Technology

OpenText Reports Fourth Quarter and Fiscal Year 2024 Financial Results, Raises Fiscal 2025 Margin Targets

Published

4 months ago

August 1, 2024

– Delivers Total Annual Revenues of $5.8 Billion with 29% Growth –
– Announces New $300 Million Share Repurchase Program –
– Increases Annualized Dividend By 5% –

Fiscal 2024 Annual Highlights Y/Y

Total Revenues

(in millions)

Annual Recurring Revenues

(in millions)

Cloud Revenues

(in millions)

Reported

Constant
Currency

Reported

Constant
Currency

Reported

Constant
Currency

$5,770

$5,729

$4,534

$4,506

$1,821

$1,816

+28.6 %

+27.7 %

+25.4 %

+24.6 %

+7.1 %

+6.8 %

Annual Recurring Revenues represent 79% of Total Revenues

“OpenText delivered solid Fiscal 2024 financial results with total revenues of $5.8 billion, representing a 29% year-over-year growth, we grew organically, and delivered $2 billion in Adjusted EBITDA Dollars, or 34%. Looking ahead into Fiscal 2025, we are focused on extending our Information Management competitive advantage, expanding margin, delivering a record year of capital return with our new $300 Million Share Repurchase program, and increasing our annualized dividend from $1 per share to $1.05 per share. We expect to return approximately $570 million during Fiscal 2025, via dividends and share repurchases, the highest in our history. We are excited about our differentiated products, as well as our business and financial momentum.”

Mark J. Barrenechea, OpenText CEO & CTO

“We are incredibly proud of our Fiscal 2024 performance. We delivered strong operating results including our AMC divestiture, $808 million of free cash flows, and reduced our net leverage ratio from 3.8x to 2.9x(1). Our focus is now on delivering to our Fiscal 2025 plans and targets, and the significant margin and FCF opportunity in front of us.”

Madhu Ranganathan, OpenText President & CFO

WATERLOO, ON, Aug. 1, 2024 /CNW/ — Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), today announced its financial results for the fourth quarter and year ended June 30, 2024.

Fiscal Year Financial Highlights Y/Y

Total revenues of $5.8 billion up 28.6% Y/Y or up 27.7% Y/Y in constant currency (CC)Annual Recurring Revenues (ARR) of $4.5 billion, up 25.4% Y/Y or up 24.6% Y/Y in CCCloud revenues of $1.8 billion up 7.1% Y/Y or up 6.8% Y/Y in CCEnterprise cloud bookings(2) of $701 million, up 32.9% Y/YOperating cash flows were $968 million and free cash flows(3) were $808 millionGAAP-based net income of $465 million, up 209.3% Y/Y, margin of 8.1%, primarily due to the gain on AMC divestitureAdjusted EBITDA(3) of $2.0 billion, margin of 34.1% while making key investments in cloud, security and AICompleted Divestiture of Application Modernization and Connectivity (AMC) Business to Rocket Software for $2.275 billionPrepaid $2.766 billion of aggregate outstanding debt, 30% since the January 2023 close of Micro Focus acquisitionRecord capital returns of $417 million including $267 million via dividends and $150 million of share repurchasesGAAP-based diluted earnings per share (EPS) of $1.71, Non-GAAP diluted EPS(3) of $4.17Declared quarterly dividend of $0.2625 per share

Fiscal 2024 Fourth Quarter Highlights

Total Revenues

(in millions)

Annual Recurring Revenues

(in millions)

Cloud Revenues

(in millions)

Reported

Constant
Currency

Reported

Constant
Currency

Reported

Constant
Currency

$1,362

$1,367

$1,093

$1,097

$465

$466

(8.6) %

(8.3) %

(5.5) %

(5.2) %

+2.9 %

+3.3 %

Annual Recurring Revenues represent 80% of Total Revenues

Total revenues of $1.4 billion, down (8.6)% Y/Y or down (8.3)% in CC, reflecting AMC divestiture completed May 1, 2024Annual recurring revenues of $1.1 billion, down (5.5)% Y/Y or down (5.2)% in CCCloud revenues of $465 million, up 2.9% Y/Y or up 3.3% Y/Y in CCQuarterly enterprise cloud bookings(2) of $180 million, up 10.3%Operating cash flows were $185 million and free cash flows(3) were $145 millionGAAP-based net income of $248 million, up 609.4% Y/Y, margin of 18.2%, primarily due to the gain on AMC divestitureAdjusted EBITDA(3) of $445 million, margin of 32.7%GAAP-based diluted earnings per share (EPS) of $0.91, Non-GAAP diluted EPS(3) of $0.98

(1) As of June 30, 2024, the consolidated Net Leverage Ratio, as calculated using the bank covenant methodology, was 2.3x. Excluding the gain from the divestiture of the AMC business, the consolidated Net Leverage Ratio was 2.9x. As of March 31, 2024, the consolidated Net Leverage Ratio, as calculated using bank covenant methodology, was 3.8x.

(2) Enterprise cloud bookings is defined as the total value from cloud services and subscription contracts, entered into in the fiscal year that are new, committed and incremental to our existing contracts, entered into with our enterprise based customers.

(3) Please see Note 2 “Use of Non-GAAP Financial Measures” to the consolidated financial statements below.

Financial Highlights for Fiscal 2024 and Q4 with Year Over Year Comparisons

Summary of Annual Results

(In millions, except per share data)

FY’24

FY’23

$ Change

% Change

FY’24 in
CC*

% Change
in CC*

Revenues:

Cloud services and subscriptions

$1,820.5

$1,700.4

$120.1

7.1 %

$1,815.6

6.8 %

Customer support

2,713.3

1,915.0

$798.3

41.7 %

2,690.0

40.5 %

Total annual recurring revenues**

$4,533.8

$3,615.5

$918.4

25.4 %

$4,505.5

24.6 %

License

834.2

539.0

$295.1

54.8 %

826.6

53.3 %

Professional service and other

401.6

330.5

$71.1

21.5 %

396.9

20.1 %

Total revenues

$5,769.6

$4,485.0

$1,284.6

28.6 %

$5,729.0

27.7 %

GAAP-based operating income

$ 887.1

$516.3

$370.8

71.8 %

N/A

Non-GAAP-based operating income (1)

$1,838.8

$1,365.3

$473.5

34.7 %

$1,808.3

32.4 %

GAAP-based net income attributable to OpenText

$465.1

$150.4

$314.7

209.3 %

N/A

GAAP-based EPS, diluted

$1.71

$0.56

$1.15

205.4 %

N/A

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

$4.17

$3.29

$0.88

26.7 %

$4.08

24.0 %

Adjusted EBITDA (1)

$1,970.2

$1,472.9

$497.3

33.8 %

$1,938.3

31.6 %

Operating cash flows

$967.7

$779.2

$188.5

24.2 %

N/A

Free cash flows (1)

$808.4

$655.4

$153.0

23.3 %

N/A

Summary of Quarterly Results

(In millions, except per share data)

Q4 FY’24

Q4 FY’23

$ Change

% Change

Q4 FY’24 in
CC*

% Change
in CC*

Revenues:

Cloud services and subscriptions

$464.9

$451.7

$13.2

2.9 %

$466.5

3.3 %

Customer support

628.4

705.3

($76.9)

(10.9) %

630.2

(10.6) %

Total annual recurring revenues**

$1,093.3

$1,156.9

($63.7)

(5.5) %

$1,096.7

(5.2) %

License

171.5

228.8

($57.3)

(25.0) %

172.3

(24.7) %

Professional service and other

97.3

105.1

($7.8)

(7.4) %

97.6

(7.1) %

Total revenues

$1,362.1

$1,490.8

($128.7)

(8.6) %

$1,366.6

(8.3) %

GAAP-based operating income

$193.3

$121.3

$72.0

59.3 %

N/A

Non-GAAP-based operating income (1)

$413.5

$431.7

($18.3)

(4.2) %

$414.3

(4.1) %

GAAP-based net income attributable to OpenText

$248.2

($48.7)

$297.0

609.4 %

N/A

GAAP-based EPS, diluted

$0.91

($0.18)

$1.09

605.6 %

N/A

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

$0.98

$0.91

$0.07

7.7 %

$0.99

8.8 %

Adjusted EBITDA (1)

$445.4

$462.8

($17.4)

(3.8) %

$446.1

(3.6) %

Operating cash flows

$185.2

$115.3

$69.9

60.6 %

N/A

Free cash flows (1)

$145.2

$91.2

$54.0

59.2 %

N/A

(1) Please see Note 2 “Use of Non-GAAP Financial Measures” to the 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.

Quarterly Business Highlights

Key customer wins in the quarter include: California Department of Employment Development, Export Development Bank Of Egypt, Ford O’Brien Landy LLP, Grupo Marista, GS1 Australia, Johnson & Johnson, Nestle, Rheinmetall AG, SICK AG, TaboolaOpenText Completes Divestiture of Application Modernization and Connectivity (AMC) Business to Rocket Software for $2.275 billionOpenText completes $2.0 billion debt reductionOpenText buys Pillr, a cybersecurity MDR platformOpenText cloud for government solution achieves FedRAMP authorizationOpenText named a leader in two IDC MarketScapes for worldwide unified endpoint management (UEM) software for small and medium-sized businesses (SMBs) and client endpoint management for Microsoft Windows devicesOpenText’s IDOL™ named a leader in document mining and analytics platforms report

Dividend Program
As part of our quarterly, non-cumulative cash dividend program, the Board declared on July 31, 2024, a quarterly cash dividend of $0.2625 per common share. The record date for this dividend is August 30, 2024, and the payment date is September 20, 2024. 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 that, in order to align its share repurchase plan to its fiscal year, it has terminated its existing share repurchase plan (the “Fiscal 2024 Repurchase Plan”) and commenced a new share repurchase plan (the “Fiscal 2025 Repurchase Plan”), pursuant to which it intends to purchase for cancellation in open market transactions, from time to time over the next 12 months, if considered advisable, up to a maximum of 21,179,064 common shares, subject to a maximum aggregate value of US$300 million, on the Toronto Stock Exchange (the “TSX”), the NASDAQ Global Select Market and/or alternative trading systems in Canada and/or the United States, if eligible, subject to applicable law and stock exchange rules. 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.

Under the Fiscal 2024 Repurchase Plan, which was voluntarily terminated by OpenText on July 31, 2024, OpenText purchased and cancelled 5,073,913 common shares, through the facilities of the TSX or by such other permitted means, out of the 13,643,472 common shares it was authorized to repurchase, for an aggregate amount of approximately US$150 million and at a volume-weighted average purchase price of US$29.57 per common share. As a result of the early termination of the Fiscal 2024 Repurchase Plan, the 5,073,913 Common Shares purchased under the Fiscal 2024 Repurchase Plan will be deducted from the Fiscal 2025 Repurchase Plan’s annual limit as per the requirements of the TSX.

Under the Fiscal 2025 Repurchase Plan, during the course of Fiscal 2025, OpenText intends to purchase for cancellation, from time to time, up to US$300 million of its issued and outstanding common shares, subject to a maximum of 21,179,064 common shares, representing 10% of the Company’s public float (calculated in accordance with TSX rules) as at July 24, 2024, less the 5,073,913 common shares purchased under the Fiscal 2024 Repurchase Plan. Purchases made under the Fiscal 2025 Repurchase Plan may commence on August 7, 2024 and will expire on August 6, 2025.

The Fiscal 2025 Repurchase Plan will be effected in accordance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended. All common shares purchased by OpenText pursuant to the Fiscal 2025 Repurchase Plan will be cancelled.

The Company’s decision to commence the Fiscal 2025 Repurchase Plan to purchase up to US$300 million of its issued and outstanding common shares, in addition to the approximately US$150 million of common shares purchased and cancelled under the Fiscal 2024 Repurchase Plan, for a total of approximately US$450 million of expected share repurchases over five fiscal quarters, is indicative of its confidence in its operational execution and expanding cash flows, with the Fiscal 2025 Repurchase Plan being part of the Company’s previously disclosed overall strategic capital allocation, complementing its ongoing M&A activity and dividend program.

Normal Course Issuer Bid

The Company has voluntarily terminated its existing normal course issuer bid (the “Fiscal 2024 NCIB”) and commenced a new normal course issuer bid (the “Fiscal 2025 NCIB”) in order to provide it with a means to execute purchases over the TSX during the course of Fiscal 2025 as part of the overall Fiscal 2025 Repurchase Plan.

The TSX has approved the Company’s voluntary termination of the Fiscal 2024 NCIB. The TSX has also approved the Company’s notice of intention to commence the Fiscal 2025 NCIB pursuant to which the Company may purchase common shares over the TSX for the period commencing August 7, 2024 until August 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 21,179,064 common shares (representing 10% of the Company’s public float (calculated in accordance with TSX rules) as at July 24, 2024, less the 5,073,913 common shares purchased under the Fiscal 2024 NCIB), 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 purchases made under the Fiscal 2024 Repurchase Plan are the only common shares purchased and cancelled under a normal course issuer bid within the past 12 months.

Summary of Annual Results

FY’24

FY’23

% Change

Revenue (millions)

$5,769.6

$4,485.0

28.6 %

GAAP-based gross margin

72.6 %

70.6 %

200

bps

Non-GAAP-based gross margin (1)

77.3 %

76.1 %

120

bps

GAAP-based EPS, diluted

$1.71

$0.56

205.4 %

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

$4.17

$3.29

26.7 %

Summary of Quarterly Results

Q4 FY’24

Q3 FY’24

Q4 FY’23

% Change

(Q4 FY’24 vs
Q3 FY’24)

% Change

(Q4 FY’24 vs
Q4 FY’23)

Revenue (millions)

$1,362.1

$1,447.1

$1,490.8

(5.9) %

(8.6) %

GAAP-based gross margin

72.5 %

73.0 %

71.4 %

(50)

bps

110

bps

Non-GAAP-based gross margin (1)

76.4 %

76.7 %

76.9 %

(30)

bps

(50)

bps

GAAP-based EPS, diluted

$0.91

$0.36

($0.18)

152.8 %

605.6 %

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

$0.98

$0.94

$0.91

4.3 %

7.7 %

(1) Please see Note 2 “Use of Non-GAAP Financial Measures” to the consolidated financial statements below.

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 Note 2 “Use of Non-GAAP Financial Measures” to the consolidated financial statements below for a reconciliation of U.S. GAAP-based financial measures used in this press release to Non-GAAP-based financial measures.

About OpenText

OpenText is the leading Information Management software and services company in the world. We help organizations solve complex global problems with a comprehensive suite of Business Clouds, Business AI, and Business Technology. For more information about OpenText (NASDAQ/TSX: OTEX), please visit us at www.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, including executing on strategic programs; cloud bookings, demand, scale and revenue growth; future organic growth initiatives and deployment of capital; innovation fueled by cloud, AI and security technologies; raising margin targets and executing on Fiscal 2025 plans; future revenues, operating expenses, margins, free cash flows, interest expense and capital expenditures; market share of our products; intention to maintain a dividend program, including any targeted annualized dividend; expected size and timing of the Repurchase Plan, including execution thereof; execution of our business optimization plan; the expected impact of the divestiture of the AMC business; future tax rates; renewal rates; new platform and product offerings, including OpenText AI products, and associated benefits to customers; internal automation and AI leverage, including our AI strategy, vision and growth; strategy to build shareholder value; 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, including statements regarding future targets and aspirations, are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change and are not considered guidance. 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, revenues, expenses, margins, 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, the divestiture of the AMC business or the execution of our business optimization plan; 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

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share data)

June 30, 2024

June 30, 2023

ASSETS

Cash and cash equivalents

$ 1,280,662

$ 1,231,625

Accounts receivable trade, net of allowance for credit losses of $12,108 as of June 30, 2024 and $13,828 as of June 30, 2023

626,189

682,517

Contract assets

66,450

71,196

Income taxes recoverable

61,113

68,161

Prepaid expenses and other current assets

242,911

221,732

Total current assets

2,277,325

2,275,231

Property and equipment

367,740

356,904

Operating lease right of use assets

219,774

285,723

Long-term contract assets

38,684

64,553

Goodwill

7,488,367

8,662,603

Acquired intangible assets

2,486,264

4,080,879

Deferred tax assets

932,657

926,719

Other assets

298,281

342,318

Long-term income taxes recoverable

96,615

94,270

Total assets

$ 14,205,707

$ 17,089,200

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$ 931,116

$ 996,261

Current portion of long-term debt

35,850

320,850

Operating lease liabilities

76,446

91,425

Deferred revenues

1,521,416

1,721,781

Income taxes payable

235,666

89,297

Total current liabilities

2,800,494

3,219,614

Long-term liabilities:

Accrued liabilities

46,483

51,961

Pension liability, net

127,255

126,312

Long-term debt

6,356,943

8,562,096

Long-term operating lease liabilities

218,174

271,579

Long-term deferred revenues

162,401

217,771

Long-term income taxes payable

145,644

193,808

Deferred tax liabilities

148,632

423,955

Total long-term liabilities

7,205,532

9,847,482

Shareholders’ equity:

Share capital and additional paid-in capital

267,800,517 and 270,902,571 Common Shares issued and outstanding at June 30, 2024 and June 30, 2023, respectively; authorized Common Shares: unlimited

2,271,886

2,176,947

Accumulated other comprehensive income (loss)

(69,619)

(53,559)

Retained earnings

2,119,159

2,048,984

Treasury stock, at cost (3,135,980 and 3,536,375 shares at June 30, 2024 and June 30, 2023, respectively)

(123,268)

(151,597)

Total OpenText shareholders’ equity

4,198,158

4,020,775

Non-controlling interests

1,523

1,329

Total shareholders’ equity

4,199,681

4,022,104

Total liabilities and shareholders’ equity

$ 14,205,707

$ 17,089,200

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. dollars, except share and per share data)

(unaudited)

Three Months Ended June 30,

2024

2023

Revenues:

Cloud services and subscriptions

$ 464,891

$ 451,659

Customer support

628,381

705,277

License

171,535

228,796

Professional service and other

97,342

105,098

Total revenues

1,362,149

1,490,830

Cost of revenues:

Cloud services and subscriptions

175,799

166,394

Customer support

69,706

86,695

License

9,017

6,184

Professional service and other

71,691

90,498

Amortization of acquired technology-based intangible assets

48,220

77,045

Total cost of revenues

374,433

426,816

Gross profit

987,716

1,064,014

Operating expenses:

Research and development

205,253

249,958

Sales and marketing

285,352

333,244

General and administrative

126,639

136,866

Depreciation

31,984

31,152

Amortization of acquired customer-based intangible assets

97,446

121,285

Special charges (recoveries)

47,784

70,222

Total operating expenses

794,458

942,727

Income from operations

193,258

121,287

Other income (expense), net

397,055

(25,355)

Interest and other related expense, net

(102,461)

(145,829)

Income (loss) before income taxes

487,852

(49,897)

Provision for (recovery of) income taxes

239,578

(1,212)

Net income (loss) for the period

$ 248,274

$ (48,685)

Net (income) attributable to non-controlling interests

(45)

(49)

Net income (loss) attributable to OpenText

$ 248,229

$ (48,734)

Earnings per share—basic attributable to OpenText

$ 0.92

$ (0.18)

Earnings per share—diluted attributable to OpenText

$ 0.91

$ (0.18)

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

271,178

270,772

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

271,724

270,772

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. dollars, except share and per share data)

Year Ended June 30,

2024

2023

2022

Revenues:

Cloud services and subscriptions

$ 1,820,524

$ 1,700,433

$ 1,535,017

Customer support

2,713,297

1,915,020

1,330,965

License

834,162

539,026

358,351

Professional service and other

401,594

330,501

269,511

Total revenues

5,769,577

4,484,980

3,493,844

Cost of revenues:

Cloud services and subscriptions

713,759

590,165

511,713

Customer support

292,733

209,705

121,485

License

25,608

16,645

13,501

Professional service and other

302,527

276,888

216,895

Amortization of acquired technology-based intangible assets

243,922

223,184

198,607

Total cost of revenues

1,578,549

1,316,587

1,062,201

Gross profit

4,191,028

3,168,393

2,431,643

Operating expenses:

Research and development

893,932

680,587

440,448

Sales and marketing

1,133,665

948,598

677,118

General and administrative

577,038

419,590

317,085

Depreciation

131,599

107,761

88,241

Amortization of acquired customer-based intangible assets

432,404

326,406

217,105

Special charges (recoveries)

135,305

169,159

46,873

Total operating expenses

3,303,943

2,652,101

1,786,870

Income from operations

887,085

516,292

644,773

Other income, net

358,391

34,469

29,118

Interest and other related expense, net

(516,180)

(329,428)

(157,880)

Income before income taxes

729,296

221,333

516,011

Provision for income taxes

264,012

70,767

118,752

Net income

$ 465,284

$ 150,566

$ 397,259

Net (income) attributable to non-controlling interests

(194)

(187)

(169)

Net income attributable to OpenText

$ 465,090

$ 150,379

$ 397,090

Earnings per share—basic attributable to OpenText

$ 1.71

$ 0.56

$ 1.46

Earnings per share—diluted attributable to OpenText

$ 1.71

$ 0.56

$ 1.46

Weighted average number of Common Shares outstanding—basic

(in ‘000’s)

271,548

270,299

271,271

Weighted average number of Common Shares outstanding—diluted

(in ‘000’s)

272,588

270,451

271,909

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

Year Ended June 30,

2024

2023

2022

Net income for the period

$ 465,284

$ 150,566

$ 397,259

Other comprehensive income (loss)—net of tax:

Net foreign currency translation adjustments

(15,646)

(40,798)

(78,724)

Unrealized gain (loss) on cash flow hedges:

Unrealized gain (loss) – net of tax (1)

(2,697)

(941)

(1,859)

(Gain) loss reclassified into net income – net of tax (2)

965

2,721

373

Unrealized gain (loss) on available-for-sale financial assets:

Unrealized gain (loss) – net of tax (3)

228

(602)

—

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

Actuarial gain (loss) – net of tax (4)

640

(6,605)

5,595

Amortization of actuarial (gain) loss into net income – net of tax (5)

450

325

718

Total other comprehensive loss net

(16,060)

(45,900)

(73,897)

Total comprehensive income

449,224

104,666

323,362

Comprehensive income attributable to non-controlling interests

(194)

(187)

(169)

Total comprehensive income attributable to OpenText

$ 449,030

$ 104,479

$ 323,193

______________________________

(1)

Net of tax expense (recovery) of $(972), $(339), and $(671) for the year ended June 30, 2024, 2023 and 2022, respectively.

(2)

Net of tax expense (recovery) of $347, $981 and $134 for the year ended June 30, 2024, 2023 and 2022, respectively.

(3)

Net of tax expense (recovery) of $112, $(159), and $— for the year ended June 30, 2024, 2023 and 2022, respectively.

(4)

Net of tax expense (recovery) of $765, $(1,961) and $1,866 for the year ended June 30, 2024, 2023 and 2022, respectively.

(5)

Net of tax expense (recovery) of $193, $143 and $290 for the year ended June 30, 2024, 2023 and 2022, respectively.

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands of U.S. dollars and shares)

Common Shares and
Additional Paid in Capital

Treasury Stock

Retained

Earnings

Accumulated
Other

Comprehensive

Income

Non-
Controlling
Interests

Total

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

950

32,714

—

32,714

Under employee stock purchase plans

842

33,806

—

33,806

Share-based compensation

—

69,556

—

69,556

Purchase of treasury stock

—

(2,630)

(111,593)

—

(111,593)

Issuance of treasury stock

—

(21,013)

492

21,013

—

Common Shares repurchased

(3,810)

(24,295)

—

(152,692)

—

(176,987)

Dividends declared

($0.8836 per Common Share)

—

(237,655)

—

(237,655)

Other comprehensive loss – net

—

(73,897)

—

(73,897)

Distribution to non-controlling interest

—

142

—

(538)

(396)

Net income

—

397,090

—

169

397,259

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

245

7,830

—

7,830

Under employee stock purchase plans

1,135

31,679

—

31,679

Share-based compensation

—

130,119

—

130,119

Purchase of treasury stock

—

(521)

(21,919)

—

(21,919)

Issuance of treasury stock

—

(31,355)

691

30,288

—

(1,067)

Dividends declared

($0.9720 per Common Share)

—

(261,464)

—

(261,464)

Other comprehensive loss – net

—

(45,900)

—

(45,900)

Net income

—

150,379

—

187

150,566

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

945

31,358

—

31,358

Under employee stock purchase plans

1,027

34,120

—

34,120

Share-based compensation

—

139,779

—

139,779

Purchase of treasury stock

—

(1,400)

(53,085)

—

(53,085)

Issuance of treasury stock

—

(76,178)

1,800

81,414

(5,236)

—

Common Shares repurchased

(5,074)

(34,140)

—

(118,193)

—

(152,333)

Dividends declared ($1.00 per Common Share)

—

(271,486)

—

(271,486)

Other comprehensive loss – net

—

(16,060)

—

(16,060)

Net income

—

465,090

—

194

465,284

Balance as of June 30, 2024

267,801

$ 2,271,886

(3,136)

$ (123,268)

$ 2,119,159

$ (69,619)

$ 1,523

$ 4,199,681

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(unaudited)

Three Months Ended June 30,

2024

2023

Cash flows from operating activities:

Net income (loss) for the period

$ 248,274

$ (48,685)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization of intangible assets

177,650

229,482

Share-based compensation expense

26,767

41,904

Pension expense

4,302

3,401

Amortization of debt discount and issuance costs

5,670

8,257

Write-off of right of use assets

4,815

2,507

Loss on extinguishment of debt

45,590

—

Gain on AMC Divestiture

(429,102)

—

Loss on sale and write down of property and equipment

1,995

903

Deferred taxes

106,903

29,140

Share in net (income) loss of equity investees

(819)

11,530

Changes in financial instruments

(6,667)

16,274

Changes in operating assets and liabilities:

Accounts receivable

57,075

27,335

Contract assets

(23,917)

(43,643)

Prepaid expenses and other current assets

(33,112)

42,151

Income taxes

36,421

(116,569)

Accounts payable and accrued liabilities

7,000

10,582

Deferred revenue

(57,312)

(85,764)

Other assets

18,981

(5,299)

Operating lease assets and liabilities, net

(5,294)

(8,205)

Net cash provided by operating activities

185,220

115,301

Cash flows from investing activities:

Additions of property and equipment

(39,979)

(24,060)

Micro Focus acquisition

—

(2,357)

Proceeds from AMC Divestiture

2,229,187

—

Other investing activities

(9,291)

—

Net cash provided by (used in) investing activities

2,179,917

(26,417)

Cash flows from financing activities:

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

9,887

14,159

Repayment of long-term debt and Revolver

(2,008,963)

(186,463)

Debt issuance costs

(1,041)

(690)

Net change in transition services agreement obligation

15,278

—

Repurchase of Common Shares

(150,017)

—

Purchase of treasury stock

—

(21,919)

Payments of dividends to shareholders

(66,690)

(65,068)

Other financing activities

—

758

Net cash used in financing activities

(2,201,546)

(259,223)

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

(8,281)

4,571

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

155,310

(165,768)

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

1,127,483

1,399,720

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

$ 1,282,793

$ 1,233,952

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

Reconciliation of cash, cash equivalents and restricted cash:

June 30, 2024

June 30, 2023

Cash and cash equivalents

$ 1,280,662

$ 1,231,625

Restricted cash (1)

2,131

2,327

Total cash, cash equivalents and restricted cash

$ 1,282,793

$ 1,233,952

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

Year Ended June 30,

2024

2023

2022

Cash flows from operating activities:

Net income for the period

$ 465,284

$ 150,566

$ 397,259

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

Depreciation and amortization of intangible assets

807,925

657,351

503,953

Share-based compensation expense

140,079

130,302

69,556

Pension expense

13,881

9,207

6,606

Amortization of debt discount and issuance costs

25,257

16,753

5,422

Write-off of right of use assets

20,056

9,626

17,707

Loss on extinguishment of debt

56,393

8,152

27,413

Gain on AMC divestiture

(429,102)

—

Loss on sale and write down of property and equipment

3,710

2,331

294

Deferred taxes

(142,271)

(149,560)

(36,088)

Share in net (income) loss of equity investees

18,194

23,077

(58,702)

Changes in financial instruments

(3,116)

128,841

—

Changes in operating assets and liabilities:

Accounts receivable

108,562

168,604

81,841

Contract assets

(95,403)

(73,539)

(37,966)

Prepaid expenses and other current assets

(28,395)

(23,035)

(13,954)

Income taxes

112,097

14,948

34,589

Accounts payable and accrued liabilities

(65,887)

(127,092)

(24,177)

Deferred revenue

(42,974)

(128,395)

(5,236)

Other assets

24,849

(11,297)

17,297

Operating lease assets and liabilities, net

(21,448)

(27,635)

(4,004)

Net cash provided by operating activities

967,691

779,205

981,810

Cash flows from investing activities:

Additions of property and equipment

(159,295)

(123,832)

(93,109)

Purchase of Micro Focus International PLC, net of cash acquired

(9,272)

(5,657,963)

—

Purchase of Zix Corporation, net of cash acquired

—

(856,175)

Purchase of Bricata Inc.

—

(17,753)

Proceeds from AMC divestiture

2,229,187

—

Realized gain (loss) on financial instruments

—

131,248

—

Proceeds from net investment hedge derivative contracts

4,456

—

Other investing activities

(9,759)

(873)

(3,922)

Net cash provided by (used in) investing activities

2,055,317

(5,651,420)

(970,959)

Cash flows from financing activities:

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

66,914

39,331

67,215

Proceeds from long-term debt and Revolver

—

4,927,450

1,500,000

Repayment of long-term debt and Revolver

(2,568,352)

(202,926)

(860,000)

Debt extinguishment costs

—

(24,969)

Debt issuance costs

(3,833)

(77,899)

(17,159)

Net change in transition services agreement obligation

15,278

—

Repurchase of Common Shares

(150,017)

—

(176,987)

Purchase of treasury stock

(53,085)

(21,919)

(111,593)

Distribution to non-controlling interest

—

(396)

Payments of dividends to shareholders

(267,362)

(259,549)

(237,655)

Other financing activities

(1,447)

(1,435)

—

Net cash provided by (used in) financing activities

(2,961,904)

4,403,053

138,456

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

(12,263)

7,203

(63,196)

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

48,841

(461,959)

86,111

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

1,233,952

1,695,911

1,609,800

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

$ 1,282,793

$ 1,233,952

$ 1,695,911

OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(unaudited)

Reconciliation of cash, cash equivalents and restricted cash:

June 30, 2024

June 30, 2023

June 30, 2022

Cash and cash equivalents

$ 1,280,662

$ 1,231,625

$ 1,693,741

Restricted cash (1)

2,131

2,327

2,170

Total cash, cash equivalents and restricted cash

$ 1,282,793

$ 1,233,952

$ 1,695,911

(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 consolidated financial statements, all of which should be considered when evaluating the Company’s results.

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

Non-GAAP-based net income and Non-GAAP-based EPS, attributable to OpenText, are consistently calculated as GAAP-based net income (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.

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’25 targets and F’27 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 June 30, 2024

(In thousands, except for per share data)

Three Months Ended June 30, 2024

GAAP-based
Measures

% of Total
Revenue

Adjustments

Note

Non-GAAP-
based
Measures

% of Total
Revenue

Cost of revenues

Cloud services and subscriptions

$ 175,799

$ (2,966)

(1)

$ 172,833

Customer support

69,706

(1,022)

(1)

68,684

Professional service and other

71,691

(1,202)

(1)

70,489

Amortization of acquired technology-based intangible assets

48,220

(48,220)

(2)

—

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

987,716

72.5 %

53,410

(3)

1,041,126

76.4 %

Operating expenses

Research and development

205,253

(5,312)

(1)

199,941

Sales and marketing

285,352

(9,278)

(1)

276,074

General and administrative

126,639

(6,987)

(1)

119,652

Amortization of acquired customer-based intangible assets

97,446

(97,446)

(2)

—

Special charges (recoveries)

47,784

(47,784)

(4)

—

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

193,258

220,217

(5)

413,475

Other income (expense), net

397,055

(397,055)

(6)

—

Provision for income taxes

239,578

(196,036)

(7)

43,542

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

248,229

19,198

(8)

267,427

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

$ 0.91

$ 0.07

(8)

$ 0.98

(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 49% 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 June 30, 2024

Per share diluted

GAAP-based net income, attributable to OpenText

$ 248,229

$ 0.91

Add (deduct):

Amortization

145,666

0.54

Share-based compensation

26,767

0.10

Special charges (recoveries)

47,784

0.18

Other (income) expense, net

(397,055)

(1.47)

GAAP-based provision for income taxes

239,578

0.88

Non-GAAP-based provision for income taxes

(43,542)

(0.16)

Non-GAAP-based net income, attributable to OpenText

$ 267,427

$ 0.98

Reconciliation of Adjusted EBITDA

Three Months Ended June 30, 2024

GAAP-based net income, attributable to OpenText

$ 248,229

Add:

Provision for income taxes

239,578

Interest and other related expense, net

102,461

Amortization of acquired technology-based intangible assets

48,220

Amortization of acquired customer-based intangible assets

97,446

Depreciation

31,984

Share-based compensation

26,767

Special charges (recoveries)

47,784

Other (income) expense, net

(397,055)

Adjusted EBITDA

$ 445,414

GAAP-based net income margin

18.2 %

Adjusted EBITDA margin

32.7 %

Reconciliation of Free cash flows

Three Months Ended June 30, 2024

GAAP-based cash flows provided by operating activities

$ 185,220

Add:

Capital expenditures (1)

(39,979)

Free cash flows

$ 145,241

(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 year ended June 30, 2024

(In thousands, except for per share data)

Year Ended June 30, 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

$ 713,759

$ (12,858)

(1)

$ 700,901

Customer support

292,733

(4,357)

(1)

288,376

Professional service and other

302,527

(6,298)

(1)

296,229

Amortization of acquired technology-based intangible assets

243,922

(243,922)

(2)

—

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

4,191,028

72.6 %

267,435

(3)

4,458,463

77.3 %

Operating expenses

Research and development

893,932

(40,612)

(1)

853,320

Sales and marketing

1,133,665

(46,572)

(1)

1,087,093

General and administrative

577,038

(29,382)

(1)

547,656

Amortization of acquired customer-based intangible assets

432,404

(432,404)

(2)

—

Special charges (recoveries)

135,305

(135,305)

(4)

—

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

887,085

951,710

(5)

1,838,795

Other income (expense), net

358,391

(358,391)

(6)

—

Provision for income taxes

264,012

(78,845)

(7)

185,167

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

465,090

672,164

(8)

1,137,254

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

$ 1.71

$ 2.46

(8)

$ 4.17

(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)

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars and gross margin stated as a percentage of total revenue.

(4)

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars.

(6)

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 36% 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:

Year Ended June 30, 2024

Per share diluted

GAAP-based net income, attributable to OpenText

$ 465,090

$ 1.71

Add (deduct):

Amortization

676,326

2.48

Share-based compensation

140,079

0.51

Special charges (recoveries)

135,305

0.50

Other (income) expense, net

(358,391)

(1.32)

GAAP-based provision for income taxes

264,012

0.97

Non-GAAP-based provision for income taxes

(185,167)

(0.68)

Non-GAAP-based net income, attributable to OpenText

$ 1,137,254

$ 4.17

Reconciliation of Adjusted EBITDA

Year Ended June 30, 2024

GAAP-based net income, attributable to OpenText

$ 465,090

Add:

Provision for income taxes

264,012

Interest and other related expense, net

516,180

Amortization of acquired technology-based intangible assets

243,922

Amortization of acquired customer-based intangible assets

432,404

Depreciation

131,599

Share-based compensation

140,079

Special charges (recoveries)

135,305

Other (income) expense, net

(358,391)

Adjusted EBITDA

$ 1,970,200

GAAP-based net income margin

8.1 %

Adjusted EBITDA margin

34.1 %

Reconciliation of Free cash flows

Year Ended June 30, 2024

GAAP-based cash flows provided by operating activities

$ 967,691

Add:

Capital expenditures (1)

(159,295)

Free cash flows

$ 808,396

(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, 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 (loss) 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)

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars and gross margin stated as a percentage of total revenue.

(4)

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars.

(6)

(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 net 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 (deduct):

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 three months ended June 30, 2023

(In thousands, except for per share data)

Three Months Ended June 30, 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

$ 166,394

$ (2,876)

(1)

$ 163,518

Customer support

86,695

(1,213)

(1)

85,482

Professional service and other

90,498

(1,826)

(1)

88,672

Amortization of acquired technology-based intangible assets

77,045

(77,045)

(2)

—

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

1,064,014

71.4 %

82,960

(3)

1,146,974

76.9 %

Operating expenses

Research and development

249,958

(13,584)

(1)

236,374

Sales and marketing

333,244

(13,467)

(1)

319,777

General and administrative

136,866

(8,938)

(1)

127,928

Amortization of acquired customer-based intangible assets

121,285

(121,285)

(2)

—

Special charges (recoveries)

70,222

(70,222)

(4)

—

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

121,287

310,456

(5)

431,743

Other income (expense), net

(25,355)

25,355

(6)

—

Provision for (recovery of) income taxes

(1,212)

41,240

(7)

40,028

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

(48,734)

294,571

(8)

245,837

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

$ (0.18)

$ 1.09

(8)

$ 0.91

(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)

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars and gross margin stated as a percentage of total revenue.

(4)

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars.

(6)

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 2% 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 loss to Non-GAAP-based net income:

Three Months Ended June 30, 2023

Per share diluted

GAAP-based net loss, attributable to OpenText

$ (48,734)

$ (0.18)

Add (deduct):

Amortization

198,330

0.73

Share-based compensation

41,904

0.15

Special charges (recoveries)

70,222

0.26

Other (income) expense, net

25,355

0.10

GAAP-based recovery of income taxes

(1,212)

—

Non-GAAP-based provision for income taxes

(40,028)

(0.15)

Non-GAAP-based net income, attributable to OpenText

$ 245,837

$ 0.91

Reconciliation of Adjusted EBITDA

Three Months Ended June 30, 2023

GAAP-based net loss, attributable to OpenText

$ (48,734)

Add (deduct):

Recovery of income taxes

(1,212)

Interest and other related expense, net

145,829

Amortization of acquired technology-based intangible assets

77,045

Amortization of acquired customer-based intangible assets

121,285

Depreciation

31,152

Share-based compensation

41,904

Special charges (recoveries)

70,222

Other (income) expense, net

25,355

Adjusted EBITDA

$ 462,846

GAAP-based net loss margin

(3.3) %

Adjusted EBITDA margin

31.0 %

Reconciliation of Free cash flows

Three Months Ended June 30, 2023

GAAP-based cash flows provided by operating activities

$ 115,301

Add:

Capital expenditures (1)

(24,060)

Free cash flows

$ 91,241

(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 year ended June 30, 2023

(In thousands, except for per share data)

Year Ended June 30, 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

$ 590,165

$ (10,664)

(1)

$ 579,501

Customer support

209,705

(3,627)

(1)

206,078

Professional service and other

276,888

(6,998)

(1)

269,890

Amortization of acquired technology-based intangible assets

223,184

(223,184)

(2)

—

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

3,168,393

70.6 %

244,473

(3)

3,412,866

76.1 %

Operating expenses

Research and development

680,587

(39,065)

(1)

641,522

Sales and marketing

948,598

(41,710)

(1)

906,888

General and administrative

419,590

(28,238)

(1)

391,352

Amortization of acquired customer-based intangible assets

326,406

(326,406)

(2)

—

Special charges (recoveries)

169,159

(169,159)

(4)

—

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

516,292

849,051

(5)

1,365,343

Other income (expense), net

34,469

(34,469)

(6)

—

Provision for income taxes

70,767

74,261

(7)

145,028

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

150,379

740,321

(8)

890,700

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

$ 0.56

$ 2.73

(8)

$ 3.29

(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)

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars and gross margin stated as a percentage of total revenue.

(4)

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars.

(6)

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 32% 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:

Year Ended June 30, 2023

Per share diluted

GAAP-based net income, attributable to OpenText

$ 150,379

$ 0.56

Add (deduct):

Amortization

549,590

2.03

Share-based compensation

130,302

0.48

Special charges (recoveries)

169,159

0.63

Other (income) expense, net

(34,469)

(0.13)

GAAP-based provision for income taxes

70,767

0.26

Non-GAAP-based provision for income taxes

(145,028)

(0.54)

Non-GAAP-based net income, attributable to OpenText

$ 890,700

$ 3.29

Reconciliation of Adjusted EBITDA

Year Ended June 30, 2023

GAAP-based net income, attributable to OpenText

$ 150,379

Add:

Provision for income taxes

70,767

Interest and other related expense, net

329,428

Amortization of acquired technology-based intangible assets

223,184

Amortization of acquired customer-based intangible assets

326,406

Depreciation

107,761

Share-based compensation

130,302

Special charges (recoveries)

169,159

Other (income) expense, net

(34,469)

Adjusted EBITDA

$ 1,472,917

GAAP-based net income margin

3.4 %

Adjusted EBITDA margin

32.8 %

Reconciliation of Free cash flows

Year Ended June 30, 2023

GAAP-based cash flows provided by operating activities

$ 779,205

Add:

Capital expenditures (1)

(123,832)

Free cash flows

$ 655,373

(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 year ended June 30, 2024 and 2023:

Three Months Ended June 30, 2024

Three Months Ended June 30, 2023

Currencies

% of Revenue

% of Expenses(1)

% of Revenue

% of Expenses(1)

EURO

22 %

13 %

21 %

12 %

GBP

5 %

7 %

5 %

9 %

CAD

3 %

10 %

3 %

10 %

USD

59 %

49 %

60 %

48 %

Other

11 %

21 %

11 %

21 %

Total

100 %

Year Ended June 30, 2024

Year Ended June 30, 2023

Currencies

% of Revenue

% of Expenses(1)

% of Revenue

% of Expenses(1)

EURO

22 %

12 %

20 %

12 %

GBP

5 %

7 %

5 %

7 %

CAD

3 %

10 %

3 %

11 %

USD

59 %

50 %

62 %

51 %

Other

11 %

21 %

10 %

19 %

Total

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).

View original content to download multimedia:https://www.prnewswire.com/news-releases/opentext-reports-fourth-quarter-and-fiscal-year-2024-financial-results-raises-fiscal-2025-margin-targets-302212857.html

SOURCE Open Text Corporation

Technology

NASA Johnson Invites Proposals to Lease Vibration Test Facility

Published

41 minutes ago

November 14, 2024

HOUSTON, Nov. 14, 2024 /PRNewswire/ — NASA’s Johnson Space Center is seeking proposals for the use of its historic, but underused, Vibration and Acoustic Test Facility. Prospective tenants must submit facility walk-through requests by Monday, Nov. 18.

Final proposals are due by 12 p.m. EST Monday, Dec. 16, and must promote activities that will build, expand, modernize, or operate aerospace-related capabilities at NASA Johnson and help preserve the historic and iconic building through preservation and adaptive reuse.

NASA plans to sign a National Historic Preservation Act (NHPA) lease agreement for the facility, also known as Building 49, for a five-year base period and one five-year extension to be negotiated between NASA and the tenant. To request a walk-through, send an email to hq-realestate@mail.nasa.gov.

“This historic facility has been used for decades to ensure the success and safety of all human spaceflight missions by putting engineering designs and hardware to the ultimate stress tests,” said NASA Johnson Director Vanessa Wyche. “For more than 60 years, NASA Johnson has been the hub of human space exploration and this agreement will be a vital part of the center’s efforts to develop a robust and durable space economy that refines our understanding of the solar system and space exploration.”

All proposals must adhere to the guidelines detailed in the Agency Announcement for Proposals describing concept plans for development of the property, including any modifications proposed to the building; a statement of financial capability to successfully achieve and sustain operations, demonstrated experience with aerospace-related services or other space-related activities, and a detailed approach to propelling the space economy.

The nine-story building complex has a gross square footage of 62,737 square feet and consists of a north wing measuring 62 feet long, 268 feet wide and 106 feet tall, and a central wing about 64 feet long and 115 feet wide. Building 49 currently houses five laboratories, including the General Vibration Laboratory, Modal Operations Laboratory, Sonic Fatigue Laboratory, Spacecraft Acoustic Laboratory, and Spacecraft Vibration Laboratory. The south administrative portion of the building is not included in the property offered for lease.

As the home of Mission Control Center for the agency’s human space missions, astronaut training, robotics, human health and space medicine, NASA Johnson leads the way for the human exploration. Leveraging its unique role and location, the center is developing multiple lease agreements, including the recently announced Exploration Park, to sustain its key role in helping the human spaceflight community foster a robust space.

In the coming years, NASA and its academic, commercial, and international partners will see the completion of the International Space Station Program, the commercial development of low Earth orbit, and the first human Artemis campaign missions establishing sustainable human presence on the Moon in preparation for human missions to Mars.

Johnson already is leading the commercialization of space with the commercial cargo and crew programs and private astronaut missions to the space station. The center also is supporting the development of commercial space stations in low Earth orbit, and lunar-capable commercial spacesuits and lunar landers that will be provided as services to both NASA and the private sector to accelerate human access to space. Through the development of Exploration Park, the center will broaden the scope of the human spaceflight community that is tackling the many difficult challenges ahead.

Learn more about NASA Johnson’s efforts to collaborate with industry partners:

https://www.nasa.gov/johnson/frontdoor/

NASA Johnson Space Center news releases and other information are available automatically by sending an Internet electronic mail message to listserv@listserver.jsc.nasa.gov. In the body of the message (not the subject line) users should type “subscribe hsfnews” (no quotes). This will add the email address that sent the subscribe message to the news release distribution list. The system will reply with a confirmation via E-mail of each subscription. Once you have subscribed you will receive future news releases via e-mail.

View original content to download multimedia:https://www.prnewswire.com/news-releases/nasa-johnson-invites-proposals-to-lease-vibration-test-facility-302306403.html

SOURCE NASA

Technology

Cabana Partners with Virginia Department of Veterans Services to Provide Comprehensive, Free Mental Health Support for Veterans, Guard/Reserve Members, and Their Families

Published

41 minutes ago

November 14, 2024

RICHMOND, Va., Nov. 14, 2024 /PRNewswire/ — Cabana, a modern mental health provider offering confidential, tech-enabled support, has partnered with the Virginia Department of Veterans Services (DVS) to provide free, comprehensive mental health resources to Virginia’s veterans, Guard and Reserve members, as well as their spouses and caregivers. This collaboration expands access to Cabana’s digital mental health services, including live peer support groups moderated by Virginia-certified Veteran Peer Specialists.

Originally developed through research and development initiatives with the U.S. Air Force, Cabana’s services are designed to meet the unique needs of military and veteran communities. With this partnership, eligible Virginia users gain full access to Cabana’s digital suite, which includes the full range of virtual, professionally facilitated groups offered by Cabana, as well as dedicated Virginia Veteran peer-led support groups. Participants can connect discreetly on topics such as transitioning to civilian life, managing family relationships, and coping with stress, all within a secure and confidential environment accessible from any device.

David Black, Founder and CEO of Cabana, underscored the mission behind the partnership: “We’re honored to work with the Virginia Department of Veterans Services to offer a holistic mental health solution for Virginia’s military-connected community. With Virginia-certified Veteran Peer Specialists and our full array of live support groups, we’re providing a powerful, confidential resource that veterans and military families can rely on, whenever and wherever they need it.”

Key Features of the Partnership:

Comprehensive Access to Support: Virginia veterans, Guard/Reserve members, and their families will have unrestricted access to all live virtual groups available through Cabana, in addition to specialized peer-led groups run by Virginia-certified Veteran Peer Specialists.Support for Families and Caregivers: The initiative includes spouses and caregivers, addressing the unique mental health needs of military-connected families through sessions tailored to issues like family dynamics, stress management, and the transition to civilian life.Confidential and Flexible Access: Cabana’s services are available on mobile and desktop devices, providing Virginia’s veterans and their families with an easily accessible, cost-free solution for mental health support.

This collaboration highlights Cabana’s commitment to supporting the mental well-being of those who serve and their families. By joining forces with the Virginia Department of Veterans Services, Cabana seeks to strengthen the resilience and wellness of Virginia’s military community.

For more information on the partnership between Cabana and the Virginia Department of Veterans Services, please contact:

Nick Armstrong, Ph.D.
Head of Public Sector, Cabana
nick@cabanahealth.org

About Cabana™
Cabana is a leading, modern mental health provider offering confidential, tech-enabled support solutions tailored to the needs of diverse communities. Through live, professionally moderated group sessions, evidence-based content, and adaptable wellness tools, Cabana helps individuals proactively manage their mental health. Our mission is clear: to make mental health care more accessible through technology and human connection.

About the Virginia Department of Veterans Services (DVS)

The Virginia Department of Veterans Services (DVS) is a state government agency with more than 50 locations across the Commonwealth of Virginia. DVS traces its history to 1928 and the establishment of the Virginia War Service Bureau to assist Virginia’s World War I veterans. Today, DVS assists veterans and their families in filing claims for federal veterans benefits; provides veterans and family members with linkages to services including behavioral health, housing, employment, education, and other programs. The agency operates long-term care facilities offering in-patient skilled nursing care, dementia/memory care, and short-term rehabilitation for veterans; and provides an honored final resting place for veterans and their families at three state veterans cemeteries. It operates the Virginia War Memorial, the Commonwealth’s tribute to Virginia’s men and women who gave the ultimate sacrifice from World War II to the present. For more information, please visit www.dvs.virginia.gov.

View original content to download multimedia:https://www.prnewswire.com/news-releases/cabana-partners-with-virginia-department-of-veterans-services-to-provide-comprehensive-free-mental-health-support-for-veterans-guardreserve-members-and-their-families-302306404.html

SOURCE Cabana

Technology

East Side Games Group Reports Third Quarter 2024 Financial Results

Published

41 minutes ago

November 14, 2024

Revenue of $21.4M in Q3 2024 and $62.8M Year to DateA-EBITDA of $2.56M in Q3 2024 and $9.2M Year to DatePOWER RANGERS: MIGHTY FORCE launched globally

VANCOUVER, BC, Nov. 14, 2024 /CNW/ – East Side Games Group (TSX: EAGR) (OTC: EAGRF) (“ESGG” or the “Company”), is pleased to announce its financial results for the third quarter ended September 30, 2024. All amounts are stated in Canadian dollars on an IFRS basis unless otherwise indicated. Building on the momentum from Q2, the company achieved its first growth quarter of the year, reporting a top-line revenue of $21.4 million, a 4% increase quarter-over-quarter and a 3% increase year-over-year.

The company’s adjusted EBITDA for the quarter was $2.56 million, representing a 12% margin and marking the eighth consecutive profitable quarter above $2.5 million. East Side Games Group continues to demonstrate strong performance metrics across its core portfolio, with an average daily user count (DAU) of 236,000, a stickiness rate of 24%, and an average revenue per daily active user (ARPDAU) of $0.99.

“Our focus on profitability within our existing portfolio has paid off, and we are excited to further enhance our user acquisition strategies,” said Jason Bailey, CEO of East Side Games Group. “With $8.3 million in cash—our highest balance since Q2 2022—we are well-positioned to invest in our future game launches and bolster our share buyback program.”

One of the key drivers of growth this quarter was the launch of POWER RANGERS: MIGHTY FORCE in August, which quickly garnered nearly 30,000 daily active users and demonstrated impressive return on advertising spend (ROAS) figures.

In Q3, the company also enhanced its revenue generation through innovative strategies. The introduction of bi-monthly season passes for popular titles like Trailer Park Boys: Greasy Money and Cheech and Chong: Bud Farm resulted in a remarkable 40% increase in season pass revenue.

In a major collaboration, East Side Games Group partnered with BBC and Paramount to create the Intergalactic Friendship Day crossover event between Star Trek Lower Decks: The Badgey Directive and Doctor Who: Lost in Time, generating substantial organic traffic and setting new ARPDAU records.

Looking forward to Q4, East Side Games Group is excited to introduce team-based cooperative and competitive play features into titles such as Trailer Park Boys: Greasy Money and RuPaul’s Drag Race Superstar , anticipating a significant boost in player engagement and monetization.

Moreover, the company is preparing to launch Trailer Park Boys: Greasy Money on the Epic Games Store, expanding its reach in a new mobile marketplace with favorable revenue-sharing terms. This is a very exciting opportunity, only being afforded to a few game studios.

Finally, East Side Games Group is thrilled to announce our upcoming title, RuPaul’s Drag Race Match Queen, developed in partnership with Funkitron and World of Wonder. Slated for a 2025 release, this hybrid match-3 game combines beloved gameplay elements with captivating fashion and character features, catering to the passionate fanbase of RuPaul’s Drag Race.

Mike Edwards will be stepping down from the ESGG Board of Directors to focus on other pursuits, effective immediately. ESGG thanks him for his invaluable guidance over the past 12 years and is currently in discussions with several highly qualified candidates for his replacement.

Three Months Ended Sep 30, 2024 Financial highlights

For the quarter ended September 30th, 2024, revenue was $21.4M.Q3 2024 a-EBITDA of $2.56M and 12% a-EBITDA margin.Cashflow for the Company for the quarter ended September 30, 2024 increased by $700k, ending at $8.3M.Daily Active Users in Q3 were 236k, with an ARPDAU of $0.99On November 14, 2023, the Company announced a renewal of its Normal Course Issuer Bid (“NCIB”) authorizing the Company to purchase 4,076,819 of its shares. Through September 30, 2024, the Company purchased 1,540,719 shares at an average price of $0.76. The company continues to buy back stock as restrictions allow.

Certain information provided in this news release is extracted from the consolidated financial statements (the “Financial Statements”) and Management’s Discussion & Analysis (“MD&A”) of the Company for the quarter ended September 30, 2024, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company’s profile on SEDAR and EDGAR.

Earnings Call Video

ESGG will release its third-quarter 2024 financial results and business outlook on its investor relations website https://eastsidegamesgroup.com/investors/financial-information on Thursday, November 14th, 2024, at approximately 2:00 p.m. Pacific Time.

ABOUT EAST SIDE GAMES GROUP

East Side Games Group is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty. Our studio groups entrepreneurial culture is anchored in creativity, execution, and growth through licensing of our proprietary Game Kit software platform that enables professional game developers to greatly increase the efficiency and effectiveness of game creation in addition to organic growth through a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, Star Trek: Lower Decks – The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who: Lost in Time, RuPaul’s Drag Race Superstar, AEW: Rise to The Top, Cheech and Chong Bud Farm, and Trailer Park Boys: Grea$y Money.

We are headquartered in Vancouver, Canada and our games are available worldwide on the App Store and Google Play. Additional information about the Company continues to be available under its legal name, East Side Games Group Inc., at www.sedar.com.

Forward-looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release.

SOURCE East Side Games Group Inc.

Coin Market5 days ago

BTC’s ‘incoming’ $110K call, BlackRock’s $1.1B inflow day, and more: Hodler’s Digest Nov. 3 – 9

Technology4 days ago

Decode economic ties between GBA and Colombia from a cup of coffee

Technology5 days ago

Stay Better in China: Bring the Practice to My Country

Technology5 days ago

Stay Better in China: Tell the Beautiful China to the World

Technology5 days ago

LG Display Succeeds in Developing World’s First Stretchable Display that Expands by 50 Percent

Technology2 days ago

Aspen Aerogels, Inc. to Present at the Barclays 15th Annual Global Automotive and Mobility Tech Conference

Technology2 days ago

Medcrypt Expands Strategic Partnerships with BioT, Extra Security, RTI and Stratigos Security to Enhance Cybersecurity in Medical Devices

Technology5 days ago

The Hottest Dog Bronchial Health Supplement on Shopee in 2024

Nativo Ventures

OpenText Reports Fourth Quarter and Fiscal Year 2024 Financial Results, Raises Fiscal 2025 Margin Targets

Technology

OpenText Reports Fourth Quarter and Fiscal Year 2024 Financial Results, Raises Fiscal 2025 Margin Targets

Leave a Reply
Cancel reply

Leave a Reply

Technology

NASA Johnson Invites Proposals to Lease Vibration Test Facility

Technology

Cabana Partners with Virginia Department of Veterans Services to Provide Comprehensive, Free Mental Health Support for Veterans, Guard/Reserve Members, and Their Families

Technology

East Side Games Group Reports Third Quarter 2024 Financial Results

NASA Johnson Invites Proposals to Lease Vibration Test Facility

Cabana Partners with Virginia Department of Veterans Services to Provide Comprehensive, Free Mental Health Support for Veterans, Guard/Reserve Members, and Their Families

East Side Games Group Reports Third Quarter 2024 Financial Results

Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network

Peloton Unveils Holiday 2022 Creative Campaign Highlighting How Motivation Transcends Beyond the Workout

These ’90s fashion trends are making a comeback in 2017

Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs

Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network

NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap

Trending

Nativo Ventures

OpenText Reports Fourth Quarter and Fiscal Year 2024 Financial Results, Raises Fiscal 2025 Margin Targets

You may like

Leave a Reply Cancel reply

Leave a Reply

Technology

NASA Johnson Invites Proposals to Lease Vibration Test Facility

Technology

Cabana Partners with Virginia Department of Veterans Services to Provide Comprehensive, Free Mental Health Support for Veterans, Guard/Reserve Members, and Their Families

Technology

East Side Games Group Reports Third Quarter 2024 Financial Results

NASA Johnson Invites Proposals to Lease Vibration Test Facility

Cabana Partners with Virginia Department of Veterans Services to Provide Comprehensive, Free Mental Health Support for Veterans, Guard/Reserve Members, and Their Families

East Side Games Group Reports Third Quarter 2024 Financial Results

Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network

Peloton Unveils Holiday 2022 Creative Campaign Highlighting How Motivation Transcends Beyond the Workout

These ’90s fashion trends are making a comeback in 2017

Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs

Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network

NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap

Trending

Leave a Reply
Cancel reply