(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
101.INS | XBRL instance document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL taxonomy extension schema. | |||||||
101.CAL | Inline XBRL taxonomy extension calculation linkbase. | |||||||
101.DEF | Inline XBRL taxonomy extension definition linkbase. | |||||||
101.LAB | Inline XBRL taxonomy extension label linkbase. | |||||||
101.PRE | Inline XBRL taxonomy extension presentation. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
OPEN TEXT CORPORATION | ||||||||||||||
By: | /s/ MADHU RANGANATHAN | |||||||||||||
Madhu Ranganathan Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |||||||
99.1 | ||||||||
101.INS | XBRL instance document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL taxonomy extension schema. | |||||||
101.CAL | Inline XBRL taxonomy extension calculation linkbase. | |||||||
101.DEF | Inline XBRL taxonomy extension definition linkbase. | |||||||
101.LAB | Inline XBRL taxonomy extension label linkbase. | |||||||
101.PRE | Inline XBRL taxonomy extension presentation. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Total Revenues (in millions) | Annual Recurring Revenues (in millions) | Cloud Revenues (in millions) | |||||||||||||||||||||
Reported | Constant Currency | Reported | Constant Currency | Reported | Constant Currency | ||||||||||||||||||
$852 | $892 | $722 | $754 | $405 | $417 | ||||||||||||||||||
+2.4% | +7.1% | +4.4% | +8.9% | +13.5% | +16.9% | ||||||||||||||||||
Annual Recurring Revenues represent 85% of Total Revenues |
Summary of Quarterly Results | ||||||||||||||||||||||||||
(In millions, except per share data) | Q1 FY'23 | Q1 FY'22 | $ Change | % Change | Q1 FY'23 in CC* | % Change in CC* | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Cloud services and subscriptions | $404.7 | $356.6 | $48.1 | 13.5 | % | $416.8 | 16.9 | % | ||||||||||||||||||
Customer support | 317.4 | 335.2 | ($17.9) | (5.3) | % | 336.9 | 0.5 | % | ||||||||||||||||||
Total annual recurring revenues** | $722.0 | $691.8 | $30.2 | 4.4 | % | $753.6 | 8.9 | % | ||||||||||||||||||
License | 62.5 | 73.5 | ($11.0) | (14.9) | % | 66.4 | (9.7) | % | ||||||||||||||||||
Professional service and other | 67.5 | 67.0 | $0.5 | 0.8 | % | 71.8 | 7.2 | % | ||||||||||||||||||
Total revenues | $852.0 | $832.3 | $19.7 | 2.4 | % | $891.8 | 7.1 | % | ||||||||||||||||||
GAAP-based operating income | $146.4 | $182.7 | ($36.3) | (19.9) | % | N/A | N/A | |||||||||||||||||||
Non-GAAP-based operating income (1) | $280.9 | $302.0 | ($21.1) | (7.0) | % | $296.4 | (1.9) | % | ||||||||||||||||||
GAAP-based net income (loss) attributable to OpenText | ($116.9) | $131.9 | ($248.8) | (188.6) | % | N/A | N/A | |||||||||||||||||||
GAAP-based EPS, diluted | ($0.43) | $0.48 | ($0.91) | (189.6) | % | N/A | N/A | |||||||||||||||||||
Non-GAAP-based EPS, diluted (1)(2) | $0.77 | $0.83 | ($0.06) | (7.2) | % | $0.83 | — | % | ||||||||||||||||||
Adjusted EBITDA (1) | $304.0 | $323.4 | ($19.3) | (6.0) | % | $319.7 | (1.1) | % | ||||||||||||||||||
Operating cash flows | $132.0 | $189.7 | ($57.7) | (30.4) | % | N/A | N/A | |||||||||||||||||||
Free cash flows (1) | $95.6 | $163.0 | ($67.3) | (41.3) | % | N/A | N/A |
Summary of Quarterly Results | |||||||||||||||||||||||
Q1 FY'23 | Q4 FY'22 | Q1 FY'22 | % Change (Q1 FY'23 vs Q4 FY'22) | % Change (Q1 FY'23 vs Q1 FY'22) | |||||||||||||||||||
Revenue (millions) | $852.0 | $902.5 | $832.3 | (5.6) | % | 2.4 | % | ||||||||||||||||
GAAP-based gross margin | 69.7 | % | 70.2 | % | 69.0 | % | (50) | bps | 70 | bps | |||||||||||||
Non-GAAP-based gross margin (1) | 75.2 | % | 75.9 | % | 75.7 | % | (70) | bps | (50) | bps | |||||||||||||
GAAP-based EPS, diluted | ($0.43) | $0.38 | $0.48 | (213.2) | % | (189.6) | % | ||||||||||||||||
Non-GAAP-based EPS, diluted (1)(2) | $0.77 | $0.80 | $0.83 | (3.8) | % | (7.2) | % |
September 30, 2022 | June 30, 2022 | ||||||||||
ASSETS | (unaudited) | ||||||||||
Cash and cash equivalents | $ | 1,704,385 | $ | 1,693,741 | |||||||
Accounts receivable trade, net of allowance for credit losses of $15,410 as of September 30, 2022 and $16,473 as of June 30, 2022 | 378,143 | 426,652 | |||||||||
Contract assets | 27,802 | 26,167 | |||||||||
Income taxes recoverable | 8,856 | 18,255 | |||||||||
Prepaid expenses and other current assets | 124,868 | 120,552 | |||||||||
Total current assets | 2,244,054 | 2,285,367 | |||||||||
Property and equipment | 251,151 | 244,709 | |||||||||
Operating lease right of use assets | 201,374 | 198,132 | |||||||||
Long-term contract assets | 18,544 | 19,719 | |||||||||
Goodwill | 5,226,814 | 5,244,653 | |||||||||
Acquired intangible assets | 974,589 | 1,075,208 | |||||||||
Deferred tax assets | 814,471 | 810,154 | |||||||||
Other assets | 299,608 | 256,987 | |||||||||
Long-term income taxes recoverable | 46,483 | 44,044 | |||||||||
Total assets | $ | 10,077,088 | $ | 10,178,973 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 601,074 | $ | 448,607 | |||||||
Current portion of long-term debt | 10,000 | 10,000 | |||||||||
Operating lease liabilities | 58,969 | 56,380 | |||||||||
Deferred revenues | 848,789 | 902,202 | |||||||||
Income taxes payable | 58,692 | 51,069 | |||||||||
Total current liabilities | 1,577,524 | 1,468,258 | |||||||||
Long-term liabilities: | |||||||||||
Accrued liabilities | 20,119 | 18,208 | |||||||||
Pension liability | 53,202 | 60,951 | |||||||||
Long-term debt | 4,208,547 | 4,209,567 | |||||||||
Long-term operating lease liabilities | 197,328 | 198,695 | |||||||||
Long-term deferred revenues | 85,514 | 91,144 | |||||||||
Long-term income taxes payable | 42,087 | 34,003 | |||||||||
Deferred tax liabilities | 42,626 | 65,887 | |||||||||
Total long-term liabilities | 4,649,423 | 4,678,455 | |||||||||
Shareholders' equity: | |||||||||||
Share capital and additional paid-in capital | |||||||||||
269,880,769 and 269,522,639 Common Shares issued and outstanding at September 30, 2022 and June 30, 2022, respectively; authorized Common Shares: unlimited | 2,067,881 | 2,038,674 | |||||||||
Accumulated other comprehensive income (loss) | (42,576) | (7,659) | |||||||||
Retained earnings | 1,978,442 | 2,160,069 | |||||||||
Treasury stock, at cost (3,586,014 and 3,706,420 shares at September 30, 2022 and June 30, 2022, respectively) | (154,792) | (159,966) | |||||||||
Total OpenText shareholders' equity | 3,848,955 | 4,031,118 | |||||||||
Non-controlling interests | 1,186 | 1,142 | |||||||||
Total shareholders' equity | 3,850,141 | 4,032,260 | |||||||||
Total liabilities and shareholders' equity | $ | 10,077,088 | $ | 10,178,973 |
Three Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Revenues: | |||||||||||
Cloud services and subscriptions | $ | 404,651 | $ | 356,589 | |||||||
Customer support | 317,351 | 335,237 | |||||||||
License | 62,548 | 73,529 | |||||||||
Professional service and other | 67,486 | 66,953 | |||||||||
Total revenues | 852,036 | 832,308 | |||||||||
Cost of revenues: | |||||||||||
Cloud services and subscriptions | 131,799 | 119,779 | |||||||||
Customer support | 27,354 | 29,483 | |||||||||
License | 2,758 | 3,969 | |||||||||
Professional service and other | 53,800 | 51,725 | |||||||||
Amortization of acquired technology-based intangible assets | 42,637 | 53,167 | |||||||||
Total cost of revenues | 258,348 | 258,123 | |||||||||
Gross profit | 593,688 | 574,185 | |||||||||
Operating expenses: | |||||||||||
Research and development | 110,198 | 100,165 | |||||||||
Sales and marketing | 167,170 | 146,240 | |||||||||
General and administrative | 78,074 | 71,477 | |||||||||
Depreciation | 23,174 | 21,386 | |||||||||
Amortization of acquired customer-based intangible assets | 54,438 | 51,884 | |||||||||
Special charges (recoveries) | 14,281 | 344 | |||||||||
Total operating expenses | 447,335 | 391,496 | |||||||||
Income from operations | 146,353 | 182,689 | |||||||||
Other income (expense), net | (189,231) | 29,782 | |||||||||
Interest and other related expense, net | (40,382) | (37,055) | |||||||||
Income (loss) before income taxes | (83,260) | 175,416 | |||||||||
Provision for income taxes | 33,625 | 43,450 | |||||||||
Net income (loss) for the period | $ | (116,885) | $ | 131,966 | |||||||
Net (income) loss attributable to non-controlling interests | (44) | (51) | |||||||||
Net income (loss) attributable to OpenText | $ | (116,929) | $ | 131,915 | |||||||
Earnings (loss) per share—basic attributable to OpenText | $ | (0.43) | $ | 0.48 | |||||||
Earnings (loss) per share—diluted attributable to OpenText | $ | (0.43) | $ | 0.48 | |||||||
Weighted average number of Common Shares outstanding—basic (in '000's) | 269,804 | 272,044 | |||||||||
Weighted average number of Common Shares outstanding—diluted (in '000's) | 269,804 | 273,232 |
Three Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Net income (loss) | $ | (116,885) | $ | 131,966 | |||||||
Other comprehensive income (loss)—net of tax: | |||||||||||
Net foreign currency translation adjustments | (36,366) | (10,092) | |||||||||
Unrealized gain (loss) on cash flow hedges: | |||||||||||
Unrealized gain (loss) - net of tax expense (recovery) effect of ($1,206) and ($391) for the three months ended September 30, 2022 and 2021, respectively | (3,340) | (1,086) | |||||||||
(Gain) loss reclassified into net income - net of tax (expense) recovery effect of $212 and ($103) for the three months ended September 30, 2022 and 2021, respectively | 588 | (287) | |||||||||
Actuarial gain (loss) relating to defined benefit pension plans: | |||||||||||
Actuarial gain (loss) - net of tax expense (recovery) effect of $1,104 and ($232) for the three months ended September 30, 2022 and 2021, respectively | 4,164 | (1,049) | |||||||||
Amortization of actuarial (gain) loss into net income - net of tax (expense) recovery effect of $26 and $68 for the three months ended September 30, 2022 and 2021, respectively | 37 | 162 | |||||||||
Total other comprehensive income (loss) net | (34,917) | (12,352) | |||||||||
Total comprehensive income (loss) | (151,802) | 119,614 | |||||||||
Comprehensive (income) loss attributable to non-controlling interests | (44) | (51) | |||||||||
Total comprehensive income (loss) attributable to OpenText | $ | (151,846) | $ | 119,563 |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Common Shares and Additional Paid in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 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 | 72 | 1,994 | — | — | — | — | — | 1,994 | |||||||||||||||||||||||||||||||||||||||
Under employee stock purchase plans | 286 | 9,179 | — | — | — | — | — | 9,179 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 23,208 | — | — | — | — | — | 23,208 | |||||||||||||||||||||||||||||||||||||||
Issuance of treasury stock | — | (5,174) | 120 | 5,174 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared (0.24299 per Common Share) | — | — | — | — | (64,698) | — | — | (64,698) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) - net | — | — | — | — | — | (34,917) | — | (34,917) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) for the period | — | — | — | — | (116,929) | — | 44 | (116,885) | |||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | 269,881 | 2,067,881 | (3,586) | (154,792) | 1,978,442 | (42,576) | 1,186 | 3,850,141 |
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Common Shares and Additional Paid in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income | Non-Controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 271,541 | $ | 1,947,764 | (1,568) | $ | (69,386) | $ | 2,153,326 | $ | 66,238 | $ | 1,511 | $ | 4,099,453 | |||||||||||||||||||||||||||||||||
Issuance of Common Shares | |||||||||||||||||||||||||||||||||||||||||||||||
Under employee stock option plans | 796 | 27,299 | — | — | — | — | — | 27,299 | |||||||||||||||||||||||||||||||||||||||
Under employee stock purchase plans | 197 | 8,489 | — | — | — | — | — | 8,489 | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 13,934 | — | — | — | — | — | 13,934 | |||||||||||||||||||||||||||||||||||||||
Issuance of treasury stock | — | (5,909) | 142 | 5,909 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.2209 per Common Share) | — | — | — | — | (59,878) | — | — | (59,878) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) - net | — | — | — | — | — | (12,352) | — | (12,352) | |||||||||||||||||||||||||||||||||||||||
Distribution to non-controlling interest | — | 142 | — | — | — | — | (538) | (396) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) for the period | — | — | — | — | 131,915 | — | 51 | 131,966 | |||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | 272,534 | 1,991,719 | (1,426) | (63,477) | 2,225,363 | 53,886 | 1,024 | 4,208,515 |
Three Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) for the period | $ | (116,885) | $ | 131,966 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of intangible assets | 120,249 | 126,437 | |||||||||
Share-based compensation expense | 23,208 | 13,934 | |||||||||
Pension expense | 1,387 | 1,486 | |||||||||
Amortization of debt issuance costs | 1,480 | 1,161 | |||||||||
Write-off of right of use assets | 2,827 | — | |||||||||
Loss on sale and write down of property and equipment | — | 27 | |||||||||
Deferred taxes | (20,667) | 14,682 | |||||||||
Share in net (income) loss of equity investees | 6,534 | (29,315) | |||||||||
Unrealized (gain) loss on financial instruments | 181,461 | — | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 59,494 | 76,526 | |||||||||
Contract assets | (9,054) | (7,248) | |||||||||
Prepaid expenses and other current assets | (2,934) | (9,811) | |||||||||
Income taxes | 15,834 | 16,761 | |||||||||
Accounts payable and accrued liabilities | (27,179) | (114,334) | |||||||||
Deferred revenue | (53,779) | (38,516) | |||||||||
Other assets | (47,749) | 7,542 | |||||||||
Operating lease assets and liabilities, net | (2,268) | (1,629) | |||||||||
Net cash provided by operating activities | 131,959 | 189,669 | |||||||||
Cash flows from investing activities: | |||||||||||
Additions of property and equipment | (36,324) | (26,712) | |||||||||
Other investing activities | — | 296 | |||||||||
Net cash used in investing activities | (36,324) | (26,416) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of Common Shares from exercise of stock options and ESPP | 10,037 | 36,720 | |||||||||
Repayment of long-term debt and Revolver | (2,500) | (2,500) | |||||||||
Distribution to non-controlling interest | — | (396) | |||||||||
Payments of dividends to shareholders | (64,698) | (59,878) | |||||||||
Net cash provided by (used in) financing activities | (57,161) | (26,054) | |||||||||
Foreign exchange gain (loss) on cash held in foreign currencies | (28,102) | (9,277) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash during the period | 10,372 | 127,922 | |||||||||
Cash, cash equivalents and restricted cash at beginning of the period | 1,695,911 | 1,609,800 | |||||||||
Cash, cash equivalents and restricted cash at end of the period | $ | 1,706,283 | $ | 1,737,722 |
Reconciliation of cash, cash equivalents and restricted cash: | September 30, 2022 | September 30, 2021 | |||||||||
Cash and cash equivalents | $ | 1,704,385 | $ | 1,735,265 | |||||||
Restricted cash (1) | 1,898 | 2,457 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 1,706,283 | $ | 1,737,722 | |||||||
(1) Restricted cash is classified under the Prepaid expenses and other current assets and Other assets line items on the Consolidated Balance Sheets. |
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended September 30, 2022 (In thousands, except for per share data) | ||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||
GAAP-based Measures | GAAP-based Measures % of Total Revenue | Adjustments | Note | Non-GAAP-based Measures | Non-GAAP-based Measures % of Total Revenue | |||||||||||||||
Cost of revenues | ||||||||||||||||||||
Cloud services and subscriptions | $ | 131,799 | $ | (2,033) | (1) | $ | 129,766 | |||||||||||||
Customer support | 27,354 | (567) | (1) | 26,787 | ||||||||||||||||
Professional service and other | 53,800 | (1,525) | (1) | 52,275 | ||||||||||||||||
Amortization of acquired technology-based intangible assets | 42,637 | (42,637) | (2) | — | ||||||||||||||||
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%) | 593,688 | 69.7% | 46,762 | (3) | 640,450 | 75.2% | ||||||||||||||
Operating expenses | ||||||||||||||||||||
Research and development | 110,198 | (6,854) | (1) | 103,344 | ||||||||||||||||
Sales and marketing | 167,170 | (6,859) | (1) | 160,311 | ||||||||||||||||
General and administrative | 78,074 | (5,370) | (1) | 72,704 | ||||||||||||||||
Amortization of acquired customer-based intangible assets | 54,438 | (54,438) | (2) | — | ||||||||||||||||
Special charges (recoveries) | 14,281 | (14,281) | (4) | — | ||||||||||||||||
GAAP-based income from operations / Non-GAAP-based income from operations | 146,353 | 134,564 | (5) | 280,917 | ||||||||||||||||
Other income (expense), net | (189,231) | 189,231 | (6) | — | ||||||||||||||||
Provision for income taxes | 33,625 | 50 | (7) | 33,675 | ||||||||||||||||
GAAP-based net income (loss) / Non-GAAP-based net income, attributable to OpenText | (116,929) | 323,745 | (8) | 206,816 | ||||||||||||||||
GAAP-based earnings (loss) per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ | (0.43) | $ | 1.20 | (8) | $ | 0.77 |
Three Months Ended September 30, 2022 | ||||||||
Per share diluted | ||||||||
GAAP-based net income (loss), attributable to OpenText | $ | (116,929) | $ | (0.43) | ||||
Add: | ||||||||
Amortization | 97,075 | 0.36 | ||||||
Share-based compensation | 23,208 | 0.09 | ||||||
Special charges (recoveries) | 14,281 | 0.05 | ||||||
Other (income) expense, net | 189,231 | 0.70 | ||||||
GAAP-based provision for income taxes | 33,625 | 0.12 | ||||||
Non-GAAP-based provision for income taxes | (33,675) | (0.12) | ||||||
Non-GAAP-based net income, attributable to OpenText | $ | 206,816 | $ | 0.77 |
Three Months Ended September 30, 2022 | |||||
GAAP-based net income (loss), attributable to OpenText | $ | (116,929) | |||
Add: | |||||
Provision for income taxes | 33,625 | ||||
Interest and other related expense, net | 40,382 | ||||
Amortization of acquired technology-based intangible assets | 42,637 | ||||
Amortization of acquired customer-based intangible assets | 54,438 | ||||
Depreciation | 23,174 | ||||
Share-based compensation | 23,208 | ||||
Special charges (recoveries) | 14,281 | ||||
Other (income) expense, net | 189,231 | ||||
Adjusted EBITDA | $ | 304,047 | |||
GAAP-based net income (loss) margin | (13.7) | % | |||
Adjusted EBITDA margin | 35.7 | % |
Three Months Ended September 30, 2022 | |||||
GAAP-based cash flows provided by operating activities | $ | 131,959 | |||
Add: | |||||
Capital expenditures (1) | (36,324) | ||||
Free cash flows | $ | 95,635 | |||
(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 June 30, 2022 (In thousands, except for per share data) | ||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||
GAAP-based Measures | GAAP-based Measures % of Total Revenue | Adjustments | Note | Non-GAAP-based Measures | Non-GAAP-based Measures % of Total Revenue | |||||||||||||||
Cost of revenues | ||||||||||||||||||||
Cloud services and subscriptions | $ | 133,785 | $ | (2,213) | (1) | $ | 131,572 | |||||||||||||
Customer support | 30,571 | (768) | (1) | 29,803 | ||||||||||||||||
Professional service and other | 55,436 | (1,465) | (1) | 53,971 | ||||||||||||||||
Amortization of acquired technology-based intangible assets | 46,274 | (46,274) | (2) | — | ||||||||||||||||
GAAP-based gross profit and gross margin (%) /Non-GAAP-based gross profit and gross margin (%) | 633,793 | 70.2% | 50,720 | (3) | 684,513 | 75.9% | ||||||||||||||
Operating expenses | ||||||||||||||||||||
Research and development | 118,931 | (7,186) | (1) | 111,745 | ||||||||||||||||
Sales and marketing | 185,985 | (7,251) | (1) | 178,734 | ||||||||||||||||
General and administrative | 85,958 | (5,582) | (1) | 80,376 | ||||||||||||||||
Amortization of acquired customer-based intangible assets | 56,341 | (56,341) | (2) | — | ||||||||||||||||
Special charges (recoveries) | 26,281 | (26,281) | (4) | — | ||||||||||||||||
GAAP-based income from operations / Non-GAAP-based income from operations | 137,591 | 153,361 | (5) | 290,952 | ||||||||||||||||
Other income (expense), net | (19) | 19 | (6) | — | ||||||||||||||||
Provision for income taxes | (5,005) | 40,090 | (7) | 35,085 | ||||||||||||||||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 102,196 | 113,290 | (8) | 215,486 | ||||||||||||||||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ | 0.38 | $ | 0.42 | (8) | $ | 0.80 |
Three Months Ended June 30, 2022 | ||||||||
Per share diluted | ||||||||
GAAP-based net income, attributable to OpenText | $ | 102,196 | $ | 0.38 | ||||
Add: | ||||||||
Amortization | 102,615 | 0.38 | ||||||
Share-based compensation | 24,465 | 0.09 | ||||||
Special charges (recoveries) | 26,281 | 0.10 | ||||||
Other (income) expense, net | 19 | — | ||||||
GAAP-based provision for income taxes | (5,005) | (0.02) | ||||||
Non-GAAP-based provision for income taxes | (35,085) | (0.13) | ||||||
Non-GAAP-based net income, attributable to OpenText | $ | 215,486 | $ | 0.80 |
Three Months Ended June 30, 2022 | |||||
GAAP-based net income, attributable to OpenText | $ | 102,196 | |||
Add: | |||||
Provision for income taxes | (5,005) | ||||
Interest and other related expense, net | 40,342 | ||||
Amortization of acquired technology-based intangible assets | 46,274 | ||||
Amortization of acquired customer-based intangible assets | 56,341 | ||||
Depreciation | 22,706 | ||||
Share-based compensation | 24,465 | ||||
Special charges (recoveries) | 26,281 | ||||
Other (income) expense, net | 19 | ||||
Adjusted EBITDA | $ | 313,619 | |||
GAAP-based net income margin | 11.3 | % | |||
Adjusted EBITDA margin | 34.8 | % |
Three Months Ended June 30, 2022 | |||||
GAAP-based cash flows provided by operating activities | $ | 251,940 | |||
Add: | |||||
Capital expenditures (1) | (38,172) | ||||
Free cash flows | $ | 213,768 | |||
(1) Defined as “Additions of property and equipment” in the Consolidated Statements of Cash Flows. |
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended September 30, 2021 (In thousands, except for per share data) | ||||||||||||||||||||
Three Months Ended September 30, 2021 | ||||||||||||||||||||
GAAP-based Measures | GAAP-based Measures % of Total Revenue | Adjustments | Note | Non-GAAP-based Measures | Non-GAAP-based Measures % of Total Revenue | |||||||||||||||
Cost of revenues | ||||||||||||||||||||
Cloud services and subscriptions | $ | 119,779 | $ | (907) | (1) | $ | 118,872 | |||||||||||||
Customer support | 29,483 | (721) | (1) | 28,762 | ||||||||||||||||
Professional service and other | 51,725 | (721) | (1) | 51,004 | ||||||||||||||||
Amortization of acquired technology-based intangible assets | 53,167 | (53,167) | (2) | — | ||||||||||||||||
GAAP-based gross profit and gross margin (%) /Non-GAAP-based gross profit and gross margin (%) | 574,185 | 69.0 | % | 55,516 | (3) | 629,701 | 75.7 | % | ||||||||||||
Operating expenses | ||||||||||||||||||||
Research and development | 100,165 | (2,934) | (1) | 97,231 | ||||||||||||||||
Sales and marketing | 146,240 | (4,610) | (1) | 141,630 | ||||||||||||||||
General and administrative | 71,477 | (4,041) | (1) | 67,436 | ||||||||||||||||
Amortization of acquired customer-based intangible assets | 51,884 | (51,884) | (2) | — | ||||||||||||||||
Special charges (recoveries) | 344 | (344) | (4) | — | ||||||||||||||||
GAAP-based income from operations / Non-GAAP-based income from operations | 182,689 | 119,329 | (5) | 302,018 | ||||||||||||||||
Other income (expense), net | 29,782 | (29,782) | (6) | — | ||||||||||||||||
Provision for income taxes | 43,450 | (6,355) | (7) | 37,095 | ||||||||||||||||
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText | 131,915 | 95,902 | (8) | 227,817 | ||||||||||||||||
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText | $ | 0.48 | $ | 0.35 | (8) | $ | 0.83 |
Three Months Ended September 30, 2021 | ||||||||
Per share diluted | ||||||||
GAAP-based net income, attributable to OpenText | $ | 131,915 | $ | 0.48 | ||||
Add: | ||||||||
Amortization | 105,051 | 0.38 | ||||||
Share-based compensation | 13,934 | 0.05 | ||||||
Special charges (recoveries) | 344 | — | ||||||
Other (income) expense, net | (29,782) | (0.11) | ||||||
GAAP-based provision for income taxes | 43,450 | 0.17 | ||||||
Non-GAAP-based provision for income taxes | (37,095) | (0.14) | ||||||
Non-GAAP-based net income, attributable to OpenText | $ | 227,817 | $ | 0.83 | ||||
Three Months Ended September 30, 2021 | |||||
GAAP-based net income, attributable to OpenText | $ | 131,915 | |||
Add: | |||||
Provision for income taxes | 43,450 | ||||
Interest and other related expense, net | 37,055 | ||||
Amortization of acquired technology-based intangible assets | 53,167 | ||||
Amortization of acquired customer-based intangible assets | 51,884 | ||||
Depreciation | 21,386 | ||||
Share-based compensation | 13,934 | ||||
Special charges (recoveries) | 344 | ||||
Other (income) expense, net | (29,782) | ||||
Adjusted EBITDA | $ | 323,353 | |||
GAAP-based net income margin | 15.8 | % | |||
Adjusted EBITDA margin | 38.9 | % |
Three Months Ended September 30, 2021 | |||||
GAAP-based cash flows provided by operating activities | $ | 189,669 | |||
Add: | |||||
Capital expenditures (1) | (26,712) | ||||
Free cash flows | $ | 162,957 | |||
(1) Defined as “Additions of property and equipment” in the Consolidated Statements of Cash Flows. |
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | ||||||||||||||||
Currencies | % of Revenue | % of Expenses(1) | % of Revenue | % of Expenses(1) | |||||||||||||
EURO | 20 | % | 11 | % | 23 | % | 13 | % | |||||||||
GBP | 4 | % | 5 | % | 5 | % | 6 | % | |||||||||
CAD | 3 | % | 14 | % | 3 | % | 14 | % | |||||||||
USD | 65 | % | 55 | % | 61 | % | 52 | % | |||||||||
Other | 8 | % | 15 | % | 8 | % | 15 | % | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Cover Document |
Nov. 03, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 03, 2022 |
Entity Registrant Name | Open Text Corp |
Entity Incorporation, State or Country Code | Z4 |
Entity File Number | 0-27544 |
Entity Tax Identification Number | 98-0154400 |
Entity Central Index Key | 0001002638 |
Amendment Flag | false |
Entity Address, Address Line One | 275 Frank Tompa Drive |
Entity Address, City or Town | Waterloo |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | N2L 0A1 |
City Area Code | 519 |
Local Phone Number | 888-7111 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock without par value |
Trading Symbol | OTEX |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
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