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Open Text Corporation (TSE:OTEX)
:OTEX
Earnings Data
Report Date
May 01, 2025TBA Not Confirmed
Period Ending
2025 (Q3)Consensus EPS Forecast
1.1Last Year’s EPS
1.29Same Quarter Last Year
Based on 5 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 06, 2025
|% Change Since: -17.91%
|Next Earnings Date:May 01, 2025
Earnings Call Sentiment|Neutral
The earnings call presented a mix of strong financial performance in EBITDA and cloud bookings, coupled with challenges in revenue growth and specific business segments like ADM and ITOM. While there are positive indicators such as significant SaaS wins and strategic partnerships, the offsetting revenue decline and challenges suggest a balanced outlook.Company Guidance
During the OpenText Corporation Second Quarter Fiscal 2025 Financial Results Conference Call, the company provided comprehensive guidance on its performance metrics and future outlook. OpenText reported a $501 million adjusted EBITDA, representing a 37.6% margin, and $307 million in free cash flow. The company achieved $1.33 billion in revenue, with cloud revenues growing by 2.7% and securing $250 million in new cloud contract value. Despite a 4.9% decline in overall revenue, excluding AMC, OpenText emphasized its strategic focus on growth, particularly in its cloud and security sectors. The company has revised its FY25 revenue target downward by $130 million to a range of $5.175 billion to $5.27 billion, attributing the adjustment to factors such as FX impacts and challenges in its ADM and ITOM businesses. OpenText highlighted record Q2 customer demand for cloud services and anticipates a strong second half with a 20% to 25% growth in new cloud bookings. The company also introduced new RPO disclosures and a cloud CRPO metric to provide greater transparency into its cloud growth trajectory. With growth set as the new top priority, OpenText aims to return to organic growth by Q4 and build on its competitive advantages through strategic investments and operational enhancements.Strong Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA was $501 million, representing a 37.6% margin. Free cash flow was $307 million.
Record Cloud Bookings
OpenText closed $250 million of new cloud contract value, marking a record quarter of customer demand for cloud services with a 6.1% year-over-year growth.
Shareholder Returns
OpenText purchased and retired 2.2 million shares at an average price of $29.82, with a plan to continue buybacks and reduce shares outstanding.
New SaaS Wins and Partnerships
Significant SaaS wins with companies like SAP, BASF, and Capgemini, and strategic partnerships with Microsoft for XDR on Azure.
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TSE:OTEX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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TSE:OTEX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 06, 2025 | C$41.83 | C$39.37 | -5.89% |
| Oct 31, 2024 | C$46.11 | C$40.98 | -11.13% |
| Aug 01, 2024 | C$41.14 | C$38.45 | -6.53% |
| May 02, 2024 | C$46.84 | C$39.93 | -14.75% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Open Text Corporation (TSE:OTEX) report earnings?
Open Text Corporation (TSE:OTEX) is schdueled to report earning on May 01, 2025, TBA Not Confirmed.
What is Open Text Corporation (TSE:OTEX) earnings time?
Open Text Corporation (TSE:OTEX) earnings time is at May 01, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TSE:OTEX EPS forecast?
TSE:OTEX EPS forecast for the fiscal quarter 2025 (Q3) is 1.1.
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