Mr. Mark Barrenechea reports

OPENTEXT REPORTS FIRST QUARTER FISCAL YEAR 2024 FINANCIAL RESULTS

Open Text Corp. has released its financial results for the first quarter ended Sept. 30, 2023.

"Open Text executed extremely well in a volatile world with record Q1 revenues of $1,425-million and 67-per-cent growth year over year. These strong Q1 results are a foundation for a strong fiscal 2024," said Mark J. Barrenechea, Open Text chief executive officer and chief technology officer. "We delivered cloud revenues of $451-million with 11-per-cent growth year over year, driven by increased cloud consumption in our top value areas. Annual recurring revenues of $1.1-billion grew 59 per cent year over year, representing 81 per cent of total revenues.

"For over a decade, Open Text has helped organizations manage large data platforms, and we are at the forefront for the next generation of [artificial intelligence] innovation driven by Open Text Aviator," added Mr. Barrenechea. "The basis of great AI is great information management. With practical and trusted AI capabilities, customers trust Open Text to power and protect their information. Open Text Aviator empowers organizations to swiftly act, make sharp decisions and evolve with intelligent capabilities. Aviator differentiates our information management automation, so organizations can easily make the AI pivot."

"We are delighted with our solid performance in the quarter," said Madhu Ranganathan, Open Text executive vice-president and chief financial officer. "First quarter results reflect continued strength in the operational integration of Micro Focus as we delivered $495-million of adjusted [earnings before interest, taxes, depreciation and amortization]. Our balance sheet and liquidity position remain strong with approximately $920-million in cash as of Sept. 30, 2023. We have made total debt repayments of approximately $560-million since the acquisition of Micro Focus, and Open Text remains on track to realize our growth targets and achieve our free cash flow aspirations."

Dividend

As part of its quarterly, non-cumulative cash dividend program, the board declared on Nov. 1, 2023, a cash dividend of 25 cents per common share. The record date for this dividend is Dec. 1, 2023, and the payment date is Dec. 20, 2023. Open Text 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.

Conference call information

Open Text posted an investor presentation on its investor relations website and invites the public to listen to the earnings conference call today at 5 p.m. ET (2 p.m. PT) by dialling 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.

A replay of the call will be available beginning Nov. 2, 2023, at 7 p.m. ET, through 11:59 p.m. on Nov. 16, 2023, by dialling 1-855-669-9658 (toll-free) or 1-604-674-8052 (international) and using passcode 0458 followed by the number sign.

About Open Text Corp.

Open Text, the information company, enables organizations to gain insight through market-leading information management solutions, powered by Open Text Cloud Editions.

We seek Safe Harbor.