Avaya Reports First Quarter Fiscal 2021 Financial Results

Rhea-AI Summary

Avaya Holdings Corp. (NYSE: AVYA) reported its first quarter fiscal 2021 results, revealing revenues of $743 million, and a significant rise in OneCloud ARR, which reached $262 million, a 38% sequential increase. The company's CAPS revenue climbed to 34%, while software and services accounted for 88% of total revenue. Although GAAP net loss was $4 million, non-GAAP net income stood at $85 million. With a total contract value of $2.2 billion, Avaya is increasing its guidance for revenue and profitability for the fiscal year.

Positive

• Revenue increased to $743 million.
• OneCloud ARR rose 38% sequentially to $262 million.
• CAPS revenue climbed to 34%, up from 18% a year ago.
• Recurring revenue increased to 65%, compared to 59% previous year.
• Non-GAAP net income reached $85 million.

Negative

• GAAP net loss of $4 million.
• Loss per share stood at $0.06.

DUBAI, UAE, Feb. 10, 2021 /PRNewswire/ -- 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.

Customer Highlights

• 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.

Business Highlights

• 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.

 

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SOURCE Avaya Holdings Corp.

FAQ

What were Avaya's revenue results for Q1 2021?

Avaya reported revenues of $743 million for the first quarter of fiscal 2021.

How much did OneCloud ARR increase in Q1 2021?

OneCloud ARR increased by 38% sequentially to $262 million.

What was Avaya's GAAP net income for Q1 2021?

Avaya reported a GAAP net loss of $4 million for the first quarter.

What guidance did Avaya increase for fiscal 2021?

Avaya increased its guidance for revenue, ARR, profitability, and cash flow from operations (CFFO) for fiscal 2021.

What is the total contract value reported by Avaya?

Avaya reported a total contract value of $2.2 billion for the first quarter.