WATERLOO, ON, May 8, 2024 /PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX) today announced that, as previously indicated, it completed its $2 billion debt reduction using the net proceeds from its AMC divestiture, which reflects $940 million paid to terminate the Company's Term Loan B due 2025 and $1.06 billion to reduce amounts outstanding under its Acquisition Term Loan due 2030. Please see investors.opentext.com for more information about the Company. About OpenText OpenText, The Informa ...

Preemptive approach to cybersecurity showcased at RSAC USA North Hall 4235 WATERLOO, ON, May 6, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX), today announced new advancements to protect organizations against the ever-growing complexity of cyber threats. As the threat landscape continues to evolve, security teams face the challenge of securing every element of their IT environment. OpenText remains committed to preemptive cybersecurity measures, introducing innovations that prioritize customer ...

Financial Data and Key Metrics - Total revenues for Q3 were $1.4 billion, up 16% year-over-year [18] - Cloud bookings in Q3 were $165 million, up 53% year-over-year [18] - Free cash flow in Q3 was $348 million, up 14% year-over-year [18] - GAAP net income was $98.3 million, with GAAP EPS of $0.36 [26] - Adjusted EBITDA was $463.7 million, up 27% year-over-year [26] - Adjusted EBITDA margin was 32% [26] - Annual recurring revenue (ARR) was $1.146 billion, up 13.3% year-over-year [25] - Cash on hand at the end of Q3 was $1.125 billion [27] Business Line Data and Key Metrics - Cloud revenue in Q3 was $455 million, up 4.4% year-over-year [25] - Enterprise cloud bookings grew 53% year-over-year in Q3 [25] - The company more than doubled its $1 million+ cloud deals year-over-year, from 13 to 28 [18] - Average cloud deal size increased by 30% [18] - The company is targeting 20%+ enterprise cloud bookings growth in fiscal 2025 and beyond [11] Market Data and Key Metrics - The company is focused on winning workloads in knowledge workers, business networks, customer experience, and digital operations [12] - OpenText is aligned with Gartner and customer spending priorities in cybersecurity, information security, data, cloud platforms, and AI [12] - The company is seeing longer-term customer commitments, with contracts now including ramps to full value over four-plus years [20] Company Strategy and Industry Competition - The company’s strategy focuses on four key areas: leading the OpenText business system, accelerating cloud growth, generating powerful free cash flow, and disciplined capital allocation [11][14][16] - OpenText is investing $900 million annually in R&D, representing 16% of fiscal 2024 revenue [11] - The company is targeting 20%+ free cash flow as a percentage of revenue by fiscal 2027 [14] - OpenText is re-entering the M&A market, focusing on small to medium-sized cloud companies that can leverage its operational scale [16][17] - The company is leveraging partnerships with SAP, Google, and Microsoft to accelerate customer value in AI and cloud [13] Management Commentary on Operating Environment and Future Outlook - Management is confident in the company’s ability to grow in the cloud and produce higher profits from higher revenues [21] - The company expects mid-single-digit total revenue growth long-term, driven by cloud-led organic growth and M&A [10] - OpenText is targeting $1.2 billion to $1.3 billion in free cash flow by fiscal 2027 [20] - The company is seeing strong demand for AI and cloud solutions, with customers consolidating systems and preparing for AI adoption [51] Other Important Information - The company completed the divestiture of its AMC business on May 1st, 2024, which will reduce fiscal 2024 revenue by approximately $100 million [30] - OpenText plans to repay $2 billion in debt on May 6th, reducing its net leverage ratio to below 3x [27] - The company announced a $250 million share buyback program and plans to return $450 million to $500 million to shareholders in fiscal 2025 [10][16] Q&A Session Summary Question: Why are the mid-term aspirations pushed out to fiscal 2027 instead of fiscal 2026? - The pushout is due to the divestiture of $528 million in revenue from the AMC business and the trend of customers signing larger, longer-term cloud contracts with ramps to full value [40] Question: What is driving the flattish EBITDA margin trajectory for fiscal 2025? - The flattish margin is due to increased investments in AI and cloud growth programs, as well as trailing expenses from the Micro Focus acquisition [45] Question: What is the outlook for SMB market strength in fiscal 2025? - The company expects an uptick in SMB market strength in fiscal 2025, driven by Microsoft’s push in the market and upgrades to OpenText’s partner platform [65] Question: How is AI adoption progressing among customers? - AI is a key focus in customer discussions, with some customers piloting AI solutions and others consolidating systems in preparation for AI adoption [51] Question: What is the M&A strategy for cloud-focused acquisitions? - The company is targeting small to medium-sized cloud businesses that can leverage OpenText’s operational scale and distribution network [55] Question: What are the key drivers for improving free cash flow conversion? - Key drivers include cloud revenue growth at scale, adjusted EBITDA margin expansion, interest savings from deleveraging, and efficiencies through automation and AI [58] Question: How is the Micro Focus integration progressing? - Micro Focus is on track to return to organic growth by the end of fiscal 2024, with strong renewal rates and focus on ITOM, developer, and security businesses [86]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ______________________ Commission file number: 0-27544 ______________________________________ OPEN TEXT CORPORATION (Exact name of Registrant as specified in its charter) ______________________ Canada 98-0154400 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 275 Frank Tompa Drive, Wa ...

Our Software is at the Center of Global Information Flow OpenText is at the center of connected ecosystems, the internet of clouds, and plays a critical role in customer adoption of cloud, security and AI opentext | --- | --- | |-------|-------------------------------------------------------| | | | | 1 | We Lead The Information Management Software Industry | | 2 | We Are Transforming For Cloud, Security and AI Growth | | 3 | We Are Essential to AI | | 4 | Building Shareholder Value | | 5 | Introducing Retur ...

Exhibit 99.1 OpenText Reports Q3 F'24 Financial Results Record Q3 Total Revenues and Enterprise Cloud Bookings Announces $250 Million Share Repurchase Program Fiscal 2024 Third Quarter Highlights | Total Revenues | | | Annual Recurring Revenues | | Cloud Revenues | | --- | --- | --- | --- | --- | --- | | (in millions) | | | (in millions) | | (in millions) | | Reported | Constant | Reported | Constant | Reported | Constant | | Currency | | | Currency | | Currency | | $1,447 | $1,444 | $1,146 | $1,143 | $455 ...

OpenText to Reduce Debt by $2 Billion WATERLOO, ON, May 1, 2024 /PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), today announced that it has successfully completed the divestiture of its AMC/Mainframe business to Rocket Software, Inc., a Bain Capital portfolio company ("Rocket Software"), for $2.275 billion in cash before taxes, fees and other adjustments. "We are pleased to complete the divestiture of our AMC/Mainframe business to Rocket Software," said Mark J. Barrenechea, OpenText CEO & ...

Solves open source intake challenges WATERLOO, ON, April 29, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX), today announced an innovative solution to long-standing open source intake challenges. Developers spend a significant amount of time searching for open source libraries that comply with their company intake policies. OpenText Debricked Open Source Select is a unique start left solution to this age-old problem. It guides developers in selecting the right open source components—those that m ...

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 ...

Open Text Corporation (NASDAQ:OTEX) Q2 2024 Earnings Conference Call February 1, 2024 5:00 PM ET Company Participants Harry Blount - Senior Vice President, Investor Relations Mark Barrenechea - Chief Executive Officer and Chief Technology Officer Madhu Ranganathan - Executive Vice President and Chief Financial Officer Conference Call Participants Richard Tse - National Bank Financial Daniel Chan - TD Cowen Steve Enders - Citi Kevin Krishnaratne - Scotiabank Adhir Kadve - Eight Capital Thanos Moschopoulos - ...