OpenText(US:OTEX)2024-10-31 11:01Financial 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]