There was no fresh news about Avaya Holdings Group (NYSE:AVYA) yesterday but investors headed for the exits nonetheless and the stock ended up crashing by as much as 21% for the day. In this situation, it may be a good idea for investors to consider taking a look at the company’s second fiscal quarter financial results which were announced earlier on in the month on May 10.
Trading Data
On Tuesday, AVYA stock slumped 21.65% to $3.22 with more than 6.80 million shares, compared to its average volume of 1.60 million shares. The stock moved within a range of $3.1200 – 4.0600 after opening trading at $4.01.
Avaya Reports Second Quarter Fiscal 2022 Financial Results
It may be a good move to perhaps take a look at the highlights from the financial results. Avaya managed to bring in revenues to the tune of $716 million for the quarter but it represented a year-on-year drop of as much as 2%.
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The Annualised Recurring Revenue for OneCloud came in at $750 million and that reflected a sequential rise of 21% and a year-on-year rise of 118%. On the other hand, the operating income as per GAAP came in at $23 million and the same figure on a non-GAAP basis stood at $115 million.
In this regard, it ought to be noted that net losses as per GAAP stood at $1 million, while the non-GAAP net income came in at $51 million.
Key Quote
“We drove record growth for Avaya OneCloud ARR with a $130 million quarter over quarter increase and an over $400 million year over year increase, to $750 million. The path to hit the $1 billion ARR mark by the end of the calendar year 2022 is well paved,” said Jim Chirico, President and CEO of Avaya. “We are successfully repositioning the company from our historic one-time revenue model to a recurring one, in fact, 75% of our new bookings were Avaya OneCloud. Our strategy is clearly taking hold faster than we anticipated leading to a significant and fundamental shift in our business.”
Technical Data
AVYA stock is trading below the 20-Day and 50-Day Moving averages of $6.80 and $10.30 respectively. Moreover, the stock is trading below the 200-Day moving average of $16.57.
