OpenText Reports Fourth Quarter and Fiscal Year 2024 Financial Results, Raises Fiscal 2025 Margin Targets

Core Insights - OpenText Corporation reported total annual revenues of $5.8 billion, reflecting a 29% year-over-year growth, with significant contributions from Annual Recurring Revenues (ARR) and cloud services [1][2][5] - The company announced a new $300 million share repurchase program and increased its annualized dividend by 5% from $1.00 to $1.05 per share [1][2][8] - OpenText achieved a GAAP-based net income of $465 million, a 209.3% increase year-over-year, primarily due to the gain from the divestiture of its Application Modernization and Connectivity (AMC) business [2][5][6] Fiscal 2024 Annual Highlights - Total revenues reached $5,769.6 million, up 28.6% year-over-year, with constant currency growth of 27.7% [2][5] - Annual Recurring Revenues (ARR) were $4,533.8 million, representing a 25.4% increase year-over-year [2][5] - Cloud revenues totaled $1,820.5 million, marking a 7.1% increase year-over-year [2][5] - Operating cash flows were $967.7 million, and free cash flows were $808.4 million, indicating strong cash generation [2][5] Fourth Quarter Highlights - In Q4 FY'24, total revenues were $1,362.1 million, down 8.6% year-over-year, primarily due to the AMC divestiture [3][4] - Annual Recurring Revenues for Q4 were $1,093.3 million, down 5.5% year-over-year [4][5] - Cloud revenues in Q4 were $464.9 million, reflecting a 2.9% increase year-over-year [4][5] Share Repurchase and Dividend Program - OpenText initiated a new share repurchase plan for up to $300 million, following the termination of the previous plan [8][10] - The company declared a quarterly cash dividend of $0.2625 per share, with a record date of August 30, 2024, and a payment date of September 20, 2024 [7][8] Strategic Moves and Market Position - OpenText completed the divestiture of its AMC business for $2.275 billion, which contributed to its improved financial metrics [6][12] - The company has made significant investments in cloud, security, and AI, positioning itself as a leader in Information Management software [2][6][19]