Genesys Announces Record Fiscal Year 2024 Business Results

March 21, 2024 at 08:00 AM EDT

Genesys Cloud achieves record bookings in the fourth quarter with strong demand for AI innovations

Genesys®, a global cloud leader in AI-powered experience orchestration, today reported a record-setting fiscal year 2024 (Feb. 1, 2023–Jan. 31, 2024). After achieving the highest new annual contract value (ACV) bookings in the company’s history in the fourth quarter, the Genesys Cloud™ platform ended the quarter with approximately $1.4 billion annual recurring revenue (ARR)ⁱ, growing approximately 45% year-over-year.

During the fiscal year, nearly 750 new customers turned to the all-in-one Genesys Cloud platform with turnkey AI to provide personalized experiences at scale. Genesys Cloud saw accelerated adoption of Genesys AI during the year, spanning conversational, generative and predictive capabilities. Usage for digital bots was up more than 4X and voicebots up more than 3X year-over-year. Additionally, more than 1.2 million summaries have been created from the Genesys generative AI-based Auto Summarization for Agent Assist since its launch in the third quarter of this year.

Through consistent delivery of innovations within Genesys Cloud, the company released more than 400 new features during the year, with nearly 70 powered by AI and more than 100 focused on workforce engagement management (WEM). Additionally, in February 2024, Genesys acquired Radarr Technologies, a leading AI-based social and digital listening, analytics, and consumer engagement company. Combining Radarr capabilities with Genesys Cloud will help organizations further connect data and unify their customer experiences. To further advance the company’s digital and AI innovations, Genesys invested $300 million in Genesys Cloud research and development during fiscal year 2024 and opened a new R&D center in Budapest during FY24.

“Genesys is changing how companies around the world connect with employees and customers in the era of AI,” said Tony Bates, CEO and Chairman of Genesys. “Our record-setting bookings are evidence that our vision to ensure every customer and employee interaction is personalized and continually optimized is resonating with the industry. Our customers are looking to us to lead them into that future, which happens in the cloud with Genesys AI-powered experience orchestration.”

Fiscal Year 2024 Business Highlights

Genesys Cloud booked over 85 deals valued at more than $1 million ACV during the year, while the number of deals with $5 million or more in ACV grew more than 65% year-over-year.
During the fourth quarter, the average number of unique agents for each of the top 50 Genesys Cloud customers surpassed 10,000 — a nearly 30% increase year-over-year.
Nearly 20 wins for CX Cloud from Genesys and Salesforce since the solution launched in September 2023, including Benify and Colruyt Group.
More than $200 million in new and sustained business in fiscal year 2024 was influenced by the company’s sustainability practices.
Total annual revenue grew more than 10% year-over-year, driven by Genesys Cloud, which ended the year with revenue over $1.2 billion while growing more than 45% year-over-year.
Genesys Cloud continued to gain momentum across various industries, including more than 75% year-over-year annual revenue growth from the healthcare sector and more than 65% year-over-year annual revenue growth from both the business services and retail sectors.
Genesys Cloud net revenue retention exceeded 120% in both the fourth quarter and the entire year.
Strong profitability and cash flow during the year, delivering high 20s Adjusted EBITDAⁱⁱ margins and over $250 million of Free Cash Flow.ⁱⁱⁱ

Enabling Customer Success

With more than 5,700 organizations on Genesys Cloud, including the more than 950 customers that have evolved onto the platform from the company’s legacy solutions, Genesys is leading the industry into the future of customer experience (CX). New and expanded customers during the fiscal year include Swisscom, The Trevor Project, Vibrant Emotional Health, LG U+, SKY Perfect Customer-relations Corporation (SPCC) and more.

Highlighted customer stories include:

With a vision to deliver innovative and seamless experiences for its airline passengers worldwide, Emirates evolved its largest commercial contact center to Genesys Cloud — spanning seven sites and 1,800 agents — with additional capabilities planned in the future. In addition to deploying several WEM capabilities, Emirates is now using Genesys Cloud to handle voice and digital customer service channels, including web messaging and WhatsApp.
Fabletics, the global active lifestyle brand and a division of TechStyle Fashion Group, puts its community at the heart of everything it does — which is why providing the best experience to its more than 2.3 million members is always a top priority. Through Genesys Cloud, the company has already doubled self-service adoption and reduced abandoned calls by a third. Now, the company seeks to further transform its member and agent experiences by customizing its AI capabilities using the Genesys AppFoundry® Marketplace to improve containment rates, reduce the number of external applications agents use and increase automated authentication.
Modivcare, a leading tech-enabled provider of supportive care services focused on the social determinants of health — which includes non-emergency medical transportation, personal care and remote patient monitoring — evolved to Genesys Cloud to leverage AI to transform its contact centers. Nearly 12 months since embarking on its transformation, Modivcare has seen a 31% reduction in both average speed of answer and abandonment rates, an 86% increase in employee retention and a 63% increase in the use of digital channels.
Schneider Electric, a global specialist in energy management and automation for energy efficiency and sustainability, evolved to Genesys Cloud to deliver more seamless customer and employee experiences. The flexibility and composability of the platform enabled the company to transform its customer experience; optimize the operational efficiency of 3,200 agents speaking 15 different languages across 62 contact centers; and adapt to local specificities in the more than 100 countries where it operates.
Unisys, a global technology solutions company, recently transformed its client and workforce experience by consolidating legacy solutions onto the all-in-one Genesys Cloud platform — moving over 100 client organizations across 12 global delivery centers. Unisys continues its next-gen evolution journey by implementing Agent Assist and Auto Summarization to improve agent speed and accuracy by quickly surfacing knowledge to streamline customer interactions.
Western Sydney University (WSU) deployed Genesys Cloud to revolutionize student engagement and the employee experience. This shift from a voice-based contact center to a cloud-based platform leveraging AI has not only increased its load capacity with a 45% reduction in abandon calls but has also significantly improved its average response times with a 15-minute reduction in average speed of answer in 2023. This transformation has empowered students to interact seamlessly across a variety of channels, including voice, messaging, email, SMS and WhatsApp, ensuring timely responses and personalized experiences.

Industry Recognition

Genesys continues to be lauded as an industry leader for its AI and customer innovation and culture. Highlighted recognition includes:

Genesys was recognized as a Leader in the 2023 Gartner® Magic Quadrant™ for Contact Center as a Service^iv, positioned highest for ability to execute. This makes Genesys a nine-time Magic Quadrant Leader. 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.
IDC named Genesys a Leader in the IDC MarketScape: Worldwide General Purpose Conversational AI Software 2023 Vendor Assessment^v, recognizing the strength of Genesys AI for its breadth of offering and strong partner network.
Genesys received a top ranking from Frost & Sullivan in the Frost Radar™: Workforce Optimization Solutions, 2023 report^vi for its AI and digital innovations in workforce engagement management, global industry leadership and capabilities to help organizations deliver the power of empathy to every experience.
Receiving the highest scores possible in the AI architecture, workforce optimization and customer self-service criteria, and among the highest scores in the outbound capabilities criteria, Genesys was named a Leader in The Forrester Wave™: Contact Center as a Service, Q1 2023.^vii
Continuing to set the pace for industry sustainability initiatives, Genesys was recognized by EcoVadis and CDP, two leading sustainability ranking organizations. Awarded a Gold Medal by EcoVadis, Genesys ranks in the top 5% of all companies assessed by the organization. Receiving a B score from CDP, Genesys surpasses the North America and Global average score of the IT and Software Development industry.
Genesys employees recognized the company for its culture with all employees at Genesys, including women and underrepresented populations, continuing to rate their feeling of belonging within the organization highly in the Genesys Inclusion Index survey.
Genesys Cloud was named to the G2 2024 Best Software Awards, recognizing the world’s best software companies and products based on authentic, timely reviews from real users. Genesys Cloud ranked in the Top 50 for three categories: Customer Service Products, AI Products and Office Products.

Learn more about how Genesys is transforming the future of CX today at Xperience 2024, May 13–15 in Denver, Colorado.

About Genesys

Genesys empowers more than 8,000 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.

Preliminary Financial Information

The unaudited financial results for the fiscal year ended January 31, 2024 included in this press release are preliminary and represent the most current information available to management and are not a comprehensive statement of the financial results for the period discussed. Actual results may differ from the preliminary unaudited results included in this release due to the completion of the company’s year-end financial closing procedures, including final adjustments, completion of the audit by the company’s independent registered public accounting firm, and other developments that may arise between the date of this press release and the time that financial results for the fiscal year ended January 31, 2024 are finalized.

©2024 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.

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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

^ivGartner Magic Quadrant for Contact Center as a Service, Drew Kraus, Steve Blood, Pri Rathnayake, Pankil Sheth, 7 August 2023

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

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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.

^v IDC, IDC MarketScape: Worldwide General Purpose Conversational AI Software 2023 Vendor Assessment, Doc #US49988023, November 2023

^vi Frost Radar™: Workforce Optimization Solutions, 2023 report

^vii The Forrester Wave: Contact Center as a Service, Q1 2023, Forrester Research, Inc., Max Ball, March 27, 2023