· GAAP Revenues of $721 million represented
year-over-year growth
· Revenue from Software and Services was 89%, a new
record; Recurring revenue was 64%
· Cloud,
· Booked ~$130 million of Avaya OneCloud Subscription
Total Contract Value (TCV)
Avaya
Holdings Corp. (NYSE: AVYA) today reported financial results for the third
quarter ended June 30, 2020.
Third Quarter Financial Highlights:
- Revenues
of $721 million
- GAAP
Operating income was $53 million; Non-GAAP Operating income was $164
million
- Net
income was $9 million
- Adjusted
EBITDA was $187 million, 25.9% of revenue
- 104
deals signed with a TCV of over $1 million, 7 deals over $10 million TCV
- Ending
cash and cash equivalents were $742 million
Jim Chirico, President and CEO of Avaya stated, “We
delivered strong quarterly results exceeding our guidance across all
metrics. The company grew sequentially and year over year, which marks a
major milestone for Avaya. Software and services as a percent of revenue
was 89% - beating the record set this past March; recurring revenue was 64%, up
5 points year-over-year; and our CAPS revenue increased to 30% from 23% in the
prior quarter. The strength in our business is a direct result of
executing on the deliberate strategy we laid out over two years ago.”
Mr. Chirico added, “Response to our Subscription
offering continues to be strong, with just over $200 million of TCV having been
booked since its launch back in Q1. This offering differentiates Avaya
within the enterprise segment and answers a very clear demand from our
customers for flexibility, access to our latest innovations and to provide a
seamless path to move to the cloud at a time and pace they choose.”
Customer Highlights
·
A large
US-based retailer signed a new three-year Avaya OneCloud Subscription agreement
to fully modernize their Avaya infrastructure which supports 75,000 Unified
Communication users and 25,000
·
Vodafone, a
long time Avaya customer, signed a new five-year Avaya OneCloud Subscription
agreement to address their immediate collaboration and communications
challenges responding to COVID-19, as well as to support their long term
strategy to modernize their agent and customer experience. By upgrading its
communications infrastructure with Avaya OneCloud Subscription to support 4,600
agents, this flexible model is ideal to support Vodafone’s digital
transformation journey at a time when work from anywhere requirements have
become a priority. Leveraging Avaya solutions, Vodafone has stated that its
customer service team in the
·
A leading
European financial services company is leveraging our Avaya OneCloud
Subscription offering to replace their UC and contact center systems.
This customer needed to facilitate an enterprise wide systems transformation
and wanted the flexibility, access to innovation like Spaces on demand, and the
ability to integrate new digital applications that an opex model provides.
·
Closed the
first seven-figured TCV deal for Avaya Cloud Office with a government customer
based in the
·
Waldorf
Woodlands, a leading family of not-for-profit schools in
·
CTIntegrations
adopted Avaya OneCloud CPaaS technology for their flagship product, CT Suite, a
user-friendly agent desktop and multimodal contact center. APIs from
Avaya’s CPaaS portfolio enable CT Suite to smoothly deliver proactive SMS
messaging to mobile callers so their agents can provide faster service during
peak demand periods.
· Cincinnati Bell is implementing a new Avaya
OneCloud CCaaS solution to support nearly 300 agents working remotely.
They required a stable and reliable public cloud solution that could be
deployed quickly and cost effectively to extend the capabilities of their
existing Avaya contact center.
Business Highlights
·
IBM presented
Avaya with the 2020 IBM Award for Hybrid Cloud Excellence in recognition for
outstanding performance in providing enterprise organizations with a fast,
convenient and automated path to a cloud communications solution using Avaya
OneCloud ReadyNow.
·
Entry into a
new partnership with NVIDIA, a leading graphics processor unit (GPU) design
company that has helped to not only redefine modern computer graphics but more
recently modern AI capabilities through GPU-enabled deep learning, has enabled
Avaya to increase the impact and value of visual, audible and collaborative
experiences through our Spaces offering.
·
Aragon
Research included Avaya in their Aragon Research Globe for
· Frost & Sullivan recognized Avaya with their
2020 North American Growth Innovation Leadership Frost Radar Award for
innovative workforce engagement management solutions deployed across its
contact center portfolio.