Avaya Shares Pop On Q4 Beat, OneCloud ARR Clocks 177% Growth


Avaya Holdings Corp AVYA reported fourth-quarter FY21 revenue of $760 million, up 0.7% year-on-year, beating the consensus of $738.5 million. Non-GAAP EPS of $0.77 beat the consensus of $0.72.

  • Segments: Revenue from products declined 8.6% Y/Y to $246 million. Services revenue increased 5% Y/Y to $514 million.
  • OneCLoud ARR (annual recurring revenue) rose 177% Y/Y to $530 million. CAPS (Cloud, Alliance Partner, and Subscription) increased 33% Y/Y.
  • ~60% of OneCloud Annual recurring revenue came from customers generating $1 million or more in ARR.
  • Margins: The non-GAAP gross margin contracted 90 bps to 60.4%.
  • Adjusted EBITDA margin contracted 290 bps to 23.6%.
  • Avaya used $5 million in operating cash flow and held $498 million in cash and equivalents.
  • "Most impressive is the fact that we reversed over a decade of annual revenue declines, delivering year over year growth closing up approximately $100 million, while we also grew ARR 177% to $530 million," CEO Jim Chirico said.
  • Outlook: Avaya sees Q1 FY22 revenue of $725 million - $745 million, below the consensus of $747.7 million. Avaya sees non-GAAP EPS of $0.63 - $0.75, below the consensus of $0.79.
  • Avaya sees FY22 revenue of $2.975 billion - $3.025 billion versus the consensus of $2.98 billion. Avaya sees non-GAAP EPS of $2.85 - $3.03, below the consensus of $3.16.
  • Avaya sees FY23 revenue growth of low- to mid-single-digit and FY24 revenue growth of mid-to-high single-digit percent range year-over-year.
  • Price Action: AVYA shares traded higher by 8.45% at $19.50 in the premarket session on the last check Monday.
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