Genesys Cloud Grows Revenue Over 50% Year-Over-Year and Generates nearly $1.2 billion in Annual Recurring Revenue in Second Quarter of Fiscal Year 2024

Genesys AI fuels the future of experiences for organizations across sectors

SAN FRANCISCO, Aug. 30, 2023 /PRNewswire/ — Genesys®, a global cloud leader in AI-powered experience orchestration, today reported results for the second quarter of its fiscal year 2024 (May 1 –July 31, 2023), during which the Genesys Cloud™ platform surpassed 1 million users and ended the period with nearly $1.2 billion in annual recurring revenuei. As the Contact Center as a Service (CCaaS) platform of choice, Genesys Cloud continued its strong gains with over 50% year-over-year revenue growth for the second quarter, compared to the same period in the prior year.

"Quarter after quarter, our results show that our customers, partners and industry experts have confidence in the strength of Genesys Cloud to lead the industry into a new era of AI-powered experiences," said Tony Bates, CEO and chairman of Genesys. "With our innovations and ecosystem, we’re revolutionizing how businesses deliver higher levels of personalization to customers and empower their workforces for experiences that rise above the competition."

Key business highlights include:

  • For the second quarter, Genesys reported high-20s Adjusted EBITDAii margin
  • In the first half of FY 2024, Genesys generated positive Free Cash Flowiii
  • Genesys had a strong financial position at the end of the second quarter with a total liquidity of over $850 million, consisting of over $600 million of cash on hand and an unused revolving credit line of $250 million
  • The top 50 Genesys Cloud customers averaged more than 8,900 unique users on the platform during the quarter — up more than 30% year-over-year for the period — showing strong usage growth with enterprise-class customers
  • In the second quarter, Genesys Cloud gained momentum across diverse industries, including over 145% year-over-year revenue growth from retail customers, over 120% year-over-year revenue growth from healthcare customers, and over 65% year-over-year revenue growth from financial services customers
  • New and expanded customers include a Fortune 20 healthcare organization, a top-five global automaker, a Fortune 100 computer hardware company, a popular US department store, and more
  • Five new government security certifications, including FedRAMP® Authorization at the Moderate Impact level, TX Ramp, State Ramp, Cyber Essentials Plus and IRAP protected status

Additionally, Genesys was recently recognized as a Leader in the 2023 Gartner® Magic Quadrant™ for Contact Center as a Serviceiv, positioned highest for ability to execute. This makes Genesys a nine-time Magic Quadrant Leader. Genesys was also recognized in the Gartner Critical Capabilities Reportv, ranking highest in three of the five Use Cases: High-Volume Customer Call Center, Customer Engagement Center and Global Contact Center. Genesys credits these recognitions as evidence that its customers, partners and employees can trust the company is executing its vision of AI-powered experience orchestration to deliver incredible customer and employee experiences.

Ushering in the Future of Customer and Employee Experiences with Genesys AI
Building on its extensive history of AI-powered innovations, Genesys delivered nearly 40 new features and enhancements across its portfolio during the first half of the year. Updates include additional native generative AI models for auto-summarization and providing Genesys Cloud users with access to Amazon Bedrock, a fully managed service that makes industry-leading foundation models from AI21 Labs, Amazon, Anthropic, Cohere and Stability AI available via an API. Focused on leveraging the power of AI to transform customer and employee experiences, the number of customers deploying three or more native Genesys AI solutions continued to grow at a pace of more than 8X year-over-year in the second quarter.

Empowering Organizations to Deliver Empathetic Experiences
To help organizations improve the employee experience — a top customer experience priority —Genesys continues to execute on delivering innovations that equip organizations with the tools needed to respond to market shifts. During the second quarter, Genesys introduced several new offerings designed to empower and engage the workforce in the contact center and beyond, including Work Automation and Task Routing, the Genesys Experience Index™ methodology and the Genesys Cloud EX™ solution.

Driving Positive Change 
Genesys also continues to lead the industry in setting the standard for responsible growth and positive worldwide impact through its award-winning Environmental, Social and Governance (ESG) initiatives, including:

  • Strengthened its commitment to use Genesys products for good by enabling more non-profits to evolve to the cloud and expand their ability to serve their communities
  • Demonstrated the impact of its sustainability commitment on its business results, winning more than $75 million in RFPs when sustainability was a significant selection criterion
  • Eclipsed the 30% threshold for the representation of women across the global Genesys workforce for the first time
  • Nurtured a diverse pipeline of Software as a Service talent across the workforce, onboarding over 40 new US-based technical interns, of whom 39% identified as women and 41% identified as a member of the underrepresented population

Join the thousands of organizations delivering differentiated customer and employee experiences and driving business performance using Genesys Cloud. Try the GCXNow™ offering, a free self-service trial that makes it faster and simpler to access the latest in AI and digital innovations from Genesys.

Gartner Disclaimer
Genesys was recognized as "Interactive Intelligence" in the 2016 and 2015 reports "Gartner® Magic Quadrant™ for Contact Center as a Service, North America." Genesys acquired Interactive Intelligence in 2016.

The report "Magic Quadrant® for Contact Center as a Service, North America" was named as "Magic Quadrant® for Contact Center as a Service" in 2020.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.     

About Genesys 
Every year, Genesys orchestrates billions of remarkable customer experiences for organizations in more than 100 countries. Through the power of our cloud, digital and AI technologies, organizations can realize Experience as a Service®, our vision for empathetic customer experiences at scale. With Genesys, organizations have the power to deliver proactive, predictive and hyper-personalized experiences to deepen their customer connection across every marketing, sales and service moment on any channel, while also improving employee productivity and engagement. By transforming back-office technology to a modern revenue velocity engine Genesys enables true intimacy at scale to foster customer trust and loyalty. Visit www.genesys.com

©2023 Genesys. All rights reserved. Genesys, the Genesys logo, Genesys Cloud, Genesys Cloud EX, GCXNow and Experience as a Service are trademarks, service marks and/or registered trademarks of Genesys. All other company names and logos may be registered trademarks or trademarks of their respective companies. 

i Annual Recurring Revenue (ARR) is defined as Genesys Cloud quarterly revenue multiplied by four
ii Adjusted EBITDA represents Earnings before Interest, Taxes, Depreciation & Amortization, plus other adjustments such as one-time expenses, restructuring charges and stock-based compensation expense
iii Free Cash Flow is defined as Cash Provided by Operating Activities, less Capital Expenditures and Capitalized Software Development Costs.
iv Gartner Magic Quadrant for Contact Center as a Service, Drew Kraus, Steve Blood, Pri Rathnayake, Pankil Sheth, August 2023
v Gartner Critical Capabilities for Contact Center as a Service, Steve Blood, Drew Kraus, Pankil Sheth, Pri Rathnayake, August 2023

Marielle Sedin

SOURCE Genesys