OpenText: Reports First Quarter Fiscal Year 2025 Financial Results

Total Revenues of $1.27B, 15 Consecutive Quarters of Cloud Organic Growth Delivers Net Income Margin of 7%, Robust Adjusted EBITDA Margin of 35.0% GAAP EPS of $0.32, Non-GAAP EPS of $0.93 Purchased and Canceled 7.72M Shares Over the Last Two Quarters
Fiscal 2025 First Quarter Highlights
"In our first full quarter after the AMC divestiture, we delivered $1.27 billion in total revenues, 35% Adjusted EBITDA Margin, and our 15th consecutive quarter of organic cloud revenue growth," said Mark J. Barrenechea, OpenText CEO & CTO. "Further, we remain on track to return record capital to shareholders in Fiscal 2025, of approximately $570 million, and the company has purchased and cancelled 7.72 million shares over the last two quarters." Mr. Barrenechea added: "OpenText continues to invest in the future of Information Management, and we look forward to showcasing our exciting innovation roadmap at our upcoming OpenText World User Conference in Las Vegas. We will be highlighting strong progress in our trusted Business Clouds, Business AI and Business Technology including Cyber Security."
Mark J. Barrenechea, OpenText CEO & CTO
"The strength of the OpenText operating model has resulted in strong margin performance this quarter. We continue to focus on driving operational efficiencies across the organization and we have a defined path in place for future margin and cash flow growth," said Madhu Ranganathan, OpenText President, CFO and leader of Corporate Development. "Based on this foundation of operational excellence we continue to invest in our growth and have the capital flexibility to deliver on our Fiscal 2025 Targets."
                                                                              Madhu Ranganathan, OpenText President & CFO
Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), today announced its financial results for the first quarter that ended September 30, 2024. 
First Quarter Financial Highlights Y/Y
  • Total revenues of $1.27 billion, down 11.0% Y/Y or down 1.8% when adjusted for the AMC divestiture
  • Annual recurring revenues (ARR) of $1.05 billion, or down 8.4% Y/Y or down 1.1% when adjusted for the AMC divestiture
  • Cloud revenues of $457 million, up 1.3% Y/Y
  • Quarterly enterprise cloud bookings(1) of $133 million, up 10.3% Y/Y
  • Operating cash flows of ($78) million and free cash flows(2) of ($117) million, reflecting expected one-time tax payment for the AMC divestiture
  • GAAP-based net income of $84 million, GAAP-based diluted earnings per share (EPS) of $0.32
  • Adjusted EBITDA(2) of $444 million, margin of 35.0%, above Company's Q1 targets
  • Non-GAAP diluted EPS(2) of $0.93
  • Returned $154 million of capital to shareholders consisting of $69 million of dividends and $85 million of share repurchases
(1) Enterprise cloud bookings are defined as the total value from cloud services and subscription contracts entered into in the period that is new, committed and incremental to our existing contracts, entered into with our enterprise-based customers.
(2) Please see Note 2 "Use of Non-GAAP Financial Measures" to the condensed consolidated financial statements below.
Financial Highlights for Q1 Fiscal 2025 with Year Over Year Comparisons
1 Please see Note 2 "Use of Non-GAAP Financial Measures" to the condensed consolidated financial statements below.
(2) For periods before Fiscal 2025, this is reflective of the amount of net tax benefit arising from the internal reorganization assumed to be allocable to the period based on the forecasted utilization period. Please also see Note 14 to the Company's Fiscal 2018 Consolidated Financial Statements on Form 10-K.
Note: Items in tables may not be added due to rounding. Percentages presented are calculated based on the underlying amounts.
*CC: Constant currency for this purpose is defined as the current period reported revenues/expenses/earnings represented at the prior comparative period's foreign exchange rate.
**Annual recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Customer support revenue.
Dividend
As part of our quarterly, non-cumulative cash dividend program, the Board declared on October 29, 2024, a cash dividend of $0.2625 per common share. The record date for this dividend is November 29, 2024, and the payment date is December 20, 2024. OpenText believes strongly in returning value to its shareholders and intends to maintain its dividend program. Any future declarations of dividends and the establishment of future records and payment dates are all subject to the final determination and discretion of the Board of Directors.
Share Repurchase 
OpenText also announced that in the first quarter of Fiscal 2025, it repurchased $85 million of common shares for cancellation under the Fiscal 2025 Repurchase Plan. Under the Fiscal 2025 Repurchase Plan, for the period commencing August 7, 2024, until August 6, 2025, OpenText intends to purchase for cancellation in open market transactions, from time to time, up to US$300 million of its issued and outstanding common shares, subject to a maximum of 21,179,064 common shares.
Quarterly Business Highlights
  • Key customer wins in the quarter include Alaska Airlines, Beyond ONE-Virgin Mobile, Bombardier, CHT Security, Dick's Sporting Goods, Digital Intelligence, European Medicines Agency, FedEx-DXC, Ford O'Brien Landy LLP, Linde Plc, National Bank, Nippon Gases, Raytheon Systems Limited, SICK AG, Standard.
  • OpenText named a leader in IDC MarketScape: Worldwide Intelligent Content Services 2024
  • OpenText harnesses AI to revolutionize DevSecOps at Global Virtual Summit
  • OpenText IT Management Platform achieves FedRAMP® authorization
  • OpenText was named one of the world's best companies by TIME Magazine for the second consecutive year
(1) Please see Note 2 "Use of Non-GAAP Financial Measures" to the condensed consolidated financial statements below.
(2) Please also see Note 14 to the Company's Fiscal 2018 Consolidated Financial Statements on Form 10-K. Reflective of the amount of net tax benefit arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period.
About OpenText
OpenText is the leading Information Management software and services company in the world. We help organizations solve complex global problems with a comprehensive suite of Business Clouds, Business AI, and Business Technology. For more information about OpenText (NASDAQ/TSX: OTEX), please visit us at www.opentext.com.
For the full document click the link below:
Open Text Corporation
Stay ahead of the curve! Subscribe to InsidEntity for daily updates on all your favourite companies. 
Back to All Announcements