Skip to main

You are here

Avaya reports cloud progress and makes acquisition

Avaya reports cloud progress and makes acquisition

Big channel communications player Avaya has reported a 2% annual increase in third-quarter revenues to $732m, and a big jump in recurring cloud business as it makes an acquisition in the field.

Avaya OneCloud ARR (annual recurring revenue) increased over 275% year-over-year to $425m. As a result, the firm has raised its total ARR guidance and expects ARR to reach $1 billion by the end of 2022.

For the third quarter ended 30 June 2021, OneCloud ARR was up 23% sequentially. CAPS (Cloud, Alliance Partner and Subscription) was 40% of revenue, up from 30% a year ago.

Software and services were 88% of revenue, down from 89% a year ago. Overall recurring revenue was 64% - flat to 64% a year ago

The GAAP operating income was $41m - down annually - and the GAAP net income was up at $43m.

“Our third quarter represents the fifth consecutive quarter of year-over-year revenue growth and speaks volumes to the significant progress we’ve made in our transformational strategy,” said Jim Chirico, president and CEO of Avaya.

“Annual recurring revenue, a key indicator of our progress, is outperforming our expectations, up over 275% percent from a year ago to $425m - 64% of which is from deals greater than $1m, consistent with our strong traction in large enterprises,” said Chirico.

He added: “Given this performance, we are again raising our ARR guidance and now expect to cross the $1 billion mark by the end of calendar 2022, about a year ahead of schedule.”

The results news came as the company announced an acquisition to bolster its cloud efforts. Avaya has acquired CTIntegrations, a specialised contact centre software development and system integration company based in Austin, Texas.

“CTIntegrations provides Avaya with additional digital capabilities for its extensive contact centre customer base and will further enhance the Avaya OneCloud AI-powered experience platform,” said the company.

CTIntegrations is the company behind CT Suite and its connectors, and has been part of the Avaya DevConnect partner ecosystem, supporting the Avaya OneCloud platform and delivering an understanding of its customers’ evolving needs.

Many current Avaya customers are already benefiting from CT Suite's capabilities that integrate into their Avaya contact centres. The value of the deal has not been disclosed.