WATERLOO, ON, Sept. 12, 2024 /PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX, TSX: OTEX) confirmed today that the nominees listed below were re-elected by shareholders at its annual meeting of shareholders (the "Meeting") held virtually today. The detailed results of the vote for the election of directors at the Meeting are set out below. Shareholders holding 221,529,725 common shares of the Company representing 82.60% of the outstanding common shares were present or represented by proxy at the Meeting. ...

New FedRAMP authorized solution provides government organizations a simpler way to deliver IT services WATERLOO, ON, Sept. 11, 2024 /PRNewswire/ -- OpenText (NASDAQ: OTEX, TSX: OTEX) today announced it has received authorization for the OpenText IT Management Platform (ITMX) from the Federal Risk and Authorization Management Program (FedRAMP®), advancing OpenText's commitment to providing comprehensive and modern, government-compliant and secure cloud solutions. With ITMX, government agencies can reduce Tie ...

WATERLOO, ON, Sept. 9, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX) (TSX: OTEX) today announced that OpenText has been named a Leader in the IDC MarketScape: Worldwide Intelligent Content Services2024 Vendor Assessment (doc #US51467323, September 2024). According to the IDC MarketScape, "OpenText Content Cloud connects content to the digital business, eliminating silos and providing convenient, secure, and compliant remote access to both structured and unstructured data capabilities. Capabilities include I ...

Virtual Summit to Feature Renowned Customer Speakers and In-Depth Sessions on the Future of Data Analytics WATERLOO, ON, Sept. 6, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX), today announced the upcoming OpenText Analytics Digital Summit 2024, a premier virtual event that brings together industry leaders, data experts and technology innovators from around the globe. This year's Summit, which will be held Sept. 10-11, highlights the transformative power of AI and analytics, featuring a disting ...

Company and Industry Overview * **Company**: Open Text Corporation (NASDAQ: OTEX) * **Industry**: Information Management, Content Management, Cybersecurity, Business Networks, IT Operations Management, Application Automation, Analytics Key Points and Arguments 1. **Company Transformation and Focus**: * OpenText has undergone significant changes, including acquiring Micro Focus, divesting parts of Micro Focus, and restructuring. * The company now focuses on information management, with a strong emphasis on cloud-based solutions. * Cloud bookings growth is a key indicator of future revenue growth. 2. **Product Groups and Markets**: * OpenText's revenue is divided into several product groups: content (40%), cybersecurity (20%), business network (10%), IT operations management (10%), application automation (15%), and analytics (5%). * Cloud is a key driver of growth across all product groups. 3. **Growth Drivers**: * Cloud bookings growth (25% in fiscal '25) * Expansion of existing product groups (e.g., content, cybersecurity) * New use cases and applications for AI and cloud solutions 4. **Optimization Initiatives**: * OpenText implemented a 2% reduction in force (RIF) to improve efficiency and focus on core competencies. * The company is reinvesting in sales, professional services, and renewal management to drive growth. 5. **Leadership Changes**: * Madhu Ranganathan was promoted to President, CFO, and Corporate Development. * New go-to-market leaders have been appointed to drive sales and cloud adoption. 6. **AI and Cloud**: * AI is a key growth driver for OpenText, with customers seeking solutions to prepare for and leverage AI. * OpenText's Aviator AI products are being integrated into various product groups. 7. **Macroeconomic Environment**: * OpenText's solutions are mission-critical for enterprises, making the company resilient to macroeconomic fluctuations. * The company assumes no improvement in interest rates or currency exchange rates for its financial modeling. 8. **Segment Performance**: * Content and cybersecurity are performing well. * IT operations management is in the early stages of growth. 9. **Q4 Performance**: * The company missed license revenue targets in Q4 due to lost selling time related to the Micro Focus divestiture. * Cloud organic growth was strong in Q4, and the company expects continued growth in fiscal '25. 10. **Capital Allocation**: * OpenText prioritizes share repurchases, dividends, debt reduction, and selective M&A for capital allocation. * The company aims to achieve a net leverage ratio of 2.9x. 11. **OpenText World Conference**: * The conference in November will showcase product innovation, growth strategy, and cloud operations. Additional Important Points * OpenText's cloud gross margin is expected to improve from 59% in Q4 to the low 60s in fiscal '25. * The company expects to generate $1.2 billion to $1.3 billion in free cash flow in fiscal '25. * OpenText remains undervalued and is a strong buy according to the company.

OpenText's (OTEX) Content Cloud and Extended ECM for Engineering solutions are set to optimize processes of Serica Energy. Serica Energy is among the top 10 oil and gas producing companies in the U.K. The collaboration will aid Serica Energy in ensuring the content security necessary for safe operations in the U.K. OpenText's Content Cloud and Extended ECM for Engineering offer a portfolio of comprehensive enterprise content management solutions that enable organizations to streamline, automate and simplify ...

Core Insights - Pick n Pay Group has partnered with OpenText to enhance its software testing processes, achieving 95% automation in testing and reducing testing times by up to three days, which significantly improves digital services for ecommerce customers [1][5][6] Group 1: Partnership and Technology Integration - The integration of OpenText's cloud-based ValueEdge and DevOps platform with OpenText DevOps Aviator allows Pick n Pay to meet increasing customer demand for innovative digital shopping tools [2] - OpenText DevOps Aviator has transformed Pick n Pay's testing processes, enhancing visibility across projects and methodologies, and improving accuracy, security, and efficiency [3][5] Group 2: Performance Metrics - During testing of 45 features, OpenText DevOps Aviator matched manual tester output 80% of the time and improved testing coverage by 20% on platform-specific scenarios [3] - Quality assurance and system integration testing increased by 95%, surpassing Pick n Pay's standard goals of 75% to 80% [5] Group 3: Competitive Advantage - OpenText DevOps Aviator outperformed a leading public AI platform in testing scenarios due to its ability to learn from private data, ensuring robust data protection [4] - The automation introduced by OpenText DevOps Aviator reduces wait times for manual testing and provides immediate test case suggestions, cutting training time for junior testers by six weeks [6] Group 4: Future Outlook - Pick n Pay plans to further enhance automation over the next 12 to 18 months by integrating assets into one platform with OpenText [8] - The partnership with OpenText is expected to drive interest in adopting this technology beyond the initial phase, contributing to the ongoing AI-driven transformation [7][8]

Core Insights - OpenText has launched OpenText Axcelerate with Aviator, an innovative eDiscovery platform that utilizes Large Language Models (LLMs) to enhance legal professionals' productivity and decision-making capabilities [1][3] - The legal industry is increasingly adopting AI solutions for e-discovery, with 54% of corporate legal teams planning to use AI to focus on high-value tasks, and 52% aiming to improve decision-making [2] - Axcelerate with Aviator aims to automate document review processes, providing faster access to critical information and reducing eDiscovery costs [3][4] Company Developments - OpenText is participating in ILTACON 2024, showcasing its advancements in legal technology, including the Axcelerate with Aviator platform [5][6] - The company emphasizes the integration of generative AI in its solutions to support various legal tasks, including eDiscovery, compliance, and contract intelligence [6] Industry Trends - The demand for efficient e-discovery solutions is at an all-time high, driven by the need for legal teams to manage complex regulatory environments and client expectations [2][4] - Generative AI is transforming the legal landscape by enabling faster fact-finding, enhancing efficiency through automation, and providing cost certainty for legal operations [4]

Financial Performance & Targets - OpenText's Fiscal Year 2024 (F'24) total revenue reached $5.77 billion, representing a 29% year-over-year (y/y) growth[6] - Cloud revenue for F'24 was $1.82 billion, a 7% y/y increase[6] - Adjusted EBITDA (A-EBITDA) for F'24 amounted to $1.97 billion, reflecting a 34% y/y growth[6] - The company targets A-EBITDA margin range of 33% to 34% for Fiscal Year 2025 (F'25), 35% to 36% for F'26, and 36% to 38% for F'27[6,16] - OpenText anticipates a return of capital exceeding $570 million in F'25, which is a 37% y/y increase[6,16] Capital Allocation - OpenText plans to repurchase $300 million in shares in F'25, a 100% y/y increase[6,16] - The company intends to increase annualized dividends per share from $1.00 to $1.05, estimating a total of $270 million in dividend payments[6,16] - In F'24, OpenText returned $417 million to shareholders, including $267 million in dividends and $150 million in share repurchases[6] Fiscal Year 2025 (F'25) Outlook - OpenText projects total revenue between $5.3 billion and $5.4 billion for F'25[20] - The company expects cloud revenue to range from $1.85 billion to $1.90 billion in F'25[20] - Free cash flow is targeted between $575 million and $625 million for F'25, after accounting for a one-time cash tax payment of approximately $250 million related to the AMC divestiture[20] Q4 F'24 Results - Cloud revenue for Q4 F'24 was $465 million, a 3% increase compared to Q4 F'23[9] - Total revenue for Q4 F'24 was $1.362 billion, a 9% decrease compared to Q4 F'23[9] - Free cash flow for Q4 F'24 was $145 million, a 59% increase compared to Q4 F'23[9]

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]