Revenue Growth and Performance - Total annual revenues reached $5.8 billion, representing a 29% year-over-year growth[1][2] - Annual Recurring Revenues (ARR) grew to $4.5 billion, up 25.4% year-over-year[1][3] - Cloud revenues increased to $1.8 billion, up 7.1% year-over-year[1][3] - OpenText's FY'24 revenue increased by 28.6% to $5,769.6 million compared to FY'23[16] - Total revenues for the year ended June 30, 2024, increased to $5,769,577 thousand, up from $4,484,980 thousand in 2023[26] - Cloud services and subscriptions revenue grew to $1,820,524 thousand in 2024, up from $1,700,433 thousand in 2023[26] - Revenue composition by currency for the year ended June 30, 2024: USD 59%, EURO 22%, GBP 5%, CAD 3%, Other 11%[83] Profitability and Margins - Adjusted EBITDA for the fiscal year was $2.0 billion, with a margin of 34.1%[3][6] - GAAP-based gross margin for FY'24 improved to 72.6%, up 200 basis points from FY'23[16] - Non-GAAP-based diluted EPS for FY'24 was $4.17, a 26.7% increase from FY'23[16] - Gross profit for the year ended June 30, 2024, was $4,191,028 thousand, compared to $3,168,393 thousand in 2023[26] - Non-GAAP-based gross margin for the year ended June 30, 2024 was 77.3%, compared to GAAP-based gross margin of 72.6%[55] - Adjusted EBITDA for the year ended June 30, 2024 was $1,970.20 million, representing an Adjusted EBITDA margin of 34.1%[60] - GAAP-based gross profit margin for Q2 2023 was 71.4%, while Non-GAAP-based gross profit margin was 76.9%[69] - GAAP-based gross profit for the year ended June 30, 2023 was $3,168,393 with a gross margin of 70.6%, while Non-GAAP-based gross profit was $3,412,866 with a gross margin of 76.1%[75] Cash Flow and Financial Health - Free cash flows for the fiscal year were $808 million, up 23.3% year-over-year[3][6] - The consolidated Net Leverage Ratio improved to 2.3x as of June 30, 2024[4] - OpenText reduced its debt by $2.0 billion in the quarter[8] - Long-term debt reduced to $6,356,943 thousand in 2024, down from $8,562,096 thousand in 2023[23] - Free cash flows for the year ended June 30, 2024 were $808.40 million, calculated from GAAP-based cash flows from operating activities of $967.69 million minus capital expenditures of $159.30 million[61] - Free cash flow for Q1 2024 was $348.160 million, derived from operating cash flows of $384.697 million minus capital expenditures of $36.537 million[68] - Free cash flow for Q2 2023 was $91.241 million, derived from operating cash flows of $115.301 million minus capital expenditures of $24.060 million[74] - Free cash flows for the year ended June 30, 2023 were $655,373, calculated by subtracting capital expenditures of $123,832 from GAAP-based cash flows provided by operating activities of $779,205[81] Share Repurchase and Dividends - The company announced a new $300 million share repurchase program[1][2] - The annualized dividend was increased by 5% to $1.05 per share[1][2] - OpenText's Fiscal 2025 Repurchase Plan allows for the purchase of up to $300 million of common shares, with a maximum of 21,179,064 shares, representing 10% of the company's public float[11] - Under the Fiscal 2024 Repurchase Plan, OpenText purchased and cancelled 5,073,913 common shares for approximately $150 million at an average price of $29.57 per share[10] - Dividends declared in 2024 amounted to $271,486K, compared to $261,464K in 2023 and $237,655K in 2022[30] - Common shares repurchased in 2024 amounted to $152,333K, compared to $176,987K in 2023[30] Divestitures and Debt Reduction - The company completed the divestiture of its AMC business for $2.275 billion[3] - OpenText completed the divestiture of its Application Modernization and Connectivity (AMC) business to Rocket Software for $2.275 billion[8] - Proceeds from AMC Divestiture were $2.23 billion in Q2 2024[32] - Repayment of long-term debt and Revolver was $2.01 billion in Q2 2024[32] Non-GAAP Financial Measures - The company excludes amortization of acquired intangible assets, share-based compensation, and special charges (recoveries) from Non-GAAP measures to provide a more consistent basis for comparison across accounting periods[44] - The company's Non-GAAP-based tax rate for the three months ended June 30, 2024, was approximately 14%, compared to a GAAP-based tax provision rate of approximately 49%[50] - The company's Non-GAAP measures exclude items such as amortization, share-based compensation, special charges (recoveries), and other income (expense) to better reflect ongoing business and operating results[48] - The company's management believes that Non-GAAP financial measures provide useful information to investors by portraying financial results before the impact of certain non-operational charges[44] - GAAP-based net income for the year ended June 30, 2024 was $465.09 million, while Non-GAAP-based net income was $1,137.25 million[55][58] - Non-GAAP-based net income for the three months ended June 30, 2024, was $267,427, with diluted earnings per share of $0.98[48] - Non-GAAP-based income from operations for the three months ended June 30, 2024, was $413,475[48] - Non-GAAP-based net income for Q1 2024 was $257.049 million, with a diluted EPS of $0.94[65] - Non-GAAP-based net income for Q2 2023 was $245.837 million, with a diluted EPS of $0.91[71] - Non-GAAP-based net income attributable to OpenText for the year ended June 30, 2023 was $890,700, compared to GAAP-based net income of $150,379[77] Quarterly Performance - Q4 FY'24 revenue was $1,362.1 million, a 5.9% decrease from Q3 FY'24 and an 8.6% decrease from Q4 FY'23[17] - GAAP-based diluted EPS for Q4 FY'24 was $0.91, a 152.8% increase from Q3 FY'24 and a 605.6% increase from Q4 FY'23[17] - Net income for the three months ended June 30, 2024, was $248,274 thousand, compared to a net loss of $48,685 thousand in 2023[24] - GAAP-based net income for the three months ended June 30, 2024, was $248,229, with a net income margin of 18.2%[53] - GAAP-based net income for Q1 2024 was $98.285 million, while Non-GAAP-based net income was $257.049 million[65] - GAAP-based net loss for Q2 2023 was $48.734 million, while Non-GAAP-based net income was $245.837 million[71] Operational Expenses and Adjustments - Research and development expenses increased to $893,932 thousand in 2024, up from $680,587 thousand in 2023[26] - Share-based compensation adjustments totaled $140.08 million for the year ended June 30, 2024[55][58] - Amortization adjustments totaled $676.33 million for the year ended June 30, 2024[58] - Special charges (recoveries) adjustments totaled $135.31 million for the year ended June 30, 2024[55][58] - Other income (expense) adjustments totaled $(358.39) million for the year ended June 30, 2024[55][58] - Research and development expenses for the year ended June 30, 2023 were $680,587 on a GAAP basis and $641,522 on a Non-GAAP basis[75] - Sales and marketing expenses for the year ended June 30, 2023 were $948,598 on a GAAP basis and $906,888 on a Non-GAAP basis[75] - General and administrative expenses for the year ended June 30, 2023 were $419,590 on a GAAP basis and $391,352 on a Non-GAAP basis[75] - Amortization of acquired technology-based intangible assets for the year ended June 30, 2023 was $223,184, which was excluded from Non-GAAP-based operating expenses[75] Balance Sheet and Equity - Total assets decreased to $14,205,707 thousand as of June 30, 2024, from $17,089,200 thousand in 2023[23] - Total current liabilities decreased to $2,800,494 thousand in 2024, down from $3,219,614 thousand in 2023[23] - Shareholders' equity as of June 30, 2024, stood at $4,199,681K, up from $4,022,104K in 2023 and $4,032,260K in 2022[30] - Accumulated other comprehensive loss as of June 30, 2024, was $69,619K, compared to $53,559K in 2023 and $7,659K in 2022[30] - Non-controlling interests as of June 30, 2024, were $1,523K, up from $1,329K in 2023 and $1,142K in 2022[30] Foreign Currency and Comprehensive Income - Net foreign currency translation adjustments resulted in a loss of $15,646K in 2024, compared to losses of $40,798K in 2023 and $78,724K in 2022[28] - Total comprehensive income for 2024 was $449,224K, a significant increase from $104,666K in 2023 and $323,362K in 2022[28] Expense Composition - Expense composition by currency for the year ended June 30, 2024: USD 50%, EURO 12%, GBP 7%, CAD 10%, Other 21%[84] Cloud and Government Solutions - Enterprise cloud bookings for the fiscal year were $701 million, up 32.9% year-over-year[3] - OpenText's cloud for government solution achieved FedRAMP authorization, enhancing its offerings for government clients[8]

Core Insights - OpenText Corporation reported total annual revenues of $5.8 billion, reflecting a 29% year-over-year growth, with significant contributions from Annual Recurring Revenues (ARR) and cloud services [1][2][5] - The company announced a new $300 million share repurchase program and increased its annualized dividend by 5% from $1.00 to $1.05 per share [1][2][8] - OpenText achieved a GAAP-based net income of $465 million, a 209.3% increase year-over-year, primarily due to the gain from the divestiture of its Application Modernization and Connectivity (AMC) business [2][5][6] Fiscal 2024 Annual Highlights - Total revenues reached $5,769.6 million, up 28.6% year-over-year, with constant currency growth of 27.7% [2][5] - Annual Recurring Revenues (ARR) were $4,533.8 million, representing a 25.4% increase year-over-year [2][5] - Cloud revenues totaled $1,820.5 million, marking a 7.1% increase year-over-year [2][5] - Operating cash flows were $967.7 million, and free cash flows were $808.4 million, indicating strong cash generation [2][5] Fourth Quarter Highlights - In Q4 FY'24, total revenues were $1,362.1 million, down 8.6% year-over-year, primarily due to the AMC divestiture [3][4] - Annual Recurring Revenues for Q4 were $1,093.3 million, down 5.5% year-over-year [4][5] - Cloud revenues in Q4 were $464.9 million, reflecting a 2.9% increase year-over-year [4][5] Share Repurchase and Dividend Program - OpenText initiated a new share repurchase plan for up to $300 million, following the termination of the previous plan [8][10] - The company declared a quarterly cash dividend of $0.2625 per share, with a record date of August 30, 2024, and a payment date of September 20, 2024 [7][8] Strategic Moves and Market Position - OpenText completed the divestiture of its AMC business for $2.275 billion, which contributed to its improved financial metrics [6][12] - The company has made significant investments in cloud, security, and AI, positioning itself as a leader in Information Management software [2][6][19]

Core Insights - OpenText has enabled Export Development Bank of Egypt (EBank Egypt) to enhance operational efficiencies and innovation through its IT Operations Cloud solutions, facilitating a digital transformation aligned with a customer-centric service management strategy [1][9] Group 1: Implementation of OpenText Solutions - EBank Egypt replaced its outdated ticketing support system with OpenText Service Management Automation X (SMAX), which optimizes costs and enhances support through private generative AI [2] - The implementation of SMAX has led to a largely paperless organization, supporting EBank's ESG goals by digitizing IT financial management processes [2] - Key personnel at EBank, including Ibrahim and Amr, played significant roles in automating processes and extending SMAX to non-IT departments, resulting in improved accuracy and real-time tracking capabilities [3][10] Group 2: Industry Context and Challenges - Financial institutions face increasing pressure to address evolving regulations and security threats while remaining competitive and innovative [4] - OpenText supports operations for seventeen of the top twenty largest financial institutions, emphasizing the importance of investing in solutions that enhance customer service operations [4][5] Group 3: OpenText's Market Position - OpenText is recognized as a leading Information Management software and services company, providing a comprehensive suite of Business Clouds, Business AI, and Business Technology [6] - The company manages over 30 million digital identities and processes more than $9 trillion in network commerce across 26 billion transactions [11]

Core Insights - Investors in Open Text Corporation (OTEX) should monitor the stock closely due to significant movements in the options market, particularly the Aug 16, 2024 $22.50 Call which has shown high implied volatility [1] Company Analysis - Open Text currently holds a Zacks Rank 3 (Hold) in the Computer - Software industry, which is positioned in the Bottom 32% of the Zacks Industry Rank [3] - Over the past 30 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease of the Zacks Consensus Estimate from $1.08 per share to $1.05 [3] Options Market Insights - The high implied volatility surrounding Open Text shares suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of options value as expiration approaches [4]

WATERLOO, Ontario, July 16, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today announced its latest groundbreaking product innovations with Cloud Editions (CE) 24.3. This release represents a significant leap forward in integrating advanced information management capabilities, trusted cloud solutions, robust security measures, and cutting-edge artificial intelligence (AI) to optimize data performance for simpler, but superior, results. OpenText continues to drive digital transformation with it ...

Core Insights - OpenText's 2023 Hackathon, themed "Hacknosis: Optimizing Patient Experiences," resulted in five winners, including AllegroGraph, which developed PatientGraph, an AI-driven clinical insight solution aimed at simplifying data presentation for healthcare providers [1] - PatientGraph utilizes OpenText's Aviator Thrust API to enhance patient outcomes by reducing complexity for doctors and administrators, and it is now available on the OpenText Marketplace [1] Hackathon Details - The 2024 Hackathon, titled "Hacknosis: Sustainable MedTech," will take place from July 15 to August 15, focusing on developing solutions that address challenges in MedTech sustainability, social sustainable design, and carbon accounting [8] - The Hackathon will award cash prizes in three categories: MedTech sustainability, social sustainability, and technology, encouraging innovative solutions to real-world challenges [6] Industry Context - According to the OpenText IT Sustainability Report, 97% of organizations have adopted or plan to adopt sustainability initiatives, but only 50% are using software to track their IT carbon footprint, highlighting a significant gap in tools and expertise [12] - The Hackathon aims to address this gap by requiring participants to develop technologies that enhance existing OpenText solutions or lead to sustainability initiatives for organizations using OpenText products [12] Company Overview - OpenText is recognized as the leading Information Management software and services company globally, providing a comprehensive suite of Business Clouds, Business AI, and Business Technology to solve complex global problems [7]

Earnings Announcement - OpenText Corporation will release its fourth quarter fiscal year 2024 financial results on Thursday, August 1, 2024, at approximately 4:00 p.m. ET [1] Conference Call Details - The company will host a conference call webcast on August 1, 2024, at 5:00 p.m. ET, featuring CEO & CTO Mark J. Barrenechea and President, CFO & Corporate Development Madhu Ranganathan [3] - The webcast will last 60 minutes and can be accessed on the OpenText Investor Relations website [2][3] Company Overview - OpenText is a leading global Information Management software and services company [4] - The company provides a comprehensive suite of Business Clouds, Business AI, and Business Technology to help organizations solve complex global problems [4]

In her roles at Accenture, Ms. Rippert led the firm's global Strategy & Consulting business, transforming the advisory services portfolio by accelerating the use of technology, data, and AI to drive new, differentiated growth. She spearheaded the acquisition of more than 20 companies and introduced Accenture's "Business Futures" thought leadership, creating a strong foundation for the future. Ms. Rippert also led Accenture's Technology business in North America, pivoting the business to new areas including ...

New FedRAMP authorized solution enhances federal agencies' ability to deliver a seamless total citizen experience "The availability of FedRAMP authorized information management cloud solutions from OpenText validates our commitment to helping U.S. government agencies digitally transform how they work to deliver an intelligent total citizen experience," said Muhi Majzoub, EVP and Chief Product Officer at OpenText. "As an important step in the government's modernization journey, the solution extends the moder ...

WATERLOO, ON, June 12, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX), the information company, today announced its position as a Leader in the IDC MarketScape: Worldwide Unified Endpoint Management (UEM) Software for Small and Medium-Sized Businesses (SMBs) 2024 Vendor Assessment (doc #US51779424, April 2024), and the IDC MarketScape: Worldwide Client Endpoint Management Software for Microsoft Windows Devices 2024 Vendor Assessment (doc #US51234324, April 2024). The report went on to note, "Ove ...