Short squeeze stocks1/10/2023 Putting aside the fact that the company has raised their ARR estimates each of the last four quarters, what finally convinced us they are making tangible progress in converting large cloud customers (as opposed to just subscription) was a $400 million, seven-year win with a “major financial institution” in Q4 for Contact Center as a Service (CCaaS).ii We believe this came in at roughly $125/month/seat which, if extrapolated to the rest of their Contact Center base, would give them a $9 billion ARR TAM. We believe the buy side is skeptical of these numbers given the valuation and recent collapse in the stock. i Management has guided to $1 billion in Annual Recurring Revenue from transitioning to subscriptions/cloud by the end of this year and $2 billion by fiscal year 2024 (versus $620 million now). Avaya is working to rapidly convert these customers to a subscription model while also moving as many as possible to public and private cloud infrastructures.Ĭonverting a customer to subscription on its own provides an over 20% uplift in recurring revenue but moving them to public and private clouds gives a far more substantial uplift as the customer is able to generate significant savings from the move. The company has amassed a giant enterprise customer base in their Telephony (100 million seats) and Contact Center (6 million seats, ~40% global market share) businesses. Avaya is a “legacy” tech player undergoing a material business model transition from perpetual license and maintenance to a cloud and subscription model. “Avaya is an American multinational technology company headquartered in Durham, North Carolina, that specializes in cloud communications and work stream collaboration solutions. (NYSE:AVYA) in its Q4 2021 investor letter: Here is what Voss Capital has to say about Avaya Holdings Corp. (NYSE:AVYA) at the end of Q2 2022, compared to 24 funds in the last quarter. ![]() Overall, 27 hedge funds were bullish on Avaya Holdings Corp. (NYSE:AVYA) as of June 2022, with 2.8 million shares worth $6.18 million. ![]() Among the hedge funds tracked by Insider Monkey, Alta Fundamental Advisers is a notable position holder in Avaya Holdings Corp.
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