BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Independent Stock Specific Research

Founder, BWS Financial Inc

Hamed Khorsand

Founder

Equity Bottom-Up

<ul type="disc"><li>The transition to a cloud subscription model continues to plague Avaya Holdings’ (AVYA) traditional earnings metrics even though the Company has been successful in growing its customer base.</li></ul> <ul type="disc"><li>AVYA reported revenue and adjusted EBITDA in line with our projections. Annual recurring revenue (“ARR”) was up 23 percent sequentially, but this creates a drag on revenue, earnings, and cash flow.</li></ul> <ul type="disc"><li>The growth AVYA has experienced this year has come with the inability to generate much investor interest since the optics of traditional earnings measurements remain depressed. AVYA is projecting ARR to continue rising and reach $1 billion by the end of fiscal 2022.</li></ul> <ul type="disc"><li>The decrease in free cash flow generation this year could result in AVYA’s shares remaining at current levels for a bit longer while investors wait for the financials to catch up with the ARR AVYA is reporting.</li></ul>

The transition to a cloud subscription model continues to plague Avaya Holdings’ (AVYA) traditional earnings metrics even though the Company has been successful in growing its customer base. AVYA reported revenue and adjusted EBITDA in line with our projections. Annual recurring revenue (“ARR”) was up 23 percent sequentially, but this creates a drag on revenue, earnings, and cash flow. The growth AVYA has experienced this year has come with the inability to generate much investor interest since the optics of traditional earnings measurements remain depressed. AVYA is projecting ARR to continue rising and reach $1 billion by the end of fiscal 2022. The decrease in free cash flow generation this year could result in AVYA’s shares remaining at current levels for a bit longer while investors wait for the financials to catch up with the ARR AVYA is reporting.

Avaya Holdings Corp

AVYA: ARR Growth Dilemma