Avaya has reported a fifth straight quarter of revenue growth as its cloud transformation continues.
Sales during the period ending 30 June 2021 rose two percent year on year to $732m, with annualised recurring revenue (ARR) from the vendor’s cloud offering rocketing 275 percent year on year to $425m. Avaya said it is on course to hit its target of $1bn ARR by the end of 2022.
Avaya CEO, Jim Chirico, said that the firm is also seeing “strong performance” across its traditional businesses.
“Across every business segment in the industry, we are seeing large enterprises turning to Avaya more and more to guide them through their digital transformation journey,” he added on an earnings call with investors.
“Our third-quarter performance speaks volumes to the significant progress we’ve made on the transformational journey that we embarked on”
“We are executing ahead of plan and I could now be prouder of the Avaya team for their resiliency, adaptability and the capabilities they bring to bear each and every day.”
Chirico said that 95 percent of Avaya’s ARR are enterprise contracts with a value greater than $100,000, while over one-fifth have a value of greater than $5m.
The firm added 1,700 new logos during the quarter – more than any quarter over the past two years.
Avaya also claimed to have seen its best-ever quarter with Avaya Cloud Office – its partnership with RingCentral. The firm recently announced a host of new features for the platform.
Acquisition Strategy
Avaya’s results were released alongside the announcement that the firm had acquired CTIntegration – the contact centre development firm behind CT Suite.
The two companies had been partnering since 2016 and Chirico said that acquiring the business was a natural next step. He added that future acquisitions would likely follow the same formula.
“The fact of the matter is our M&A strategy is one that’s focused primarily through tuck-ins,” he explained.
“It’s one that’s also designed to work with new start-up companies that bring certain skills and expertise into our company, such that we can continue to leverage the opportunity in front of us.
“That’s exactly what we did with CT Suite. CT Suite was a partner of ours… we’re working with them hand in glove on a number of key opportunities in front of us, especially in the digital space.”
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