Genesys has achieved its largest-ever new bookings quarter for its Genesys Cloud CX platform.
Thanks – in part – to this impressive Q4 performance, the contact center vendor earned $800MN in annual revenues through the platform, up 50 percent (YoY).
These results took Genesys’s total annual revenues past $2BN for the first time.
Commenting on the results, Tony Bates, CEO and Chairman of Genesys, said:
As an all-in-one platform, it’s unmatched in its ability to transform and modernize how organizations connect with people, integrate real-time data, optimize proactive, personalized engagement, and deliver a true loyalty differentiator.
Indeed, the platform often performs well in analyst reports, with Genesys considered one of just three market leaders in the latest Gartner Magic Quadrant for CCaaS report.
Yet, other factors are at play here besides Genesys offering an acclaimed CCaaS platform.
For instance, the vendor decided to ditch its Multicloud CX solution in October last year. This likely contributed significantly to the impressive Q4 results of its Genesys Cloud CX platform.
At the time, Bates noted that the vendor was engaging with Multicloud CX customers and helping them find “the best available path to migrate to Genesys Cloud CX.”
In the same blog post, Bates also announced the end of its legacy innovation – despite noting that the vendor will continue supporting its deep on-premise base. He wrote:
Going forward, we’re making a strategic pivot as a company and focusing all of our innovation, investment, and resources on accelerating the market leadership of Genesys Cloud CX.
In making this statement, Genesys made its aim to migrate customers to its one remaining cloud platform much more explicit – which may have also encouraged a wave of CCaaS migrations.
Ultimately, this will have bolstered its cloud business, which – over time – is much more profitable than continued licensing for its on-premises customers.
Yet, it may have also encouraged some businesses within its legacy base to look elsewhere – as its CCaaS rivals have suggested.
Competition for Its Legacy Base
After Genesys slimmed down its cloud portfolio and curbed its legacy innovation, some of its rivals revealed an uptick in their migrations from Genesys’s legacy base.
While discussing the vendors that Five9 displaced most during a recent earnings call, Mike Burkland, Chairman & CEO of Five9, stated:
It was two…. [then] we were seeing more Genesys become part of those three. One and two being Avaya and Cisco, with Genesys a distant third. Those are becoming neck and neck now between all three.
Barak Eilam, CEO of NICE, also noted a rise in business from Genesys migrations while recently discussing the state of the WFO market. He said:
[There] is a significant realization of partners, of the legacy incumbent or on-premise vendors – like Verint and Genesys – that’s realizing they need to go with different vendors that have also a strong financial viability, and they come to us.
Even Avaya, which is entering chapter 11 bankruptcy, claimed it was “preparing customers for their leave of Genesys.”
Unfortunately, it is difficult to dig deeper as Genesys is a private company. Therefore, it is not obligated to share hard data regarding its earnings.
As such, where its revenue rises have stemmed from is only speculation. Although, it seems movement from its legacy base – to both its Cloud CX Platform and rival CCaaS vendors – is reaching new highs.
