Avaya Reports Fourth Quarter and Fiscal 2020 Financial Results

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Avaya Holdings Corp. (NYSE: AVYA) today reported financial results for the fourth quarter and fiscal year ended September 30, 2020.

Fourth Quarter Financial Highlights

  • Revenues of $755 million
  • 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 organizations’ most pressing business challenges, and our highly differentiated solutions are driving strong demand across our installed base and attracting new customers.” Mr. Chirico added, “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.”