- Avaya reports US$738 million in 2nd quarter profits
- Business model shifting to cloud and services
- Recurring revenue is more than half of income
Above: Jim Chirico. Photo courtesy Avaya.
Avaya, a cloud and communications company specialising in internet based connectivity reported revenues of US$738 million in its second-quarter financial results. This represented an increase of eight percent year over year with the company’s OneCloud product increasing by 31 percent to US$344 million.
Avaya’s cloud, alliance partner and subscription business accounted for 40 percent of overall revenue, up from 23 percent in second-quarter 2020 while software and services commanded 90 percent of revenue, rising just two percent in the year.
The company’s business is shifting increasingly to subscription services, with recurring revenue taking 66 percent, rising by 64 percent over the pandemic year.
“We drove solid second quarter results which highlight the company’s continuing momentum, but more importantly, they represent the significant work and strategic investments we have been making over the last few years to reshape our company and portfolio to be a leader in enterprise communications and collaboration,” said Jim Chirico, president and CEO of Avaya.
“The playbook for our industry is not a secret. It is all about how you execute and I couldn’t be more delighted with our performance, which is why we are again raising guidance across several key financial metrics.”
The company’s cloud services products scored significant inroads during the pandemic, with Clemson University using its Spaces product to develop a hybrid learning experience platform for its students and teachers and its cloud-based, unified communications products delivering for Clarios, an energy storage solutions provider, Dauphin Country in Pennsylvania deploying Avaya Cloud Office for 1,800 users and DHL deploying OneCloud for its contact centers.
Qatar Airways will use OneCloud Private for its business with a focus on its role in Quatar’s hosting of the FIFA World Cup in 2022 and Seine Saint Denis headquarters of the 2024 Paris Olympics is using Spaces as a work-from-anywhere collaboration solution for 8,000 users.
