Genesys®, a global cloud leader in AI-powered experience orchestration, today reported the results for the third quarter of its fiscal year 2024 (Aug. 1- Oct. 31, 2023). The Genesys Cloud™ platform ended the period with nearly $1.3 billion annual recurring revenue (ARR)i, growing approximately 50% year-over-year. This strong performance was driven by robust growth across all regions, led by Europe, Middle East and Africa (EMEA), where Genesys Cloud revenue increased 60% year-over-year. As a result, more than 40% of total Genesys revenue during the quarter came from outside of North America.
Adoption of Genesys AI rapidly accelerated throughout the quarter, highlighted by the growth of Genesys Cloud Native Bots with usage for digital bots up nearly 4X and voicebots up nearly 5X year-over-year. Notably, customer usage of Auto Summarization for Agent Assist grew 3X during the quarter. In addition, the number of digital interactions on the Genesys Cloud platform maintained an upward trajectory, growing nearly 3X year-over-year. To help organizations meet rising customer expectations, Genesys continued its fast pace of innovation by releasing 30 new AI features during the period focused on further strengthening its generative, conversational and predictive AI capabilities.
To meet growing demand around the world, Genesys announced new availability in four additional Amazon Web Services (AWS) Regions. This includes adding AWS Europe (Zurich), AWS Asia Pacific (Osaka) and AWS Middle East (UAE) Regions as full-service Genesys Cloud regions and offering satellite availability to the AWS Asia Pacific (Singapore) Region. With availability in 20 AWS Regions, Genesys Cloud will enable more organizations in highly regulated industries to implement controls aimed toward data residency, security and compliance requirements while creating differentiated customer and employee experiences. Additionally, Genesys continues to expand its regional government security certifications, most recently adding ENS High Certificate, IRAP Protected and StateRAMP Authorized. To accelerate growth and innovation, the company opened a new R&D center in Budapest, continuing to expand its development focus on AI, digital and journey management.
“Expectations for empathetic experiences transcend borders and no company has enabled organizations across the world to rise to the occasion like Genesys,” said Tony Bates, chairman and CEO of Genesys. “The remarkable growth we’ve achieved across the globe is a result of the increasing demand for the AI-powered experience orchestration capabilities of Genesys Cloud and its transformative ability to create the best personalized experiences for deeper, more meaningful relationships that drive loyalty and business outcomes.”
Bates continued, “The strength of our global presence and market-leading innovations put Genesys at the forefront of delivering the future of employee and customer experiences today. Whether an organization operates in a single country or has multinational presence, Genesys makes the possibility of the experience limitless.”
Key business highlights during the third quarter include:
- New Logo bookings on Genesys Cloud were up nearly 30% year-over-year, driven by displacement of legacy vendors by an average of more than 2.5 times per day during the quarterii
- Genesys Cloud net revenue retention of greater than 120%
- The average number of unique agents for each of the top 50 Genesys Cloud customers increased approximately 30% year-over-year to more than 9,300
- Genesys Cloud continued to gain momentum across various industries, including over 150% year-over-year revenue growth from the business services sector; over 90% year-over-year revenue growth from the healthcare sector; and over 65% year-over-year revenue growth from the financial services sector
- More than $75 million in new business was influenced by the company’s sustainability practices, as organizations increasingly seek to partner with companies that can further their sustainability initiatives
- Strong profitability and cash flow, delivering high-20s Adjusted EBITDAiii margins and positive free cash flow
- Total liquidity of over $900 million, consisting of over $650 million of cash on hand and an unused revolving credit line of $250 million at the end of the third quarter
- Launched CX Cloud from Genesys and Salesforce, integrating Genesys Cloud and Salesforce Service Cloud to help businesses bring together their data, agents, bots and communication channels for smarter end-to-end customer and employee experiences
Enabling Customer Success
During the period, the number of customers on Genesys Cloud surpassed 5,300, including more than 850 organizations that have evolved from Genesys on-premises solutions. New and expanded customers include Electrolux Group, LKQ Euro Car Parts, LG U+ and many others. Highlighted customer stories include:
Eesti Energia, an international energy company owned by the Republic of Estonia, is unifying its contact centers across five countries, while driving greener operations from a smaller IT footprint and delivering exceptional service on Genesys Cloud. The company quickly saw results from the migration, including IVR changes completed in minutes rather than hours to days. Intending to improve forecasting, training and quality management, the company is also looking to implement Genesys Workforce Engagement Management.
Electrolux Group, one of the world’s biggest home appliance manufacturers, launched a new strategy on Genesys Cloud using Genesys Predictive Engagement and Agent Assist. After deployment, Electrolux experienced improvements in first-call resolution and employee satisfaction, and saw a 20% reduction in call and email traffic and a 25% drop in average handle time.
LG U+, one of the top three telecom companies in Korea, is in the process of migrating its 6,000 customer service agents to Genesys Cloud. Through this migration, the company seeks to evolve its contact center into a future-proof environment that can quickly adapt to ever-changing customer needs, delivering personalized customer experience and a full suite of experience orchestration capabilities to LG U+ customers.
SKY Perfect Customer-relations (SPCC), a BPO company in Japan known for managing customer centers for the subscription-based multichannel broadcasting service “SkyperfecTV!”, is advancing its customer service capabilities by integrating Genesys Cloud. With this implementation, SPCC not only aims to improve its high-quality contact center operations but is also considering the possibility of selling its in-house product, the TALKZ script creation tool, through the Genesys AppFoundry® Marketplace.
Stanley Steemer reduced its IT infrastructure costs by as much as 70% by migrating to Genesys Cloud. Now, the company is expanding its capabilities and integrating speech and text analytics and voicebots to improve the speed at which its customers are served, as well as additional Genesys Workforce Engagement Management features for a better employee experience.
Industry Recognition
Genesys continues to be lauded as an industry leader for its customer enablement, innovation and culture. Recent recognition includes:
- Genesys was selected by AWS as Customer Experience Partner of the Year (Global), recognizing AWS’s top ISV Partners with a horizontal business area focus on CX; Social Impact Partner of the Year (North America) for its commitment to giving back to society through its people, resources and technology, leading initiatives to change our world for the better; and as a finalist for Federal Government Partner of the Year (APJ), for its strength in delivering innovative mission-based wins for the Federal Government.
- Recognizing the strength of Genesys AI for its breadth of offering and strong partner network, IDC named Genesys a Leader in the IDC MarketScape: Worldwide General Purpose Conversational AI Software 2023 Vendor Assessment.iv
- Omdia recognized Genesys as a Leader in the Omdia Universe Customer Engagement Platforms 2023-24 reportv for its all-in-one Genesys Cloud platform.
- Genesys received a top ranking from Frost & Sullivan in the Frost Radar™: Workforce Optimization Solutions, 2023 reportvi for its AI and digital innovations in workforce engagement management (WEM), global industry leadership and capabilities to help organizations deliver the power of empathy to every experience. Additionally, Genesys continued its ranking as the No. 1 growth leader in the Frost Radar™: Enterprise Cloud Contact Centers in North America, 2023vii for the third consecutive year.
- EcoVadis, a leader in sustainability ratings, awarded Genesys a Gold medal for the second consecutive year for driving sustainability achievements in environmental, social and governance across the organization. The rating places Genesys in the top 5% of all companies assessed globally by EcoVadis.
- Genesys has been named a Great Place to Work for Women in our UK office, with a greater than 83% score. The Genesys UK office joins several other Genesys regions around the globe over the past year to be recognized by Great Places to Work as inclusive environments.
About Genesys
Genesys empowers more than 7,500 organizations in over 100 countries to improve loyalty and business outcomes by creating the best experiences for customers and employees. Through Genesys Cloud, the #1 AI-powered experience orchestration platform, Genesys delivers the future of CX to organizations of all sizes so they can provide empathetic, personalized experience at scale. As the trusted, all-in-one platform born in the cloud, Genesys Cloud accelerates growth for organizations by enabling them to differentiate with the right customer experience at the right time, while driving stronger workforce engagement, efficiency and operational improvements. 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 Reflects Q3 average displacement per business day.
iii Adjusted EBITDA represents Earnings before Interest, Taxes, Depreciation & Amortization, plus other adjustments such as one-time expenses, restructuring charges and stock-based compensation expense
iv IDC, IDC MarketScape: Worldwide General Purpose Conversational AI Software 2023 Vendor Assessment, Doc #US49988023, November 2023
v Omdia, Omdia Universe Customer Engagement Platforms 2023-24, October 12 2023
vi Frost & Sullivan, Frost Radar™: Workforce Optimization Solutions, 2023 report, September 2023
vii Frost & Sullivan, Frost Radar™: Enterprise Cloud Contact Centers in North America, September 20, 2023
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