Avaya shares rose 15% after results for Q1 were announced.
Though still loss-making, Avaya has raised its guidance reflecting improved performance across key business metrics. In Q1 numbers, total revenue increased 4% year-over-year to $743m, with Cloud, Alliance Partner & Subscription revenue rising to 34%. Software and services were 88% of revenue, up from 86% a year ago, with recurring revenue was 65%, up from 59% a year ago.
GAAP Net loss was $4m; ending cash and cash equivalents were $750m
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.”
