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%
 
 
UAE, Dubai, - February 10, 2021 - 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.”
 
 
GAAP
 
Non-GAAP (1)
(In millions, except percentages)
 
1Q21
 
4Q20
 
1Q20
 
1Q21
 
4Q20
 
1Q20
Revenue
 

 
 
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.
 
(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.
 
* We define TCV as the value of all active ratable contracts that have not been recognized as revenue, including both billed and unbilled backlog.