey of U.S. residents.
- TrustRadius recognized Avaya with the 2020 Tech Cares Award for going above and beyond to provide global communities, clients, and frontline workers with support during the COVID-19 crisis.
- Avaya Spaces placed in Leaders category in IDC MarketScape: European Collaboration Tools for Education 2020 Vendor Assessment.