OpenText(OTEX)2025-04-30 20:02Financial Performance - Total revenues for Q3 FY2025 were $1.254 billion, a decrease of 13.3% year-over-year, or a decline of 4.5% when adjusted for the AMC divestiture[7]. - Annual recurring revenues (ARR) were $1.030 billion, down 10.1% year-over-year, or a decrease of 2.8% when adjusted for the AMC divestiture[7]. - Net income for Q3 FY2025 was $93 million, a decline of 5.6% year-over-year, while non-GAAP net income was $216 million, down 16.0% year-over-year[7]. - Adjusted EBITDA was $395 million, with a margin of 31.5%, compared to $464 million in the same quarter last year[7]. - Total revenues for the three months ended March 31, 2025, were $1,254,363,000, a decrease of 13.4% compared to $1,447,131,000 for the same period in 2024[25]. - Net income attributable to OpenText for the three months ended March 31, 2025, was $92,805,000, down from $98,285,000 in the same period of 2024, representing a decrease of 4.8%[25]. - The company reported a gross profit of $898,254,000 for the three months ended March 31, 2025, down from $1,055,774,000 in the same period of 2024, indicating a decline of 14.9%[25]. - Total comprehensive income for the three months ended March 31, 2025, was $92,737 thousand, down from $108,739 thousand in the prior year, reflecting a decline of 14.7%[27]. - For the nine months ended March 31, 2025, net income increased significantly to $407,182 thousand, compared to $217,010 thousand for the same period in 2024, representing an increase of 87.9%[27]. Cash Flow and Dividends - Operating cash flows were $402 million, an increase of 4.6% year-over-year, and free cash flows were $374 million, up 7.4% year-over-year[7]. - A cash dividend of $0.2625 per common share was declared, with a record date of June 6, 2025, and a payment date of June 20, 2025[11]. - The company declared dividends of $0.2625 per common share for the three months ended March 31, 2025, totaling $69,235 thousand[31]. - Payments of dividends to shareholders amounted to $67,961 thousand for the three months ended March 31, 2025, compared to $67,293 thousand in 2024[35]. - Cash and cash equivalents at the end of the period increased to $1,279,894 thousand from $1,127,483 thousand, representing a growth of 13.5% year-over-year[37]. Share Repurchase and Capital Management - In Q3 FY2025, OpenText repurchased $115 million of common shares, increasing the authorized limit of its repurchase plan to $450 million[12]. - The balance of common shares as of March 31, 2025, was 259,650 thousand, a decrease from 272,562 thousand as of March 31, 2024[31]. - The company repurchased common shares totaling $146,817 thousand during the three months ended March 31, 2025[31]. Cloud Services - Cloud revenues reached $463 million, reflecting a growth of 1.8% year-over-year, marking 17 consecutive quarters of organic growth in cloud services[7]. - Cloud services and subscriptions revenue increased to $462,614,000 for the three months ended March 31, 2025, compared to $454,528,000 in 2024, reflecting a growth of 1.4%[25]. - The gross profit for cloud services and subscriptions for the three months ended December 31, 2024, was $172,288 thousand, with adjustments leading to a Non-GAAP gross profit of $169,492 thousand[59]. Operating Expenses and Efficiency - Operating expenses for the three months ended March 31, 2025, totaled $689,164,000, a decrease of 16.9% from $828,706,000 in the same period of 2024[25]. - The company announced an expansion of its Business Optimization Plan, expecting to incur up to $200 million in additional costs, with total annualized savings projected between $490 million to $550 million[10]. - Share-based compensation expense for the three months ended March 31, 2025, was $23,000 thousand, a decrease of 36% from $36,042 thousand in the same period of 2024[35]. Assets and Liabilities - The company’s cash and cash equivalents as of March 31, 2025, were $1,277,950,000, slightly down from $1,280,662,000 as of June 30, 2024[23]. - Total assets decreased to $13,754,826,000 as of March 31, 2025, from $14,205,707,000 as of June 30, 2024, reflecting a decline of 3.2%[23]. - The company’s long-term debt as of March 31, 2025, was $6,345,390,000, a slight decrease from $6,356,943,000 as of June 30, 2024[23]. Earnings Per Share - Earnings per share—basic attributable to OpenText for the three months ended March 31, 2025, was $0.35, compared to $0.36 for the same period in 2024[25]. - For the nine months ended March 31, 2025, GAAP-based net income attributable to OpenText was $407,035, with a diluted earnings per share of $1.53, while Non-GAAP-based net income was $757,913, resulting in a diluted earnings per share of $2.85[56].