ARway.ai (CSE:ARWY, OTC: ARWYF, FSE:E65) is revolutionizing AR navigation with a cutting-edge no-code, no-beacon spatial computing solution enabled by visual marker tracking with centimeter precision. This technology enables enterprises to integrate a wide array of AR experiences including 3D products and objects, indoor AR navigation and wayfinding, audio, video, images, 3D text, hotspots, location pins and analytics.
The ARway.ai platform has diverse applications, particularly in indoor environments such as shopping malls, airports, hospitals, universities, sports arenas, museums, galleries, real estate, events and tradeshows. Augmented reality technology is particularly advantageous for navigation in these locations because it enables users to overlay digital information onto their physical surroundings, providing them with real-time directions and enhancing their situational awareness. This technology can also help users navigate complex spaces more efficiently, leading to a better overall user experience and quicker navigation to their desired point of interest.
ARway.ai solves current challenges with indoor wayfinding. Indoor wayfinding technologies currently in use suffer from various drawbacks, including costly hardware requirements and ongoing operational expenses. Venue owners and businesses that opt to implement their own wayfinding solutions face significant capital and operational expenditures. Moreover, these in-house solutions often suffer from connectivity issues that can considerably detract from the user experience. Legacy solutions require significant capEx and opEX for venues or enterprises to implement their own solutions.
This ARway.ai profile is part of a paid investor education campaign.*
ARway.ai (CSE:ARWY, OTCQB:ARWYF, FSE:E65) is an AI-powered technology company with an augmented reality (AR) experience platform for the enterprise market. This company is revolutionizing AR navigation with a cutting-edge, no-code, no-beacon spatial computing solution enabled by visual marker tracking with centimeter precision. This technology is disrupting the $44-billion indoor positioning and navigation market by enabling enterprises to integrate a wide array of AR experiences. These include indoor AR navigation and wayfinding, 3D products and objects, analytics, audio, video, images, 3D text, hotspots, location pins and more in indoor environments.
The ARway.ai platform has diverse applications, particularly in indoor environments such as shopping malls, airports, hospitals, universities, sports arenas, museums, galleries, real estate, events and tradeshows. Augmented reality technology is particularly advantageous for navigation in these locations because it enables users to overlay digital information onto their physical surroundings, providing them with real-time directions and enhancing their situational awareness. This technology can also help users navigate complex spaces more efficiently, leading to a better overall user experience and quicker navigation to their desired point of interest.
The market for indoor positioning and navigation is a rapidly growing and promising investment opportunity, valued at $44 billion with a 42 percent CAGR from 2018 to 2025. The rising demand for indoor navigation and positioning services in various sectors, including retail, aviation, healthcare, manufacturing and the public sector, has contributed to the surge in the market's popularity.
Additionally, the widespread adoption of emerging technologies has further fueled the demand for indoor navigation solutions. North America, Europe and APAC are anticipated to be major contributors to the overall market share, indicating vast opportunities for investors to explore this up-and-coming market.
As Apple (NASDAQ: AAPL) is set to launch its AR/VR glasses in 2023, the market for indoor wayfinding technology is expected to experience significant growth. ARway.ai is currently in discussions with various smart glasses manufacturers to explore potential collaboration opportunities. Furthermore, ARway.ai operates on a platform that is already accessible to over 3 billion users through their smartphones and tablets. The platform employs cutting-edge artificial intelligence (AI) technology to power its location intelligence service, which constantly tracks and enhances map functionality. Apple's AR glasses have the potential to revolutionize augmented reality navigation through mass adoption, and ARway.ai is actively seeking to capitalize on this trend.
Arway.ai has launched its latest innovation in augmented reality hardware with AR smart glasses to empower users to do more, unlocking new possibilities of application. ARway.ai’s technology enables 6DoF (six degrees of freedom) by accessing the AR smart glasses’ sensors and cameras. It eliminates any errors in motion so the augmented digital objects look and move as if they were really there.
The AR smart glasses greatly enhance productivity, lower expenses and track performance for large-scale as well as small enterprises. AR smart glasses for the manufacturing industry involve learning at various stages of the manufacturing cycle, testing for quality assurance, as well as understanding and executing production.
ARway.ai is a spin-off company from Nextech3D.ai, which owns 50 percent of ARway and has an impressive client roster, including Amazon, Target, Dyson and Kohls, to name a few. ARway.ai is Nextech3D’s first technology that has been spun off into a new public company, which is already producing a 200-percent return to early investors as of this article.
ARway.ai solves current challenges with indoor wayfinding. Indoor wayfinding technologies currently in use suffer from various drawbacks, including costly hardware requirements and ongoing operational expenses. Venue owners and businesses that opt to implement their own wayfinding solutions face significant capital and operational expenditures. Moreover, these in-house solutions often suffer from connectivity issues that can considerably detract from the user experience. Legacy solutions require significant capex and opex for venues or enterprises to implement their own solutions.
Instead of incurring significant expenses for enterprises, ARway.ai is an end-to-end solution that works by simply scanning a QR code or image to navigate to a specific point of interest. No hardware, no capex or opex is required. In addition, the app-based solution does not require additional hardware, making it affordable for enterprises to implement and easy for any customer in the venue to use. ARway.ai’s current clients include Dubai Mall, Restaurants Canada and Saudi German Health Group. The company currently has over 25 pilot programs around the globe, which represent significant upside potential for shareholders.
Evan Gappelberg attained his capital market expertise in the 1990s while working on Wall Street funding IPOs. Notably, he was instrumental in funding Take Two Interactive, which has a recent valuation of about $20 billion (NASDAQ:TTWO). Gappelberg is an accomplished entrepreneur with extensive experience in creating, funding and running pioneering start-ups. He has global business experience both as a hands-on CEO and as a public company CEO.
He started as an entrepreneur while on Wall Street where he was co-founder and CEO of EG Products, which he self-funded. While CEO, he went to China to set up manufacturing for the first LED light-up toy which he patented, imported and distributed globally. He secured license deals from Disney, Universal Studios and others while he built a retail national sales channel.
He was also co-founder and CEO of an app development company which created and published over 200 successful apps for both the Apple iTunes store and Google Play store.
He is an accomplished entrepreneur with expertise in creating, funding and running start-ups, and he has extensive experience both as a hands-on operating executive and well as a public market professional.
Reza Davariar Experienced business strategist and cross-organizational leader with 20+ years of professional experience across strategy consulting, business operations and sales management. He has a broad range of experience working with executive leadership, reducing internal costs, and establishing methodologies to boost customer satisfaction through successful operational performances, CRM initiatives, and KPI targeting.
Having worked at industry titans MSFT & META for over a decade Hareesh has a deep-rooted understanding of big technology, coupled with extensive experience in building efficient, scalable and profitable technology operations. Hareesh is poised to play a vital role in enhancing Nextech3D.ai’s profitability through operational effectiveness.
Shadnam Khan is a data-driven product, marketing and strategy leader who has pioneered multiple industry-first solutions in the world of 3D, AR, spatial computing and computer vision. With a decade of experience in scaling systems in both startups and enterprises, commercializing 0 to 1 products and advising c-suite executives on technology transformations, Khan leads ARway’s product, development, marketing and solution delivery services.
Nikhil Sawlani is a highly experienced and accomplished professional in the AR industry, with more than seven years of experience managing engineering teams to deliver state-of-the-art tech products. With extensive research knowledge about AR, location/navigation, and computer vision/SLAM, and a mastery of Three.js/WebAR, Nikhil has won more than 15 awards for his work in the domain of augmented reality and published international research on the topic of AR.
Demand For Augmented Reality Navigation is Accelerating
ARway.ai ("ARway" or the "Company") (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is an AI powered Augmented Reality Experience platform with a disruptive no-code, no beacon spatial computing solution enabled by visual marker tracking with centimeter precision is pleased to announce two new deals with new partners
ImmersLabs - https://www.immerslabs.com/
Signed up as an ARway Developer to test AR maps across three floors of a museum in the heart of Washington, D.C.
The installation aims to implement immersive navigation throughout the museum while allowing interactions with educational content about the museum and its exhibits. Visitors will have the opportunity to see and learn about the architectural updates that the museum has added as well as interact directly with parts of the exhibits through AR.
Riyad Bank - https://www.riyadbank.com/
Signed up as an ARway Developer to prototype a navigation experience in new corporate campus complex in Riyadh, Saudi Arabia
Aiming to deploy across all buildings across in their property to assist employees navigate from parking lots to offices and other ameneties in their buildings
Anum Wagas, CPA, CGA, previously the Director of Finance for Toggle3D.ai has been appointed interim Chief Financial Officer. Anum brings over a decade of experience from multinational companies and government sectors, with a strong background in financial reporting under IFRS. She succeeds Andrew Chan, who is exploring new job opportunities in different industries. The Board expresses appreciation for his contributions and wishes him success.
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To learn more about ARway, please follow on Social Media: Twitter, YouTube, Instagram, LinkedIn, and Facebook, and visit our website: www.arway.ai
About ARway.ai
ARway.ai (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is a spatial computing platform powered by artificial intelligence (AI) providing an array of augmented reality (AR) experiences for indoor spaces. ARway's breakthrough no-code no-beacon IPN allows for the easy creation of navigation, tours, information sharing, notifications, advertising and gamification. ARway works seamlessly as a cross platform solution on iOS/ Android. ARway's technology is optimized for both mobile devices and AR glasses: Apple's Vision Pro, Magic Leap and Microsoft's HoloLens. ARway has unlimited use cases for augmenting physical spaces, making it a valuable tool for creators, brands and companies in various industries. The complete ARway platform includes: the Web Creator Studio, the ARwayKit Software Development Kit (SDK) and a mobile app for iOs and Android.
Nextech 3D.ai
On October 26, 2022, ARway.ai. was spun-out from its parent Company, Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:1SS). Nextech retained a control ownership in ARway.ai. with 13 million shares, or a 50% stake. Nextech3D.ai is a Generative AI powered 3D modeling Company and leading provider of augmented reality ("AR") experience technologies and 3D model services. Nextech's AI-powered 3D modeling platform, "ARitize3D" has contracts with; AMZN, KSS, CB2, Genuine Parts & many others. To learn more about Nextech3D.ai, visit www.nextechar.com
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@arway.ai
ARway.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
Forward-Looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. ARway.ai will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE: Arway Corporation
News Provided by ACCESSWIRE via QuoteMedia
ARway.ai ("ARway" or the "Company") (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is an AI powered Augmented Reality Experience platform with a disruptive no-code, no beacon spatial computing solution enabled by visual marker tracking with centimeter precision is pleased to announce that George Mason University is signed up for the ARway platform and will be deploying ten spatial maps across the university campus. The rollout is part of a 2024 project aimed at enhancing the campus navigation and campus experience for students. GMU has an undergraduate enrollment of approximately 27,014 and the campus size is 817 acres. ARway.ai is seeing demand from across the globe for University Campus deployments, and is currently deployed in the Middle East at the Suleyman Demirel University in Turkey, In the EU at the Institut für Innovations- und Informationsmanagement (iFii), University of Applied Sciences Brandenburg. ARway has also signed multiple new subscriptions with prestigious universities around the globe including Bicol University in Indonesia, DHA Suffa University in Pakistan, University of Alberta in Canada, University College Cork in the UK and German University of Technology in Oman
The deployment of ARway is scheduled to begin in early summer, allowing the university to test the platform's capabilities extensively before a potential full campus rollout in 2025. 2024 plans include expanding the augmented reality tour to enable students to search for and navigate to various offices and buildings. This will significantly enhance the accessibility of campus resources and improve the overall student experience. The university has already submitted several conference proposals to present findings on this new technology and has dedicated time this summer to further research and development.
ARway.ai is committed to supporting George Mason University in its mission to leverage cutting-edge technology to create inclusive educational environments. This partnership represents a significant step forward in using augmented reality to transform educational spaces into more interactive and supportive ecosystems for all students. The ARway platform will be integrated into George Mason University's ongoing efforts to foster engagement, self-efficacy, and a sense of belonging among students - critical components for college success. Preliminary beta testing of ARway's interactive capabilities has shown promising results in enhancing student interaction and campus navigation.
The university is very excited to experiment with some of the interactivity that ARway provides. Based on their initial beta testing, they believe ARway will be very powerful in engaging and promoting self-efficacy and sense of belonging which are both essential to the long term success of the college experience.
Watch a demo video of ARway's technology at a university campus - click here
Recent News
ARway.ai The Spatial Computing Platform Shows 200% Developer Growth, Signs Multiple New Deals for its Augmented Reality Navigation Platform in Middle East & Spain
ARway.ai Introducing AR Navigation with Generative AI ChatGPT 4D Avatars in New Partner Deal with AVR Labs in UAE
ARway.ai Announces Successful Deployment of AR Wayfinding and Smart Campus Activation With Deutsche Telekom AG & The Prestigious Institut für Innovations- und Informationsmanagement (iFii), University of Applied Sciences Brandenburg
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To learn more about ARway, please follow on Social Media: Twitter, YouTube, Instagram, LinkedIn, and Facebook, and visit our website: www.arway.ai
About ARway.ai
ARway.ai (CSE: ARWY) (OTCQB: ARWYF) (FSE: E65) is a spatial computing platform powered by artificial intelligence (AI) providing an array of augmented reality (AR) experiences for indoor spaces. ARway's breakthrough no-code no-beacon IPN allows for the easy creation of navigation, tours, information sharing, notifications, advertising and gamification. ARway works seamlessly as a cross platform solution on iOS/ Android. ARway's technology is optimized for both mobile devices and AR glasses: Apple's Vision Pro, Magic Leap and Microsoft's HoloLens. ARway has unlimited use cases for augmenting physical spaces, making it a valuable tool for creators, brands and companies in various industries. The complete ARway platform includes: the Web Creator Studio, the ARwayKit Software Development Kit (SDK) and a mobile app for iOsand Android.
Nextech 3D.ai
On October 26, 2022, ARway.ai. was spun-out from its parent Company, Nextech3D.ai (OTCQX: NEXCF) (CSE: NTAR) (FSE: 1SS). Nextech retained a control ownership in ARway.ai. with 13 million shares, or a 50% stake. Nextech3D.ai is a Generative AI powered 3D modeling Company and leading provider of augmented reality ("AR") experience technologies and 3D model services. Nextech's AI-powered 3D modeling platform, "ARitize3D" has contracts with; AMZN, KSS, CB2, Genuine Parts & many others. To learn more about Nextech3D.ai, visit www.nextechar.com
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@arway.ai
ARway.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. ARway.ai will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE: Arway Corporation
News Provided by ACCESSWIRE via QuoteMedia
In Addition the Company Has Signed Several New University Student Plans
ARway.ai ("ARway" or the "Company") (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is an AI powered Augmented Reality Experience platform with a disruptive no-code, no beacon spatial computing solution enabled by visual marker tracking with centimeter precision is pleased to announce two new SaaS developer deals with leading companies in the Saudi Arabia and Spain. These partnerships underscore ARway.ai's commitment to enhancing spatial computing across various sectors and use cases, reaffirming its position as a leader in AR technology integration
In total, ARway.ai has 4400 active accounts and 4970 maps created on the platform.
Atmatah Location Automation: Innovating Navigation Solutions
Atmatah Location Automation, a Saudi Arabian beacon-based and IoT navigation solutions expert, has embraced ARway.ai's advanced technology to augment their existing tech stack. This collaboration aims to develop a prototype that integrates ARway.ai's cutting-edge AR navigation capabilities, endeavoring to create a revolutionary navigation solution that promises to open new revenue streams and customer acquisition avenues for Atmatah. This partnership represents a fusion of expertise and technology, setting a new benchmark in location automation and spatial computing.
Hospital Virtual Valdecilla: Revolutionizing Medical Training through AR
Hospital Virtual Valdecilla, a prestigious medical training institution located in Spain, has entered into a six-month subscription developer plan with ARway.ai. The objective is to craft a prototype tailored for hospitals and training centers, leveraging AR technology to enhance the training and onboarding processes for doctors and students in training. Unlike conventional treatment facilities, Hospital Virtual Valdecilla specializes in providing top-tier medical education, offering diplomas and certifications through innovative methodologies. The incorporation of ARway.ai's solutions is set to redefine how medical professionals receive training, adding a layer of interactivity and immersion that is pivotal for the modern healthcare industry.
These partnerships highlight ARway.ai's dedication to broadening the scope of AR technology, making it more accessible and applicable across diverse industries and regions. By joining forces with Atmatah Location Automation and Hospital Virtual Valdecilla, ARway.ai is not just expanding its global presence but also showcasing the versatility and transformative potential of its platform.
New Student Plan Subscriptions
ARway.ai has also signed multiple new student plan subscriptions with prestigious universities around the globe, with students from University College Cork in the UK and German University of Technology in Oman. This news follows recent news in March, announcing several student plan subscriptions from Bicol University, DHA Suffa University and the University of Alberta.
These collaborations mark an uptick in the utilization and recognition of ARway's platform within educational and research initiatives, highlighting a surge in interest from teachers, learners, and scholars towards the potential of XR/AR technologies.
Under the newly introduced global student plan subscriptions, undergraduate seniors, graduate, and doctoral students attending recognized universities will be eligible for the ARway Student Plan. These students, backed by university funding for designated programs and higher degrees such as computer science and spatial computing, will benefit from this plan aimed at enriching their academic and research endeavors.
Shares
The Company also announces that it has issued a total of 250,000 Common Shares to employees/consultants of the Company in lieu of payment for amounts owing for services rendered to the Company (the "Share Settlements"). The Common Shares issued pursuant to the Share Settlements were issued at prices of CAD$0.38 and subject to the statutory four month hold period under applicable securities laws in Canada.
Recent News
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To learn more about ARway, please follow on Social Media: Twitter, YouTube, Instagram, LinkedIn, and Facebook, and visit our website: www.arway.ai
About ARway.ai
ARway.ai (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is a spatial computing platform powered by artificial intelligence (AI) providing an array of augmented reality (AR) experiences for indoor spaces. ARway's breakthrough no-code no-beacon IPN allows for the easy creation of navigation, tours, information sharing, notifications, advertising and gamification. ARway works seamlessly as a cross platform solution on iOS/ Android. ARway's technology is optimized for both mobile devices and AR glasses: Apple's Vision Pro, Magic Leap and Microsoft's HoloLens. ARway has unlimited use cases for augmenting physical spaces, making it a valuable tool for creators, brands and companies in various industries. The complete ARway platform includes: the Web Creator Studio, the ARwayKit Software Development Kit (SDK) and a mobile app for iOs and Android.
Nextech 3D.ai
On October 26, 2022, ARway.ai. was spun-out from its parent Company, Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:1SS). Nextech retained a control ownership in ARway.ai. with 13 million shares, or a 50% stake. Nextech3D.ai is a Generative AI powered 3D modeling Company and leading provider of augmented reality ("AR") experience technologies and 3D model services. Nextech's AI-powered 3D modeling platform, "ARitize3D" has contracts with; AMZN, KSS, CB2, Genuine Parts & many others. To learn more about Nextech3D.ai, visit www.nextechar.com
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@arway.ai
ARway.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. ARway.ai will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE: Arway Corporation
News Provided by ACCESSWIRE via QuoteMedia
ARway.ai ("ARway" or the "Company") (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is an AI powered Augmented Reality Experience platform with a disruptive no-code, no beacon spatial computing solution enabled by visual marker tracking with centimeter precision is pleased to announce another paid partner deal with AVR Labs, a pioneering company based in the United Arab Emirates specializing in XR technologies. AVR Labs will be a recognized partner of ARway in the Gulf Region, increasing ARway's distribution channel, as they have 100+ projects from paying customers deployed across 20 countries around the globe
This collaboration is set to revolutionize AR navigation by integrating cutting-edge generative AI 3D/AR avatars with conversational immersive interaction capabilities, powered by ARway's advanced platform and AVR Labs' innovative solutions.
AVR Labs, with a robust presence across the Middle East and a diverse clientele including universities and government ministries, is an ARway agency partner that will implement ARway's technology for various customer projects. Renowned for their expertise in AI, AR, and VR technology, AVR Labs specializes in creating immersive experiences that captivate and engage audiences. One of their notable projects includes the development of AR VIEWZ GPT, an augmented reality GPT that enables dynamic, conversational interactions within AR environments.
The partnership aims to integrate these AR GPTs into the ARway platform, enhancing AR navigation experiences with the addition of conversational AI avatars. These avatars, accessible via a visual marker scan, will act as interactive tour guides, offering personalized navigation assistance and enriching user interactions within AR spaces.
This collaboration's first showcase will be at the World Future Energy Summit in Dubai, a premier event in the global energy and resources sector. At the summit, AVR Labs will deploy AR indoor navigation enhanced with GPT-powered 3D/AR avatars to guide visitors around the event, demonstrating the transformative potential of combining ARway's navigation solutions with AVR Labs' technology. This deployment will feature wayfinding around the event, integration of AI avatars for conversational interaction, and a presentation of ARway to the Middle Eastern market, with over 280 exhibitors participating from April 16-18.
ARway and AVR Labs are committed to pushing the boundaries of AR technology, aiming to expand their reach across various industries beyond the initial tradeshow project. With over 100 projects across 20 countries, AVR Labs plans to incorporate ARway's technology in client projects, significantly enhancing user experiences across diverse sectors.
This partnership marks a milestone in the evolution of AR navigation and interaction, setting a new standard for immersive technology applications in the Middle East and around the globe. ARway and AVR Labs look forward to redefining the future of AR experiences, offering users innovative ways to explore and interact with the world around them.
Scan the QR code using your smartphone to see an Avatar example:
To interact with the AI driven Avatar, please visit the AVR Labs website https://avrlabs.io/ and locate the Avatar in the bottom right corner:
About AVR Labs
AVR Labs, is a revolutionary Augmented, Virtual Reality, and Metaverse company based in Dubai with a commitment to contributing to the UAE's vision for innovation and evolution.
They offer XR solutions and services to help companies solidify their online presence and promote their product and services in an immersive and engaging way. They believe in the power of immersive technologies and their ability to transform and revolutionize the business world.
Recent News
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To learn more about ARway, please follow on Social Media: Twitter, YouTube, Instagram, LinkedIn, and Facebook, and visit our website: www.arway.ai
About ARway.ai
ARway.ai (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is a spatial computing platform powered by artificial intelligence (AI) providing an array of augmented reality (AR) experiences for indoor spaces. ARway's breakthrough no-code no-beacon IPN allows for the easy creation of navigation, tours, information sharing, notifications, advertising and gamification. ARway works seamlessly as a cross platform solution on iOS/ Android. ARway's technology is optimized for both mobile devices and AR glasses: Apple's Vision Pro, Magic Leap and Microsoft's HoloLens. ARway has unlimited use cases for augmenting physical spaces, making it a valuable tool for creators, brands and companies in various industries. The complete ARway platform includes: the Web Creator Studio, the ARwayKit Software Development Kit (SDK) and a mobile app for iOs and Android.
Nextech 3D.ai
On October 26, 2022, ARway.ai. was spun-out from its parent Company, Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:1SS). Nextech retained a control ownership in ARway.ai. with 13 million shares, or a 50% stake. Nextech3D.ai is a Generative AI powered 3D modeling Company and leading provider of augmented reality ("AR") experience technologies and 3D model services. Nextech's AI-powered 3D modeling platform, "ARitize3D" has contracts with; AMZN, KSS, CB2, Genuine Parts & many others. To learn more about Nextech3D.ai, visit www.nextechar.com
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@arway.ai
ARway.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. ARway.ai will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE:Arway Corporation
News Provided by ACCESSWIRE via QuoteMedia
ARway.ai ("ARway" or the "Company") (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is an AI powered Augmented Reality Experience platform with a disruptive no-code, no beacon spatial computing solution enabled by visual marker tracking with centimeter precision is pleased to the successful deployment of an innovative AR navigation system within the 5G campus network built by Deutsche Telekom AG on the Brandenburg University of Applied Sciences campus in Germany. The fully funded partnership with the Brandenburg University of Applied Sciences and its prestigious institute ifii (institute for innovation and information management) originally announced in October 2023, revolutionizes the way faculty and visitors experience the university campus, providing a seamless and intuitive AR experience and AR-powered navigation. As part of their 2024 roadmap, the university will implement, evaluate and publish research on over 20 different use cases with ARway's technology, highlighting the depth of this collaboration
Key components of deployment include:
Learn more about the project with Deutsche Telekom: click here
A significant number of master's students are conducting their theses on AR, leveraging the new system for their research. This academic involvement underscores the system's role not only as a navigational tool but also as a platform for academic and technological exploration.
Looking Forward
The successful deployment of this advanced AR navigation system, combined with the research and academic projects it supports, underscores the commitment of ARway, Brandenburg University of Applied Sciences, and Deutsche Telekom to driving innovation and excellence in technology and education. The Company anticipates this project will set new standards for digital campus experiences and open new pathways for the application of AR and 5G technologies in various sectors.
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To learn more about ARway, please follow on Social Media: Twitter, YouTube, Instagram, LinkedIn, and Facebook, and visit our website: www.arway.ai
About ARway.ai
ARway.ai (CSE:ARWY)(OTCQB:ARWYF)(FSE:E65) is a spatial computing platform powered by artificial intelligence (AI) providing an array of augmented reality (AR) experiences for indoor spaces. ARway's breakthrough no-code no-beacon IPN allows for the easy creation of navigation, tours, information sharing, notifications, advertising and gamification. ARway works seamlessly as a cross platform solution on iOS/ Android. ARway's technology is optimized for both mobile devices and AR glasses: Apple's Vision Pro, Magic Leap and Microsoft's HoloLens. ARway has unlimited use cases for augmenting physical spaces, making it a valuable tool for creators, brands and companies in various industries. The complete ARway platform includes: the Web Creator Studio, the ARwayKit Software Development Kit (SDK) and a mobile app for iOs and Android.
Nextech 3D.ai
On October 26, 2022, ARway.ai. was spun-out from its parent Company, Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:1SS). Nextech retained a control ownership in ARway.ai. with 13 million shares, or a 50% stake. Nextech3D.ai is a Generative AI powered 3D modeling Company and leading provider of augmented reality ("AR") experience technologies and 3D model services. Nextech's AI-powered 3D modeling platform, "ARitize3D" has contracts with; AMZN, KSS, CB2, Genuine Parts & many others. To learn more about Nextech3D.ai, visit www.nextechar.com.
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@ARway.ai
ARway.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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SOURCE:Arway Corporation
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Record Q3 Total Revenues and Enterprise Cloud Bookings
Announces $250 Million Share Repurchase Program
Fiscal 2024 Third Quarter Highlights
Total Revenues (in millions) | Annual Recurring Revenues (in millions) | Cloud Revenues (in millions) | |||||
Reported | Constant | Reported | Constant | Reported | Constant | ||
$1,447 | $1,444 | $1,146 | $1,143 | $455 | $454 | ||
+16.3 % | +16.0 % | +13.3 % | +13.1 % | +4.4 % | +4.4 % | ||
Annual Recurring Revenues represent 79% of Total Revenues | |||||||
WATERLOO, ON , May 2, 2024 /PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), today announced its financial results for the third quarter ended March 31, 2024.
"OpenText delivered strong financial performance in Q3 with revenues of $1.45 billion , or 16% year-over-year growth, reflecting customer demand for information management and new AI capabilities," said Mark J. Barrenechea , OpenText CEO & CTO. "OpenText sits at the center of connected ecosystems, the internet of clouds, and we play a trusted role as our customers adopt cloud, security and AI."
Mr. Barrenechea added: "OpenText is focused on growth, profitability and the future of Information Management. The divestiture of our AMC/Mainframe business is now complete, and we are using the net proceeds to repay $2 billion of debt. With our increased capital flexibility, we are pleased to announce a new capital allocation program, continuance of our dividend program, and a new $250 million share buyback."
"In Q3, OpenText successfully achieved its operating goals while focusing on supporting our growth initiatives," said Madhu Ranganathan , OpenText President, CFO & Corporate Development. "We delivered $464 million of adjusted EBITDA, up 27% year-over-year and free cash flows of $348 million , up 14% year-over-year. With the divestiture now complete and our capital flexibility restored, we expect to commence OpenText's cloud-based M&A strategy to complement our focus on organic growth."
(1) | Enterprise cloud bookings is defined as the total value from cloud services and subscription contracts, entered into in the period that are new, committed and incremental to our existing contracts, entered into with our enterprise based customers. |
(2) | Please see Note 2 "Use of Non-GAAP Financial Measures" to the condensed consolidated financial statements below. |
Financial Highlights for Q3 Fiscal 2024 with Year Over Year Comparisons
Summary of Quarterly Results | ||||||||
(In millions, except per share data) | Q3 FY'24 | Q3 FY'23 | $ Change | % Change | Q3 FY'24 | % Change | ||
Revenues: | ||||||||
Cloud services and subscriptions | $454.5 | $435.4 | $19.1 | 4.4 % | $454.4 | 4.4 % | ||
Customer support | 691.4 | 575.9 | 115.6 | 20.1 % | 689.0 | 19.6 % | ||
Total annual recurring revenues** | $1,146.0 | $1,011.3 | $134.6 | 13.3 % | $1,143.4 | 13.1 % | ||
License | 200.4 | 139.7 | 60.6 | 43.4 % | 200.0 | 43.2 % | ||
Professional service and other | 100.8 | 93.6 | 7.2 | 7.7 % | 100.2 | 7.0 % | ||
Total revenues | $1,447.1 | $1,244.7 | $202.5 | 16.3 % | $1,443.7 | 16.0 % | ||
GAAP-based operating income | $227.1 | $64.0 | $163.1 | 254.9 % | N/A | N/A | ||
Non-GAAP-based operating income (1) | $431.6 | $334.6 | $97.0 | 29.0 % | $429.7 | 28.4 % | ||
GAAP-based net income attributable to OpenText | $98.3 | $57.6 | $40.7 | 70.8 % | N/A | N/A | ||
GAAP-based EPS, diluted | $0.36 | $0.21 | $0.15 | 71.4 % | N/A | N/A | ||
Non-GAAP-based EPS, diluted (1)(2) | $0.94 | $0.73 | $0.21 | 28.8 % | $0.94 | 28.8 % | ||
Adjusted EBITDA (1) | $463.7 | $365.1 | $98.6 | 27.0 % | $461.5 | 26.4 % | ||
Operating cash flows | $384.7 | $336.8 | $47.9 | 14.2 % | N/A | N/A | ||
Free cash flows (1) | $348.2 | $305.5 | $42.6 | 13.9 % | N/A | N/A |
Summary of YTD Results | ||||||||
(In millions, except per share data) | FY'24 YTD | FY'23 YTD | $ Change | % Change | FY'24 | % Change | ||
Revenues: | ||||||||
Cloud services and subscriptions | $1,355.6 | $1,248.8 | $106.9 | 8.6 % | $1,349.1 | 8.0 % | ||
Customer support | 2,084.9 | 1,209.7 | 875.2 | 72.3 % | 2,059.8 | 70.3 % | ||
Total annual recurring revenues** | $3,440.5 | $2,458.5 | $982.0 | 39.9 % | $3,408.9 | 38.7 % | ||
License | 662.6 | 310.2 | 352.4 | 113.6 % | 654.3 | 110.9 % | ||
Professional service and other | 304.3 | 225.4 | 78.8 | 35.0 % | 299.3 | 32.8 % | ||
Total revenues | $4,407.4 | $2,994.2 | $1,413.3 | 47.2 % | $4,362.4 | 45.7 % | ||
GAAP-based operating income | $693.8 | $395.0 | $298.8 | 75.7 % | N/A | N/A | ||
Non-GAAP-based operating income (1) | $1,425.3 | $933.6 | $491.7 | 52.7 % | $1,394.1 | 49.3 % | ||
GAAP-based net income attributable to OpenText | $216.9 | $199.1 | $17.7 | 8.9 % | N/A | N/A | ||
GAAP-based EPS, diluted | $0.80 | $0.74 | $0.06 | 8.1 % | N/A | N/A | ||
Non-GAAP-based EPS, diluted (1)(2) | $3.19 | $2.39 | $0.80 | 33.5 % | $3.10 | 29.7 % | ||
Adjusted EBITDA (1) | $1,524.8 | $1,010.1 | $514.7 | 51.0 % | $1,492.3 | 47.7 % | ||
Operating cash flows | $782.5 | $663.9 | $118.6 | 17.9 % | N/A | N/A | ||
Free cash flows (1) | $663.2 | $564.1 | $99.0 | 17.6 % | N/A | N/A |
(1) | Please see Note 2 "Use of Non-GAAP Financial Measures" to the condensed consolidated financial statements below. |
(2) | Please also see Note 14 to the Company's Fiscal 2018 Consolidated Financial Statements on Form 10-K. Reflective of the amount of net tax benefit arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period. |
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. | |
Dividend
As part of our quarterly, non-cumulative cash dividend program, the Board declared on April 30, 2024, a cash dividend of $0.25 per common share. The record date for this dividend is May 31, 2024 and the payment date is June 18, 2024. OpenText believes strongly in returning value to its shareholders and intends to maintain its dividend program. Any future declarations of dividends and the establishment of future 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
OpenText also announced today the reinstatement of its share repurchase plan and that it intends to purchase for cancellation in open market transactions, from time to time over the next 12 months, if considered advisable, up to an aggregate of $250 million of its common shares on the Toronto Stock Exchange (the "TSX"), the NASDAQ Global Select Market 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 reinstate 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, as amended. Purchases made under the Repurchase Plan may commence on May 7, 2024 and will expire on May 6, 2025 , and will be subject to a limit of 13,643,472 shares (representing 5% of the Company's issued and outstanding common shares as of April 26, 2024 ). All common shares purchased by OpenText pursuant to the Repurchase Plan will be cancelled.
Normal Course Issuer Bid
The Company has reinstated 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 May 7, 2024 until May 6, 2025 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 13,643,472 shares (representing 5% of the Company's issued and outstanding common shares as of April 26, 2024 ), and the maximum number of shares that may be purchased on a single day is 138,175 common shares, which is 25% of 552,700 (the average daily trading volume for the common shares on the TSX for the six months ended March 31, 2024 ), subject to certain exceptions for block purchases, subject in any case to the volume and other limitations under Rule 10b -18.
The Company did not renew its NCIB that expired on November 11, 2022 , and therefore has not purchased any common shares under a NCIB within the past 12 months.
Quarterly Business Highlights
Summary of Quarterly Results | |||||||
Q3 FY'24 | Q2 FY'24 | Q3 FY'23 | % Change (Q3 FY'24 vs | % Change (Q3 FY'24 vs | |||
Revenue (millions) | $1,447.1 | $1,534.9 | $1,244.7 | (5.7) % | 16.3 % | ||
GAAP-based gross margin | 73.0 % | 73.6 % | 70.3 % | (60) | bps | 270 | bps |
Non-GAAP-based gross margin (1) | 76.7 % | 78.6 % | 75.8 % | (190) | bps | 90 | bps |
GAAP-based earnings (loss) per share, diluted | $0.36 | $0.14 | $0.21 | 157.1 % | 71.4 % | ||
Non-GAAP-based EPS, diluted (1)(2) | $0.94 | $1.24 | $0.73 | (24.2) % | 28.8 % |
(1) | Please see Note 2 "Use of Non-GAAP Financial Measures" to the condensed consolidated financial statements below. |
(2) | Please also see Note 14 to the Company's Fiscal 2018 Consolidated Financial Statements on Form 10-K. Reflective of the amount of net tax benefit arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period. |
Conference Call Information
OpenText posted an investor presentation on its Investor Relations website and invites the public to listen to the earnings conference call webcast today at 5:00 p.m. ET ( 2:00 p.m. PT ) from the Investor Relations section of the Company's website at https://investors.opentext.com . To join the webcast instantly, use this webcast link . A webcast replay will be available shortly following completion of the live call.
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.
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 Open Text Corporation ("OpenText" or "the Company") on growth, profitability and future of Information Management; future cloud booking growth and cloud demand; future organic growth initiatives and deployment of capital; intention to maintain a dividend program, including any targeted annualized dividend; expected size and timing of the Repurchase Plan, including execution thereof; organic growth of Micro Focus; the expected impact of the divestiture of the AMC business; future tax rates; new platform and product offerings and associated benefits to customers; continued strength in enterprise cloud businesses and our new OpenText Aviator™ AI products, including our AI strategy and vision; and other matters, which 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 intended to identify forward-looking statements or information under applicable securities laws (forward-looking statements). In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements, and are 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. Future declarations of dividends are also subject to the final determination and discretion of the Board of Directors, and an annualized dividend has not been approved or declared by the Board. Forward-looking statements involve known and unknown risks and uncertainties such as those relating to: all statements regarding the expected future financial position, results of operations, cash flows, dividends, share buybacks, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities, plans and objectives of management, including any anticipated synergy benefits; incurring unanticipated costs, delays or difficulties, including as a result of the integration of Micro Focus' operations and programs and the divestiture of the AMC business; and our ability to develop, protect and maintain our intellectual property and proprietary technology and to operate without infringing on the proprietary rights of others. We rely on a combination of copyright, patent, trademark and trade secret laws, non-disclosure agreements and other contractual provisions to establish and maintain our proprietary rights, which are important to our success. From time to time, we may also enforce our intellectual property rights through litigation in line with our strategic and business objectives. The actual results that OpenText achieves may differ materially from any forward-looking statements. 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. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website ( https://investors.opentext.com ). Such social media channels may include the Company's or our CEO's blog, X, formerly known as Twitter, account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication.
OTEX - F
Copyright ©2024 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/about/copyright-information .
OPEN TEXT CORPORATION | |||
March 31, 2024 | June 30, 2023 | ||
ASSETS | (unaudited) | ||
Cash and cash equivalents | $ 1,125,323 | $ 1,231,625 | |
Accounts receivable trade, net of allowance for credit losses of $11,390 as of March 31, 2024 and $13,828 as of June 30, 2023 | 654,190 | 682,517 | |
Contract assets | 66,124 | 71,196 | |
Income taxes recoverable | 14,119 | 68,161 | |
Prepaid expenses and other current assets | 212,261 | 221,732 | |
Assets held for sale | 2,120,311 | — | |
Total current assets | 4,192,328 | 2,275,231 | |
Property and equipment | 346,073 | 356,904 | |
Operating lease right of use assets | 229,327 | 285,723 | |
Long-term contract assets | 42,659 | 64,553 | |
Goodwill | 7,528,147 | 8,662,603 | |
Acquired intangible assets | 2,624,117 | 4,080,879 | |
Deferred tax assets | 1,019,878 | 926,719 | |
Other assets | 314,580 | 342,318 | |
Long-term income taxes recoverable | 95,567 | 94,270 | |
Total assets | $ 16,392,676 | $ 17,089,200 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 898,611 | $ 996,261 | |
Current portion of long-term debt | 45,850 | 320,850 | |
Operating lease liabilities | 80,960 | 91,425 | |
Deferred revenues | 1,583,638 | 1,721,781 | |
Income taxes payable | 150,990 | 89,297 | |
Liabilities held for sale | 228,106 | — | |
Total current liabilities | 2,988,155 | 3,219,614 | |
Long-term liabilities: | |||
Accrued liabilities | 48,031 | 51,961 | |
Pension liability, net | 128,955 | 126,312 | |
Long-term debt | 8,305,670 | 8,562,096 | |
Long-term operating lease liabilities | 224,984 | 271,579 | |
Long-term deferred revenues | 170,544 | 217,771 | |
Long-term income taxes payable | 154,679 | 193,808 | |
Deferred tax liabilities | 241,013 | 423,955 | |
Total long-term liabilities | 9,273,876 | 9,847,482 | |
Shareholders' equity: | |||
Share capital and additional paid-in capital | |||
272,561,685 and 270,902,571 Common Shares issued and outstanding at March 31, 2024 and June 30, 2023, respectively; authorized Common Shares: unlimited | 2,276,758 | 2,176,947 | |
Accumulated other comprehensive income (loss) | (73,045) | (53,559) | |
Retained earnings | 2,059,060 | 2,048,984 | |
Treasury stock, at cost (3,376,994 and 3,536,375 shares at March 31, 2024 and June 30, 2023, respectively) | (133,606) | (151,597) | |
Total OpenText shareholders' equity | 4,129,167 | 4,020,775 | |
Non-controlling interests | 1,478 | 1,329 | |
Total shareholders' equity | 4,130,645 | 4,022,104 | |
Total liabilities and shareholders' equity | $ 16,392,676 | $ 17,089,200 | |
OPEN TEXT CORPORATION | |||||||
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues: | |||||||
Cloud services and subscriptions | $ 454,528 | $ 435,449 | $ 1,355,633 | $ 1,248,774 | |||
Customer support | 691,441 | 575,884 | 2,084,916 | 1,209,743 | |||
License | 200,363 | 139,722 | 662,627 | 310,230 | |||
Professional service and other | 100,799 | 93,619 | 304,252 | 225,403 | |||
Total revenues | 1,447,131 | 1,244,674 | 4,407,428 | 2,994,150 | |||
Cost of revenues: | |||||||
Cloud services and subscriptions | 186,400 | 157,658 | 537,960 | 423,771 | |||
Customer support | 74,639 | 67,067 | 223,027 | 123,010 | |||
License | 6,769 | 3,840 | 16,591 | 10,461 | |||
Professional service and other | 75,455 | 78,526 | 230,836 | 186,390 | |||
Amortization of acquired technology-based intangible assets | 48,094 | 62,639 | 195,702 | 146,139 | |||
Total cost of revenues | 391,357 | 369,730 | 1,204,116 | 889,771 | |||
Gross profit | 1,055,774 | 874,944 | 3,203,312 | 2,104,379 | |||
Operating expenses: | |||||||
Research and development | 234,022 | 210,731 | 688,679 | 430,629 | |||
Sales and marketing | 296,249 | 271,013 | 848,313 | 615,354 | |||
General and administrative | 145,924 | 127,047 | 450,399 | 282,724 | |||
Depreciation | 32,109 | 30,577 | 99,615 | 76,609 | |||
Amortization of acquired customer-based intangible assets | 100,841 | 97,237 | 334,958 | 205,121 | |||
Special charges (recoveries) | 19,561 | 74,350 | 87,521 | 98,937 | |||
Total operating expenses | 828,706 | 810,955 | 2,509,485 | 1,709,374 | |||
Income from operations | 227,068 | 63,989 | 693,827 | 395,005 | |||
Other income (expense), net | 9,950 | 85,706 | (38,664) | 59,824 | |||
Interest and other related expense, net | (132,663) | (104,502) | (413,719) | (183,599) | |||
Income before income taxes | 104,355 | 45,193 | 241,444 | 271,230 | |||
Provision for (recovery of) income taxes | 6,028 | (12,420) | 24,434 | 71,979 | |||
Net income for the period | $ 98,327 | $ 57,613 | $ 217,010 | $ 199,251 | |||
Net (income) attributable to non-controlling interests | (42) | (57) | (149) | (138) | |||
Net income attributable to OpenText | $ 98,285 | $ 57,556 | $ 216,861 | $ 199,113 | |||
Earnings per share—basic attributable to OpenText | $ 0.36 | $ 0.21 | $ 0.80 | $ 0.74 | |||
Earnings per share—diluted attributable to OpenText | $ 0.36 | $ 0.21 | $ 0.80 | $ 0.74 | |||
Weighted average number of Common Shares outstanding—basic (in ' 000's) | 272,272 | 270,441 | 271,671 | 270,143 | |||
Weighted average number of Common Shares outstanding—diluted (in ' 000's) | 273,033 | 270,650 | 272,349 | 270,173 | |||
OPEN TEXT CORPORATION | |||||||
Three Months Ended March 31, | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income for the period | $ 98,327 | $ 57,613 | $ 217,010 | $ 199,251 | |||
Other comprehensive income (loss)—net of tax: | |||||||
Net foreign currency translation adjustments | 11,765 | (28,640) | (18,614) | (25,587) | |||
Unrealized gain (loss) on cash flow hedges: | |||||||
Unrealized gain (loss) - net of tax (1) | (1,634) | 38 | (1,953) | (2,343) | |||
(Gain) loss reclassified into net income - net of tax (2) | 118 | 699 | 455 | 2,388 | |||
Unrealized gain (loss) on available-for-sale financial assets: | |||||||
Unrealized gain (loss) - net of tax (3) | 90 | (900) | 319 | (900) | |||
Actuarial gain (loss) relating to defined benefit pension plans: | |||||||
Actuarial gain (loss) - net of tax (4) | — | (3,318) | (110) | 878 | |||
Amortization of actuarial (gain) loss into net income - net of tax (5) | 115 | 35 | 417 | 109 | |||
Total other comprehensive income (loss) net, for the period | 10,454 | (32,086) | (19,486) | (25,455) | |||
Total comprehensive income | 108,781 | 25,527 | 197,524 | 173,796 | |||
Comprehensive income attributable to non - controlling interests | (42) | (57) | (149) | (138) | |||
Total comprehensive income attributable to OpenText | $ 108,739 | $ 25,470 | $ 197,375 | $ 173,658 | |||
(1) | Net of tax expense (recovery) of ($589) and $15 for the three months ended March 31, 2024 and 2023, respectively; $(704) and $(844) for the nine months ended March 31, 2024 and 2023, respectively. | |||||
(2) | Net of tax expense (recovery) of $42 and $252 for the three months ended March 31, 2024 and 2023, respectively; $163 and $861 for the nine months ended March 31, 2024 and 2023, respectively. | |||||
(3) | Net of tax expense (recovery) of $24 and ($238) for the three months ended March 31, 2024 and 2023, respectively; $84 and ($238) for the nine months ended March 31, 2024 and 2023, respectively. | |||||
(4) | Net of tax expense (recovery) of $— and $(892) for the three months ended March 31, 2024 and 2023, respectively; $110 and $318 for the nine months ended March 31, 2024 and 2023, respectively. | |||||
(5) | Net of tax expense (recovery) of $50 and $25 for the three months ended March 31, 2024 and 2023, respectively; $175 and $76 for the nine months ended March 31, 2024 and 2023, respectively. | |||||
OPEN TEXT CORPORATION | |||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||
Common Shares and | Treasury Stock | Retained Earnings | Accumulated Comprehensive Income | Non-Controlling | Total | ||||||||||
Shares | Amount | Shares | Amount | ||||||||||||
Balance as of December 31, 2023 | 271,855 | $ 2,261,856 | (4,400) | $ (179,089) | $ 2,029,643 | $ (83,499) | $ 1,436 | $ 4,030,347 | |||||||
Issuance of Common Shares | |||||||||||||||
Under employee stock option plans | 517 | 17,315 | — | — | — | — | — | 17,315 | |||||||
Under employee stock purchase plans | 190 | 6,698 | — | — | — | — | — | 6,698 | |||||||
Share-based compensation | — | 35,947 | — | — | — | — | — | 35,947 | |||||||
Issuance of treasury stock | — | (45,058) | 1,023 | 45,483 | (425) | — | — | — | |||||||
Dividends declared ($0.25 per Common Share) | — | — | — | — | (68,443) | — | — | (68,443) | |||||||
Other comprehensive income (loss) - net | — | — | — | — | — | 10,454 | — | 10,454 | |||||||
Net income for the period | — | — | — | — | 98,285 | — | 42 | 98,327 | |||||||
Balance as of March 31, 2024 | 272,562 | $ 2,276,758 | (3,377) | $ (133,606) | $ 2,059,060 | $ (73,045) | $ 1,478 | $ 4,130,645 | |||||||
Three Months Ended March 31, 2023 | |||||||||||||||
Common Shares and | Treasury Stock | Retained Earnings | Accumulated Comprehensive Income | Non-Controlling | Total | ||||||||||
Shares | Amount | Shares | Amount | ||||||||||||
Balance as of December 31, 2022 | 270,235 | $ 2,092,079 | (3,295) | $ (142,126) | $ 2,171,236 | $ (1,028) | $ 1,223 | $ 4,121,384 | |||||||
Issuance of Common Shares | |||||||||||||||
Under employee stock option plans | 16 | 479 | — | — | — | — | — | 479 | |||||||
Under employee stock purchase plans | 228 | 5,776 | — | — | — | — | — | 5,776 | |||||||
Share-based compensation | — | 36,505 | — | — | — | — | — | 36,505 | |||||||
Issuance of treasury stock | — | (4,496) | 79 | 3,426 | — | — | — | (1,070) | |||||||
Dividends declared ($0.24299 per Common Share) | — | — | — | — | (65,454) | — | — | (65,454) | |||||||
Other comprehensive income (loss) - net | — | — | — | — | — | (32,086) | — | (32,086) | |||||||
Net income for the period | — | — | — | — | 57,556 | — | 57 | 57,613 | |||||||
Balance as of March 31, 2023 | 270,479 | $ 2,130,343 | (3,216) | $ (138,700) | $ 2,163,338 | $ (33,114) | $ 1,280 | $ 4,123,147 | |||||||
OPEN TEXT CORPORATION | |||||||||||||||
Nine Months Ended March 31, 2024 | |||||||||||||||
Common Shares and | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income | Non-Controlling Interests | Total | ||||||||||
Shares | Amount | Shares | Amount | ||||||||||||
Balance as of June 30, 2023 | 270,903 | $ 2,176,947 | (3,536) | $ (151,597) | $ 2,048,984 | $ (53,559) | $ 1,329 | $ 4,022,104 | |||||||
Issuance of Common Shares | |||||||||||||||
Under employee stock option plans | 942 | 31,318 | — | — | — | — | — | 31,318 | |||||||
Under employee stock purchase plans | 717 | 23,709 | — | — | — | — | — | 23,709 | |||||||
Share-based compensation | — | 112,944 | — | — | — | — | — | 112,944 | |||||||
Purchase of treasury stock | — | — | (1,400) | (53,085) | — | — | — | (53,085) | |||||||
Issuance of treasury stock | — | (68,160) | 1,559 | 71,076 | (2,916) | — | — | — | |||||||
Dividends declared ($0.75 per Common Share) | — | — | — | — | (203,869) | — | — | (203,869) | |||||||
Other comprehensive income (loss) - net | — | — | — | — | — | (19,486) | — | (19,486) | |||||||
Net income for the period | — | — | — | — | 216,861 | — | 149 | 217,010 | |||||||
Balance as of March 31, 2024 | 272,562 | $ 2,276,758 | (3,377) | $ (133,606) | $ 2,059,060 | $ (73,045) | $ 1,478 | $ 4,130,645 | |||||||
Nine Months Ended March 31, 2023 | |||||||||||||||
Common Shares and | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income | Non-Controlling Interests | Total | ||||||||||
Shares | Amount | Shares | Amount | ||||||||||||
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 | |||||||
Issuance of Common Shares | |||||||||||||||
Under employee stock option plans | 88 | 2,473 | — | — | — | — | — | 2,473 | |||||||
Under employee stock purchase plans | 868 | 22,997 | — | — | — | — | — | 22,997 | |||||||
Share-based compensation | — | 88,535 | — | — | — | — | — | 88,535 | |||||||
Issuance of treasury stock | — | (22,336) | 490 | 21,266 | — | — | — | (1,070) | |||||||
Dividends declared ($0.72897 per Common Share) | — | — | — | — | (195,844) | — | — | (195,844) | |||||||
Other comprehensive income (loss) - net | — | — | — | — | — | (25,455) | — | (25,455) | |||||||
Net income for the period | — | — | — | — | 199,113 | — | 138 | 199,251 | |||||||
Balance as of March 31, 2023 | 270,479 | $ 2,130,343 | (3,216) | $ (138,700) | $ 2,163,338 | $ (33,114) | $ 1,280 | $ 4,123,147 | |||||||
OPEN TEXT CORPORATION | |||||||
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Cash flows from operating activities: | |||||||
Net income for the period | $ 98,327 | $ 57,613 | $ 217,010 | $ 199,251 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of intangible assets | 181,044 | 190,453 | 630,275 | 427,869 | |||
Share-based compensation expense | 36,042 | 36,368 | 113,312 | 88,398 | |||
Pension expense | 3,196 | 2,362 | 9,579 | 5,806 | |||
Amortization of debt discount and issuance costs | 6,766 | 5,330 | 19,587 | 8,496 | |||
Write-off of right of use assets | 4,278 | 3,344 | 15,241 | 7,119 | |||
Loss on extinguishment of debt | 10,803 | 21 | 10,803 | 8,152 | |||
Loss on sale and write down of property and equipment, net | (162) | 1,307 | 1,715 | 1,428 | |||
Deferred taxes | (72,144) | (131,898) | (249,174) | (178,700) | |||
Share in net loss of equity investees | 835 | 4,724 | 19,013 | 11,547 | |||
Changes in financial instruments | (16,671) | 102,713 | 3,551 | 112,567 | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 111,772 | 167,866 | 51,487 | 141,269 | |||
Contract assets | (24,859) | (11,442) | (71,486) | (29,896) | |||
Prepaid expenses and other current assets | 728 | (62,121) | 4,717 | (65,186) | |||
Income taxes | 16,943 | 87,277 | 75,676 | 131,517 | |||
Accounts payable and accrued liabilities | (24,731) | (146,638) | (72,887) | (137,674) | |||
Deferred revenue | 56,840 | (13,498) | 14,338 | (42,631) | |||
Other assets | 650 | 54,708 | 5,868 | (5,998) | |||
Operating lease assets and liabilities, net | (4,960) | (11,714) | (16,154) | (19,430) | |||
Net cash provided by operating activities | 384,697 | 336,775 | 782,471 | 663,904 | |||
Cash flows from investing activities: | |||||||
Additions of property and equipment | (36,537) | (31,233) | (119,316) | (99,772) | |||
Micro Focus acquisition | — | (5,655,606) | (9,272) | (5,655,606) | |||
Realized gain on financial instruments | — | 131,248 | — | 131,248 | |||
Proceeds from net investment hedge derivative contracts | 2,490 | — | 4,456 | — | |||
Other investing activities | 6,315 | — | (468) | (873) | |||
Net cash used in investing activities | (27,732) | (5,555,591) | (124,600) | (5,625,003) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of Common Shares from exercise of stock options and ESPP | 27,770 | 9,399 | 57,027 | 25,172 | |||
Proceeds from long-term debt and Revolver | — | 3,927,450 | — | 4,927,450 | |||
Repayment of long-term debt and Revolver | (186,463) | (11,463) | (559,389) | (16,463) | |||
Debt issuance costs | — | (65,559) | (2,792) | (77,209) | |||
Purchase of treasury stock | — | — | (53,085) | — | |||
Payments of dividends to shareholders | (67,293) | (64,919) | (200,672) | (194,481) | |||
Other financing activities | (1,447) | (2,193) | (1,447) | (2,193) | |||
Net cash provided by (used in) financing activities | (227,433) | 3,792,715 | (760,358) | 4,662,276 | |||
Foreign exchange gain (loss) on cash held in foreign currencies | (7,521) | 2,903 | (3,982) | 2,632 | |||
Income (decrease) in cash, cash equivalents and restricted cash during the period | 122,011 | (1,423,198) | (106,469) | (296,191) | |||
Cash, cash equivalents and restricted cash at beginning of the period | 1,005,472 | 2,822,918 | 1,233,952 | 1,695,911 | |||
Cash, cash equivalents and restricted cash at end of the period | $ 1,127,483 | $ 1,399,720 | $ 1,127,483 | $ 1,399,720 | |||
OPEN TEXT CORPORATION | |||
Reconciliation of cash, cash equivalents and restricted cash: | March 31, 2024 | March 31, 2023 | |
Cash and cash equivalents | $ 1,125,323 | $ 1,396,817 | |
Restricted cash (1) | 2,160 | 2,903 | |
Total cash, cash equivalents and restricted cash | $ 1,127,483 | $ 1,399,720 | |
(1) | Restricted cash is classified under the Prepaid expenses and other current assets and Other assets line items on the 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 condensed 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 condensed 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 (loss) or earnings (loss) 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 (loss), attributable to OpenText, excluding interest income (expense), provision for (recovery of) 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.
Return of capital per share as the total value of cash dividends paid and common shares repurchased in the period divided by by the weighted average number of common shares outstanding during the period.
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 in response to our return to office planning, 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. Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to F'24 targets and F'26 aspirations, including A-EBITDA is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.
The following charts provide unaudited reconciliations of U.S. GAAP-based financial measures to Non-GAAP-based financial measures for the following periods presented. The Micro Focus Acquisition significantly impacts period-over-period comparability.
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended March 31, 2024 (In thousands, except for per share data) | ||||||
Three Months Ended March 31, 2024 | ||||||
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 | $ 186,400 | $ (3,292) | (1) | $ 183,108 | ||
Customer support | 74,639 | (1,149) | (1) | 73,490 | ||
Professional service and other | 75,455 | (1,458) | (1) | 73,997 | ||
Amortization of acquired technology-based intangible assets | 48,094 | (48,094) | (2) | — | ||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 1,055,774 | 73.0 % | 53,993 | (3) | 1,109,767 | 76.7 % |
Operating expenses | ||||||
Research and development | 234,022 | (10,799) | (1) | 223,223 | ||
Sales and marketing | 296,249 | (12,260) | (1) | 283,989 | ||
General and administrative | 145,924 | (7,084) | (1) | 138,840 | ||
Amortization of acquired customer-based intangible assets | 100,841 | (100,841) | (2) | — | ||
Special charges (recoveries) | 19,561 | (19,561) | (4) | — | ||
GAAP-based income from operations / Non-GAAP-based income from operations | 227,068 | 204,538 | (5) | 431,606 | ||
Other income (expense), net | 9,950 | (9,950) | (6) | — | ||
Provision for income taxes | 6,028 | 35,824 | (7) | 41,852 | ||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 98,285 | 158,764 | (8) | 257,049 | ||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ 0.36 | $ 0.58 | (8) | $ 0.94 | ||
(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. Other income (expense) also includes unrealized and realized gains (losses) on our derivatives which are not designated as hedges. We exclude gains and losses on these derivatives 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 6% 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 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 income to Non-GAAP-based net income: |
Three Months Ended March 31, 2024 | ||
Per share diluted | ||
GAAP-based net income, attributable to OpenText | $ 98,285 | $ 0.36 |
Add (deduct): | ||
Amortization | 148,935 | 0.55 |
Share-based compensation | 36,042 | 0.13 |
Special charges (recoveries) | 19,561 | 0.07 |
Other (income) expense, net | (9,950) | (0.04) |
GAAP-based provision for income taxes | 6,028 | 0.02 |
Non-GAAP-based provision for income taxes | (41,852) | (0.15) |
Non-GAAP-based net income, attributable to OpenText | $ 257,049 | $ 0.94 |
Reconciliation of Adjusted EBITDA | |
Three Months Ended March 31, 2024 | |
GAAP-based net income, attributable to OpenText | $ 98,285 |
Add: | |
Provision for income taxes | 6,028 |
Interest and other related expense, net | 132,663 |
Amortization of acquired technology-based intangible assets | 48,094 |
Amortization of acquired customer-based intangible assets | 100,841 |
Depreciation | 32,109 |
Share-based compensation | 36,042 |
Special charges (recoveries) | 19,561 |
Other (income) expense, net | (9,950) |
Adjusted EBITDA | $ 463,673 |
GAAP-based net income margin | 6.8 % |
Adjusted EBITDA margin | 32.0 % |
Reconciliation of Free cash flows | |
Three Months Ended March 31, 2024 | |
GAAP-based cash flows provided by operating activities | $ 384,697 |
Add: | |
Capital expenditures (1) | (36,537) |
Free cash flows | $ 348,160 |
(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 nine months ended March 31, 2024 (In thousands, except for per share data) | ||||||
Nine Months Ended March 31, 2024 | ||||||
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 | $ 537,960 | $ (9,892) | (1) | $ 528,068 | ||
Customer support | 223,027 | (3,335) | (1) | 219,692 | ||
Professional service and other | 230,836 | (5,096) | (1) | 225,740 | ||
Amortization of acquired technology-based intangible assets | 195,702 | (195,702) | (2) | — | ||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 3,203,312 | 72.7 % | 214,025 | (3) | 3,417,337 | 77.5 % |
Operating expenses | ||||||
Research and development | 688,679 | (35,300) | (1) | 653,379 | ||
Sales and marketing | 848,313 | (37,294) | (1) | 811,019 | ||
General and administrative | 450,399 | (22,395) | (1) | 428,004 | ||
Amortization of acquired customer-based intangible assets | 334,958 | (334,958) | (2) | — | ||
Special charges (recoveries) | 87,521 | (87,521) | (4) | — | ||
GAAP-based income from operations / Non-GAAP-based income from operations | 693,827 | 731,493 | (5) | 1,425,320 | ||
Other income (expense), net | (38,664) | 38,664 | (6) | — | ||
Provision for income taxes | 24,434 | 117,191 | (7) | 141,625 | ||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 216,861 | 652,966 | (8) | 869,827 | ||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ 0.80 | $ 2.39 | (8) | $ 3.19 | ||
(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. Other income (expense) also includes unrealized and realized gains (losses) on our derivatives which are not designated as hedges. We exclude gains and losses on these derivatives 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 10% 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 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: |
Nine Months Ended March 31, 2024 | ||
Per share diluted | ||
GAAP-based net income, attributable to OpenText | $ 216,861 | $ 0.80 |
Add (deduct): | ||
Amortization | 530,660 | 1.95 |
Share-based compensation | 113,312 | 0.42 |
Special charges (recoveries) | 87,521 | 0.32 |
Other (income) expense, net | 38,664 | 0.13 |
GAAP-based provision for income taxes | 24,434 | 0.09 |
Non-GAAP-based provision for income taxes | (141,625) | (0.52) |
Non-GAAP-based net income, attributable to OpenText | $ 869,827 | $ 3.19 |
Reconciliation of Adjusted EBITDA | |
Nine Months Ended March 31, 2024 | |
GAAP-based net income, attributable to OpenText | $ 216,861 |
Add: | |
Provision for income taxes | 24,434 |
Interest and other related expense, net | 413,719 |
Amortization of acquired technology-based intangible assets | 195,702 |
Amortization of acquired customer-based intangible assets | 334,958 |
Depreciation | 99,615 |
Share-based compensation | 113,312 |
Special charges (recoveries) | 87,521 |
Other (income) expense, net | 38,664 |
Adjusted EBITDA | $ 1,524,786 |
GAAP-based net income margin | 4.9 % |
Adjusted EBITDA margin | 34.6 % |
Reconciliation of Free cash flows | |
Nine Months Ended March 31, 2024 | |
GAAP-based cash flows provided by operating activities | $ 782,471 |
Add: | |
Capital expenditures (1) | (119,316) |
Free cash flows | $ 663,155 |
(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 three months ended December 31, 2023 (In thousands, except for per share data) | ||||||
Three Months Ended December 31, 2023 | ||||||
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 | $ 180,148 | $ (3,609) | (1) | $ 176,539 | ||
Customer support | 73,374 | (1,128) | (1) | 72,246 | ||
Professional service and other | 75,459 | (1,756) | (1) | 73,703 | ||
Amortization of acquired technology-based intangible assets | 70,784 | (70,784) | (2) | — | ||
GAAP-based gross profit and gross margin (%) /Non-GAAP-based gross profit and gross margin (%) | 1,129,120 | 73.6 % | 77,277 | (3) | 1,206,397 | 78.6 % |
Operating expenses | ||||||
Research and development | 220,220 | (12,767) | (1) | 207,453 | ||
Sales and marketing | 280,263 | (13,227) | (1) | 267,036 | ||
General and administrative | 173,264 | (7,688) | (1) | 165,576 | ||
Amortization of acquired customer-based intangible assets | 113,925 | (113,925) | (2) | — | ||
Special charges (recoveries) | 54,166 | (54,166) | (4) | — | ||
GAAP-based income from operations / Non-GAAP-based income from operations | 253,867 | 279,050 | (5) | 532,917 | ||
Other income (expense), net | (68,784) | 68,784 | (6) | — | ||
Provision for income taxes | 8,054 | 47,054 | (7) | 55,108 | ||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 37,675 | 300,780 | (8) | 338,455 | ||
GAAP-based earnings (loss) per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ 0.14 | $ 1.10 | (8) | $ 1.24 | ||
(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. Other income (expense) also includes unrealized and realized gains (losses) on our derivatives which are not designated as hedges. We exclude gains and losses on these derivatives 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 18% 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 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 December 31, 2023 | ||
Per share diluted | ||
GAAP-based net income, attributable to OpenText | $ 37,675 | $ 0.14 |
Add (deduct): | ||
Amortization | 184,709 | 0.68 |
Share-based compensation | 40,175 | 0.15 |
Special charges (recoveries) | 54,166 | 0.20 |
Other (income) expense, net | 68,784 | 0.24 |
GAAP-based provision for income taxes | 8,054 | 0.03 |
Non-GAAP-based provision for income taxes | (55,108) | (0.20) |
Non-GAAP-based net income, attributable to OpenText | $ 338,455 | $ 1.24 |
Reconciliation of Adjusted EBITDA | |
Three Months Ended December 31, 2023 | |
GAAP-based net income, attributable to OpenText | $ 37,675 |
Add (deduct): | |
Provision for income taxes | 8,054 |
Interest and other related expense, net | 139,292 |
Amortization of acquired technology-based intangible assets | 70,784 |
Amortization of acquired customer-based intangible assets | 113,925 |
Depreciation | 33,415 |
Share-based compensation | 40,175 |
Special charges (recoveries) | 54,166 |
Other (income) expense, net | 68,784 |
Adjusted EBITDA | $ 566,270 |
GAAP-based net income margin | 2.5 % |
Adjusted EBITDA margin | 36.9 % |
Reconciliation of Free cash flows | |
Three Months Ended December 31, 2023 | |
GAAP-based cash flows provided by operating activities | $ 350,653 |
Add: | |
Capital expenditures (1) | (45,240) |
Free cash flows | $ 305,413 |
(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 three months ended March 31, 2023 (In thousands, except for per share data) | ||||||
Three Months Ended March 31, 2023 | ||||||
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 | $ 157,658 | $ (2,943) | (1) | $ 154,715 | ||
Customer support | 67,067 | (1,157) | (1) | 65,910 | ||
Professional service and other | 78,526 | (1,884) | (1) | 76,642 | ||
Amortization of acquired technology-based intangible assets | 62,639 | (62,639) | (2) | — | ||
GAAP-based gross profit and gross margin (%) /Non-GAAP-based gross profit and gross margin (%) | 874,944 | 70.3 % | 68,623 | (3) | 943,567 | 75.8 % |
Operating expenses | ||||||
Research and development | 210,731 | (10,801) | (1) | 199,930 | ||
Sales and marketing | 271,013 | (11,947) | (1) | 259,066 | ||
General and administrative | 127,047 | (7,636) | (1) | 119,411 | ||
Amortization of acquired customer-based intangible assets | 97,237 | (97,237) | (2) | — | ||
Special charges (recoveries) | 74,350 | (74,350) | (4) | — | ||
GAAP-based income from operations / Non-GAAP-based income from operations | 63,989 | 270,594 | (5) | 334,583 | ||
Other income (expense), net | 85,706 | (85,706) | (6) | — | ||
Provision for (recovery of) income taxes | (12,420) | 44,631 | (7) | 32,211 | ||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 57,556 | 140,257 | (8) | 197,813 | ||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ 0.21 | $ 0.52 | (8) | $ 0.73 | ||
(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. Other income (expense) also includes unrealized and realized gains (losses) on our derivatives which are not designated as hedges. We exclude gains and losses on these derivatives 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 27% 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 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 March 31, 2023 | ||
Per share diluted | ||
GAAP-based net income, attributable to OpenText | $ 57,556 | $ 0.21 |
Add (deduct): | ||
Amortization | 159,876 | 0.59 |
Share-based compensation | 36,368 | 0.13 |
Special charges (recoveries) | 74,350 | 0.28 |
Other (income) expense, net | (85,706) | (0.32) |
GAAP-based recovery of income taxes | (12,420) | (0.04) |
Non-GAAP-based provision for income taxes | (32,211) | (0.12) |
Non-GAAP-based net income, attributable to OpenText | $ 197,813 | $ 0.73 |
Reconciliation of Adjusted EBITDA | |
Three Months Ended March 31, 2023 | |
GAAP-based net income, attributable to OpenText | $ 57,556 |
Add (deduct): | |
Recovery of income taxes | (12,420) |
Interest and other related expense, net | 104,502 |
Amortization of acquired technology-based intangible assets | 62,639 |
Amortization of acquired customer-based intangible assets | 97,237 |
Depreciation | 30,577 |
Share-based compensation | 36,368 |
Special charges (recoveries) | 74,350 |
Other (income) expense, net | (85,706) |
Adjusted EBITDA | $ 365,103 |
GAAP-based net income margin | 4.6 % |
Adjusted EBITDA margin | 29.3 % |
Reconciliation of Free cash flows | |
Three Months Ended March 31, 2023 | |
GAAP-based cash flows provided by operating activities | $ 336,775 |
Add: | |
Capital expenditures (1) | (31,233) |
Free cash flows | $ 305,542 |
(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 nine months ended March 31, 2023 (In thousands, except for per share data) | ||||||
Nine Months Ended March 31, 2023 | ||||||
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 | $ 423,771 | $ (7,788) | (1) | $ 415,983 | ||
Customer support | 123,010 | (2,414) | (1) | 120,596 | ||
Professional service and other | 186,390 | (5,172) | (1) | 181,218 | ||
Amortization of acquired technology-based intangible assets | 146,139 | (146,139) | (2) | — | ||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 2,104,379 | 70.3 % | 161,513 | (3) | 2,265,892 | 75.7 % |
Operating expenses | ||||||
Research and development | 430,629 | (25,481) | (1) | 405,148 | ||
Sales and marketing | 615,354 | (28,243) | (1) | 587,111 | ||
General and administrative | 282,724 | (19,300) | (1) | 263,424 | ||
Amortization of acquired customer-based intangible assets | 205,121 | (205,121) | (2) | — | ||
Special charges (recoveries) | 98,937 | (98,937) | (4) | — | ||
GAAP-based income from operations / Non-GAAP-based income from operations | 395,005 | 538,595 | (5) | 933,600 | ||
Other income (expense), net | 59,824 | (59,824) | (6) | — | ||
Provision for income taxes | 71,979 | 33,021 | (7) | 105,000 | ||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 199,113 | 445,750 | (8) | 644,863 | ||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ 0.74 | $ 1.65 | (8) | $ 2.39 | ||
(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. Other income (expense) also includes unrealized and realized gains (losses) on our derivatives which are not designated as hedges. We exclude gains and losses on these derivatives 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 27% 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 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: |
Nine Months Ended March 31, 2023 | ||
Per share diluted | ||
GAAP-based net income, attributable to OpenText | $ 199,113 | $ 0.74 |
Add (deduct): | ||
Amortization | 351,260 | 1.30 |
Share-based compensation | 88,398 | 0.32 |
Special charges (recoveries) | 98,937 | 0.37 |
Other (income) expense, net | (59,824) | (0.22) |
GAAP-based provision for income taxes | 71,979 | 0.27 |
Non-GAAP-based provision for income taxes | (105,000) | (0.39) |
Non-GAAP-based net income, attributable to OpenText | $ 644,863 | $ 2.39 |
Reconciliation of Adjusted EBITDA | |
Nine Months Ended March 31, 2023 | |
GAAP-based net income, attributable to OpenText | $ 199,113 |
Add: | |
Provision for income taxes | 71,979 |
Interest and other related expense, net | 183,599 |
Amortization of acquired technology-based intangible assets | 146,139 |
Amortization of acquired customer-based intangible assets | 205,121 |
Depreciation | 76,609 |
Share-based compensation | 88,398 |
Special charges (recoveries) | 98,937 |
Other (income) expense, net | (59,824) |
Adjusted EBITDA | $ 1,010,071 |
GAAP-based net income margin | 6.7 % |
Adjusted EBITDA margin | 33.7 % |
Reconciliation of Free cash flows | |
Nine Months Ended March 31, 2023 | |
GAAP-based cash flows provided by operating activities | $ 663,904 |
Add: | |
Capital expenditures (1) | (99,772) |
Free cash flows | $ 564,132 |
(1) Defined as "Additions of property and equipment" in the 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 and nine months ended March 31, 2024 and 2023:
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||
Currencies | % of Revenue | % of Expenses (1) | % of Revenue | % of Expenses (1) | |
EURO | 22 % | 12 % | 21 % | 12 % | |
GBP | 5 % | 7 % | 5 % | 8 % | |
CAD | 3 % | 10 % | 3 % | 11 % | |
USD | 59 % | 50 % | 61 % | 50 % | |
Other | 11 % | 21 % | 10 % | 19 % | |
Total | 100 % | 100 % | 100 % | 100 % | |
Nine Months Ended March 31, 2024 | Nine Months Ended March 31, 2023 | ||||
Currencies | % of Revenue | % of Expenses (1) | % of Revenue | % of Expenses (1) | |
EURO | 22 % | 12 % | 20 % | 12 % | |
GBP | 5 % | 7 % | 5 % | 6 % | |
CAD | 3 % | 10 % | 3 % | 12 % | |
USD | 59 % | 51 % | 63 % | 53 % | |
Other | 11 % | 20 % | 9 % | 17 % | |
Total | 100 % | 100 % | 100 % | 100 % | |
(1) | Expenses include all cost of revenues and operating expenses included within the Consolidated Statements of Income, except for amortization of intangible assets, share-based compensation and special charges (recoveries). |
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SOURCE Open Text Corporation
News Provided by PR Newswire via QuoteMedia
OpenText to Reduce Debt by $2 Billion
Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), today announced that it has successfully completed the divestiture of its AMCMainframe business to Rocket Software, Inc., a Bain Capital portfolio company ("Rocket Software"), for $2.275 billion in cash before taxes, fees and other adjustments.
"We are pleased to complete the divestiture of our AMC/Mainframe business to Rocket Software," said Mark J. Barrenechea , OpenText CEO & CTO. "We intend to use the net proceeds from the divestiture to reduce our debt by $2 billion and lower our net leverage ratio to under 3x. Further, the divestiture allows the company to focus on the future of Information Management, which is innovation and growth in the Cloud, Security, and AI markets and the opportunity to expand our capital allocation program for shareholders."
Additional details on the impact of the divestiture to the remainder of Fiscal 2024 will be outlined as part of the Company's quarterly earnings results scheduled for May 2, 2024 .
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. 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, 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. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website ( https://investors.opentext.com ). Such social media channels may include the Company's or our CEO's blog, X, formerly known as Twitter, account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication.
Note: All dollar amounts in this press release are in U.S. dollars unless otherwise indicated.
OTEX-MNA
Copyright ©2024 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
News Provided by PR Newswire via QuoteMedia
Solves open source intake challenges
OpenText™ (NASDAQ: OTEX), (TSX: OTEX), today announced an innovative solution to long-standing open source intake challenges. Developers spend a significant amount of time searching for open source libraries that comply with their company intake policies. OpenText Debricked Open Source Select is a unique start left solution to this age-old problem. It guides developers in selecting the right open source components—those that meet an organization's specific security, compliance and community health intake requirements—before a single line of code is written.
According to a 2024 Forrester Consulting study commissioned by OpenText, 66 percent of organizations struggle to find open source code that meets their organization's security policies. Open Source Select is unique in that it removes the guesswork by automating the management of open source discovery and intake based on a company's specific policies.
Software composition analysis tools examine open source already in use for risks and vulnerabilities. With its new automated intake policy system, Open Source Select starts at the true beginning—before open source libraries are selected and integrated into development code branches—pre-empting potential issues. Open Source Select's innovative policy overlay provides developers with visibility into what they can use, saving developers valuable time—sometimes weeks—by circumventing back-and-forth internal approval processes.
"A major source of friction between developers, compliance teams and security teams is developer selection of open source libraries. With our latest innovation, we are making the discovery and intake process much easier for all," said Muhi Majzoub, Chief Product Officer and EVP at OpenText. "With Open Source Select, we are filling an important gap in the DevOps lifecycle. In doing so we are increasing developer and policy review teams' productivity and improving security by eliminating workarounds."
Open Source Select is easy to deploy and requires no extra lift beyond a simple browser extension install. The browser extension is compatible with the free version; it can also complement any existing software composition analysis tool already in use. Developers currently using the free version can download Open Source Select by visiting Debricked Select Extension .
What to learn more? Visit Open Source Select to request a demo. Or stop by the OpenText booth (North Hall #4235) at RSAC in San Francisco May 6-9 .
About OpenText Cybersecurity
OpenText Cybersecurity provides comprehensive security solutions for companies and partners of all sizes. From prevention, detection and response to recovery, investigation and compliance, our unified/end-to-end platform helps customers build cyber resilience via a holistic security portfolio. Powered by actionable insights from our real-time and contextual threat intelligence, OpenText Cybersecurity customers benefit from high efficacy products, a compliant experience and simplified security to help manage business risk.
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 .
Connect with us:
OpenText CEO Mark Barrenechea's blog
Twitter | LinkedIn
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 obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Copyright © 2024 OpenText. All Rights Reserved. Trademarks owned by OpenText. One or more patents may cover this product(s). For more information, please visit https://www.opentext.com/patents . Third-party products mentioned are owned by the respective third-party and/or its affiliates.
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SOURCE Open Text Corporation
News Provided by PR Newswire via QuoteMedia
Company unveils its latest information management solutions, powered by AI and designed to catalyze business transformation through reimagining the way work is approached
OpenText™ (NASDAQ: OTEX), (TSX: OTEX), the information company, today announced Cloud Editions (CE) 24.2 at its OpenText World Europe conference April 15-18 . OpenText's innovations combine trusted information management solutions and data strategies with advanced artificial intelligence (AI) capabilities to make work smarter, safer, and simpler.
Titanium X is OpenText's strategic product roadmap to be delivered by CE 25.2. The three areas of innovation are:
As AI continues to shape our world, trust and governance is essential for fostering confidence in AI technologies. With 80% of organizations already exploring or investing in generative AI , transparent and accountable AI technologies are imperative for the future of customer support and customer success. Built from OpenText's expertise in information management, the company's latest AI-enabled innovations are poised to meet this need, providing robust solutions to fuel innovation and growth.
"As organizations navigate their Cloud, Security and AI journeys, establishing trust in data integrity is paramount and at the center of what is required," said Muhi Majzoub, EVP and Chief Product Officer, OpenText. "With CE 24.2, we are delivering against our 90-day innovation cycles to bring advancements in our Business Clouds, Business AI, and Business Technology. OpenText solutions bring knowledge and empowerment, equipping our customers and partners with the tools and data insights needed to navigate these journeys effectively, regardless of the challenges they face."
Business Clouds
New offerings in OpenText Business Clouds 24.2 include:
Business AI
New offerings in OpenText Aviator include:
Business Technology
New offerings in OpenText™ Aviator Platforms 24.2 include:
Availability
As a part of the quarterly OpenText Cloud Editions releases, customers benefit from new AI capabilities every 90-days. For more information on availability or to join a beta program for future innovations, contact OpenText .
Additional Resources:
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
Connect with us:
OpenText CEO Mark Barrenechea's blog
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. 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, 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. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website ( https://investors.opentext.com ). Such social media channels may include the Company's or our CEO's blog, Twitter account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication.
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