Slide 1: OpenText F'24 Financial Results and F'25 Targets
OpenText F’24 Financial Results and F’25 Targets August 1, 2024 NASDAQ: OTEX | TSX: OTEX
Slide 2: Safe Harbor and IP Statement
Safe Harbor and IP Statement This presentation contains forward-looking statements or information (forward-looking statements) within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act), Section 2
Slide 3: Business Overview
Business Overview Fiscal 2024 Accomplishments Looking ahead into Fiscal 2025 • Transformational customer wins including AI/Aviator • Extending our Information Management competitive advantage with Titanium X, Aviators and Security • $5.77B in Total Revenues - +29% y/y growth • Up to 5% Cloud Growth
Slide 4: Q4 F'24 Customer Wins
Q4 F’24 Customer Wins Application Automation Content Analytics Application Automation IT Operations Management & IT Operations Management A global, diversified food and Digital advertising company State government department Sensor intelligence and A Brazilian non-profit beverages company in 188 spe
Slide 5: Q4 F'24 Financials
Q4 F’24 Financials OpenText Reported OpenText ex-AMC $ in millions except A-EPS Q4 F’24 Q4 F’23 % change $ in millions Q4 F’24 Q4 F’23 % change Cloud Revenue $465 $452 3% Cloud Revenue $465 $452 3% ARR Revenue(1) $1,093 $1,157 (6%) ARR Revenue(1) $1,064 $1,073 (1%) Total Revenue $1,362 $1,491 (9%) T
Slide 6: F'24 Financials
F’24 Financials OpenText Reported OpenText ex-AMC $ in millions except A-EPS F’24 F’23 % change $ in millions F’24 F’23 % change Cloud Revenue $1,821 $1,700 7% Cloud Revenue $1,821 $1,700 7% ARR Revenue(1) $4,534 $3,615 25% ARR Revenue(1) $4,250 $3,461 23% Total Revenue $5,770 $4,485 29% Total Reven
Slide 7: F'24 Annual Metrics
F’24 Annual Metrics Organic Growth(1) y/y % change F’24 Total Revenue % of Total As Reported F’24 F’23 Information Management Revenue Cloud 1.7% 1.5% Content Management 40% ARR(2) 0.6% (0.8%) Cybersecurity 20% Total 0.8% (2.0%) Business Network 10% In CC(3) IT Operations Management (ITOM) 10% Cloud
Slide 8: Cash Flows and Debt Maturity Profile
Cash Flows and Debt Maturity Profile As of June 30, 2024 Cash (USD$M) OpenText Debt Maturity (USD$M) Additional Metrics Total Cash $1,281 Principal Outstanding $6.5B F’24 (USD$M) Operating Cash Flows $968 Total Fixed Debt 66% Cap Ex Investments $159 $2,024 Weighted Average Interest Rate 5.7% Free Ca
Slide 9: Outlook
Outlook OpenText ©2024 All rights reserved 9
Slide 10: Looking Ahead into Fiscal 2025
Looking Ahead into Fiscal 2025 Deliver Growth Programs Execute to Margin & FCF Opportunity Extending our Information Management competitive Opportunity advantage with Titanium X, Aviators and Security • Improve Cloud Gross Margin with continued scale • Business Optimization: right talent / right loc
Slide 11: Q1 F'25 Quarterly Factors
Q1 F’25 Quarterly Factors Externalities Company Specific • Macroeconomic Reflecting Q1 Seasonality • Geopolitical & Elections Expect Q1 Revenues: • Total Revenues of $1.25B to $1.30B • ARR(1) of $1.04B to $1.07B Expect Q1 A-EBITDA(2): • Margin of 32% to 33% With FX impact: • FX headwind of ~$10M on
Slide 12: F'25 Targets
F’25 Targets(1) F’24 As Reported Primary Metrics F’24 As Reported F’25 Targets ex-AMC Cloud Revenue $1.82B $1.82B $1.85B to $1.90B Key Highlights Annual Recurring Revenue(2) $4.53B $4.25B $4.25B to $4.30B • Cloud growth: - 2% to 5% Total Revenue(3) $5.77B $5.33B $5.3B to $5.4B • Total Revenue growth
Slide 13: F'25 Supporting Metrics
F’25 Supporting Metrics (1) Additional Metrics F’24 as Reported F’25 Targets(1) $701M / • Bookings drive Cloud revenue growth Enterprise Cloud Bookings(2) 25% Growth 33% Growth Gross Margin(3) 77.3% 76% to 77% • Renewal rate improvement driven by R&D(3) 14.8% 14% to 16% product innovation and best p
Slide 14: Return of Capital - Track Record and F'25 Targets
Return of Capital - Track Record and F’25 Targets (1) F’25 Target(2) $570+ F’25 Target $415 $417 • $570M+ in expected capital return(1) - Record year of capital return $330 - 37% y/y growth Share Buyback, $M Dividends, $M - Expect share buyback to exceed value of $300 $260 $150 dividends for first t
Slide 15: F'27 Aspirations
F’27 Aspirations (1) F’27 Aspirations Cloud Services and Subscriptions growth 7% to 9% Total Organic Revenue(2) growth 2% to 4% Total Revenue $5.7B to $5.9B A-EBITDA Margin %(3) 36% to 38% Free Cash Flows(3) $1.2B to $1.3B Supporting Metrics Enterprise Cloud Bookings(4) growth 20%+ Annual Recurring
Slide 16: OpenText ex-AMC
OpenText ex-AMC (1),(2) F’24 Actual F’23 Actual $ in millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Cloud 451 450 455 465 1,821 405 409 435 452 1,700 Customer Support 614 612 606 599 2,430 311 310 518 622 1,760 License 129 248 158 161 696 60 105 117 195 477 Professional Services 99 94 95 95 384 67 64 90 100
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Slide 18: Appendix A: Use of Non-GAAP Financial Measures
Appendix A 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 h
Slide 19: Summary of Quarterly Results with Constant Currency
Summary of Quarterly Results with Constant Currency (1) See reconciliation of GAAP-based measures to Non-GAAP-based measures at the end of this presentation. (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 b
Slide 20: Summary of Year to Date Results with Constant Currency
Summary of Year to Date Results with Constant Currency (1) See reconciliation of GAAP-based measures to Non-GAAP-based measures at the end of this presentation. (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 ta
Slide 21: Reconciliation of Selected Non-GAAP Measures | Q4 FY'24
Reconciliation of Selected Non-GAAP Measures | Q4 FY'24 OpenText ©2024 All rights reserved 21
Slide 22: Reconciliation of Selected Non-GAAP Measures | Q4 FY'24
Reconciliation of Selected Non-GAAP Measures | Q4 FY'24 FOOTNOTES 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. Adjustment relates to the exclusion of a
Slide 23: Reconciliation of Selected Non-GAAP Measures | FY'24
Reconciliation of Selected Non-GAAP Measures | FY'24 OpenText ©2024 All rights reserved 23
Slide 24: Reconciliation of Selected Non-GAAP Measures | FY'24
Reconciliation of Selected Non-GAAP Measures | FY'24 FOOTNOTES 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. Adjustment relates to the exclusion of amor
Slide 25: Reconciliation of Selected Non-GAAP Measures | Q4 FY'23
Reconciliation of Selected Non-GAAP Measures | Q4 FY'23 OpenText ©2024 All rights reserved 25
Slide 26: Reconciliation of Selected Non-GAAP Measures | Q4 FY'23
Reconciliation of Selected Non-GAAP Measures | Q4 FY'23 FOOTNOTES 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. Adjustment relates to the exclusion of a
Slide 27: Reconciliation of Selected Non-GAAP Measures | FY'23
Reconciliation of Selected Non-GAAP Measures | FY'23 OpenText ©2024 All rights reserved 27
Slide 28: Reconciliation of Selected Non-GAAP Measures | FY'23
Reconciliation of Selected Non-GAAP Measures | FY'23 FOOTNOTES 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. Adjustment relates to the exclusion of amor
Slide 29: Reconciliation of Adjusted EBITDA and Free Cash Flows
Reconciliation of Adjusted EBITDA and Free Cash Flows OpenText ©2024 All rights reserved 29
Slide 30: Reconciliation of Adjusted EBITDA and Free Cash Flows
Reconciliation of Adjusted EBITDA and Free Cash Flows OpenText ©2024 All rights reserved 30