Mr. Mark Barrenechea reports

OPENTEXT REPORTS THIRD QUARTER FISCAL YEAR 2023 FINANCIAL RESULTS

Open Text Corp. has released its financial results for the third quarter ended March 31, 2023.

Fiscal 2023 Third Quarter Highlights

• Total revenues of $1.24 billion, up 41.1 per cent year over year or up 44.9 per cent in constant currency
• Annual Recurring Revenues (ARR) of $1.01 billion, up 37.7 per cent year over year or up 41.1 per cent in constant currency
• Cloud revenues of $435 million, up 8.3 per cent year over year or up 10.4 per cent in constant currency
• Nine consecutive quarters of cloud organic and ARR organic growth in constant currency
• Quarterly enterprise cloud bookings(1) of $108 million, constant year over year
• Operating cash flows of $337 million and free cash flows(3) of $306 million
• TTM operating cash flows(2) of $916 million and TTM free cash flows(2)(3) of $778 million
• GAAP-based net income of $58 million, down 22.9 per cent year over year, margin of 4.6 per cent, down 390 basis points year over year
• Adjusted EBITDA(3) of $365 million, margin of 29.3 per cent and TTM Adjusted EBITDA(2)(3) of $1.32 billion, margin of 34.0 per cent
• GAAP-based diluted earnings per share (EPS) of $0.21, Non-GAAP diluted EPS(3) of $0.73
• Includes Micro Focus results from February 1, 2023 to March 31, 2023

"The OpenText Total Growth Strategy and our expanded mission with the Micro Focus acquisition delivered a record third quarter, our ninth consecutive quarter of organic cloud revenue growth and organic ARR growth in constant currency. Further, we are well advanced and ahead of schedule on our Micro Focus milestones as we have completed our talent integration and cloud roadmap," said Mark J. Barrenechea, OpenText CEO & CTO. "Total revenues were $1.24 billion, growing 41.1 per cent year-over-year or 44.9 per cent in constant currency and Cloud revenues of $435 million, growing 8.3 per cent year-over-year or 10.4 per cent in constant currency. ARR was $1.01 billion, growing 37.7 per cent year-over-year or 41.1 per cent in constant currency."

"With Titanium X, our new cloud roadmap, OpenText will help customers accelerate their digital businesses through information-led transformations to maximize the strategic benefits of new rules and opportunities for growth, efficiency and responsibility," added Mr. Barrenechea. "At OpenText, the heart of our culture is the unwavering commitment to customer success. The acquisition of Micro Focus expands the OpenText mission once again, and places OpenText as the trusted company to power and protect customer information. Our Q3 results demonstrate the potential for our expanded business."

"OpenText's third quarter results demonstrated continued solid execution, supporting our momentum in the Information Management market. We are on the right path with the products, people and customer focus to position OpenText for continued success," said Madhu Ranganathan, OpenText EVP, CFO. "We remain on track to realize our growth targets and acquisition commitments, including $400 million cost savings plan, consolidated net leverage ratio of less than 3x within eight full quarters and meet our free cash flow plan."

Dividend

As part of our quarterly, non-cumulative cash dividend program, the Board declared on May 2, 2023, a cash dividend of $0.24299 per common share. The record date for this dividend is June 2, 2023 and the payment date is June 23, 2023. 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.

Quarterly Business Highlights

• OpenText World EMEA unveils Cloud Editions 23.2 to help customers accelerate their cloud-based digital transformation
• OpenText announced the latest technology innovations on its Project Titanium X roadmap and the future of information management in the cloud
• Key customer wins in the quarter include: Air Liquide, Ascensus, Australia Post, California Employment Development Department, Carrefour, Citibank, Conduent, Ireland Office of the Government Chief Information Officer, MAN Energy Solutions, Ministry of the Interior and Kingdom Relations of Netherlands, Pacific Life, Patelco Credit Union and Wienerberger Group
• OpenText named a Leader in The Forrester Wave(TM): Content Platforms, Q1 2023
• OpenText launched the latest version of ValueEdge, an innovative modular, cloud-based DevOps and value stream management (VSM) platform

Conference Call Information

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

A replay of the call will be available beginning May 4, 2023 at 7:00 p.m. ET through 11:59 p.m. on May 18, 2023 and can be accessed by dialing 1-855-669-9658 (toll-free) or +1-604-674-8052 (international) and using passcode 9973 followed by the number sign.

About OpenText

OpenText, The Information Company(TM), 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.

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