Announcing its Q4 results on Friday the US-listed Avaya (NYSE: AVYA) reported that software and services represented 88% of the Q4 revenue, up 5 points YoY, while recurring revenue was 63%, also a 5-point increase.
Avaya says “the 1,500+ new logos added in the three-month period included four deals with TVC of more than US$10m, 17 over $5m, and 135 exceeding the $1m mark.”
In addition to the revenue increase, Avaya lists its fourth quarter financial highlights as:
- GAAP Operating income was $74 million; Non-GAAP Operating income was $170 million
- GAAP Net income was $37 million
- Adjusted EBITDA was $200 million, 26.4% of revenue
- Software and services were 88% of revenue, up 5 points year-over-year
- Recurring revenue was 63%, up 5 points year-over-year
- CAPS (Cloud, Alliance Partner and Subscription) revenue increased to 33% from 30% in the prior quarter
- Ending cash and cash equivalents were $727 million
“We closed out a very strong fiscal year with fourth quarter results that exceeded all our guidance metrics and again delivered sequential and year-over-year growth,” said Jim Chirico, President and CEO of Avaya.
“Our performance throughout the year demonstrates that our investments in innovation and execution of our cloud-first strategy for enterprises have positioned us in the right place, at the right time.
“We are enabling new ways of work and collaboration that are solving organisations’ most pressing business challenges, and our highly differentiated solutions are driving strong demand across our installed base and attracting new customers.
"As we closed the September quarter, we completed a refinancing that also significantly strengthened our balance sheet and financial flexibility. All of this positions us well for continued success in the new fiscal year.”