Open Text Corp (OTEX) Reports Record Q1 Total Revenues, Cloud Revenues and ARR

Open Text Corp (OTEX, Financial) released its earnings report for the first quarter of the fiscal year 2024 on November 2, 2023. The company reported record Q1 total revenues of $1.425 billion, marking a 67.3% increase year-over-year (YoY), or a 65.4% increase in constant currency (CC). The company's annual recurring revenues (ARR) reached $1,149 million, a 59.1% increase YoY, or a 57.5% increase in CC. Cloud revenues rose by 11.5% YoY, or 10.9% in CC, to $451 million.

Financial Highlights

Open Text Corp (OTEX, Financial) reported GAAP-based net income of $81 million and adjusted EBITDA of $495 million, with a margin of 34.7%. The company's GAAP-based diluted earnings per share (EPS) was $0.30, while Non-GAAP diluted EPS was $1.01. Operating cash flows were $47 million, and free cash flows were $10 million.

Executive Commentary

OpenText CEO & CTO, Mark J. Barrenechea, commented on the company's performance, stating,

OpenText executed extremely well in a volatile world with record Q1 revenues of $1.425 billion and 67% growth year-over-year. These strong Q1 results are a foundation for a strong Fiscal 2024."

Future Outlook

OpenText EVP, CFO, Madhu Ranganathan, expressed satisfaction with the company's performance in the quarter and optimism about the future. She noted that the company's balance sheet and liquidity position remain strong, with approximately $920 million in cash as of September 30, 2023. The company has made total debt repayments of approximately $560 million since the acquisition of Micro Focus and remains on track to realize growth targets and achieve free cash flow aspirations.

Dividend Announcement

As part of its quarterly, non-cumulative cash dividend program, the Board declared a cash dividend of $0.25 per common share. The record date for this dividend is December 1, 2023, and the payment date is December 20, 2023.

Explore the complete 8-K earnings release (here) from Open Text Corp for further details.