Avaya Holdings (NYSE: AVYA), the provider of digital communications products and solutions, entered Monday’s trading with a gain of nearly 10% – with positive investor sentiment following the company’s strong Q4 2021 results. To the surprise of many, Avaya hit a landmark this quarter by reversing a decade of annual revenue decline.
Q4 revenue stood at $760M with total 2021 fiscal revenue at $2.973B, including a cumulative adjustment of roughly $15M for understatement of prior revenue. In more detail, software and services made up 88% of revenue – underlining the strong sectoral growth in digitalization.
Recurring revenue was 66% for fiscal 2021, up 63% from the previous year. The company recorded GAAP EPS of $0.006 with Non-GAAP EPS of $0.77 – with ending cash and cash equivalents of $498M.
Jim Chirico, President, and CEO of Avaya, expresses his optimism:
“Fiscal year 2021 for Avaya was a year marked by many firsts, and the outstanding results we delivered exceeded expectations on almost every front. Most impressive is the fact that we reversed over a decade of annual revenue declines, delivering year over year growth closing up approximately $100 million, while we also grew ARR 177% to $530 million,
Adding that…
“This year marked a real and substantive milestone for the company and I couldn’t be prouder of the performance or more thankful for the commitment of our customers and partners and performance of our global team as we’ve navigated a purposeful and deliberate journey of transformation to be an enterprise cloud leader.”
With an annual gain of around 6%, the Q4 earnings provided a relished breath of fresh air for investors. The company is situated in a fiercely competitive sector, but one that will only continue to flourish. Currently, AVYA stock is sitting on a daily gain of just over 12%, trading at $20.30.
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