OpenText Reports First Quarter Fiscal Year 2022 Financial Results

 
 

-

 

   First Quarter Highlights   

 
 
                              
 

   Total Revenues   

 

  (in millions)  

 
 
 

   Annual Recurring Revenues   

 

  (in millions)  

 
 
 

   Cloud Revenues   

 

  (in millions)  

 
 

   Reported   

 
 

   Constant Currency   

 
 
 

   Reported   

 
 

   Constant Currency   

 
 
 

   Reported   

 
 

   Constant Currency   

 
 

  $832.3  

 
 

  $819.7  

 
 
 

  $691.8  

 
 

  $681.6  

 
 
 

  $356.6  

 
 

  $353.2  

 
 

  +3.5%  

 
 

  +2.0%  

 
 
 

  +3.2%  

 
 

  +1.7%  

 
 
 

  +4.6%  

 
 

  +3.6%  

 
 

  Annual Recurring Revenues represent 83% of Total Revenues  

 
 
 

 

 
  • Q1 results reflective of our cloud-first strategy and continued investments in talent, innovation, go-to-market and digital projects to drive organic growth
  •  
  • Operating cash flows were $189.7 million and free cash flows were $163.0 million  
  •  
  • GAAP-based net income of $131.9 million , up 27.6% Y/Y, margin of 15.8%, up 290 basis points Y/Y
  •  
  • Adjusted EBITDA of $323.4 million , margin of 38.9%
  •  
  • GAAP-based diluted EPS of $0.48 , up 26.3% Y/Y
  •  
  • Non-GAAP diluted EPS of $0.83 , down 6.7% Y/Y
  •  

Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), today announced its financial results for the first quarter ended September 30, 2021.

 

"Organic growth powered our record first quarter revenues as we continued delivering Information Management in the Cloud at scale," said Mark J. Barrenechea , OpenText CEO & CTO. "In Q1, we delivered $832.3 million in total revenues, up 3.5% year-over-year which was led by our Cloud revenues of $356.6 million , up 4.6% year-over-year. Annual Recurring Revenues (ARR) of $691.8 million increased 3.2% year-over-year and accounted for 83% of our total revenues."

 

"OpenText is leading our customers on their path to digitalization as they shift their work from productivity to creativity.  Organizations across the globe trust the OpenText Cloud to deliver greater flexibility, agility and scale to meet the challenges of today's distributed work environment," said Mr. Barrenechea.  "The OpenText Cloud uniquely positions us to win customers and take leadership in each of our markets as we empower businesses of all sizes to master modern work, power modern experiences, digitize supply chains, strengthen cyber resilience and build the API economy."

 

"Our Q1 results continue to demonstrate the strength of the OpenText business model, delivering strong operational performance, generating $323.4 million of adjusted EBITDA and $163.0 million in free cash flows," said Madhu Ranganathan , OpenText EVP, CFO. "With approximately $1.7 billion of cash as of September 30, 2021 , and a net leverage ratio of 1.4x, our balance sheet and liquidity position remain strong.  We are confident in our ability to further improve operations, supporting exceptional customer experiences and providing ample opportunity for OpenText to focus on our organic growth initiatives."

 

   Financial Highlights for Q1 Fiscal 2022 with Year Over Year Comparisons   

 
 
                                                                                                                                                                                                                                             
 

    Summary of Quarterly Results    

 
 
 
 
 
 
 
 
 
 

   (In millions, except per share data)   

 
 

   Q1 FY'22   

 
 

   Q1 FY'21   

 
 

   $ Change   

 
 

   % Change   

 
 
 

   Q1 FY'22
in CC*
 
 

 
 

   % Change
in CC*
 
 

 
 
 

   Revenues:   

 
 
 
 
 
 
 
 
 
 

  Cloud services and subscriptions  

 
 

  $356.6  

 
 
 

  $341.0  

 
 
 

  $15.6  

 
 
 

  4.6  

 
 

  %  

 
 
 

  $353.2  

 
 
 

  3.6  

 
 

  %  

 
 
 

  Customer support  

 
 

  335.2  

 
 
 

  329.4  

 
 
 

  5.8  

 
 
 

  1.8  

 
 

  %  

 
 
 

  328.5  

 
 
 

  (0.3)  

 
 

  %  

 
 
 

   Total annual recurring revenues**   

 
 

   $691.8   

 
 
 

   $670.4   

 
 
 

   $21.4   

 
 
 

   3.2   

 
 

   %   

 
 
 

   $681.6   

 
 
 

   1.7   

 
 

   %   

 
 
 

  License  

 
 

  73.5  

 
 
 

  68.5  

 
 
 

  5.0  

 
 
 

  7.3  

 
 

  %  

 
 
 

  72.5  

 
 
 

  5.8  

 
 

  %  

 
 
 

  Professional service and other  

 
 

  67.0  

 
 
 

  65.1  

 
 
 

  1.8  

 
 
 

  2.8  

 
 

  %  

 
 
 

  65.6  

 
 
 

  0.8  

 
 

  %  

 
 
 

   Total revenues   

 
 

   $832.3   

 
 
 

   $804.0   

 
 
 

   $28.3   

 
 
 

   3.5   

 
 

   %   

 
 
 

   $819.7   

 
 
 

   2.0   

 
 

   %   

 
 
 

  GAAP-based operating income  

 
 

  $182.7  

 
 
 

  $182.4  

 
 
 

  $0.3  

 
 
 

  0.2  

 
 

  %  

 
 
 

  N/A  

 
 
 

  N/A  

 
 
 
 

  Non-GAAP-based operating income (1)  

 
 

  $302.0  

 
 
 

  $320.4  

 
 
 

  ($18.3)  

 
 
 

  (5.7)  

 
 

  %  

 
 
 

  $299.9  

 
 
 

  (6.4)  

 
 

  %  

 
 
 

  GAAP-based net income attributable to OpenText  

 
 

  $131.9  

 
 
 

  $103.4  

 
 
 

  $28.5  

 
 
 

  27.6  

 
 

  %  

 
 
 

  N/A  

 
 
 

  N/A  

 
 
 
 

  GAAP-based EPS, diluted  

 
 

  $0.48  

 
 
 

  $0.38  

 
 
 

  $0.10  

 
 
 

  26.3  

 
 

  %  

 
 
 

  N/A  

 
 
 

  N/A  

 
 
 
 

  Non-GAAP-based EPS, diluted (1)(2)  

 
 

  $0.83  

 
 
 

  $0.89  

 
 
 

  ($0.06)  

 
 
 

  (6.7)  

 
 

  %  

 
 
 

  $0.83  

 
 
 

  (6.7)  

 
 

  %  

 
 
 

  Adjusted EBITDA (1)  

 
 

  $323.4  

 
 
 

  $342.3  

 
 
 

  ($19.0)  

 
 
 

  (5.5)  

 
 

  %  

 
 
 

  $321.0  

 
 
 

  (6.2)  

 
 

  %  

 
 
 

  Operating cash flows  

 
 

  $189.7  

 
 
 

  $233.9  

 
 
 

  ($44.2)  

 
 
 

  (18.9)  

 
 

  %  

 
 
 

  N/A  

 
 
 

  N/A  

 
 
 
 

  Free cash flows (1)  

 
 

  $163.0  

 
 
 

  $218.6  

 
 
 

  ($55.6)  

 
 
 

  (25.5)  

 
 

  %  

 
 
 

  N/A  

 
 
 

  N/A  

 
 
 
 
 
 
      
 
 

   (1) Please see note 2 "Use of Non-GAAP Financial Measures" 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.  

 
 

  Note: Individual line items in tables may be adjusted by non-material amounts to enable totals to align to published financial statements.  

 
 

  *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.  

 
 
 

   Quarterly Business Highlights   

 
  • Key customer wins in the quarter included AIA Philippines, BDO, Brenntag, CNA Financial, Etihad Water & Electricity, Fennoa, Graybar, Homebase, JCB, Kaiser Permanente, LX Hausys, Mary Washington Healthcare, Mastercard, MicroChannel, PepsiCo, Solenis, U.S. Army Criminal Investigation Division, U.S. Defense Health Agency and Wells Fargo
  •  
  • OpenText World to be held November 16-18  
  •  
  • OpenText powers modern work with the Content Cloud
  •  
  • OpenText named a leader in 2021 Gartner Magic Quadrant for Content Services Platforms for seventeenth consecutive year
  •  
  • OpenText named a leader in IDC MarketScape for Multi-Enterprise Supply Chain Commerce Network for second consecutive year
  •  
  • OpenText offers new MDR solutions to enhance cyber resilience & compliance
  •  
  • OpenText integrates N-central Into Webroot Business Endpoint Protection
  •  
  • OpenText adds cyber resilience in the Netherlands data center
  •  
  • OpenText showcases latest Experience Platform innovations at Google Cloud Next '21
  •  
  • OpenText survey shows increase in demand for ethically sourced goods
  •  
  • Independent survey highlights need for advanced analytics and machine learning to accelerate investigations
  •  
  • OpenText launches virtual summit for business leaders to share best practices on digitizing supply chains to minimize disruption
  •  
  • OpenText and Lakehead University partner to create internships for Indigenous students
  •  

   Dividend Program   

 

As part of our quarterly, non-cumulative cash dividend program, the Board declared on November 3, 2021, a cash dividend of $0.2209 per common share. The record date for this dividend is December 3, 2021 and the payment date is December 22, 2021. 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 record and payment dates are all subject to the final determination and discretion of the Board of Directors.

 

   Share Repurchase Plan/Normal Course Issuer Bid   

 

The Company also announced today the renewal of its share repurchase plan and that it intends to purchase in open market transactions, from time to time over the next 12 months, if considered advisable, up to an aggregate of $350,000,000 of its common shares on the NASDAQ Global Select Market, the Toronto Stock Exchange (the "TSX") and/or other exchanges and alternative trading systems in Canada and/or the United States , if eligible, subject to applicable law and stock exchange rules (the "Repurchase Plan"). The price that OpenText will pay for common shares in open market transactions will be the market price at the time of purchase or such other price as may be permitted by applicable law or stock exchange rules.

 

The Company's determination to renew the Repurchase Plan reflects its confidence in its operational execution and expanding cash flows, with the Repurchase Plan being additive to the Company's overall strategic capital allocation, complementing its ongoing M&A activity and dividend program. The Repurchase Plan will be effected in accordance with Rule 10b -18 under the U.S. Securities Exchange Act of 1934.  Purchases made under the Repurchase Plan may commence on November 12, 2021 and will expire on November 11, 2022 , and will be subject to a limit of 13,638,008 shares (representing 5% of the Company's issued and outstanding common shares as of October 31, 2021 ). All common shares purchased by OpenText pursuant to the Repurchase Plan will be cancelled.

 

  Normal Course Issuer Bid  

 

The Company has renewed its normal course issuer bid (the "NCIB") in order to provide it with a means to execute purchases over the TSX as part of the overall Repurchase Plan.

 

The TSX has approved the Company's notice of intention to commence the NCIB pursuant to which the Company may purchase common shares over the TSX for the period commencing November 12, 2021 until November 11, 2022 in accordance with the TSX's normal course issuer bid rules, including that such purchases are to be made at prevailing market prices or as otherwise permitted. Under the rules of the TSX, the maximum number of shares that may be purchased in this period is 13,638,008 (representing 5% of the Company's issued and outstanding common shares as of October 31, 2021 ), and the maximum number of shares that may be purchased on a single day is 112,590 common shares, which is 25% of 450,361 (the average daily trading volume for the common shares on the TSX for the six months ended October 31, 2021 ), subject to certain exceptions for block purchases, subject in any case to the volume and other limitations under Rule 10b -18.

 

Previously, on November 5, 2020 , the Board authorized a share repurchase plan, pursuant to which we have been authorized to purchase in open market transactions, from time to time over the 12 month period commencing November 12, 2020 , up to an aggregate of $350 million of our common shares (subject to a limit of 13,618,774 shares, being 5% of the Company's issued and outstanding common shares as of November 4, 2020 ) on the NASDAQ Global Select Market, the TSX and/or other exchanges and alternative trading systems in Canada and/or the United States , if eligible, subject to applicable law and stock exchange rules (the "Prior Repurchase Plan"). As of the date hereof, the Company has purchased a total of 2,500,000 common shares pursuant to the Prior Repurchase Plan.

 

As part of the Prior Repurchase Plan, the TSX approved a previous normal course issuer bid to purchase up to 13,618,774 common shares, which commenced on November 12, 2020 and will expire on November 11, 2021 (the "Previous NCIB"). Pursuant to the Previous NCIB, the Company has purchased 1,433,781 common shares on the open markets in Canada at an average purchase price of C$57.56 per share. Of those purchases on Canadian markets, 412,589 common shares were purchased on the TSX at an average purchase price of C$57.42 per share.

 

   Shelf Renewal   

 

The Company also announced today that it is filing a renewed preliminary short form base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada . A final shelf prospectus, once a receipt has been issued by the Canadian securities regulatory authorities, will allow offers and sales, from time to time, of an aggregate of up to $2.0 billion of equity and debt securities, or any combination thereof, during the 25-month period that the shelf prospectus remains effective. The Company expects to file a corresponding automatic shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (the "SEC") concurrently with the filing of the final shelf prospectus in Canada . The specific terms of any future offering will be established in a prospectus supplement to the shelf prospectus, which supplement will be filed with the applicable Canadian securities regulatory authorities and the SEC.

 
 
                                                                                 
 

    Summary of Quarterly Results    

 
 
 
 
 
 
 
 
 
 

   Q1 FY'22   

 
 

   Q4 FY'21   

 
 

   Q1 FY'21   

 
 

   % Change   

 

   (Q1 FY'22 vs
Q4 FY'21)
 
 

 
 
 

   % Change   

 

   (Q1 FY'22 vs
Q1 FY'21)
 
 

 
 
 

  Revenue (millions)  

 
 

  $832.3  

 
 
 

  $893.5  

 
 
 

  $804.0  

 
 
 

  (6.9)  

 
 

  %  

 
 
 

  3.5  

 
 

  %  

 
 
 

  GAAP-based gross margin  

 
 

  69.0  

 
 

  %  

 
 

  69.6  

 
 

  %  

 
 

  69.0  

 
 

  %  

 
 

  (60)  

 
 
 

  bps  

 
 

  

 
 
 

  bps  

 
 

  Non-GAAP-based gross margin (1)  

 
 

  75.7  

 
 

  %  

 
 

  75.8  

 
 

  %  

 
 

  76.5  

 
 

  %  

 
 

  (10)  

 
 
 

  bps  

 
 

  (80)  

 
 
 

  bps  

 
 

  GAAP-based EPS, diluted  

 
 

  $0.48  

 
 
 

  $0.66  

 
 
 

  $0.38  

 
 
 

  (27.3)  

 
 

  %  

 
 
 

  26.3  

 
 

  %  

 
 
 

  Non-GAAP-based EPS, diluted (1)(2)  

 
 

  $0.83  

 
 
 

  $0.80  

 
 
 

  $0.89  

 
 
 

  3.7  

 
 

  %  

 
 
 

  (6.7)  

 
 

  %  

 
 
 
 
 
   
 
 

   (1) Please see note 2 "Use of Non-GAAP Financial Measures" 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.  

 
 
 

   Conference Call Information   

 

The public is invited to listen to the earnings conference call today at 5:00 p.m. ET ( 2:00 p.m. PT ) by dialing 1-800-319-4610 (toll-free) or +1-604-638-5340 (international). Please dial-in 10 minutes ahead of time to ensure proper connection. Alternatively, a live webcast of the earnings conference call will be available on the Investor Relations section of the Company's website at   https://investors.opentext.com/investor-events-and-presentations   .

 

A replay of the call will be available beginning November 4, 2021 at 7:00 p.m. ET through 11:59 p.m. on November 18, 2021 and can be accessed by dialing 1-855-669-9658 (toll-free) or +1-604-674-8052 (international) and using passcode 7814 followed by the number sign.

 

Please see below note (2) for a reconciliation of U.S. GAAP-based financial measures used in this press release, to Non-GAAP-based financial measures. Additionally, "off-cloud" is a term we use to describe license transactions.

 

   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, including statements about the focus of Open Text Corporation ("OpenText" or "the Company") in our fiscal year ending June 30, 2022 (Fiscal 2022) on growth, future cloud growth and market share gains, future organic growth initiatives and deployment of capital, declaration of quarterly dividends, potential share repurchases pursuant to its Repurchase Plan, future tax rates, new platform and product offerings, scaling OpenText to new levels in Fiscal 2022 and beyond, and other matters, may contain words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "could", "would", "might", "will" and variations of these words or similar expressions are considered forward-looking statements or information under applicable securities laws. In addition, any information or statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management's perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, such as certain assumptions about the economy, as well as market, financial and operational assumptions. Management's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Such forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions that may cause the actual results, performance or achievements to differ materially which include, but are not limited to, actual and potential risks and uncertainties relating to the ultimate spread of COVID-19, the severity of the disease and the duration of the COVID-19 pandemic. For additional information with respect to risks and other factors which could occur, see the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the Securities and Exchange Commission (SEC) and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation 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:   https://www.opentext.com/who-we-are/copyright-information .  

 

 

 
 
                                                                                                                                                                                                                                                                    
 

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

 
 
 
 

   September 30, 2021   

 
 
 

   June 30, 2021   

 
 

   ASSETS   

 
 

   (unaudited)   

 
 
 
 

  Cash and cash equivalents  

 
 

  $  

 
 

  1,735,265  

 
 
 
 

  $  

 
 

  1,607,306  

 
 
 

  Accounts receivable trade, net of allowance for credit losses of $18,643 as of September 30, 2021 and $22,151 as of June 30, 2021  

 
 

  370,968  

 
 
 
 

  438,547  

 
 
 

  Contract assets  

 
 

  24,312  

 
 
 
 

  25,344  

 
 
 

  Income taxes recoverable  

 
 

  12,756  

 
 
 
 

  32,312  

 
 
 

  Prepaid expenses and other current assets  

 
 

  107,486  

 
 
 
 

  98,551  

 
 
 

  Total current assets  

 
 

  2,250,787  

 
 
 
 

  2,202,060  

 
 
 

  Property and equipment  

 
 

  223,359  

 
 
 
 

  233,595  

 
 
 

  Operating lease right of use assets  

 
 

  223,885  

 
 
 
 

  234,532  

 
 
 

  Long-term contract assets  

 
 

  19,550  

 
 
 
 

  19,222  

 
 
 

  Goodwill  

 
 

  4,686,907  

 
 
 
 

  4,691,673  

 
 
 

  Acquired intangible assets  

 
 

  1,080,692  

 
 
 
 

  1,187,260  

 
 
 

  Deferred tax assets  

 
 

  767,182  

 
 
 
 

  796,738  

 
 
 

  Other assets  

 
 

  231,181  

 
 
 
 

  208,894  

 
 
 

  Long-term income taxes recoverable  

 
 

  35,821  

 
 
 
 

  35,362  

 
 
 

   Total assets   

 
 

  $  

 
 

  9,519,364  

 
 
 
 

  $  

 
 

  9,609,336  

 
 
 

   LIABILITIES AND SHAREHOLDERS' EQUITY   

 
 
 
 
 

  Current liabilities:  

 
 
 
 
 

  Accounts payable and accrued liabilities  

 
 

  $  

 
 

  299,370  

 
 
 
 

  $  

 
 

  423,592  

 
 
 

  Current portion of long-term debt  

 
 

  10,000  

 
 
 
 

  10,000  

 
 
 

  Operating lease liabilities  

 
 

  58,033  

 
 
 
 

  58,315  

 
 
 

  Deferred revenues  

 
 

  814,989  

 
 
 
 

  852,629  

 
 
 

  Income taxes payable  

 
 

  15,615  

 
 
 
 

  17,368  

 
 
 

  Total current liabilities  

 
 

  1,198,007  

 
 
 
 

  1,361,904  

 
 
 

  Long-term liabilities:  

 
 
 
 
 

  Accrued liabilities  

 
 

  26,876  

 
 
 
 

  28,830  

 
 
 

  Pension liability  

 
 

  75,022  

 
 
 
 

  74,511  

 
 
 

  Long-term debt  

 
 

  3,577,520  

 
 
 
 

  3,578,859  

 
 
 

  Long-term operating lease liabilities  

 
 

  211,277  

 
 
 
 

  224,453  

 
 
 

  Long-term deferred revenues  

 
 

  95,930  

 
 
 
 

  98,989  

 
 
 

  Long-term income taxes payable  

 
 

  33,799  

 
 
 
 

  34,113  

 
 
 

  Deferred tax liabilities  

 
 

  92,418  

 
 
 
 

  108,224  

 
 
 

  Total long-term liabilities  

 
 

  4,112,842  

 
 
 
 

  4,147,979  

 
 
 

  Shareholders' equity:  

 
 
 
 
 

  Share capital and additional paid-in capital  

 
 
 
 
 

  272,533,754 and 271,540,755 Common Shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively; authorized Common Shares: unlimited  

 
 

  1,991,719  

 
 
 
 

  1,947,764  

 
 
 

  Accumulated other comprehensive income  

 
 

  53,886  

 
 
 
 

  66,238  

 
 
 

  Retained earnings  

 
 

  2,225,363  

 
 
 
 

  2,153,326  

 
 
 

  Treasury stock, at cost (1,426,212 and 1,567,664 shares at September 30, 2021 and June 30, 2021, respectively)  

 
 

  (63,477)  

 
 
 
 

  (69,386)  

 
 
 

  Total OpenText shareholders' equity  

 
 

  4,207,491  

 
 
 
 

  4,097,942  

 
 
 

  Non-controlling interests  

 
 

  1,024  

 
 
 
 

  1,511  

 
 
 

  Total shareholders' equity  

 
 

  4,208,515  

 
 
 
 

  4,099,453  

 
 
 

   Total liabilities and shareholders' equity   

 
 

  $  

 
 

  9,519,364  

 
 
 
 

  $  

 
 

  9,609,336  

 
 
 
 

 

 
 
                                                                                                                                                                                                                        
 

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

 
 
 
 

   Three Months Ended September 30,   

 
 
 

   2021   

 
 
 

   2020   

 
 

  Revenues:  

 
 
 
 
 

  Cloud services and subscriptions  

 
 

  $  

 
 

  356,589  

 
 
 
 

  $  

 
 

  340,986  

 
 
 

  Customer support  

 
 

  335,237  

 
 
 
 

  329,399  

 
 
 

  License  

 
 

  73,529  

 
 
 
 

  68,523  

 
 
 

  Professional service and other  

 
 

  66,953  

 
 
 
 

  65,105  

 
 
 

  Total revenues  

 
 

  832,308  

 
 
 
 

  804,013  

 
 
 

  Cost of revenues:  

 
 
 
 
 

  Cloud services and subscriptions  

 
 

  119,779  

 
 
 
 

  112,624  

 
 
 

  Customer support  

 
 

  29,483  

 
 
 
 

  29,194  

 
 
 

  License  

 
 

  3,969  

 
 
 
 

  2,489  

 
 
 

  Professional service and other  

 
 

  51,725  

 
 
 
 

  46,581  

 
 
 

  Amortization of acquired technology-based intangible assets  

 
 

  53,167  

 
 
 
 

  58,037  

 
 
 

  Total cost of revenues  

 
 

  258,123  

 
 
 
 

  248,925  

 
 
 

  Gross profit  

 
 

  574,185  

 
 
 
 

  555,088  

 
 
 

  Operating expenses:  

 
 
 
 
 

  Research and development  

 
 

  100,165  

 
 
 
 

  93,903  

 
 
 

  Sales and marketing  

 
 

  146,240  

 
 
 
 

  132,400  

 
 
 

  General and administrative  

 
 

  71,477  

 
 
 
 

  56,189  

 
 
 

  Depreciation  

 
 

  21,386  

 
 
 
 

  22,003  

 
 
 

  Amortization of acquired customer-based intangible assets  

 
 

  51,884  

 
 
 
 

  54,993  

 
 
 

  Special charges (recoveries)  

 
 

  344  

 
 
 
 

  13,244  

 
 
 

  Total operating expenses  

 
 

  391,496  

 
 
 
 

  372,732  

 
 
 

  Income from operations  

 
 

  182,689  

 
 
 
 

  182,356  

 
 
 

  Other income (expense), net  

 
 

  29,782  

 
 
 
 

  2,883  

 
 
 

  Interest and other related expense, net  

 
 

  (37,055)  

 
 
 
 

  (39,089)  

 
 
 

  Income before income taxes  

 
 

  175,416  

 
 
 
 

  146,150  

 
 
 

  Provision for (recovery of) income taxes  

 
 

  43,450  

 
 
 
 

  42,744  

 
 
 

  Net income for the period  

 
 

  $  

 
 

  131,966  

 
 
 
 

  $  

 
 

  103,406  

 
 
 

  Net (income) loss attributable to non-controlling interests  

 
 

  (51)  

 
 
 
 

  (30)  

 
 
 

  Net income attributable to OpenText  

 
 

  $  

 
 

  131,915  

 
 
 
 

  $  

 
 

  103,376  

 
 
 

  Earnings per share—basic attributable to OpenText  

 
 

  $  

 
 

  0.48  

 
 
 
 

  $  

 
 

  0.38  

 
 
 

  Earnings per share—diluted attributable to OpenText  

 
 

  $  

 
 

  0.48  

 
 
 
 

  $  

 
 

  0.38  

 
 
 

  Weighted average number of Common Shares outstanding—basic (in '000's)  

 
 

  272,044  

 
 
 
 

  271,986  

 
 
 

  Weighted average number of Common Shares outstanding—diluted (in '000's)  

 
 

  273,232  

 
 
 
 

  272,847  

 
 
 
 

 

 
 
                                                                                    
 

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

 
 
 
 

   Three Months Ended September 30,   

 
 
 

   2021   

 
 
 

   2020   

 
 

  Net income for the period  

 
 

  $  

 
 

  131,966  

 
 
 
 

  $  

 
 

  103,406  

 
 
 

  Other comprehensive income (loss)—net of tax:  

 
 
 
 
 

  Net foreign currency translation adjustments  

 
 

  (10,092)  

 
 
 
 

  22,645  

 
 
 

  Unrealized gain (loss) on cash flow hedges:  

 
 
 
 
 

  Unrealized gain (loss) - net of tax expense (recovery) effect of ($391) and $305 for the three months ended September 30, 2021 and 2020, respectively  

 
 

  (1,086)  

 
 
 
 

  845  

 
 
 

  (Gain) loss reclassified into net income - net of tax (expense) recovery effect of ($103) and ($56) for the three months ended September 30, 2021 and 2020, respectively  

 
 

  (287)  

 
 
 
 

  (156)  

 
 
 

  Actuarial gain (loss) relating to defined benefit pension plans:  

 
 
 
 
 

  Actuarial gain (loss) - net of tax expense (recovery) effect of ($232) and ($916) for the three months ended September 30, 2021 and 2020, respectively  

 
 

  (1,049)  

 
 
 
 

  (1,705)  

 
 
 

  Amortization of actuarial (gain) loss into net income - net of tax (expense) recovery effect of $68 and $87 for the three months ended September 30, 2021 and 2020, respectively  

 
 

  162  

 
 
 
 

  241  

 
 
 

  Total other comprehensive income (loss) net, for the period  

 
 

  (12,352)  

 
 
 
 

  21,870  

 
 
 

  Total comprehensive income  

 
 

  119,614  

 
 
 
 

  125,276  

 
 
 

  Comprehensive (income) loss attributable to non-controlling interests  

 
 

  (51)  

 
 
 
 

  (30)  

 
 
 

  Total comprehensive income attributable to OpenText  

 
 

  $  

 
 

  119,563  

 
 
 
 

  $  

 
 

  125,246  

 
 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                     
 

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

 
 
 
 

   Three Months Ended September 30, 2021   

 
 
 

   Common Shares and
Additional Paid in Capital
 
 

 
 
 

   Treasury Stock   

 
 
 

   Retained   

 

   Earnings   

 
 
 

   Accumulated Other   

 

   Comprehensive   

 

   Income   

 
 
 

   Non-
Controlling
Interests
 
 

 
 
 

   Total   

 
 
 

   Shares   

 
 
 

   Amount   

 
 
 

   Shares   

 
 
 

   Amount   

 
 
 

   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  

 
 

  796  

 
 
 
 

  27,299  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  27,299  

 
 
 

  Under employee stock purchase plans  

 
 

  197  

 
 
 
 

  8,489  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  8,489  

 
 
 

  Share-based compensation  

 
 

  

 
 
 
 

  13,934  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  13,934  

 
 
 

  Issuance of treasury stock  

 
 

  

 
 
 
 

  (5,909)  

 
 
 
 

  142  

 
 
 
 

  5,909  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 

  Dividends declared  

 

  ($0.2209 per Common Share)  

 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (59,878)  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (59,878)  

 
 
 

  Other comprehensive income (loss) - net  

 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (12,352)  

 
 
 
 

  

 
 
 
 

  (12,352)  

 
 
 

  Distribution to non-controlling interest  

 
 

  

 
 
 
 

  142  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (538)  

 
 
 
 

  (396)  

 
 
 

  Net income for the period  

 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  131,915  

 
 
 
 

  

 
 
 
 

  51  

 
 
 
 

  131,966  

 
 
 

   Balance as of September 30, 2021   

 
 

   272,534   

 
 
 
 

   $   

 
 

   1,991,719   

 
 
 
 

   (1,426)   

 
 
 
 

   $   

 
 

   (63,477)   

 
 
 
 

   $   

 
 

   2,225,363   

 
 
 
 

   $   

 
 

   53,886   

 
 
 
 

   $   

 
 

   1,024   

 
 
 
 

   $   

 
 

   4,208,515   

 
 
 
 
 
                                                                                                                                                                                                                                                                                                     
 
 
 
 

   Three Months Ended September 30, 2020   

 
 
 

   Common Shares and
Additional Paid in Capital
 
 

 
 
 

   Treasury Stock   

 
 
 

   Retained   

 

   Earnings   

 
 
 

   Accumulated Other   

 

   Comprehensive   

 

   Income   

 
 
 

   Non-
Controlling
Interests
 
 

 
 
 

   Total   

 
 
 

   Shares   

 
 
 

   Amount   

 
 
 

   Shares   

 
 
 

   Amount   

 
 
 

   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, net  

 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (2,450)  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (2,450)  

 
 
 

  Issuance of Common Shares  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Under employee stock option plans  

 
 

  311  

 
 
 
 

  8,605  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  8,605  

 
 
 

  Under employee stock purchase plans  

 
 

  

 
 
 
 

  293  

 
 
 
 

  193  

 
 
 
 

  6,690  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  6,983  

 
 
 

  Share-based compensation  

 
 

  

 
 
 
 

  11,736  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  11,736  

 
 
 

  Purchase of treasury stock  

 
 

  

 
 
 
 

  

 
 
 
 

  (965)  

 
 
 
 

  (41,870)  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (41,870)  

 
 
 

  Dividends declared  

 

  ($0.1746 per Common Share)  

 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (47,269)  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  (47,269)  

 
 
 

  Other comprehensive income (loss) - net  

 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  21,870  

 
 
 
 

  

 
 
 
 

  21,870  

 
 
 

  Net income for the period  

 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  

 
 
 
 

  103,376  

 
 
 
 

  

 
 
 
 

  30  

 
 
 
 

  103,406  

 
 
 

   Balance as of September 30, 2020   

 
 

   272,174   

 
 
 
 

   $   

 
 

   1,872,411   

 
 
 
 

   (1,394)   

 
 
 
 

   $   

 
 

   (58,788)   

 
 
 
 

   $   

 
 

   2,213,053   

 
 
 
 

   $   

 
 

   39,695   

 
 
 
 

   $   

 
 

   1,349   

 
 
 
 

   $   

 
 

   4,067,720   

 
 
 
 

 

 
 
                                                                                                                                                                                                                                                   
 

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

 
 
 
 

   Three Months Ended September 30,   

 
 
 

   2021   

 
 
 

   2020   

 
 

  Cash flows from operating activities:  

 
 
 
 
 

  Net income for the period  

 
 

  $  

 
 

  131,966  

 
 
 
 

  $  

 
 

  103,406  

 
 
 

  Adjustments to reconcile net income to net cash provided by operating activities:  

 
 
 
 
 

  Depreciation and amortization of intangible assets  

 
 

  126,437  

 
 
 
 

  135,033  

 
 
 

  Share-based compensation expense  

 
 

  13,934  

 
 
 
 

  11,736  

 
 
 

  Pension expense  

 
 

  1,486  

 
 
 
 

  1,505  

 
 
 

  Amortization of debt issuance costs  

 
 

  1,161  

 
 
 
 

  1,112  

 
 
 

  Loss on sale and write down of property and equipment  

 
 

  27  

 
 
 
 

  573  

 
 
 

  Deferred taxes  

 
 

  14,682  

 
 
 
 

  (1,180)  

 
 
 

  Share in net (income) loss of equity investees  

 
 

  (29,315)  

 
 
 
 

  (6,221)  

 
 
 

  Changes in operating assets and liabilities:  

 
 
 
 
 

  Accounts receivable  

 
 

  76,526  

 
 
 
 

  74,842  

 
 
 

  Contract assets  

 
 

  (7,248)  

 
 
 
 

  (9,838)  

 
 
 

  Prepaid expenses and other current assets  

 
 

  (9,811)  

 
 
 
 

  (3,491)  

 
 
 

  Income taxes  

 
 

  16,761  

 
 
 
 

  21,032  

 
 
 

  Accounts payable and accrued liabilities  

 
 

  (114,334)  

 
 
 
 

  (51,429)  

 
 
 

  Deferred revenue  

 
 

  (38,516)  

 
 
 
 

  (41,268)  

 
 
 

  Other assets  

 
 

  7,542  

 
 
 
 

  549  

 
 
 

  Operating lease assets and liabilities, net  

 
 

  (1,629)  

 
 
 
 

  (2,457)  

 
 
 

  Net cash provided by operating activities  

 
 

  189,669  

 
 
 
 

  233,904  

 
 
 

  Cash flows from investing activities:  

 
 
 
 
 

  Additions of property and equipment  

 
 

  (26,712)  

 
 
 
 

  (15,305)  

 
 
 

  Other investing activities  

 
 

  296  

 
 
 
 

  (2,237)  

 
 
 

  Net cash used in investing activities  

 
 

  (26,416)  

 
 
 
 

  (17,542)  

 
 
 

  Cash flows from financing activities:  

 
 
 
 
 

  Proceeds from issuance of Common Shares from exercise of stock options and ESPP  

 
 

  36,720  

 
 
 
 

  15,839  

 
 
 

  Repayment of long-term debt and Revolver  

 
 

  (2,500)  

 
 
 
 

  (2,500)  

 
 
 

  Purchase of treasury stock  

 
 

  

 
 
 
 

  (41,870)  

 
 
 

  Distribution to non-controlling interest  

 
 

  (396)  

 
 
 
 

  

 
 
 

  Payments of dividends to shareholders  

 
 

  (59,878)  

 
 
 
 

  (47,269)  

 
 
 

  Net cash provided by (used in) financing activities  

 
 

  (26,054)  

 
 
 
 

  (75,800)  

 
 
 

  Foreign exchange gain (loss) on cash held in foreign currencies  

 
 

  (9,277)  

 
 
 
 

  10,792  

 
 
 

  Increase (decrease) in cash, cash equivalents and restricted cash during the period  

 
 

  127,922  

 
 
 
 

  151,354  

 
 
 

  Cash, cash equivalents and restricted cash at beginning of the period  

 
 

  1,609,800  

 
 
 
 

  1,697,263  

 
 
 

  Cash, cash equivalents and restricted cash at end of the period  

 
 

  $  

 
 

  1,737,722  

 
 
 
 

  $  

 
 

  1,848,617  

 
 
 

   Reconciliation of cash, cash equivalents and restricted cash:   

 
 

   September 30, 2021   

 
 
 

   September 30, 2020   

 
 

  Cash and cash equivalents  

 
 

  $  

 
 

  1,735,265  

 
 
 
 

  $  

 
 

  1,845,582  

 
 
 

  Restricted cash (1)  

 
 

  2,457  

 
 
 
 

  3,035  

 
 
 

  Total cash, cash equivalents and restricted cash  

 
 

  $  

 
 

  1,737,722  

 
 
 
 

  $  

 
 

  1,848,617  

 
 
 
 
 
 
 

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

 
 
 

 

 
 
                   
 

    Notes    

 
 
 

  (1) All dollar amounts in this press release are in U.S. Dollars unless otherwise indicated.  

 
 
 

  (2) Use of Non-GAAP Financial Measures: In addition to reporting financial results in accordance with U.S. GAAP, the Company provides certain financial measures that are not in accordance with U.S. GAAP (Non-GAAP). These Non-GAAP financial measures have certain limitations in that they do not have a standardized meaning and thus the Company's definition may be different from similar Non-GAAP financial measures used by other companies and/or analysts and may differ from period to period. Thus it may be more difficult to compare the Company's financial performance to that of other companies. However, the Company's management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of these Non-GAAP financial measures both in its reconciliation to the U.S. GAAP financial measures and its consolidated financial statements, all of which should be considered when evaluating the Company's results.  

 
 
 

  The Company uses these Non-GAAP financial measures to supplement the information provided in its consolidated financial statements, which are presented in accordance with U.S. GAAP. The presentation of Non-GAAP financial measures is not meant to be a substitute for financial measures presented in accordance with U.S. GAAP, but rather should be evaluated in conjunction with and as a supplement to such U.S. GAAP measures. OpenText strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. The Company therefore believes that despite these limitations, it is appropriate to supplement the disclosure of the U.S. GAAP measures with certain Non-GAAP measures defined below.  

 
 
 

  Non-GAAP-based net income and Non-GAAP-based EPS, attributable to OpenText, are consistently calculated as GAAP-based net income or earnings per share, attributable to OpenText, on a diluted basis, excluding the effects of the amortization of acquired intangible assets, other income (expense), share-based compensation, and special charges (recoveries), all net of tax and any tax benefits/expense items unrelated to current period income, as further described in the tables below. Non-GAAP-based gross profit is the arithmetical sum of GAAP-based gross profit and the amortization of acquired technology-based intangible assets and share-based compensation within cost of sales. Non-GAAP-based gross margin is calculated as Non-GAAP-based gross profit expressed as a percentage of total revenue. Non-GAAP-based income from operations is calculated as GAAP-based income from operations, excluding the amortization of acquired intangible assets, special charges (recoveries), and share-based compensation expense.  

 
 
 

  Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) is consistently calculated as GAAP-based net income, attributable to OpenText, excluding interest income (expense), provision for income taxes, depreciation and amortization of acquired intangible assets, other income (expense), share-based compensation and special charges (recoveries). Adjusted EBITDA margin is calculated as adjusted EBITDA expressed as a percentage of total revenue.  

 
 
 

  The Company's management believes that the presentation of the above defined Non-GAAP financial measures provides useful information to investors because they portray the financial results of the Company before the impact of certain non-operational charges. The use of the term "non-operational charge" is defined for this purpose as an expense that does not impact the ongoing operating decisions taken by the Company's management. These items are excluded based upon the way the Company's management evaluates the performance of the Company's business for use in the Company's internal reports and are not excluded in the sense that they may be used under U.S. GAAP.  

 
 
 

  The Company does not acquire businesses on a predictable cycle, and therefore believes that the presentation of Non-GAAP measures, which in certain cases adjust for the impact of amortization of intangible assets and the related tax effects that are primarily related to acquisitions, will provide readers of financial statements with a more consistent basis for comparison across accounting periods and be more useful in helping readers understand the Company's operating results and underlying operational trends. Additionally, the Company has engaged in various restructuring activities over the past several years, primarily due to acquisitions and most recently in response to the COVID-19 pandemic, that have resulted in costs associated with reductions in headcount, consolidation of leased facilities and related costs, all which are recorded under the Company's "Special charges (recoveries)" caption on the Consolidated Statements of Income. Each restructuring activity is a discrete event based on a unique set of business objectives or circumstances, and each differs in terms of its operational implementation, business impact and scope, and the size of each restructuring plan can vary significantly from period to period. Therefore, the Company believes that the exclusion of these special charges (recoveries) will also better aid readers of financial statements in the understanding and comparability of the Company's operating results and underlying operational trends.  

 
 
 

  In summary, the Company believes the provision of supplemental Non-GAAP measures allow investors to evaluate the operational and financial performance of the Company's core business using the same evaluation measures that management uses, and is therefore a useful indication of OpenText's performance or expected performance of future operations and facilitates period-to-period comparison of operating performance (although prior performance is not necessarily indicative of future performance). As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary Non-GAAP financial measures that exclude certain items from the presentation of its financial results.  

 
 
 

  The following charts provide unaudited reconciliations of U.S. GAAP-based financial measures to Non-GAAP-based financial measures for the following periods presented.  

 
 
 

 

 
 
                                                                                                                                                                                    
 

    Reconciliation of selected GAAP-based measures to Non-GAAP-based measures    

 

    for the three months ended September 30, 2021    

 

    (In thousands, except for per share data)    

 
 
 

   Three Months Ended September 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  

 
 

  $  

 
 

  119,779  

 
 
 
 

  $  

 
 

  (907)  

 
 
 

  (1)  

 
 

  $  

 
 

  118,872  

 
 
 
 

  Customer support  

 
 

  29,483  

 
 
 
 

  (721)  

 
 
 

  (1)  

 
 

  28,762  

 
 
 
 

  Professional service and other  

 
 

  51,725  

 
 
 
 

  (721)  

 
 
 

  (1)  

 
 

  51,004  

 
 
 
 

  Amortization of acquired technology-based intangible assets  

 
 

  53,167  

 
 
 
 

  (53,167)  

 
 
 

  (2)  

 
 

  

 
 
 
 

   GAAP-based gross profit and gross margin (%) /   

 

   Non-GAAP-based gross profit and gross margin (%)   

 
 

  574,185  

 
 
 

  69.0%  

 
 

  55,516  

 
 
 

  (3)  

 
 

  629,701  

 
 
 

  75.7%  

 
 

   Operating expenses   

 
 
 
 
 
 
 
 

  Research and development  

 
 

  100,165  

 
 
 
 

  (2,934)  

 
 
 

  (1)  

 
 

  97,231  

 
 
 
 

  Sales and marketing  

 
 

  146,240  

 
 
 
 

  (4,610)  

 
 
 

  (1)  

 
 

  141,630  

 
 
 
 

  General and administrative  

 
 

  71,477  

 
 
 
 

  (4,041)  

 
 
 

  (1)  

 
 

  67,436  

 
 
 
 

  Amortization of acquired customer-based intangible assets  

 
 

  51,884  

 
 
 
 

  (51,884)  

 
 
 

  (2)  

 
 

  

 
 
 
 

  Special charges (recoveries)  

 
 

  344  

 
 
 
 

  (344)  

 
 
 

  (4)  

 
 

  

 
 
 
 

   GAAP-based income from operations / Non-GAAP-based income from operations   

 
 

  182,689  

 
 
 
 

  119,329  

 
 
 

  (5)  

 
 

  302,018  

 
 
 
 

  Other income (expense), net  

 
 

  29,782  

 
 
 
 

  (29,782)  

 
 
 

  (6)  

 
 

  

 
 
 
 

  Provision for (recovery of) income taxes  

 
 

  43,450  

 
 
 
 

  (6,355)  

 
 
 

  (7)  

 
 

  37,095  

 
 
 
 

   GAAP-based net income / Non-GAAP-based net income, attributable to OpenText   

 
 

  131,915  

 
 
 
 

  95,902  

 
 
 

  (8)  

 
 

  227,817  

 
 
 
 

   GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText   

 
 

  $  

 
 

  0.48  

 
 
 
 

  $  

 
 

  0.35  

 
 
 

  (8)  

 
 

  $  

 
 

  0.83  

 
 
 
 
 
 
                                
 
 
 

  (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 recovery rate of approximately 25% 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 September 30, 2021   

 
 
 
 

   Per share diluted   

 
 

  GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  131,915  

 
 
 

  $  

 
 

  0.48  

 
 
 

  Add:  

 
 
 
 

  Amortization  

 
 

  105,051  

 
 
 

  0.38  

 
 
 

  Share-based compensation  

 
 

  13,934  

 
 
 

  0.05  

 
 
 

  Special charges (recoveries)  

 
 

  344  

 
 
 

  

 
 
 

  Other (income) expense, net  

 
 

  (29,782)  

 
 
 

  (0.11)  

 
 
 

  GAAP-based provision for (recovery of) income taxes  

 
 

  43,450  

 
 
 

  0.17  

 
 
 

  Non-GAAP-based provision for income taxes  

 
 

  (37,095)  

 
 
 

  (0.14)  

 
 
 

  Non-GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  227,817  

 
 
 

  $  

 
 

  0.83  

 
 
 
 

 

 
 
                                  
 

   Reconciliation of Adjusted EBITDA   

 
 
 
 

   Three Months Ended September 30, 2021   

 
 

  GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  131,915  

 
 

  Add:  

 
 
 

  Provision for (recovery of) income taxes  

 
 

  43,450  

 
 

  Interest and other related expense, net  

 
 

  37,055  

 
 

  Amortization of acquired technology-based intangible assets  

 
 

  53,167  

 
 

  Amortization of acquired customer-based intangible assets  

 
 

  51,884  

 
 

  Depreciation  

 
 

  21,386  

 
 

  Share-based compensation  

 
 

  13,934  

 
 

  Special charges (recoveries)  

 
 

  344  

 
 

  Other (income) expense, net  

 
 

  (29,782)  

 
 

  Adjusted EBITDA  

 
 

  $  

 
 

  323,353  

 
 
 
 

  GAAP-based net income margin  

 
 

  15.8%  

 
 

  Adjusted EBITDA margin  

 
 

  38.9%  

 
 
 

 

 
 
                 
 

   Reconciliation of Free cash flows   

 
 
 
 

   Three Months Ended September 30, 2021   

 
 

  GAAP-based cash flows provided by operating activities  

 
 

  $  

 
 

  189,669  

 
 

  Add:  

 
 
 

  Capital expenditures (1)  

 
 

  (26,712)  

 
 

  Free cash flows  

 
 

  $  

 
 

  162,957  

 
 
 
 

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

 
 
 

 

 
 
                                                                                                                                                                                    
 

    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 (recovery of) 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  

 
 
 
 
 
 
                                
 
 
 

  (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 recovery rate of approximately 1% 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, 2021   

 
 
 
 

   Per share diluted   

 
 

  GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  181,283  

 
 
 

  $  

 
 

  0.66  

 
 
 

  Add:  

 
 
 
 

  Amortization  

 
 

  105,684  

 
 
 

  0.39  

 
 
 

  Share-based compensation  

 
 

  13,350  

 
 
 

  0.05  

 
 
 

  Special charges (recoveries)  

 
 

  3,152  

 
 
 

  0.01  

 
 
 

  Other (income) expense, net  

 
 

  (45,017)  

 
 
 

  (0.16)  

 
 
 

  GAAP-based provision for (recovery of) income taxes  

 
 

  (2,215)  

 
 
 

  (0.02)  

 
 
 

  Non-GAAP-based provision for income taxes  

 
 

  (35,884)  

 
 
 

  (0.13)  

 
 
 

  Non-GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  220,353  

 
 
 

  $  

 
 

  0.80  

 
 
 
 

 

 
 
                                  
 

   Reconciliation of Adjusted EBITDA   

 
 
 
 

   Three Months Ended June 30, 2021   

 
 

  GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  181,283  

 
 

  Add:  

 
 
 

  Provision for (recovery of) income taxes  

 
 

  (2,215)  

 
 

  Interest and other related expense, net  

 
 

  37,550  

 
 

  Amortization of acquired technology-based intangible assets  

 
 

  53,215  

 
 

  Amortization of acquired customer-based intangible assets  

 
 

  52,469  

 
 

  Depreciation  

 
 

  21,021  

 
 

  Share-based compensation  

 
 

  13,350  

 
 

  Special charges (recoveries)  

 
 

  3,152  

 
 

  Other (income) expense, net  

 
 

  (45,017)  

 
 

  Adjusted EBITDA  

 
 

  $  

 
 

  314,808  

 
 
 
 

  GAAP-based net income margin  

 
 

  20.3%  

 
 

  Adjusted EBITDA margin  

 
 

  35.2%  

 
 
 

 

 
 
                 
 

   Reconciliation of Free cash flows   

 
 
 
 

   Three Months Ended June 30, 2021   

 
 

  GAAP-based cash flows provided by operating activities  

 
 

  $  

 
 

  296,189  

 
 

  Add:  

 
 
 

  Capital expenditures (1)  

 
 

  (27,408)  

 
 

  Free cash flows  

 
 

  $  

 
 

  268,781  

 
 
 
 

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

 
 
 

 

 
 
                                                                                                                                                                                                     
 

    Reconciliation of selected GAAP-based measures to Non-GAAP-based measures    

 

    for the three months ended September 30, 2020    

 

    (In thousands, except for per share data)    

 
 
 

   Three Months Ended September 30, 2020   

 
 
 

   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  

 
 

  $  

 
 

  112,624  

 
 
 
 

  $  

 
 

  (836)  

 
 
 

  (1)  

 
 

  $  

 
 

  111,788  

 
 
 
 

  Customer support  

 
 

  29,194  

 
 
 
 

  (442)  

 
 
 

  (1)  

 
 

  28,752  

 
 
 
 

  Professional service and other  

 
 

  46,581  

 
 
 
 

  (517)  

 
 
 

  (1)  

 
 

  46,064  

 
 
 
 

  Amortization of acquired technology-based intangible assets  

 
 

  58,037  

 
 
 
 

  (58,037)  

 
 
 

  (2)  

 
 

  

 
 
 
 

   GAAP-based gross profit and gross margin (%) /   

 

   Non-GAAP-based gross profit and gross margin (%)   

 
 

  555,088  

 
 
 

  69.0  

 
 

  %  

 
 

  59,832  

 
 
 

  (3)  

 
 

  614,920  

 
 
 

  76.5  

 
 

  %  

 
 

   Operating expenses   

 
 
 
 
 
 
 
 

  Research and development  

 
 

  93,903  

 
 
 
 

  (2,342)  

 
 
 

  (1)  

 
 

  91,561  

 
 
 
 

  Sales and marketing  

 
 

  132,400  

 
 
 
 

  (4,057)  

 
 
 

  (1)  

 
 

  128,343  

 
 
 
 

  General and administrative  

 
 

  56,189  

 
 
 
 

  (3,542)  

 
 
 

  (1)  

 
 

  52,647  

 
 
 
 

  Amortization of acquired customer-based intangible assets  

 
 

  54,993  

 
 
 
 

  (54,993)  

 
 
 

  (2)  

 
 

  

 
 
 
 

  Special charges (recoveries)  

 
 

  13,244  

 
 
 
 

  (13,244)  

 
 
 

  (4)  

 
 

  

 
 
 
 

   GAAP-based income from operations / Non-GAAP-based income from operations   

 
 

  182,356  

 
 
 
 

  138,010  

 
 
 

  (5)  

 
 

  320,366  

 
 
 
 

  Other income (expense), net  

 
 

  2,883  

 
 
 
 

  (2,883)  

 
 
 

  (6)  

 
 

  

 
 
 
 

  Provision for (recovery of) income taxes  

 
 

  42,744  

 
 
 
 

  (3,365)  

 
 
 

  (7)  

 
 

  39,379  

 
 
 
 

   GAAP-based net income / Non-GAAP-based net income, attributable to OpenText   

 
 

  103,376  

 
 
 
 

  138,492  

 
 
 

  (8)  

 
 

  241,868  

 
 
 
 

   GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText   

 
 

  $  

 
 

  0.38  

 
 
 
 

  $  

 
 

  0.51  

 
 
 

  (8)  

 
 

  $  

 
 

  0.89  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                
 
 
 

  (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 29% 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 September 30, 2020   

 
 
 
 

   Per share diluted   

 
 

  GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  103,376  

 
 
 

  $  

 
 

  0.38  

 
 
 

  Add:  

 
 
 
 

  Amortization  

 
 

  113,030  

 
 
 

  0.41  

 
 
 

  Share-based compensation  

 
 

  11,736  

 
 
 

  0.04  

 
 
 

  Special charges (recoveries)  

 
 

  13,244  

 
 
 

  0.05  

 
 
 

  Other (income) expense, net  

 
 

  (2,883)  

 
 
 

  (0.01)  

 
 
 

  GAAP-based provision for (recovery of) income taxes  

 
 

  42,744  

 
 
 

  0.16  

 
 
 

  Non-GAAP-based provision for income taxes  

 
 

  (39,379)  

 
 
 

  (0.14)  

 
 
 

  Non-GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  241,868  

 
 
 

  $  

 
 

  0.89  

 
 
 
 

 

 
 
                                  
 

   Reconciliation of Adjusted EBITDA   

 
 
 
 

   Three Months Ended September 30, 2020   

 
 

  GAAP-based net income, attributable to OpenText  

 
 

  $  

 
 

  103,376  

 
 

  Add:  

 
 
 

  Provision for (recovery of) income taxes  

 
 

  42,744  

 
 

  Interest and other related expense, net  

 
 

  39,089  

 
 

  Amortization of acquired technology-based intangible assets  

 
 

  58,037  

 
 

  Amortization of acquired customer-based intangible assets  

 
 

  54,993  

 
 

  Depreciation  

 
 

  22,003  

 
 

  Share-based compensation  

 
 

  11,736  

 
 

  Special charges (recoveries)  

 
 

  13,244  

 
 

  Other (income) expense, net  

 
 

  (2,883)  

 
 

  Adjusted EBITDA  

 
 

  $  

 
 

  342,339  

 
 
 
 

  GAAP-based net income margin  

 
 

  12.9%  

 
 

  Adjusted EBITDA margin  

 
 

  42.6%  

 
 
 

 

 
 
                 
 

   Reconciliation of Free cash flows   

 
 
 
 

   Three Months Ended September 30, 2020   

 
 

  GAAP-based cash flows provided by operating activities  

 
 

  $  

 
 

  233,904  

 
 

  Add:  

 
 
 

  Capital expenditures (1)  

 
 

  (15,305)  

 
 

  Free cash flows  

 
 

  $  

 
 

  218,599  

 
 
 
 

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

 
 
 

 

 
 
      
 

  (3)  

 
 

  The following tables provide a composition of our major currencies for revenue and expenses, expressed as a percentage, for the three months ended September 30, 2021 and 2020:  

 
 
 
 
 
 
 
 
                                                                      
 
 

   Three Months Ended September 30, 2021   

 
 
 

   Three Months Ended September 30, 2020   

 
 

   Currencies   

 
 

   % of Revenue   

 
 

   % of Expenses (1)   

 
 
 

   % of Revenue   

 
 

   % of Expenses (1)   

 
 

  EURO  

 
 

  23  

 
 

  %  

 
 

  13  

 
 

  %  

 
 
 

  22  

 
 

  %  

 
 

  13  

 
 

  %  

 
 

  GBP  

 
 

  5  

 
 

  %  

 
 

  6  

 
 

  %  

 
 
 

  5  

 
 

  %  

 
 

  5  

 
 

  %  

 
 

  CAD  

 
 

  3  

 
 

  %  

 
 

  14  

 
 

  %  

 
 
 

  3  

 
 

  %  

 
 

  9  

 
 

  %  

 
 

  USD  

 
 

  61  

 
 

  %  

 
 

  52  

 
 

  %  

 
 
 

  63  

 
 

  %  

 
 

  56  

 
 

  %  

 
 

  Other  

 
 

  8  

 
 

  %  

 
 

  15  

 
 

  %  

 
 
 

  7  

 
 

  %  

 
 

  17  

 
 

  %  

 
 

  Total  

 
 

  100  

 
 

  %  

 
 

  100  

 
 

  %  

 
 
 

  100  

 
 

  %  

 
 

  100  

 
 

  %  

 
 
 
 
    
 
 
 

   (1)  

 
 

  Expenses include all cost of revenues and operating expenses included within the Condensed Consolidated Statements of Income, except for amortization of intangible assets, share-based compensation and special charges (recoveries).  

 
 
 

 

 

 

 

 Cision View original content: https://www.prnewswire.com/news-releases/opentext-reports-first-quarter-fiscal-year-2022-financial-results-301417080.html  

 

SOURCE Open Text Corporation

 
 

News Provided by PR Newswire via QuoteMedia

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