Greetings, and welcome to the Avaya Fiscal 2021 Fourth Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Michael McCarthy, Vice President of Investor Relations for Avaya. Thank you. Please go ahead. Thank you. Welcome to Avaya's Fiscal 2021 Q4 investor call. Jim Chirico, our President and CEO, and Kieran McGrath, our EVP and CFO, will lead this morning's call and share with you some prepared remarks before taking your questions. Joining them this morning will be Stephen Spears, Chief Revenue Officer, Todd Zerbe, Senior Vice President of Engineering, and Dennis Kozak, Senior Vice President of Global Channel. The earnings release and investor slides, which include highlights of our ESG initiatives and performance referenced on this morning's call, are accessible on the investor page of our website, as well as in the 8-K filed today with the SEC. These should aid you in your understanding of Avaya's financial results. All financial metrics referenced on this call are non-GAAP, with the exception of revenue. We have included a reconciliation of such non-GAAP metrics to GAAP in the earnings release and investor slides. We may make forward-looking statements that are based on current expectations, forecasts, and assumptions which remain subject to risks and uncertainties that could cause actual results to differ materially. In particular, the global economy continues to be impacted by COVID-19, and to the extent of its continued impact on our business will depend on a number of factors that include, but may not be limited to, the virus's severity and duration, the emergence of new variants, changes in infection rates, the vaccine participation rate, the effectiveness of vaccines, and the speed with which the vaccine can be distributed, as well as regulations and requirements impacting the return to our offices and our ability to visit customer sites and actions taken or not taken by governments, businesses and consumers in response to the pandemic, all of which continue to evolve and remain uncertain at this time. Information about risks and uncertainties may be found in our most recent filings with the SEC, including our Form 10-K. It's Avaya's policy not to reiterate guidance, and we undertake no obligations to update or revise forward-looking statements in the event facts or circumstances change, except as otherwise required by law. Before handing the call over to Jim, I'd like to remind the participants on this morning's call that we'll be hosting an Investor Day meeting in conjunction with Avaya ENGAGE, which will be held down in Orlando on Tuesday, December 14th. Registration information is available on our website on the Investor Relations page under the Events tab. Members of Avaya's executive leadership team will be providing updates on Avaya's business strategy, technology development roadmap, growth opportunities, and updated long-term financial model. I'll now turn the call over to Jim. Thanks, Mike. Good morning, everyone, and thank you for joining today's call. Avaya's fiscal 2021 was a landmark year for the company. What our team accomplished represents a pivotal point in our history and is a defining moment for the company, and it will play a central role in our success story of Avaya as we move forward. If you take a step back and put this past year into context, it is a year marked by many firsts, and the outstanding results we delivered exceeded expectations on most every front. These results are not only a reflection of how far we've come, but importantly reinforce the speed at which we are delivering on our value creation strategy, grow the company, evolve to a cloud and SaaS business model, and remain highly profitable. Let me start with growth. In Q4, we delivered our sixth consecutive quarter of year-over-year revenue growth. Revenue was $760 million. For the full year, revenue came in at $2.973 billion. Most impressive is the fact that we reversed a history of annual revenue declines, delivering year-over-year growth for the fiscal year, closing up approximately $100 million. A first for Avaya. It marks a real and substantive milestone for the company, and I couldn't be prouder of the performance or more thankful for the commitment and loyalty our customers and partners as we've navigated a purposeful and deliberate journey of transformation. This growth has been fueled by investments we made in talent, go-to-market digital initiatives, and our innovation engine. Especially notable is the momentum in the large enterprise segment, where for the sixth quarter in a row, we signed over 100 deals with a TCV greater than $1 million. This included 18 over $5 million, of which seven were over $10 million. Clearly, this is a strong proof point that customers have embraced our roadmap and are on board with our strategy. In addition, we once again signed over 1,600 new logos, reinforcing the competitiveness, differentiation, and value of our solutions. Most important to note is the fact that none of this would have been possible without the efforts of our global Avaya team. Their resilience, dedication, and focus on delivering for our customers was outstanding, and I'm extremely proud of how the team performed. On the cloud front, we continued to exceed expectations across many key metrics. A year ago, we introduced Avaya OneCloud ARR as the leading indicator of our cloud transition. We finished FY 2021 with $530 million of ARR. That's up 25% sequentially and 177% year-over-year. We grew over $100 million in just the fourth quarter alone. Another first for us. To add some color, nearly 20% of our ARR comes from contracts greater than $5 million and over 60% from contracts greater than $1 million. In total, over 95% of our ARR is from our enterprise segment. Additionally, 60% of ARR is driven by enterprise contact center, and we are converting this highly coveted base rapidly. We are not following the crowd. We have the best of both worlds. We are operating like a startup, but with a significant IP, technology, market share, and the install base assets of an enterprise leader. This is fueling our exponential growth. $500+ million of ARR in 2021 to $1 billion of ARR in 2022 to $2 billion in FY 2024. Our second key indicator is our CAPS metrics, which reads 44% of revenue for the quarter, up 11 points from the prior year and 14 points to 40% for the full year. CAPS remains a measure of our highest caliber revenue comprised of cloud alliance partner and subscription. I am particularly proud of the growth here as it is a direct reflection of the new Avaya, the potency of our new innovations, and the importance of our go-to-market ecosystem of partners. Last on profitability. Adjusted EBIT was $179 million for the quarter and $719 million for the full year, both approximately 24% of revenue. As we committed to the street and to our customers, we've executed on our plans to maintain high profitability while also investing back significantly into the business, and our success shows in the numbers. Avaya is a very different company today from just four years ago when we went public. There has been a tremendous amount of effort and progress made on reshaping the company and transforming our business to be the leader in enterprise communications and collaboration. When we first shared our vision to be the leader in digital transformation for enterprise customers, our path was clear. To become a customer-led company, one that works directly with our customers to unlock value, to return to being an innovation leader in order to expand our product and service offerings, and to leverage our vast channel and technology partner ecosystem, all with a focus on growing and transforming to a cloud business model. A measure of our progress to date, as of the end of September, we are approaching 10% of the company's combined UC and CC install base on an Avaya OneCloud solution. This is consistent with the overall market adoption we are seeing in the enterprise segment, and it is clear that the best is yet to come and we are well-positioned to be leaders. Our subscription hybrid offer has been a key driver of this transition and represents roughly 80% of our $530 million of ARR. Customers are committing to three-year-plus contracts, which by definition means they are making a commitment to Avaya's roadmap, to our vision of the composable enterprise, and to continue their journey in a deliberate and agile way. To those that look at subscription as a simple conversion of traditional maintenance contracts, nothing could be further from the truth. Today, subscription hybrid includes significant cloud capabilities such as Avaya Spaces, Cloud Contact Center AI, Avaya Conversational Intelligence, and our cloud notification service, among others. We continue to add additional capabilities, including many from our ecosystem of partners. Furthermore, we are seeing a 15% uplift on average, and in many cases, well north of 20% as customers make the move. One example is Wipro, which chose Avaya OneCloud subscription as the next step on their digital transformation journey because it offers ease of expansion and flexible migration as part of their cloud plans. Wipro's 17,500 users and 3,500 agents will benefit from a full solution suite, which includes multiple ecosystem components from our API Exchange marketplace. Not only are we converting current customers, but again, in Q4, we signed over 150 subscription hybrid deals with new customers. Take Amtrak, which recently chose Avaya OneCloud to deliver advanced quality monitoring and biometrics that will reduce losses from fraud by approximately 50% while improving customer satisfaction. In a highly competitive situation, our ability to deliver full cloud capabilities immediately was key to being chosen ahead of the incumbent provider and multiple other competitors. Turning to public cloud. Our UCaaS and CCaaS public cloud offerings continue to gain significant traction as they expand both in terms of capabilities and geographic availability. Our progress is ahead of our expectations, and these offers will be major drivers for recurring revenue and profitability going forward. First is CCaaS. Over the last couple of quarters, we've made significant strides in maturing our CCaaS offering in terms of reach, go-to-market scale, and capabilities. CCaaS is now available in 49 countries and will reach 100 countries by the end of 2022. Initially offered through our direct sales force, we are now beginning to leverage our expansive channel network by bringing these partners fully online. Take North America, where we've enabled over 160 of our value-added resellers. Globally, we signed 11 master agents with access to thousands of agents as we accelerate our efforts to enable the channel. We are seeing significant signs of momentum with our pipeline more than doubling in just the last quarter. Also helping to drive CCaaS traction is the integration of our offer with Avaya Cloud Office by RingCentral. We believe this will be an important driver of seat growth in the SMB and mid-markets. One example is a recent win in the Netherlands. Waste management and recycling company Van Gansewinkel Containers migrated to Avaya OneCloud CCaaS and Avaya Cloud Office. Reliability, greatly reduced on-site systems maintenance, and platform integration were key drivers for their decision, along with integration of other channels such as WhatsApp and Facebook, all integrated with their CRM. Another international win was transcosmos, a Japanese-based global BPO. They are using our CCaaS along with Google Cloud Contact Center AI to compose effortless customer experiences, reduce wait times, improve efficiencies, and all around satisfaction. Avaya Cloud Office continues to perform well, and we saw significant progress during the quarter. Now available in 13 countries, we continue to add Avaya-specific innovations to the platform, along with integration, as I just mentioned, to our own Avaya CCaaS solution. We won multiple $1 million TCV deals during the quarter. We grew the number of customers by nearly 25%, in total seats by almost 30%. Customers continue to choose Avaya Cloud Office because it combines best-in-public UCaaS with Avaya's enterprise capabilities. One new customer, Preferred Home Care of New York, a leading home care agency, chose our UCaaS to replace their existing system. With thousands of calls per day, they were experiencing persistent outages that created significant risk for staff and patients. This led them to seek a cloud-based solution, and they selected us for over 500 users. Their solution includes video conferencing, collaboration, messaging, and calling. On the private cloud front, we continue to see significant adoption as measured by new bookings and activations. TCV bookings of our Avaya OneCloud Private were up over 500% from the prior year, demonstrating the rapid acceleration we are seeing in demand for cloud capabilities delivered in a private cloud mode. While this growth rate will moderate as the denominator grows, the right way to think about this is Avaya is the only major UC and CC solution provider that can offer public and/or private cloud platform delivery models at enterprise scale. This is a significant differentiator for us. One example of a recent private cloud win is with MAHLE, a global automotive supplier with over 70,000 employees and 160 production locations. They were struggling with inconsistent customer and employee experiences while using 19 voice vendors. They chose our private cloud solution and will now consolidate their fragmented base of vendors to a single Avaya platform. We will continue to see strong demand for private cloud and expect this to remain a major long-term growth driver. Before turning it over to Kieran, I just want to thank our partners, employees, and customers again for what was an incredible milestone year for Avaya. With that, let me turn it over to Kieran. Thank you, Jim. Good morning, everyone. As a reminder, with the exception of revenue, unless otherwise stated, all financial metrics referenced on this call are non-GAAP, and the supplementary slides posted on our investor relations website set forth the GAAP to non-GAAP reconciliations. All figures mentioned in this call are as reported unless otherwise indicated in constant currency. I'll start with a few key highlights that punctuate what was a milestone year for Avaya. At $2.973 billion in revenue for fiscal 2021, up 3% year- over- year, we generated revenue growth for the first time in well over a decade. Highlighting our significant progress, we achieved $530 million of OneCloud annually recurring revenue, up from $191 million last year, significantly exceeding the high end of our guidance range. Most notably, this reference marks the progress of our transition to the cloud and the relevance of our market-leading solutions. CAPS or Cloud Alliance Partner and Subscription reached the high end of fiscal year guidance at approximately 40% of revenue, up from 26% last year, with the fourth quarter hitting a record of 44% of revenue. Getting deeper into the numbers, our OneCloud ARR metric grew 25% sequentially and is up 177% year- on- year. Customers paying greater than $1 million annually continued to be more than 60% of total ARR. Similarly, contact center was again about 60% of total ARR. In terms of revenue, our fourth quarter generated $760 million, which compares to $755 million in the year-over-year period and $732 million in the third quarter. For the full fiscal year, we reached $2.973 billion, which compares to $2.873 billion in the year-ago period. Fiscal 2021 revenue does include a $15 million adjustment for the understatement of revenues in prior periods. For the fiscal year, recurring revenue accounted for 66% of total revenue, with software and services accounting for 88%. Turning to margins. For the fourth quarter, non-GAAP gross margin was 60.4% compared to 61.3% in the year-ago period, and 61.5% sequentially. Margin this quarter was reflective of higher contribution from our hardware offerings. For the year, the shift between services and product is more pronounced, where fiscal year 2021 product margin was 59.9% compared to 62.3% in the year-ago period, while services margin came in at 62.1% compared to 60.7% in the year-ago period. These aggregate to a total non-GAAP gross margin of 61.3% compared to 61.3% for fiscal 2020 or flat year- over- year. In terms of total profitability margin and cash flow metrics, profit margins continue to reflect the substantial investment in R&D and go-to-market that we have been communicating all year. That is putting roughly one point of adjusted EBITDA margin back into the business. We are very pleased with the positive results these investments are having, driving our current and future ARR momentum. Fourth quarter adjusted EBITDA was $179 million, representing an adjusted EBITDA margin of 23.6%, down 290 basis points year-on-year, consistent with our plan. Q4 non-GAAP operating margin was $145 million, representing a non-GAAP operating margin of 19.1%, down 340 basis points year-on-year. Non-GAAP EPS was $0.77 in the fourth quarter compared to $0.93 in the year-ago period and $0.75 sequentially. Summarizing other key performance indicators for our transformational fiscal year 2021. Adjusted EBITDA was $719 million, representing an adjusted EBITDA margin of 24.2%. Non-GAAP EPS was $3.16 for the year, up from $3.03 last year. We ended the fiscal year with a cash balance of $498 million. Cash flow from operations at $30 million, representing 1% of revenue. This was expected and is consistent with our revenue model transformation. Additionally, we should note that during the year, we paid down $100 million of term loan. Now turning to guidance for 1Q 2022 and full-year FY 2022. Please note that all year-over-year revenue changes are expressed on a constant currency basis, and all revenue amounts reflect rates as of October 31st, 2021. In terms of our forward-looking OneCloud ARR metric, we expect to exit FY 2022 between $880 million and $910 million. At the midpoint, this represents growth of nearly 70% year-over-year. This expectation reaffirms the previously communicated target of exiting the 2022 calendar year with OneCloud ARR at or above $1 billion. Turning to revenue. Avaya's business model transformation continues. As such, the mix between point-in-time and ratable software revenue streams continues to shift increasingly into a larger, more ratable base. Therefore, we expect full year fiscal 2022 revenues of between $2.975 billion and $3.025 billion, representing growth of 1%-2% as measured in constant currency, or 0%-2% assuming the FX rates as of October 31st. We expect Q1 revenue to be between $725 million and $745 million. Revenue generated from CAPS for the year is expected to be between 45% and 50% of revenue. At the midpoint, this reflects growth of 20% year- over- year. While we are still in the midst of our transition to a recurring cloud software business model, I remind investors that we will continue to invest heavily in the capabilities required to support an expanding cloud customer base. As such, we expect non-GAAP operating margin to be between approximately 19% and 20% for the full fiscal year. Similarly, our adjusted EBITDA should be between $700 million and $720 million or approximately 24% of revenue. We expect Q1 to closely follow these margin levels with non-GAAP operating margin between 18% and 19% and adjusted EBITDA margin of approximately 23% or between $160 million and $175 million. I'd now like to take a moment to comment on our cash flow trajectory during our revenue model transition. The shift from CapEx to OpEx contracts has manifested with significant growth of contract assets on the balance sheet, reflecting deferred billings over a multi-year period. Since the introduction of our OneCloud portfolio of offerings in early 2020, we saw $164 million of growth in contract assets in fiscal 2020 and an additional $239 million in fiscal 2021 to end the year at $606 million. As the mix of our purely ratable cloud contracts reach critical mass, our revenue recognition, billings, and cash flow will more closely align. We significantly outperformed our fiscal 2021 OneCloud annually recurring revenue objectives. As a result, Q1 of fiscal 2022, we will see significant cash payouts for bonuses, commissions, accelerators, and incentive multipliers. Therefore, we're expecting Q1 cash flow from operations will be approximately negative 7% of revenue. For the full fiscal year 2022, we expect cash flow from operations will be approximately 1% of revenue, consistent with fiscal 2021. Turning to shares outstanding guidance and earnings per share, we expect our weighted average shares outstanding to be between approximately 88 and 90 million shares for fiscal 2022. We expect non-GAAP EPS for the fiscal year to be between $2.85 and $3.03. For the first quarter, we expect non-GAAP EPS to be between $0.63 and $0.75. While we will cover our longer-term financial targets in greater detail at our Investor Day, which will be held as part of the ENGAGE User Conference on Tuesday, December 14th, I do wanna take this opportunity to also provide an early look beyond fiscal 2022 and towards the fiscal 2023 and 2024 time frames, referencing slide 16 and 17 in our investor deck. As we continue to aggressively migrate our customers into our OneCloud portfolio, we expect to exit fiscal 2024 at $2 billion of OneCloud annually recurring revenue. This represents an almost 4x increase when compared to our fiscal 2021 exit point, and is double our calendar year-end 2022 ARR target. In fiscal 2023, we expect total revenue to increase by the mid-single digits. We continue to invest in the business, we expect adjusted EBITDA margins will remain in the 23%-24% range. CFFO will improve to the mid- to high-single digits as a percent of revenue as contract assets become billable and more are converted into cash flow. Moving to fiscal 2024, total revenue growth will accelerate by mid- to high-single digits. This acceleration is a result of our OneCloud portfolio making up the majority of our business in fiscal 2024. We expect adjusted EBITDA dollars will grow while the margin levels remain constant at between 23% and 24% as a percent of revenue. CFFO in fiscal 2024 will increase significantly into the low double digits as a percentage of revenue. Avaya is a very different software company today exiting fiscal 2021. We continue to exceed our own high expectations as demonstrated by the success of ARR and the return to revenue growth. Through the investments we have made in our OneCloud portfolio, we are confident in the future of Avaya and our ability to deliver on our long-term targets. With that, I'd now like to turn the call back to Jim. Jim? Thank you, Kieran. Looking ahead, there is significant opportunity for Avaya. Our business is thriving and continues to gain momentum. We are growing ARR at a remarkable pace and transitioning customers to the cloud. Our innovation engine is running strong, and we have an incredible global team and partner community. We've invested significantly back in the business, and it is paying dividends. The investment our enterprise customers are making in Avaya is the single greatest validation that we are accelerating in the right direction. This is why I'm excited for what the future holds and why I'm confident in our ability to drive profitable growth as a leading enterprise cloud company, and we look forward to providing you more details about the opportunities we see ahead during our Investor Day in December. With that, operator, please open it up for questions. Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. In the interest of time, we ask that you each keep to one question and one follow-up. Thank you. Our first question comes from the line of Ryan MacWilliams with Barclays. Please proceed with your question. Thanks for taking the question. Strong OneCloud results once again. I thought it was interesting, 94% of your OneCloud ARR comes from customers with over 100K in ARR. As your customers are transitioning to subscription, are you starting to see early signs of larger customers who are now considering moving from their on-prem subscription to cloud solutions? Thanks. Yeah. Hey, Ryan, this is Jim. Good morning, and thank you very much. In fact, you know, we're seeing momentum across the board, be it in private cloud or public cloud and/or the hybrid cloud solutions as we take a look. As we pointed out, and as you pointed out, 94% are coming from our large enterprises. We're really pleased with that. More importantly, when you take a look at the performance, you know, 60% of that ARR is greater than $1 million, 20% greater than $5 million. Equally as important, 60% of our ARR is from contact centers, so further fortifying you know, our leadership in large enterprise customers. Really, as I mentioned, sort of a validation that our portfolio and our innovation is lined up where our customers want us to be. Significant content is in subscription, but really what subscription is, it's really a vehicle for us to deliver our OneCloud solutions. That's exactly what we're doing, and that's our ability to consume our solutions, be it hybrid, private or public. We did reach 530. We're very pleased with that, more than doubling not only subscription, but we also more than doubled our private and public, and we're seeing traction across the board. I think this is extremely important because having the portfolio that we do really provides differentiation and relevance, where if you were just delivering UCaaS or CCaaS or hybrid, private or public, you know, one size does not fit all in today's market. I hear that consistently from many of our the CEOs of the customers that we serve. It's an important point because operating at the global scale that we do, operating with the largest of large enterprises, if you really wanna compete and win, you need to provide the capabilities that really enable our customers to continue to operate and win in the markets that they serve. We're really pleased with the performance across the board. Perfect. One more from me. Kieran, one thing that stuck out to me in the press release was the cash flow from operations guidance for the next two years. Does your OneCloud results add more visibility into your business model going forward? Would you mind just adding maybe a little more color in your confidence in hitting these new CFO targets? Thanks. Well, absolutely. I mean, to start, very much what you would expect as you see a revenue model transition. This is exactly unfolding as we'd expected. Quite frankly, we've looked at a lot of peer companies who've also gone through this model, and, you know, they underwent very similar cash flow transformation. From our perspective, you know, the shift from CapEx to OpEx has increased our working capital requirements. Essentially, over the last two years since we introduced our OneCloud portfolio, we've added over $400 million worth of contract assets, essentially deferred accounts receivable. You're absolutely spot on with your question. It does dramatically increase the visibility as what we see. What I look at in 2022 is another year as we continue to accelerate the ARR. We reach a point as we exit 2022 into 2023, where now suddenly we start to see more of the you know the requirements for incremental contract assets start to decline and stabilize. Actually, we get mid- to high-single digits% in 2023. Out in 2024, we actually see even a modest tailwind as we've reached and really aligned both billings and new bookings. Essentially at that time of the year, I would expect to be low-double digits you know right around 11%-12% of CFFO. With good line of sight. Appreciate the commentary. Thanks, guys. Thank you. Our next question comes from the line of George Sutton with Craig-Hallum Capital Group. Please proceed with your question. Thank you. Nice result. I'm interested, Kieran, on the 2024 ARR expectations. When you mentioned that OneCloud was 10% of the installed base today, how high would you anticipate that being in 2024 to achieve that ARR number? How far do you think that ultimately goes? Obviously, George, we'll go through a lot more detail at Investor Day. As I said right now, all of our ARR is OneCloud ARR. As Jim pointed out in his prepared remarks, you know, our subscription hybrid is a vehicle for delivering, you know, cloud content today. I think to the element of your piece, as we think about where we look at that $2 billion out there, I would see well more than 50% of our OneCloud ARR coming from public and private cloud out in fiscal 2024. Just a follow-up for Jim. I'll ask the question everybody on the call wants to ask, given the Vonage acquisition this morning. Can you just give us a forward-looking analysis from your seat, relative to industry consolidation? Yeah, I mean, it's pretty clear that this is a hot space, and there's been a lot of consolidation, as you well know, both papered and yet closed. I think it just is further proof point that the industry, number one, is not only just consolidating, but it gets to the point where if you take a look at Avaya, you know, we're the number one provider that offers the complete suite, and one size does not fit all. Back to my previous comment, if you're going to win, and more importantly, win at a global scale, and more importantly win in where the real value is created, and that's in large, complex enterprises, you have to have the capability to deliver UCaaS with CCaaS, and you have to have the capability to provide what customers require, hybrid, private and/or public. I continue to see the marketplace consolidating, but it's really consolidating around this whole platform, and it's really consolidating exactly aligned with our strategy, and that's sort of this dynamic composable enterprise to deliver, you know, the complete suite, not only from a worker experience, but more importantly from a customer experience as well. You know, it's always exciting to be in a hot space. You know, we think we're positioned exactly where we need to be. No doubt, I believe there's going to continue to be consolidation as folks figure out how they can, you know, get that complete platform that Avaya is offering into the market today. Great. Thank you. Thank you. Our next question comes from the line of Samik Chatterjee with J.P. Morgan. Please proceed with your question. Hi. Excuse me. Hi, this is Joe Cardoso on for Samik Chatterjee. Just one question for me, and I just wanted to touch on the large deal activity. You know, you've obviously some great execution relative to driving larger and larger deal activity, particularly over the last two years around those disclosures there. I was just curious if you could provide more color around what's driving that large deal activity and whether, you know, you're seeing a majority of that coming from the CC side as opposed to the UC side. Additionally, I was just curious to hear if any of that activity is coming from any of the new logos Avaya is winning or if it's largely being cultivated from the existing customer base. Thank you. Yeah. Good morning and thanks. Yeah, you know, I think it has to do with this, a number of factors. First and foremost, it has a lot to do with what our teams have been doing really to reposition us back as an enterprise leader in cloud and communications. The fact that the acceleration from a digital transformation perspective within the industry has opened up opportunities, and for that fact, has brought those opportunities right in line with what we've been doing over the last three to four years from our strategy. It's nice to see that our strategy is turning into execution. Frankly, that's a little bit different from the Avaya of the past. That's who we are and what we're gonna be doing moving forward. It also, I think, is a vote of confidence in Avaya with our large enterprise customers because they're looking to, especially in the new work dynamic, they are looking to consolidate a number of their providers into one single trusted provider that again can offer a full portfolio, a full suite of solutions because they the opportunity to try to integrate a number of specific applications simply, number one, is not affordable. Secondly, it's extremely complex and doesn't scale for where they need to move within their overall market. You know, as a result to that, we're seeing a significant increase in large deals. In fact, our large deal volume in FY 2021 was well north of 400 as we have communicated. We were up, you know, roughly 15% from where we were in 2020. I think to really punctuate this is the number of deals greater than $5 million, the number of deals greater than $10 million, no one can post the results that we have, which again, is a real vote of confidence in our customers and in our solutions that we're delivering to the marketplace today. Our expectation is that's gonna continue as we go into FY 2022. Yeah. Just to follow on, obviously, a lot of our new logos, which we've seen an increasing step up actually in our, obviously, cloud and subscription as well, you know, many of those follow the traditional land, adapt, you know, expand, renew. They're not as big, but actually over the last several quarters, we've actually even seen some of the new logo landing points, being quite large as well, which is also a, you know, good indication of our presence with the enterprise customers. Thank you. Appreciate the color, guys. Thank you. Our next question comes from the line of Lance Vitanza with Cowen and Company. Please proceed with your question. Hi. Thanks, guys. Congratulations, and I apologize. My phone has been cutting in and out, but hopefully this hasn't already been covered. I wanted to talk about the accelerating revenue growth in the model from 2023 to 2024 and just try to get a better sense on exactly what's driving that trend. You know, is the driver moderating legacy declines just given that the maintenance piece is getting smaller and smaller, or is it more accelerating cloud growth? You know, with respect to, is it coming from existing customers, or does the funnel suggest that the acceleration comes from attracting new customers more so than the existing customers? Any color around that would be helpful. Sure. Lance, it's Kieran. You know, we did put in our investor deck, slide 17, which really tried to illustrate, I think, exactly the point that you made. As you go look out through time, our on-prem solutions are transforming, and they're migrating to the cloud. We're positioned really to capture that business with our broad OneCloud portfolio. As you can see from the graphic on the left-hand side, you know, our on-premise is becoming a smaller and smaller portion of the overall business, and therefore, that 20% reduction becomes less and less of a drag as we move through our transition. Finally, to your point, if you look at the extreme right-hand side, you see the flywheel that's being created by our OneCloud ARR, and that is clearly coming from both the migration of our existing very strong enterprise customers, but also from this new logo. As you heard, Jim reference another quarter with 1,600 new logos, over 6,000 new logos in the current year. We obviously expect the bulk of this growth to continue to be driven by upselling to our existing enterprise customers, our OneCloud portfolio set of offerings. We fully expect that new logos are gonna play a meaningful role in that as we go forward. Okay. Just if I could get one more in. I just wanted to ask you about the Amtrak decision. To go with a public cloud solution. Is that in any way a shift in your view in terms of enterprise willingness to engage in public cloud rather than private or hybrid? No. I mean, I wouldn't consider it so much a shift in that lens, to be honest with you. I think it's just sort of manifestation of the fact of the solutions and the innovation and where the market is going. The fact, again, in just our overall capabilities to make sure that we're delivering that sort of agile uniqueness that others can't in order to drive these solutions. When you take a look at the content within that solution, Biometrics and others, I mean, it's pretty sick. It's much different than if you were to go take a look at where the company was, say, two years ago or three years ago. I think that's an attribute to the fact of how we've moved from what was traditionally what I call sometimes around here as a product company to how we've moved now to being more of a customer-led company. Really our ability to unlock that value and really create a lens towards lifetime value, which we're doing with our move to cloud, and that the stickiness of these relationships, I think is extremely important. I think it's showing not only are customers voting with their wallets, but they're buying into our future and they're building off of our future. That's why, you know, we're winning a number of new deals. More importantly, as Kieran mentioned, we're also really expanding and really monetizing our installed base, which obviously is a key to not only the strategy but the growth of the company. Thanks, guys. Congrats again. Thanks. Thank you. Our next question comes from the line of Catharine Trebnick with Colliers Securities. Please proceed with your question. Thank you very much. Hey, excellent quarter, gentlemen. I have a question more on, believe it or not, the PBXs. Mitel has CloudLink and NEC just offered up Blue Connect. Then according to them that, well, Mitel sold CloudLink to RingCentral, but at a high level, it looks like the PBX is a slower turn to actually the cloud. I wanted to get your opinion on what you're seeing there, if you actually think that's the case or not, or how fast a traditional legacy PBX customer might actually move to the cloud. Thank you. Yeah, sure. Hey, Catharine, this is Jim. I'll turn this over to Dennis Kozak and then maybe add a little bit of color afterwards. Sure. Good morning, Catharine. You know, look, we see, you know, obviously we've had a lot of success with our Avaya Cloud Office business, where we're able to migrate not only our PBXs to the cloud, but also a lot of our competitors, including Mitel. But you know, we do also see, you know, for a PBX that may have been sold in the last one to three years, customers are initially resistant to doing another upgrade, right? You know, a lot of times we go in, you know, and talk about what Avaya Spaces, you know, our ability to bring our messaging and collaboration platform to them, you know, on top of IP Office or on top of Aura. When the customer is ready for a PBX migration, we pitch Avaya Cloud Office. Okay, thank you. Is there any way you can give us what the CCaaS revenue was part of the overall contribution in the ARR this quarter? You did that last quarter. Our overall ARR for the quarter is $530 million. Roughly 80% of that was delivered via subscription. The private-public piece of our ARR was, therefore, in the 20%+ range. I can tell you that doubled in FY 2021 and is expected to more than double as a component of ARR as we go through fiscal 2022. Becoming a larger and larger component of overall ARR. All right. Thank you very much. Congratulations. Thank you. Thank you. Our next question comes from the line of Hamed Khorsand with BWS Financial. Please proceed with your question. Good morning. I just want to understand of the logos that you've been continually winning, especially on the cloud side, are they already cloud native, or are you bringing them on to the cloud? Dennis, you wanna- Yeah, absolutely. Yeah. A lot of times in our competitive wins, you know, we're usually head-to-head against a cloud provider. Generally speaking, it's usually a premise-based customer of some kind that wants to upgrade to the cloud. We find that, you know, our agents are out there bidding Avaya Cloud Office or our other OneCloud solutions on a pretty regular basis. Occasionally we are taking part of failed cloud migrations, and we're participating in bringing customers over to Avaya Cloud Office. These master agents that you announced that you have a lot of new ones, have they been previous Avaya channel partners? Yes. What we didn't discuss today, we talked about the 11 we signed up adding Avaya OneCloud CCaaS to their portfolio. It'll be easy for them to just bring on board and then just to quickly just start selling it? Right. Absolutely. Yeah. It's very much like our Avaya Cloud Office rollout. You know, we go through a very rigorous process to onboard these master agents and their sub-agents to be able to effectively position our product. They have to understand how it works, the features, the benefits, the competitive landscape. What's the customer journey look like from a migration from premises to cloud? Great. Thank you. This is Jim. Yeah, I think it's also important to note again that when you take a look at our geographic reach, you know, we now have CCaaS, as you just mentioned, in 45 countries, and as I mentioned, we will be expanding that, our CCaaS offerings to roughly 100 by the end of the fiscal 2022, so by the end of September of next year. We also have 165 partners in North America and roughly 60 partners in international markets enabled now with CCaaS to go in and compete and win. We're exactly right on track to where we said we would be, and we still remain very confident about Avaya OneCloud CCaaS ARR growth, as I mentioned, more than doubling in FY 2022. Thank you. Thank you. Our next question comes from the line of Asiya Merchant with Citigroup. Please proceed with your question. Hi, thank you, and congratulations on a great quarter. My question is more kind of, you know, on the model, and I'm sure more of these details will be shared at the analyst event. The downtick in margins, you know, looking further out, how confident are you in that downtick in margins to the 23%-24% on an adjusted EBITDA level? In other words, you know, with all the competition stepping up in this space, is there risk that we could see further impact to these EBITDA margins, or there is, you know, significant confidence at these levels? Thank you. Hi, Asiya, this is Kieran. I'll take that one. Clearly, as you've seen to date, as we are really working to stand up, you know, firstly, the investments you're seeing right now have been from an R&D perspective, clearly go-to-market perspective as well. As we start to sign larger and larger deals and more of them, we're obviously standing up the infrastructure. What we're really reflecting there as we go out through time is really the scaling of these offers. You know, we're making a really explicit decision here to invest, you know, to drive the top line, to drive the growth from a revenue perspective and all the rest of that. What we're really seeing here is more service delivery just scaling type of actions. I feel pretty confident at this level. You know, obviously, if we came in at 24% last year, we're looking to be somewhere around 24% in 2022 as well. You know, I think we've built in the appropriate level of you know, conservatism, if you will, in being able to sustain that as we get out through time. Jim? Yeah. Just to add to that, I mean, look, one thing. I've been here 14 years. The one thing this company knows how to do, it knows how to execute. As we've said, I think for the last couple of years now pretty consistently, that we're going to invest back in the business, and we're gonna maintain our EBITDA between 23% and 24%. The team has executed on that flawlessly over the last couple of years, even through the sort of heavy lift of the transition since we've gone public over the last four years. A real tribute to the Avaya OneCloud team. One could say it's a bit of a downtick, but you know, 23.4%, 23.5%, you know, versus 24%, that's in line with our strategy. It's aligned with our expectations. By no stretch of imagination should someone think that that has any downside risk to it. In fact, we've increased our R&D expenditures in FY 2021. I think we're spending roughly in the neighborhood of about $240 million. We increased significantly in our go-to-market capabilities, and we've increased significantly in our systems in order to be cloud ready. I kind of call this, as we take a look at the company, you know, we're getting us in game shape. What do I mean by that? It's one thing to have the technology to convert and transition a company to cloud. It's another to have the intangibles, the infrastructure, what you need to do in order to execute, in order to really drive that transition to cloud. We've invested heavily over the last two years, and we have obviously a pretty significant plan to invest again this year. That's to build those intangibles to get this company in game shape so we can compete and win with the competition. We have a very good understanding of where our money is being allocated. We have a very good understanding of what it takes for us to from a strategic positioning perspective to be competitive and win in this market. I would tell you that the team is definitely in game shape in order to win as we go out through the next couple of years. I'm very confident in what we posted, and it's exactly in line what we've had posted, and that's a purposeful EBITDA number, predicated on the amount of investment required to move us from the middle of the pack to the front of the pack. I mean, Asiya, just to conclude with what Jim said, if there's any surprise in what we've seen, it's just the actual take-up and the rate and pace acceleration that we've seen with the OneCloud ARR that's really, you know, helping to influence those numbers. But like I said, I feel pretty confident that that's quite doable. Okay. If you can talk a little bit about, you know, the OneCloud guide and then the seasonality for the remainder of the year. I know the comps are a little bit off relative to the prior fiscal year because you guys had some contracts that probably helped in 1Q 2021. If you can just talk a little bit about how we should think about seasonality for fiscal 2022. Sure. With the guidance that we put out there at $725-$745, in the first quarter, you know, from a constant currency basis, essentially, you know, down 2% to basically flat, kind of implies that the rest of the year on a constant currency basis is going to grow somewhere between 1% and 3%, in terms of growth. What you're starting to see now is as we start to stand up more of these private cloud offerings, literally it's ratable revenue. You know, the time to money is a little longer. We start to see the business should become a, you know, a little less cyclical as we go through time and a little bit more, you know, continuous growth. That's kind of the way we're seeing it right now as we look out. Okay, thank you. Thank you. Our next question comes from the line of Rod Hall with Goldman Sachs. Please proceed with your question. Yeah, thanks. Most of my questions have been answered. I wanted to come back to this $15 million of adjusted revenue. A couple of questions on that. One is, we're assuming that was all in Q4. Could you guys just confirm whether that's all Q4, or did you adjust prior periods that add into that $15 million? Yeah. The bulk of it was in Q4, but we did take a little in Q3 as well. I mean, it's just essentially without getting too technical here, we're standing up SAP's RAR module, and the old system that we were using, which was RevPro, was essentially understating in certain scenarios, it was actually understating revenue, which essentially means it wasn't allocating revenue to product. It was keeping it on the balance sheet. We identified a series of instances. We went back and looked through time, obviously consulted closely with our auditors as well. There was never any quarter over the last three years since we introduced 606, where it would have been more than $1 million-$2 million in any given quarter. That's essentially what it's all, or was all related to. The bulk of it was in Q4, but there was a small amount in Q3 as well. It's like you're saying, like maybe $1 million in Q3 or something, 14, Q1. Yeah. There was a couple $3 million in Q3 and about $12 million or $13 million in Q4. Okay. The other question, did you guys non-GAAP that out or it's in the non-GAAP numbers? No. It's in our non-GAAP numbers. Okay. Then when you know, you kind of previewed what you're going to talk about, at least in terms of long-term target, for the Analyst Day. I wonder, like, so when we get to the Analyst Day, what is it that, you know, what do you think needs to be dug into more? Can you maybe elaborate a little bit on how you think that'll go in terms of detail? I'm not asking you for the detail, but what are the- Sure. You know, listed things. Listen, I mean, we've heard our investors, right? Our investors are quite anxious to get a view of the new Avaya, where we're going, right? Obviously, because of COVID, we haven't had a chance to get together for a while. What we want to really be able to do is, you know, you've already gotten a preview of my numbers. I'll slice them a couple of different ways for you. I think the real intent here is to look closely at the rest of our business and understand the capabilities that we have with our portfolio, with our go-to-market, and the recent pace of how we're making the change. I mean, those are the things that Jim and I and the leadership team really want to explore and share in greater detail with you all. I mean, the numbers are out there. We feel really confident of them. We'll obviously give a little bit better visibility into the splits between the cloud and the subscription hybrid portion. You know, I think we wanted to make sure that at least to date that you had a view beyond fiscal 2022, given that we're still in this transition year in 2022. Okay, great. Thank you. Thank you. Our next question comes from the line of Meta Marshall with Morgan Stanley. Please proceed with your question. Great. Thanks. A couple of questions. One, just given kind of the traction that you're seeing in UCaaS and CCaaS, just where are you seeing the most opportunities to expand your partner community, particularly as a lot of these transitions get wrapped up in CRM transitions? Then maybe second, you'll probably discuss this more at the Analyst Day, but just, you know, given CCaaS's evolution to have a lot more kind of AI and analytics capabilities, just where do you see M&A or, you know, is there a need for M&A to kind of help advance that portfolio? Thanks. Okay, I'll start with that. Certainly, you know, in terms of UCaaS and CCaaS, right? It's a very competitive landscape. You know, but we find that, you know, a combination of the Avaya brand, the platform, our experience, our ability to execute, we do very, very well when we go head-to-head. You know, we're finding that customers are sending out RFPs to five, six vendors. All agents are responding back with Avaya Cloud Office. You know, we're really happy with the take-up rate. The attractiveness of the Avaya brand, our partner program, and our ability to support the partners, you know, even our existing partners that are trained agents and our newly recruited partners are all seeing traction with the solution. We're very pleased with that. Yeah, this is Jim. I'm just on your question about delivering, be it organic or inorganic, solutions to build out sort of our CCaaS, AI, and overall analytics. A couple of things on that front. First and foremost, we have a very large ecosystem of API Exchange marketplace and a number of folks that are helping us develop solutions. Secondly, if you take a look at sort of a higher level, some of the strategic partnerships that we have around that ecosystem with the likes of Google and others, it's fairly extensive. NVIDIA, the list goes on and on of key partners that we're using to drive solutions back into our product capability. As far as another we believe to be a real enabler for us to further drive that is really our full suite of CPaaS services that we bring to the marketplace. Really what CPaaS really provides us the true capability to drive composable enterprise framework that you'll be hearing more and more about, as you pointed out, Meta, in our Investor Day. Lastly is just as far as M&A, you know, we'll keep our eye on the ball. We obviously did a technology tuck-in here last quarter with CTIntegrations, which provides us some digital capabilities, frankly, that we didn't have within the company. I think we have a pretty defined roadmap of melding, for lack of a better term, partnership capability, Avaya organically driven solutions into the marketplace, coupled with, you know, inorganic, M&A solutions to help sort of round that out and deliver the solutions to our customers. You'll hear a lot about our CPaaS capabilities and where we see that, and we've often referred to that as sort of a force multiplier, and we'll get into a lot of detail about the value that that brings to Avaya and how that's gonna really drive a lot of our growth in our Avaya OneCloud platform. Great. Thanks. Yep. Thank you. Ladies and gentlemen, that concludes our question and answer session, and I'll turn the floor back to Mr. McCarthy for any final comments. Thanks, Melissa, and thanks to everyone for joining us this morning for an update on our Q4 results. We're looking forward to speaking to you again at our Investor Day on December 14th. Have a wonderful Thanksgiving holiday. Take care. Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.