Open Text Corporation (NASDAQ:OTEX) Barclays 22nd Annual Global Technology Conference December 12, 2024 4:20 PM ET Company Participants Greg Secord - Vice President, Investor Relations Madhu Ranganathan - President and CFO Conference Call Participants Raimo Lenschow - Barclays Raimo Lenschow Welcome to our next session. I know as a speaker we have like Madhu, and Madhu will join us in a minute, but Greg is -- because she's stuck on traffic. So, Greg is going to start with me. So, we can ask all the question ...

Open Text Corporation (NASDAQ:OTEX) Barclays 22nd Annual Global Technology Conference December 12, 2024 4:20 PM ET Company Participants Greg Secord - Vice President, Investor Relations Madhu Ranganathan - President and CFO Conference Call Participants Raimo Lenschow - Barclays Raimo Lenschow Welcome to our next session. I know as a speaker we have like Madhu, and Madhu will join us in a minute, but Greg is -- because she's stuck on traffic. So, Greg is going to start with me. So, we can ask all the question ...

If you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.Founded in 1991, Open Text (NASDAQ: OTEX ) is one of Canada's longest-running software companies. It has been highly successful over the years, growing to a market cap of $8 billion today.Ian leads the investing group Ian's Insider Corner . Features of the group include: the Weeken ...

WATERLOO, ON, Nov. 26, 2024 /PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), today announced the appointment of Fletcher Previn to its board of directors. Mr. Previn is Senior Vice President & Chief Information Officer of Cisco Systems, Inc., a worldwide technology leader that connects a broad range of technologies that help to power, secure, and draw insights from the Internet."I am very pleased to welcome Fletcher to the OpenText Board," said Tom Jenkins, Chair of the Board of Directors. ...

Next-generation cloud, security, AI-integrated innovations unveiled at OpenText World 2024WATERLOO, ON, Nov. 19, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today unveiled Cloud Editions (CE) 24.4 at OpenText World 2024, presenting a suite of transformative advancements in Business Cloud, AI, and Technology to empower the future of AI-driven knowledge work. This release delivers secure, AI-integrated solutions that strengthen data connectivity, streamlines workflows, and enhances human potent ...

WATERLOO, ON, Nov. 18, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today announced that the OpenText Partner Network now has expanded access to sell OpenText's entire portfolio of solutions for information management, including Content Services, Experience Management, Security, IT Operations Management, and Developer tools along with accelerants, such as cloud, artificial intelligence, automation and analytics."This is a major milestone for our Partner Network, following our acquisition of Mi ...

Pioneering experts gather in Las Vegas to explore a future driven by AI knowledge workers, cloud, and next-generation securityWATERLOO, ON, Nov. 15, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX), today announced its roster of keynote and guest speakers for OpenText World 2024, the leading information management conference, set to take place in-person and virtually at the Venetian Hotel Resort, Las Vegas, from November 18-21, 2024. This year's conference will bring together leading experts in bu ...

Google Cloud and SAP confirmed as Innovator-level sponsors, supporting the future of AI and digital transformationWATERLOO, ON, Nov. 15, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX), today announced its full slate of interactive workshops, learning pathways, and business solution focus areas for OpenText World 2024, the premier event for information management, set to take place at the Venetian Resort in Las Vegas from November 18-21, 2024.This year's conference will spotlight cutting-edge int ...

| --- | --- | --- | |----------------------------------------------|-------|-------| | | | | | | | | | | | | | October 31, 2024 OpenText Business Overview | | | | NASDAQ: OTEX \| TSX: OTEX | | | Safe Harbor and IP Statement This presentation contains forward-looking statements or information (forward-looking statements) within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act), Section 27A of the U.S. Se ...

Financial Data and Key Metrics - Q1 revenue was $1.27 billion, within the quarterly factor range of $1.25 billion to $1.3 billion [13] - Adjusted EBITDA grew to 35% year-over-year, driven by efficiency gains despite the divestiture of the high-margin AMC business [11] - Adjusted EPS was $0.93, exceeding expectations [16] - Cloud revenue was $457 million, up 1.3% year-over-year, with cloud bookings up 10% year-over-year [14][40] - Net cloud renewal rate was 94% [16] - GAAP net income was $84.4 million, or $0.32 diluted EPS, up 6.7% year-over-year [42] - Free cash flow was negative $117.1 million due to one-time tax payments and AMC divestiture gains [44] Business Line Performance - Cloud business marked its 15th consecutive quarter of organic growth, with strong customer wins across industries such as financial services, technology, and healthcare [14] - Titanium X, the next-generation autonomous information management platform, is a key driver of growth, with 20 wins related to the Jet AI Aviator offering [15] - Security, particularly XDR-as-a-Service, is a major investment area, with full-stack protection for users, applications, email, network, and clouds [25] - SMB segment saw the launch of Secure Cloud, a new platform enabling partners to transact and manage customer installations [111][112] Market Performance - Revenue by geography: Americas 57% (majority in the US), EMEA 33%, APAC and Japan 10% [15] - 38 deals were over $1 million, with the majority being cloud-based [15] - Strong demand in multi-cloud environments, with customers increasingly adopting multiple cloud providers [33] Strategy and Industry Competition - The company is focused on strengthening its competitive advantage with Titanium X, accelerating cloud growth, and capturing margin opportunities [37] - Investments in go-to-market strategies, including sales talent acquisition and AI-driven sales tools (olli.ai), are expected to drive growth [30][31] - Strategic partnerships with SAP, Google, Microsoft, Salesforce, and Amazon are critical for multi-cloud integration and expanding market reach [34] - The company is leveraging AI internally to improve operational efficiency and customer engagement [54] Management Commentary on Operating Environment and Future Outlook - Demand environment is stable, with a strong pipeline and customer engagement expected to drive a stronger second half of the fiscal year [17][59] - The company reaffirmed its fiscal 2025 targets, including total revenues of $5.3 billion to $5.4 billion, adjusted EBITDA margin of 33% to 34%, and free cash flow of $575 million to $625 million [18][52] - Management highlighted the importance of AI and security as long-term growth drivers, with Titanium X expected to be a major step forward in enterprise and SMB security [25][37] Other Important Information - The company plans to return approximately $570 million of capital via dividends and share buybacks in fiscal 2025, marking a record year for capital return [18] - OpenText World 2024 will showcase Titanium X and other innovations, with over 150 sessions and speakers [36] - The company is monitoring economic conditions in Europe, North America, APAC, and Japan, and is prepared to adjust its approach if necessary [37] Q&A Session Summary Question: Demand Environment and Macro Outlook - The demand environment is stable, with a strong innovation push expected to drive demand in the second half, particularly with the release of Titanium X [59][60] - Q2 has a tough year-over-year comparison due to the AMC divestiture and one-time IP royalty from the previous year [63] Question: Cloud Contract Duration and On-Prem to Cloud Conversions - Cloud contract durations have stabilized around four years, with SAP reporting similar trends [78][80] - Titanium X is designed to accelerate on-prem to cloud conversions, particularly with its SaaS-first approach [81] Question: AI Adoption Patterns - AI adoption is steady, with 20 wins related to GenAI Aviators in Q1 and 15 Aviators and over 100 agents expected in Titanium X [85][87] - The company is focused on making AI easy to use and cost-effective, with steady progress expected in adoption [89] Question: Margin Performance and Cost Timing - Strong margin performance in Q1 was driven by operational efficiencies and cost management, with higher costs expected in the second half due to annual merit increases and benefit uplifts [91][92] Question: Organic Growth Post-AMC Divestiture - The company expects organic growth to be driven by security and digital operations, with stabilization in the developer segment [95][99] Question: Capital Allocation and M&A - The company plans to return a record $570 million in capital to shareholders in fiscal 2025 and is open to small- to medium-sized M&A opportunities in the cloud space [100][101] Question: SMB Segment and Secure Cloud Platform - The SMB segment is showing steady progress, with the launch of Secure Cloud enabling partners to transact and manage customer installations [111][112] Question: Cloud Growth Range and Sales Investment - Cloud growth is expected to be driven by SaaS adoption, AI contributions, and security offerings, with sales capacity at its peak and strong employee retention [116][118]