Avaya Reports Second Quarter Fiscal 2021 Financial Results
Total revenue increased 8% year-over-year to $738 million
Dubai– 
Avaya Holdings Corp. (NYSE: AVYA) 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.
”Raising Revenue, OneCloud ARR, CAPS and Adj. EBITDA Guidance for Fiscal 2021
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 OfficeTM 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.
Avaya OneCloudTM ARR increased 31% sequentially to $344 million
(1) Non-GAAP gross margin, Non-GAAP operating margin (used below), Non-GAAP operating income, Non-GAAP net income, Non-GAAP earnings per share, adjusted EBITDA, adjusted EBITDA margin and constant currency are not measures calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Refer to the “Use of non-GAAP (Adjusted) Financial Measures” below and the Supplemental Financial Information accompanying this press release for more information on the calculation of constant currency and a reconciliation of these non-GAAP measures to the most closely comparable measure calculated in accordance with GAAP.
