Open Text (OTEX) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.81%. A quarter ago, it was expected that this software provider would post earnings of $1.05 per share when it actually produced earnings of $0.98, delivering a surprise of -6.67%.Over the last four quarters, the comp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ______________________ FORM 10-Q ______________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-27544 ______________________________________ | --- | --- | |-------------------------------- ...

As cyberattacks grow more insidious, organizations are ramping up cybersecurity investments to defend essential servicesWATERLOO, ON, Oct. 31, 2024 /PRNewswire/ -- OpenText (NASDAQ: OTEX), (TSX: OTEX), has revealed its highly anticipated "Nastiest Malware of 2024" list, spotlighting the year's most notorious cyber threats. Now in its seventh year, OpenText's cybersecurity experts have identified the most relentless and adaptive malware trends impacting industries worldwide. This year, ransomware aimed at cr ...

Financial Performance - Total revenues for Q1 FY2025 were $1.27 billion, down 11.0% year-over-year, or down 1.8% when adjusted for the AMC divestiture[3] - Annual recurring revenues (ARR) reached $1.05 billion, a decrease of 8.4% year-over-year, or down 1.1% when adjusted for the AMC divestiture[3] - Cloud revenues increased to $457 million, reflecting a growth of 1.3% year-over-year[3] - Quarterly enterprise cloud bookings amounted to $133 million, up 10.3% year-over-year[3] - Total revenues for the three months ended September 30, 2024, were $1,269,005, a decrease of 11% compared to $1,425,429 for the same period in 2023[18] - Cloud services and subscriptions revenue increased to $457,024, up 1.8% from $451,014 in the prior year[18] - The company reported a gross profit of $910,358, down from $1,018,418, reflecting a decrease of about 10.6%[18] - For the three months ended September 30, 2024, GAAP-based net income attributable to OpenText was $84,368,000, with a diluted earnings per share of $0.32[39] - Non-GAAP-based net income attributable to OpenText for the same period was $248,772,000, resulting in a diluted earnings per share of $0.93[39] - Adjusted EBITDA for the three months ended September 30, 2024, was $443,801,000, with an adjusted EBITDA margin of 35.0%[41] Shareholder Returns - The company returned $154 million to shareholders, including $69 million in dividends and $85 million in share repurchases[3] - OpenText repurchased $85 million of common shares in Q1 FY2025, as part of a plan to buy back up to $300 million in shares[7] - The Board declared a cash dividend of $0.2625 per common share, with a record date of November 29, 2024, and a payment date of December 20, 2024[6] - The company declared dividends of $0.2625 per common share for the period, totaling $70,338 thousand, compared to $67,778 thousand for $0.25 per common share in the previous year[25] Income and Expenses - GAAP-based net income was $84 million, with a diluted earnings per share (EPS) of $0.32, representing a 6.7% increase from the previous year[3] - Net income for the period was $84,422, representing an increase of 4.8% from $80,946 in the same quarter of 2023[20] - Operating expenses for the quarter were $704,116, down from $805,526, indicating a decrease of approximately 12.6%[18] - Cash flows from operating activities resulted in a net cash used of $77,806 thousand for the three months ended September 30, 2024, contrasting with a net cash provided of $47,121 thousand in the same period of 2023[25] - The company reported depreciation and amortization of intangible assets of $160,919 thousand for the three months ended September 30, 2024, down from $231,107 thousand in the prior year[25] Assets and Liabilities - Total current assets decreased to $1,980,094 from $2,277,325, a decline of approximately 13.1%[17] - Total assets as of September 30, 2024, were $13,779,291, down from $14,205,707 as of June 30, 2024[17] - Total liabilities decreased to $9,642,404 from $10,006,026, a reduction of about 3.6%[17] - Cash and cash equivalents decreased to $1,000,219 from $1,280,662, a decline of approximately 21.9%[17] - Total cash, cash equivalents, and restricted cash at the end of September 30, 2024, was $1,002,410 thousand, up from $922,150 thousand at the end of September 30, 2023, indicating a growth of 8.7%[27] Market Position and Recognition - OpenText was named a leader in IDC MarketScape: Worldwide Intelligent Content Services 2024, highlighting its competitive position in the market[8] Foreign Exchange and Special Charges - The company reported a foreign exchange gain of $19,136 thousand on cash held in foreign currencies for the three months ended September 30, 2024, compared to a loss of $11,503 thousand in the same period last year[25] - Special charges (recoveries) accounted for $13,794,000 in the reconciliation of adjusted EBITDA[53] - Adjustments for special charges (recoveries) amounted to $47,136,000, which were excluded from Non-GAAP operating expenses[39]

Core Insights - OpenText reported total revenues of $1.27 billion for Q1 FY'25, reflecting an 11.0% year-over-year decline, but a 1.8% decrease when adjusted for the AMC divestiture [1][3] - The company achieved a net income margin of 7% and a robust adjusted EBITDA margin of 35.0% [1][2] - OpenText has maintained 15 consecutive quarters of organic growth in cloud revenues, which reached $457 million, up 1.3% year-over-year [1][3] Financial Performance - Annual recurring revenues (ARR) accounted for 83% of total revenues, totaling $1.05 billion, down 8.4% year-over-year [1][3] - GAAP-based net income attributable to OpenText was $84 million, with a diluted GAAP EPS of $0.32, representing a 6.7% increase from the previous year [1][3] - Non-GAAP diluted EPS was reported at $0.93, down 7.9% year-over-year [1][3] Shareholder Returns - The company returned $154 million to shareholders, which included $69 million in dividends and $85 million in share repurchases [3][6] - OpenText purchased and canceled 7.72 million shares over the last two quarters as part of its capital return strategy [2][6] Operational Highlights - OpenText's operating cash flows were negative at ($78) million, and free cash flows were also negative at ($117) million, primarily due to a one-time tax payment related to the AMC divestiture [3][21] - The company is on track to return approximately $570 million in capital to shareholders in Fiscal 2025 [2][3] Strategic Focus - OpenText continues to invest in its future growth areas, including Business Clouds, Business AI, and Cyber Security, with plans to showcase innovations at the upcoming OpenText World User Conference [2][3] - The company aims to drive operational efficiencies and has a defined path for future margin and cash flow growth [2][3]

Company ranks in the top 20% of global companies included on this year's list WATERLOO, ON, Oct. 29, 2024 /PRNewswire/ -- OpenTextTM (NASDAQ: OTEX), (TSX: OTEX) today announced it has been named one of the World's Top Companies for Women 2024 by Forbes. The list, which is generated by Forbes in partnership with Statista, celebrates global companies that support women in the workplace. OpenText, which has been named to the list for the second consecutive year, ranked within the top 20% of global companies. C ...

Core Insights - The 16th edition of the World Quality Report highlights the significant role of Generative AI in Quality Engineering, indicating a shift in skills necessary for Agile development environments [1][2][3] Adoption of Generative AI - 68% of organizations are either actively using Generative AI (34%) or have developed implementation roadmaps following successful pilot projects (34%) [3] - Test automation is the primary area benefiting from Generative AI, with 72% of respondents reporting faster automation processes due to its integration [3] Upskilling and Learning Pathways - 82% of organizations have dedicated learning pathways for their Quality Engineering teams, but only 50% actively track the effectiveness of these programs [4] - Continuous learning in skills such as Generative AI, Agile integration, and cross-functional collaboration is emphasized as crucial [4] Challenges in Automation - 57% of organizations lack comprehensive test automation strategies, while 64% rely on legacy systems, which are identified as significant barriers to advancing automation efforts [4] Sustainability and Green IT - Only 25% of organizations measure the environmental impact of their overall IT development, and 44% track the impact of testing activities [5] - 34% of respondents implement efficient Quality Engineering practices to promote sustainability, indicating a need for comprehensive Green IT strategies [5] Strategic Value of Quality Engineering - The report stresses the importance of aligning Quality Engineering metrics with business outcomes to demonstrate its strategic value [2][6] - Industry leaders recognize the growing role of AI and emerging technologies in Quality Engineering, highlighting the need for organizations to communicate this value effectively [6]

New collaboration provides elevated service offerings with financial protection to attract and retain clients resulting in increased revenue streamsWATERLOO, ON, Oct. 21, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today announced a strategic partnership with Cork Inc., adding the cyber warranty solutions to provide a holistic solution portfolio tailored specifically for Small and Medium Businesses (SMBs) and Managed Service Providers (MSPs). This alliance will empower MSPs to offer a distinc ...

While companies improve defenses, almost half of respondents still suffer ransomware attacks and the resulting ransom payments only perpetuate the cycle of vulnerability WATERLOO, ON, Oct. 10, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today released its third annual 2024 Global Ransomware Survey, which reveals the current state of ransomware attacks, including ransom payments, the impact of software supply chain attacks and generative AI. The report found that supply chain attacks are wides ...

As generative AI usage becomes more widespread, two-thirds of respondents expressed concern about AI systems collecting their data WATERLOO, ON, Oct. 3, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today released the results of Webroot's 2024 GenAI Consumer Trends and Privacy Report. The survey of over 1,000 U.S. consumers found that 39% of consumers use generative AI at least weekly, but significant privacy concerns persist, especially among parents. Additionally, while consumers have taken s ...