Open Text Corporation (NASDAQ:OTEX) Morgan Stanley Technology, Media & Telecom Conference March 4, 2024 5:55 PM ET Company Participants Madhu Ranganathan - Executive VP & CFO Conference Call Participants Brett Klein - Morgan Stanley Brett Klein Thank you. Thanks, everyone, for joining us today. I'm Brett Klein from the Morgan Stanley Technology Banking team. Thrilled to have OpenText with me here today hosting the EVP and CFO, Madhu Ranganathan on stage. Madhu, thank you very much for being here today. Madh ...

Operator Thank you. We'll now begin the question-and-answer session. [Operator Instructions] Our first question is from Richard Tse With National Bank Financial. Please go ahead. Richard Tse Yes, thank you. Madhu, I think you did talk about the SMB market. I'm not sure this is for Mark or Madhu, but wondering if you could sort of expand that and talk more broadly about the enterprise spending environment? It seems there's been some mixed messages out there as to whether it's kind of gone back to a normal pa ...

Table of Contents 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 December 31, 2023 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 ______________________________________ OPEN TEXT CORPORATION (Exact n ...

Open Text Corporation (NASDAQ:OTEX) Nasdaq 49th Investor Conference December 5, 2023 8:00 AM ET Company Participants Madhu Ranganathan - Chief Financial Officer Unidentified Company Representative All right, well, good afternoon. Hope everyone enjoyed lunch and the panel presentation. We are kicking things back on again with OpenText, and we're pleased to have Chief Financial Officer, Madhu Ranganathan. Madhu, thank you for joining us again at the NASDAQ conference. Madhu Ranganathan Yes, thank you for havi ...

Key Points Company and Industry * **Company**: Open Text Corporation (NASDAQ:OTEX) * **Industry**: Information Management, Content Management, Cybersecurity, IT Operations, Application Development Core Views and Arguments * **Mission**: To power and protect information, ensuring data accessibility, security, and compliance across various systems and regulatory requirements. * **Market Leadership**: OpenText is the market leader in enterprise content management, with IBM's FileNet as the primary competitor. Box is considered a smaller competitor in the content management space. * **Business Segments**: The company operates across six distinct businesses, including content management, business network, cybersecurity, IT operations, and application development. * **Digital Transformation**: OpenText's solutions support digital transformation initiatives, ensuring data accessibility throughout the transformation process. Acquisition of Micro Focus * **Acquisition**: OpenText acquired Micro Focus in January 2023, a move aimed at expanding its market reach and addressing various buying groups within enterprises. * **Benefits**: The acquisition filled gaps in OpenText's offerings, providing solutions for CTOs, application developers, and cybersecurity officers. It also enabled the company to cloudify its products and address faster-growing deployment options. * **Integration**: OpenText expects Micro Focus to achieve organic growth in fiscal 2024, returning to organic growth in fiscal 2025. The company aims to reduce net leverage to less than 3 times by the end of fiscal 2025 or sooner. * **Renewal Rates**: OpenText has improved Micro Focus' renewal rates from the low 80s to the upper 80s, with a target of reaching the mid-90s by fiscal 2025. This improvement is expected to add over $200 million in incremental revenue to the top line. Financial Outlook * **Fiscal 2024**: OpenText expects to achieve a stronger second half of fiscal 2024 compared to the first half, driven by the integration of Micro Focus and the growth of cloud-based products. * **Free Cash Flow**: The company expects free cash flow to ramp up to over $1.5 billion by fiscal 2026, with an uplift of over $5 per share at that point in time. * **Macroeconomic Factors**: OpenText has historically been resilient to macroeconomic factors, with long sales cycles and cloudification benefits. The only notable headwind mentioned is the small and medium business component, which is less than 10% of revenue. AI and Product Roadmap * **AI Integration**: OpenText has integrated AI and machine learning into its product offerings, leveraging its existing content management solutions. * **Generative AI**: The company has introduced new products, including Vertica and IDOL, to support generative AI initiatives. * **Product Roadmap**: OpenText plans to continue expanding its AI product suite, with a focus on content management, vectorization, and large language models. Capital Allocation * **Debt Reduction**: OpenText aims to reduce leverage to less than 3 times by the end of fiscal 2025 or sooner, with a minimum quarterly principal payment of $175 million. * **Capital Allocation**: The company's capital allocation priorities include paying down leverage, maintaining a 20% free cash flow dividend, and potentially reinstating share buybacks as leverage approaches the target level. * **Organic Growth**: OpenText has shifted its focus from M&A to organic growth, targeting a 2% to 4% increase in total organic growth and a 7% to 9% increase in cloud organic growth by fiscal 2026.

We are already working with customers to create exciting new AI personas via Aviator, such as the next generation tech supported system, a mortgage advisor, a claims adjuster, an HR business partner. As well, we're working with customers to simply get more efficient via AI. You can start to see us unlocking AI value with our expected Q2, 20% year-over-year growth in enterprise cloud bookings. Paul Duggan performance. Despite historic and disruptive world events, economic uncertainties and unprecedented stra ...

onantavt" | --- | --- | --- | --- | |---------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | OpenText | | | | | | | | | | Investor Presentation | | | | | November 2, 2023 | | | | | 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 ...

Table of Contents 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, 2023 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 ______________________________________ OPEN TEXT CORPORATION (Exact ...

Harry Blount - Senior Vice President-Investor Relations Mark J. Barrenechea - Chief Executive Officer and Chief Technology Officer Madhu Ranganathan - Executive Vice President and Chief Financial Officer Open Text Corporation (NASDAQ:OTEX) Q4 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Conference Call Participants Thank you for standing by. This is the conference operator. Welcome to the OpenText Corporation Fourth Quarter Fiscal 2023 Financial Results Conference Call. As a reminder, all partici ...

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