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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Open Text (OTEX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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OTEX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 01, 2025	2025 (Q3)	0.77 / -	0.906	―	―	―
Feb 06, 2025	2025 (Q2)	0.93 / 1.12	1.175	-4.80% (-0.06)
Oct 31, 2024	2025 (Q1)	0.79 / 0.91	0.973	-6.15% (-0.06)
Aug 01, 2024	2024 (Q4)	0.99 / 0.96	0.857	11.68% (+0.10)
May 02, 2024	2024 (Q3)	0.90 / 0.91	0.691	31.09% (+0.21)
Feb 01, 2024	2024 (Q2)	1.14 / 1.18	0.839	40.17% (+0.34)
Nov 02, 2023	2024 (Q1)	0.87 / 0.97	0.734	32.53% (+0.24)
Aug 03, 2023	2023 (Q4)	0.81 / 0.86	0.729	17.60% (+0.13)
May 04, 2023	2023 (Q3)	0.43 / 0.69	0.632	9.36% (+0.06)
Feb 02, 2023	2023 (Q2)	0.74 / 0.84	0.801	4.66% (+0.04)

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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OTEX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 06, 2025	$29.53	$27.86	-5.66%
Oct 31, 2024	$33.49	$29.74	-11.20%
Aug 01, 2024	$29.98	$28.01	-6.57%
May 02, 2024	$34.57	$29.48	-14.72%

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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