Avaya, a global leader in customer experience and communications solutions, outlined continued business momentum, innovation, and industry leadership in the recent quarter as the company and its extended partner ecosystem work closely with customers to help their organizations accelerate and grow. Avaya made the announcement as it prepares for a Global Industry Analyst Summit this week in La Jolla, CA, and then its largest global customer conference — Avaya ENGAGE 2024 — scheduled for May 13-15 in Denver, CO.
Over the last quarter, Avaya accelerated its momentum as the company showcased how enterprises can leverage AI-powered innovation on top of existing systems to deliver customer experiences that drive better business performance. The momentum resulted from various strategic decisions, including the announcement of a simplified portfolio and solutions architecture, new strategic partnerships, industry and analyst event presence, new executive appointments, and more.
“Avaya’s upward momentum reflects our core differentiator as we deliver on the promise of ‘innovation without disruption’ — a strategy that helps enterprise customers avoid the serious business repercussions that can come from ‘rip and replace’ upgrades of entire systems,” said Alan Masarek, CEO, Avaya. “Avaya’s innovation without disruption strategy is adding tangible value for enterprises, giving these organizations the unmatched ability to add AI and other innovations on top of existing investments, keeping their business moving with speed and quality with Avaya’s solutions, services, and world-class ecosystem. We are excited about the possibilities we are exploring with customers, as we continue to break ground on new opportunities to empower our customers with improved customer and employee experiences that drive better business growth and outcomes.”
Avaya Business Performance Continues to Build on Strong Momentum
Avaya’s market momentum includes continued strong business performance that builds on the company’s successful financial transformation in 2023. With the financial restructuring behind it, the company is levered free cash flow positive, excluding one-time items, and retains a strong balance sheet with <1x net leverage .
This solid financial position has provided more than sufficient liquidity to execute the strategic plan and continued reinvestment in the business as the company exited the calendar year with ~$650M of cash, and access to a further $128M in a revolving facility. Avaya successfully delivered on its revenue plan for the past five quarters (across FY23 and Q1 FY24) and is on track to exceed planned revenue for the first half of FY24. Avaya said its core value proposition — ‘innovation without disruption’ — continues to resonate exceedingly well with customers, with net logo retention among large enterprise customers at 97% and renewal rates on base subscription contracts ahead of plan.
