OpenText Appoints Ann M. Powell to Board of Directors

OpenText™ (NASDAQ: OTEX), (TSX: OTEX), today announced the appointment of Ann M. Powell to its board of directors. Ms. Powell is the current EVP, Global Chief Human Resource Officer for Bristol Myers Squibb (BMS), a Fortune 500 global biopharmaceutical company with over $40 billion in revenues and 30,000 employees worldwide.

"Ann brings a strong global talent and culture perspective to our board," said Tom Jenkins , Chair of the Board of Directors. "Her extensive international experience and deep focus on fostering a workforce culture that is powerfully diverse and globally inclusive is a strategic asset that further strengthens our Board."

Ms. Powell has held leadership roles of increasing responsibility across several industries over a 30-year career focused on talent and culture. Prior to joining BMS in 2013, Ms. Powell was the Chief Human Resources Officer for Shire Pharmaceuticals. She holds a B.S. degree from Iowa State University , a Master's degree in Industrial Relations, University of Minnesota , and is certified as a Senior Professional in Human Resources (SPHR®).

About OpenText
OpenText, The Information Company™, enables organizations to gain insight through market leading information management solutions, powered by OpenText Cloud Editions. For more information about OpenText (NASDAQ: OTEX, TSX: OTEX) visit opentext.com

Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText's assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

OTEX-F

For more information, please contact:

Harry E. Blount
Senior Vice President, Global Head of Investor Relations
Open Text Corporation
415-963-0825
investors@opentext.com

Copyright ©2021 Open Text. OpenText is a trademark or registered trademark of Open Text. The list of trademarks is not exhaustive of other trademarks. Registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text. All rights reserved. For more information, visit: http://www.opentext.com/who-we-are/copyright-information .

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SOURCE Open Text Corporation

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Open Text OTEX:CA Artificial Intelligence Investing

Total Revenues (in millions)		Annual Recurring Revenues (in millions)		Cloud Revenues (in millions)

Reported	Constant Currency	Reported	Constant Currency	Reported	Constant Currency

$3,494	$3,533	$2,866	$2,892	$1,535	$1,545
+3.2 %	+4.3 %	+4.5 %	+5.5 %	+9.1 %	+9.8 %

Annual Recurring Revenues represent 82% of Total Revenues

Total Revenues (in millions)		Annual Recurring Revenues (in millions)		Cloud Revenues (in millions)

Reported	Constant Currency	Reported	Constant Currency	Reported	Constant Currency

$902	$935	$740	$762	$412	$420
+1.0 %	+4.7 %	+6.6 %	+9.8 %	+14.3 %	+16.6 %

Annual Recurring Revenues represent 82% of Total Revenues

Summary of Annual Results
(In millions, except per share data)	FY'22	FY'21	$ Change	% Change	FY'22 in CC*	% Change in CC*
Revenues:
Cloud services and subscriptions	$1,535.0	$1,407.4	$127.6	9.1 %	$1,544.7	9.8 %
Customer support	1,331.0	1,334.1	($3.1)	(0.2) %	1,347.3	1.0 %
Total annual recurring revenues**	$2,866.0	$2,741.5	$124.5	4.5 %	$2,892.0	5.5 %
License	358.4	384.7	($26.4)	(6.9) %	367.0	(4.6) %
Professional service and other	269.5	259.9	$9.6	3.7 %	274.3	5.5 %
Total revenues	$3,493.8	$3,386.1	$107.7	3.2 %	$3,533.3	4.3 %
GAAP-based operating income	$ 644.8	$740.9	($96.1)	(13.0) %	N/A	N/A
Non-GAAP-based operating income ⁽¹⁾	$1,176.9	$1,230.0	($53.0)	(4.3) %	$1,199.9	(2.4) %
GAAP-based net income attributable to OpenText	$397.1	$310.7	$86.4	27.8 %	N/A	N/A
GAAP-based EPS, diluted	$1.46	$1.14	$0.32	28.1 %	N/A	N/A
Non-GAAP-based EPS, diluted ⁽¹⁾⁽²⁾	$3.22	$3.39	($0.17)	(5.0) %	$3.35	(1.2) %
Adjusted EBITDA ⁽¹⁾	$1,265.0	$1,315.0	($50.0)	(3.8) %	$1,288.1	(2.1) %
Operating cash flows	$981.8	$876.1	$105.7	12.1 %	N/A	N/A
Free cash flows ⁽¹⁾	$888.7	$812.4	$76.3	9.4 %	N/A	N/A


Summary of Quarterly Results
(In millions, except per share data)	Q4 FY'22	Q4 FY'21	$ Change	% Change	Q4 FY'22 in CC*	% Change in CC*
Revenues:
Cloud services and subscriptions	$411.6	$360.2	$51.4	14.3 %	$420.0	16.6 %
Customer support	328.3	334.3	($5.9)	(1.8) %	342.3	2.4 %
Total annual recurring revenues**	$739.9	$694.4	$45.5	6.6 %	$762.2	9.8 %
License	94.7	132.5	($37.9)	(28.6) %	101.3	(23.6) %
Professional service and other	67.8	66.6	$1.3	1.9 %	71.9	7.9 %
Total revenues	$902.5	$893.5	$8.9	1.0 %	$935.4	4.7 %
GAAP-based operating income	$137.6	$171.7	($34.1)	(19.9) %	N/A	N/A
Non-GAAP-based operating income ⁽¹⁾	$291.0	$293.9	($2.9)	(1.0) %	$303.9	3.4 %
GAAP-based net income attributable to OpenText	$102.2	$181.3	($79.1)	(43.6) %	N/A	N/A
GAAP-based EPS, diluted	$0.38	$0.66	($0.28)	(42.4) %	N/A	N/A
Non-GAAP-based EPS, diluted ⁽¹⁾⁽²⁾	$0.80	$0.80	$—	— %	$0.89	11.3 %
Adjusted EBITDA ⁽¹⁾	$313.6	$314.8	($1.2)	(0.4) %	$326.7	3.8 %
Operating cash flows	$251.9	$296.2	($44.2)	(14.9) %	N/A	N/A
Free cash flows ⁽¹⁾	$213.8	$268.8	($55.0)	(20.5) %	N/A	N/A

Summary of Annual Results
	FY'22	FY'21	% Change
Revenue (millions)	$3,493.8	$3,386.1	3.2 %
GAAP-based gross margin	69.6 %	69.4 %	15	bps
Non-GAAP-based gross margin ⁽¹⁾	75.6 %	76.1 %	(54)	bps
GAAP-based EPS, diluted	$1.46	$1.14	28.1 %
Non-GAAP-based EPS, diluted ⁽¹⁾⁽²⁾	$3.22	$3.39	(5.0) %

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Summary of Quarterly Results
	Q4 FY'22	Q3 FY'22	Q4 FY'21	% Change (Q4 FY'22 vs Q3 FY'22)		% Change (Q4 FY'22 vs Q4 FY'21)
Revenue (millions)	$902.5	$882.3	$893.5	2.3 %		1.0 %
GAAP-based gross margin	70.2 %	68.9 %	69.6 %	130	bps	60	bps
Non-GAAP-based gross margin ⁽¹⁾	75.9 %	74.5 %	75.8 %	140	bps	10	bps
GAAP-based EPS, diluted	$0.38	$0.28	$0.66	35.7 %		(42.4) %
Non-GAAP-based EPS, diluted ⁽¹⁾⁽²⁾	$0.80	$0.70	$0.80	14.3 %		— %

OPEN TEXT CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share data)

	June 30, 2022	June 30, 2021
ASSETS
Cash and cash equivalents	$ 1,693,741	$ 1,607,306
Accounts receivable trade, net of allowance for credit losses of $16,473 as of June 30, 2022 and $22,151 as of June 30, 2021	426,652	438,547
Contract assets	26,167	25,344
Income taxes recoverable	18,255	32,312
Prepaid expenses and other current assets	120,552	98,551
Total current assets	2,285,367	2,202,060
Property and equipment	244,709	233,595
Operating lease right of use assets	198,132	234,532
Long-term contract assets	19,719	19,222
Goodwill	5,244,653	4,691,673
Acquired intangible assets	1,075,208	1,187,260
Deferred tax assets	810,154	796,738
Other assets	256,987	208,894
Long-term income taxes recoverable	44,044	35,362
Total assets	$ 10,178,973	$ 9,609,336
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$ 448,607	$ 423,592
Current portion of long-term debt	10,000	10,000
Operating lease liabilities	56,380	58,315
Deferred revenues	902,202	852,629
Income taxes payable	51,069	17,368
Total current liabilities	1,468,258	1,361,904
Long-term liabilities:
Accrued liabilities	18,208	28,830
Pension liability	60,951	74,511
Long-term debt	4,209,567	3,578,859
Long-term operating lease liabilities	198,695	224,453
Long-term deferred revenues	91,144	98,989
Long-term income taxes payable	34,003	34,113
Deferred tax liabilities	65,887	108,224
Total long-term liabilities	4,678,455	4,147,979
Shareholders' equity:
Share capital and additional paid-in capital
269,522,639 and 271,540,755 Common Shares issued and outstanding at June 30, 2022 and June 30, 2021, respectively; authorized Common Shares: unlimited	2,038,674	1,947,764
Accumulated other comprehensive income (loss)	(7,659)	66,238
Retained earnings	2,160,069	2,153,326
Treasury stock, at cost (3,706,420 and 1,567,664 shares at June 30, 2022 and June 30, 2021, respectively)	(159,966)	(69,386)
Total OpenText shareholders' equity	4,031,118	4,097,942
Non-controlling interests	1,142	1,511
Total shareholders' equity	4,032,260	4,099,453
Total liabilities and shareholders' equity	$ 10,178,973	$ 9,609,336

OPEN TEXT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands of U.S. dollars, except share and per share data)
(unaudited)

	Three Months Ended June 30,
	2022	2021
Revenues:
Cloud services and subscriptions	$ 411,595	$ 360,160
Customer support	328,339	334,256
License	94,688	132,541
Professional service and other	67,832	66,570
Total revenues	902,454	893,527
Cost of revenues:
Cloud services and subscriptions	133,785	127,583
Customer support	30,571	32,938
License	2,595	4,315
Professional service and other	55,436	53,662
Amortization of acquired technology-based intangible assets	46,274	53,215
Total cost of revenues	268,661	271,713
Gross profit	633,793	621,814
Operating expenses:
Research and development	118,931	117,235
Sales and marketing	185,985	183,237
General and administrative	85,958	73,019
Depreciation	22,706	21,021
Amortization of acquired customer-based intangible assets	56,341	52,469
Special charges (recoveries)	26,281	3,152
Total operating expenses	496,202	450,133
Income from operations	137,591	171,681
Other income (expense), net	(19)	45,017
Interest and other related expense, net	(40,342)	(37,550)
Income before income taxes	97,230	179,148
Provision for income taxes	(5,005)	(2,215)
Net income for the period	$ 102,235	$ 181,363
Net (income) loss attributable to non-controlling interests	(39)	(80)
Net income attributable to OpenText	$ 102,196	$ 181,283
Earnings per share—basic attributable to OpenText	$ 0.38	$ 0.66
Earnings per share—diluted attributable to OpenText	$ 0.38	$ 0.66
Weighted average number of Common Shares outstanding—basic (in ' 000's)	270,152	272,892
Weighted average number of Common Shares outstanding—diluted (in ' 000's)	270,394	273,981

OPEN TEXT CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands of U.S. dollars)

	Year Ended June 30,
	2022	2021	2020
Net income	$ 397,259	$ 310,864	$ 234,368
Other comprehensive income (loss)—net of tax:
Net foreign currency translation adjustments	(78,724)	42,440	(7,784)
Unrealized gain (loss) on cash flow hedges:
Unrealized gain (loss) - net of tax expense (recovery) effect of ($671), $1,532, and ($599) for the year ended June 30, 2022, 2021 and 2020, respectively	(1,859)	4,246	(1,662)
(Gain) loss reclassified into net income - net of tax (expense) recovery effect of $134, ($1,182) and $355 for the year ended June 30, 2022, 2021 and 2020, respectively	373	(3,280)	985
Actuarial gain (loss) relating to defined benefit pension plans:
Actuarial gain (loss) - net of tax expense (recovery) effect of $1,866, $990 and $1,219 for the year ended June 30, 2022, 2021 and 2020, respectively	5,595	3,987	1,245
Amortization of actuarial (gain) loss into net income - net of tax (expense) recovery effect of $290, $379 and $520 for the year ended June 30, 2022, 2021 and 2020, respectively	718	1,020	917
Total other comprehensive income (loss) net	(73,897)	48,413	(6,299)
Total comprehensive income	323,362	359,277	228,069
Comprehensive (income) loss attributable to non-controlling interests	(169)	(192)	(143)
Total comprehensive income attributable to OpenText	$ 323,193	$ 359,085	$ 227,926

OPEN TEXT CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands of U.S. dollars and shares)

	Common Shares and Additional Paid in Capital		Treasury Stock		Retained Earnings	Accumulated Other Comprehensive Income	Non- Controlling Interests	Total
	Shares	Amount	Shares	Amount	Retained Earnings	Accumulated Other Comprehensive Income	Non- Controlling Interests	Total
Balance as of June 30, 2019	269,834	$ 1,774,214	(803)	$ (28,766)	$ 2,113,883	$ 24,124	$ 1,215	$ 3,884,670
Issuance of Common Shares
Under employee stock option plans	1,530	41,282	—	—	—	—	—	41,282
Under employee stock purchase plans	499	17,757	—	—	—	—	—	17,757
Share-based compensation	—	29,532	—	—	—	—	—	29,532
Purchase of treasury stock	—	—	(300)	(12,424)	—	—	—	(12,424)
Issuance of treasury stock	—	(11,008)	481	17,582	—	—	—	6,574
Dividends declared ($0.6984 per Common Share)	—	—	—	—	(188,712)	—	—	(188,712)
Other comprehensive income - net	—	—	—	—	—	(6,299)	—	(6,299)
Non-controlling interest	—	—	—	—	—	—	(39)	(39)
Net income	—	—	—	—	234,225	—	143	234,368
Balance as of June 30, 2020	271,863	$ 1,851,777	(622)	$ (23,608)	$ 2,159,396	$ 17,825	$ 1,319	$ 4,006,709
Adoption of ASU 2016-13 - cumulative effect	—	$ —	—	$ —	$ (2,450)	$ —	$ —	$ (2,450)
Issuance of Common Shares
Under employee stock option plans	1,605	49,565	—	—	—	—	—	49,565
Under employee stock purchase plans	573	22,307	193	6,690	—	—	—	28,997
Share-based compensation	—	51,969	—	—	—	—	—	51,969
Purchase of treasury stock	—	—	(1,455)	(64,847)	—	—	—	(64,847)
Issuance of treasury stock	—	(12,379)	316	12,379	—	—	—	—
Common Shares repurchased	(2,500)	(15,475)	—	—	(103,630)	—	—	(119,105)
Dividends declared ($0.7770 per Common Share)	—	—	—	—	(210,662)	—	—	(210,662)
Non-controlling interest	—	—	—	—	—	—	—	—
Other comprehensive income - net	—	—	—	—	—	48,413	—	48,413
Net income	—	—	—	—	310,672	—	192	310,864
Balance as of June 30, 2021	271,541	$ 1,947,764	(1,568)	$ (69,386)	$ 2,153,326	$ 66,238	$ 1,511	$ 4,099,453
Issuance of Common Shares
Under employee stock option plans	950	32,714	—	—	—	—	—	32,714
Under employee stock purchase plans	842	33,806	—	—	—	—	—	33,806
Share-based compensation	—	69,556	—	—	—	—	—	69,556
Purchase of treasury stock	—	—	(2,630)	(111,593)	—	—	—	(111,593)
Issuance of treasury stock	—	(21,013)	492	21,013	—	—	—	—
Common Shares repurchased	(3,810)	(24,295)	—	—	(152,692)	—	—	(176,987)
Dividends declared ($0.8836 per Common Share)	—	—	—	—	(237,655)	—	—	(237,655)
Non-controlling interest	—	—	—	—	—	—	—	—
Other comprehensive income (loss) - net	—	—	—	—	—	(73,897)	—	(73,897)
Distribution to non-controlling interest	—	142	—	—	—	—	(538)	(396)
Net income	—	—	—	—	397,090	—	169	397,259
Balance as of June 30, 2022	269,523	$ 2,038,674	(3,706)	$ (159,966)	$ 2,160,069	$ (7,659)	$ 1,142	$ 4,032,260

OPEN TEXT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. dollars)
(unaudited)

	Three Months Ended June 30,
	2022	2021
Cash flows from operating activities:
Net income for the period	$ 102,235	$ 181,363
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangible assets	125,321	126,705
Share-based compensation expense	24,464	13,350
Pension expense	1,723	1,946
Amortization of debt issuance costs	1,486	1,153
Write off of right of use assets	17,707	—
Loss on sale and write down of property and equipment	198	792
Deferred taxes	(79,420)	(7,805)
Share in net (income) loss of equity investees	401	(42,877)
Changes in operating assets and liabilities:
Accounts receivable	13,413	(26,118)
Contract assets	(10,758)	(10,298)
Prepaid expenses and other current assets	1,768	40,261
Income taxes	45,824	(23,169)
Accounts payable and accrued liabilities	41,561	53,415
Deferred revenue	(30,878)	(23,305)
Other assets	771	11,149
Operating lease assets and liabilities, net	(3,876)	(373)
Net cash provided by operating activities	251,940	296,189
Cash flows from investing activities:
Additions of property and equipment	(38,172)	(27,408)
Purchase of Bricata Inc.	174	—
Purchase of Dynamic Solutions Group Inc.	—	(600)
Other investing activities	—	(2,550)
Net cash used in investing activities	(37,998)	(30,558)
Cash flows from financing activities:
Proceeds from issuance of Common Shares from exercise of stock options and ESPP	10,738	34,287
Repayment of long-term debt and Revolver	(2,500)	(2,500)
Debt issuance costs	—	—
Repurchase of Common Shares	(40,869)	(119,105)
Purchase of treasury stock	(35,933)	—
Payments of dividends to shareholders	(59,042)	(54,374)
Net cash provided by (used in) financing activities	(127,606)	(141,692)
Foreign exchange gain (loss) on cash held in foreign currencies	(26,276)	7,181
Increase (decrease) in cash, cash equivalents and restricted cash during the period	60,060	131,120
Cash, cash equivalents and restricted cash at beginning of the period	1,635,851	1,478,680
Cash, cash equivalents and restricted cash at end of the period	$ 1,695,911	$ 1,609,800


⁽¹⁾ Restricted cash is classified under the Prepaid expenses and other current assets and Other assets line items on the Consolidated Balance Sheets.

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended June 30, 2022 *(In thousands, except for per share data)*
	Three Months Ended June 30, 2022
	GAAP-based Measures	GAAP-based Measures % of Total Revenue	Adjustments	Note	Non-GAAP- based Measures	Non-GAAP- based Measures % of Total Revenue
Cost of revenues
Cloud services and subscriptions	$ 133,785		$ (2,213)	(1)	$ 131,572
Customer support	30,571		(768)	(1)	29,803
Professional service and other	55,436		(1,465)	(1)	53,971
Amortization of acquired technology-based intangible assets	46,274		(46,274)	(2)	—
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%)	633,793	70.2 %	50,720	(3)	684,513	75.9 %
Operating expenses
Research and development	118,931		(7,186)	(1)	111,745
Sales and marketing	185,985		(7,251)	(1)	178,734
General and administrative	85,958		(5,582)	(1)	80,376
Amortization of acquired customer-based intangible assets	56,341		(56,341)	(2)	—
Special charges (recoveries)	26,281		(26,281)	(4)	—
GAAP-based income from operations / Non-GAAP-based income from operations	137,591		153,361	(5)	290,952
Other income (expense), net	(19)		19	(6)	—
Provision for income taxes	(5,005)		40,090	(7)	35,085
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText	102,196		113,290	(8)	215,486
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText	$ 0.38		$ 0.42	(8)	$ 0.80


(1)	Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.
(2)	Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.
(3)	GAAP-based and Non-GAAP-based gross profit stated in dollars and gross margin stated as a percentage of total revenue.
(4)	Adjustment relates to the exclusion of special charges (recoveries) from our Non-GAAP-based operating expenses as special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include certain charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.
(5)	GAAP-based and Non-GAAP-based income from operations stated in dollars.
(6)	Adjustment relates to the exclusion of other income (expense) from our Non-GAAP-based operating expenses as other income (expense) generally relates to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.
(7)	Adjustment relates to differences between the GAAP-based tax provision rate of approximately 5% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of items that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded items include amortization, share-based compensation, special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and "book to return" adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization that occurred in Fiscal 2017 assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 14%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense.
(8)	Reconciliation of GAAP-based net income to Non-GAAP-based net income:

	Three Months Ended June 30, 2022
		Per share diluted
GAAP-based net income, attributable to OpenText	$ 102,196	$ 0.38
Add:
Amortization	102,615	0.38
Share-based compensation	24,465	0.09
Special charges (recoveries)	26,281	0.10
Other (income) expense, net	19	—
GAAP-based provision for income taxes	(5,005)	(0.02)
Non-GAAP-based provision for income taxes	(35,085)	(0.13)
Non-GAAP-based net income, attributable to OpenText	$ 215,486	$ 0.80

Reconciliation of Adjusted EBITDA

	Three Months Ended June 30, 2022
GAAP-based net income, attributable to OpenText	$ 102,196
Add:
Provision for income taxes	(5,005)
Interest and other related expense, net	40,342
Amortization of acquired technology-based intangible assets	46,274
Amortization of acquired customer-based intangible assets	56,341
Depreciation	22,706
Share-based compensation	24,464
Special charges (recoveries)	26,281
Other (income) expense, net	19
Adjusted EBITDA	$ 313,618

GAAP-based net income margin	11.3 %
Adjusted EBITDA margin	34.8 %

Reconciliation of Free cash flows

	Three Months Ended June 30, 2022
GAAP-based cash flows provided by operating activities	$ 251,940
Add:
Capital expenditures ⁽¹⁾	(38,172)
Free cash flows	$ 213,768

⁽¹⁾ Defined as "Additions of property and equipment" in the Consolidated Statements of Cash Flows.

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the year ended June 30, 2022 *(In thousands, except for per share data)*
	Year Ended June 30, 2022
	GAAP-based Measures	GAAP-based Measures % of Total Revenue	Adjustments	Note	Non-GAAP- based Measures	Non-GAAP- based Measures % of Total Revenue
Cost of revenues
Cloud services and subscriptions	$ 511,713		$ (5,285)	(1)	$ 506,428
Customer support	121,485		(2,399)	(1)	119,086
Professional service and other	216,895		(3,740)	(1)	213,155
Amortization of acquired technology-based intangible assets	198,607		(198,607)	(2)	—
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%)	2,431,643	69.6 %	210,031	(3)	2,641,674	75.6 %
Operating expenses
Research and development	440,448		(17,122)	(1)	423,326
Sales and marketing	677,118		(22,628)	(1)	654,490
General and administrative	317,085		(18,382)	(1)	298,703
Amortization of acquired customer-based intangible assets	217,105		(217,105)	(2)	—
Special charges (recoveries)	46,873		(46,873)	(4)	—
GAAP-based income from operations / Non-GAAP-based income from operations	644,773		532,141	(5)	1,176,914
Other income (expense), net	29,118		(29,118)	(6)	—
Provision for income taxes	118,752		23,913	(7)	142,665
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText	397,090		479,110	(8)	876,200
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText	$ 1.46		$ 1.76	(8)	$ 3.22

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended March 31, 2022 *(In thousands, except for per share data)*
	Three Months Ended March 31, 2022
	GAAP-based Measures	GAAP-based Measures % of Total Revenue	Adjustments	Note	Non-GAAP- based Measures	Non-GAAP- based Measures % of Total Revenue
Cost of revenues
Cloud services and subscriptions	$ 136,020		$ (1,268)	(1)	$ 134,752
Customer support	31,763		(501)	(1)	31,262
Professional service and other	56,693		(907)	(1)	55,786
Amortization of acquired technology-based intangible assets	46,564		(46,564)	(2)	—
GAAP-based gross profit and gross margin (%) /Non-GAAP-based gross profit and gross margin (%)	608,047	68.9 %	49,240	(3)	657,287	74.5 %
Operating expenses
Research and development	117,730		(4,350)	(1)	113,380
Sales and marketing	180,955		(5,761)	(1)	175,194
General and administrative	88,137		(3,961)	(1)	84,176
Amortization of acquired customer-based intangible assets	56,215		(56,215)	(2)	—
Special charges (recoveries)	11,031		(11,031)	(4)	—
GAAP-based income from operations / Non-GAAP-based income from operations	131,609		130,558	(5)	262,167
Other income (expense), net	24,392		(24,392)	(6)	—
Provision for income taxes	41,041		(9,971)	(7)	31,070
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText	74,681		116,137	(8)	190,818
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText	$ 0.28		$ 0.42	(8)	$ 0.70

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended June 30, 2021 *(In thousands, except for per share data)*
	Three Months Ended June 30, 2021
	GAAP-based Measures	GAAP-based Measures % of Total Revenue	Adjustments	Note	Non-GAAP- based Measures	Non-GAAP- based Measures % of Total Revenue
Cost of revenues
Cloud services and subscriptions	$ 127,583		$ (935)	(1)	$ 126,648
Customer support	32,938		(505)	(1)	32,433
Professional service and other	53,662		(698)	(1)	52,964
Amortization of acquired technology-based intangible assets	53,215		(53,215)	(2)	—
GAAP-based gross profit and gross margin (%) /Non-GAAP-based gross profit and gross margin (%)	621,814	69.6 %	55,353	(3)	677,167	75.8 %
Operating expenses
Research and development	117,235		(2,664)	(1)	114,571
Sales and marketing	183,237		(4,718)	(1)	178,519
General and administrative	73,019		(3,830)	(1)	69,189
Amortization of acquired customer-based intangible assets	52,469		(52,469)	(2)	—
Special charges (recoveries)	3,152		(3,152)	(4)	—
GAAP-based income from operations / Non-GAAP-based income from operations	171,681		122,186	(5)	293,867
Other income (expense), net	45,017		(45,017)	(6)	—
Provision for income taxes	(2,215)		38,099	(7)	35,884
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText	181,283		39,070	(8)	220,353
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText	$ 0.66		$ 0.14	(8)	$ 0.80

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the year ended June 30, 2021 *(In thousands, except for per share data)*
	Year Ended June 30, 2021
	GAAP-based Measures	GAAP-based Measures % of Total Revenue	Adjustments	Note	Non-GAAP- based Measures	Non-GAAP- based Measures % of Total Revenue
Cost of revenues
Cloud services and subscriptions	$ 481,818		$ (3,419)	(1)	$ 478,399
Customer support	122,753		(1,910)	(1)	120,843
Professional service and other	197,183		(2,565)	(1)	194,618
Amortization of acquired technology-based intangible assets	218,796		(218,796)	(2)	—
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%)	2,351,649	69.4 %	226,690	(3)	2,578,339	76.1 %
Operating expenses
Research and development	421,447		(9,859)	(1)	411,588
Sales and marketing	622,221		(18,312)	(1)	603,909
General and administrative	263,521		(15,904)	(1)	247,617
Amortization of acquired customer-based intangible assets	216,544		(216,544)	(2)	—
Special charges (recoveries)	1,748		(1,748)	(4)	—
GAAP-based income from operations / Non-GAAP-based income from operations	740,903		489,057	(5)	1,229,960
Other income (expense), net	61,434		(61,434)	(6)	—
Provision for income taxes	339,906		(188,931)	(7)	150,975
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText	310,672		616,554	(8)	927,226
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText	$ 1.14		$ 2.25	(8)	$ 3.39

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Currencies	% of Revenue	% of Expenses ⁽¹⁾	% of Revenue	% of Expenses ⁽¹⁾
EURO	22 %	12 %	24 %	14 %
GBP	3 %	5 %	5 %	5 %
CAD	3 %	14 %	3 %	13 %
USD	63 %	54 %	60 %	53 %
Other	9 %	15 %	8 %	15 %
Total	100 %	100 %	100 %	100 %

	Year Ended June 30, 2022		Year Ended June 30, 2021
Currencies	% of Revenue	% of Expenses ⁽¹⁾	% of Revenue	% of Expenses ⁽¹⁾
EURO	23 %	13 %	23 %	14 %
GBP	4 %	6 %	5 %	6 %
CAD	3 %	14 %	3 %	9 %
USD	62 %	53 %	61 %	55 %
Other	8 %	14 %	8 %	16 %
Total	100 %	100 %	100 %	100 %