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Avaya Reports Second Quarter Fiscal 2021 Financial Results

Dubai, UAE, May 9, 2021: Avaya Holdings Corp. today reported financial results for the second quarter of fiscal 2021 ended March 31, 2021.

Second Quarter Financial Highlights

  • Revenues of $738 million, up 8% from a year ago.
  • OneCloud ARR was $344 million, up 31% sequentially.
  • CAPS (Cloud, Alliance Partner and Subscription) was 40% of revenue, up from 23% a year ago.
  • Software and services were 90% of revenue, up from 88% a year ago.
  • Recurring revenue was 66%, up from 64% a year ago.
  • GAAP Operating income was $44 million; Non-GAAP Operating income was $148 million.
  • GAAP Net loss was $58 million; Non-GAAP Net income was $72 million.
  • Adjusted EBITDA was $177 million, 24.0% of revenue, up 220 basis points year over year.
  • Ending cash and cash equivalents were $593 million.
  • GAAP Loss Per Share of $0.70; Non-GAAP Earnings Per Share of $0.74

“We drove solid second quarter results which highlight the company’s continuing momentum. But more importantly, they represent the significant work and strategic investments we have been making over the last few years to reshape our company and portfolio to be a leader in enterprise communications and collaboration”, said Jim Chirico, president and CEO of Avaya. “The playbook for our industry is not a secret. It is all about how you execute and I couldn’t be more delighted with our performance, which is why we are again raising guidance across several key financial metrics”.

Additional Second Quarter Fiscal 2021 Highlights

  • Total Contract Value (TCV) of $2.1B.
  • Added approximately 1,500 new logos.
  • Significant large deal activity with 107 deals over $1 million TCV, 16 over $5 million, 7 over $10 million and 1 over $25 million.
  • Avaya Cloud Office now available in 13 countries.
  • Avaya OneCloud CCaaS now available in approximately 40 countries.
  • The Company completed a term loan amendment extending the maturity of its outstanding Tranche B Term Loans due December 2024 to December 2027. In connection with the Amendment, the Company made a $100 million prepayment of the existing Tranche B Term Loans.

Customer Highlights

  • Avaya Spaces has helped Clemson University offer students a more immersive learning experience. Even for Clemson’s hands-on technical courses, the solution’s video and breakout room functionality integrates seamlessly with the experiential content in their learning experience platform for online and hybrid learning that truly supports both teachers and students.
  • Clarios, a world leader in advanced energy storage solutions, is deploying Avaya OneCloud Private for 5,000 unified communications users across 22 countries.
  • AllOne Health Resources, Inc. (“AllOne”) based in Wilkes-Barre, PA signed a 3-year deal, choosing to implement Avaya OneCloud CCaaS and Avaya Cloud Office. This powerful combination will support a diverse workforce that includes in-house doctors, nurses, clinical staff, health counselors and call center agents. AllOne has successfully grown organically and through acquisition and needed a communications platform that would deliver scalability and reliability through the next stage of their growth plans.
  • In the U.S., Atento expanded their investment in Avaya OneCloud CCaaS to deliver custom integrations and additional agents for their customers, including national healthcare and telemedicine provider GoodRx. In addition to expanding capacity, this deal enhances the analysis of interactions and performance and adds advanced IVR capabilities that will enable GoodRx to enhance their Customer Experience.
  • Dauphin County, home to the state capital in Pennsylvania, signed a 5-year deal to deploy Avaya Cloud Office for over 1,800 users.
  • DHL Supply Chain (“DHL”), based in Singapore, has chosen Avaya OneCloud Subscription to create an innovative, composable contact center solution that will rapidly adapt to their customers’ needs. DHL can assemble intelligent collaboration, contact center and knowledge management capabilities on-demand to significantly reduce time and effort in launching new customer environments. Through the Avaya OneCloud Subscription offering, DHL can introduce automation to hundreds of contact center agents and over 1,000 collaboration users on Avaya Spaces.
  • Ehli Auctions, a Washington-based online and in-person auction company, selected Avaya Cloud Office for its features and flexibility offered in a single solution to help digitally transform its business.
  • NEOBPO, a leading business outsourcer in Brazil working with customers across all verticals leveraged Avaya’s Subscription offering to move over 1,200 contact center seats.
  • Seine Saint Denis, the host of the 2024 Olympics, adopted Avaya Spaces as their work-from-anywhere collaboration solution for 8,000 users. After testing more than 10 alternative options, they chose Spaces because of its security, scalability, feature-richness and ease of use.
  • Qatar Airways, serving customers in over 70 countries in 12 different languages, signed an Avaya OneCloud Private deal to deploy Avaya’s advanced digital engagement, global workforce optimisation, and automation, in readiness for Qatar to host the FIFA World Cup in 2022.
  • The Round Rock Independent School District in Texas is deploying Avaya OneCloud CPaaS, coupled with the Avaya Cloud Notification Solution, across their 55 campuses for mass notifications for scheduling and public safety announcements across end points and apps, including mobile devices, email, social media, indoor wallboards, and outdoor signage.
  • South East Coast Ambulance Service in the United Kingdom has deployed Avaya Cloud Office for their healthcare response. Clinicians now securely contact patients from mobile devices, providing assessments remotely, and ensuring ambulance trips are prioritised for emergency cases.

Business Highlights

  • Avaya was recognised by Verint as its North American Enterprise Partner of the Year, EMEA Partner of the Year, and Latin American Partner of the Year. Avaya was singled out for its achievements in delivering innovation for customer engagement, and for outstanding collaboration in helping organizations achieve business goals, revenue objectives and growth.
  • CRN, a brand of The Channel Company, has given Avaya a 5-Star rating in its 2021 Partner Program Guide for the 13th consecutive year. To determine the 2021 5-Star ratings, the CRN research team analysed myriad partner programs and scored them based on several factors, including investments in program offerings, partner profitability, partner training, education and support, marketing programs and resources, sales support, and communication.
  • CreditSights published their Environmental, Social and Governance (“ESG”) investing framework focusing on ESG measures they have determined have the capacity to Materially Affect Credit Risk (“MACR”) in their coverage universe for U.S. Software & Services resulting in a #2 ranking for Avaya.
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