Open Text Corporation announced its financial results for the first quarter ended September 30, 2020.
“OpenText delivered a great start to Fiscal 2021 with record performance across all of our key metrics,” said Mark J. Barrenechea, OpenText CEO & CTO. “We demonstrated outstanding execution in a challenged environment with total revenues of $804.0 million, an increase of 15.4% year-over-year and Cloud Services and Subscription revenues of $341.0 million, an increase of 43.7% year-over-year, being our largest revenue contributor. Our Annual Recurring Revenues grew 22.0% year-over-year to $670.4 million and now represents 83% of total revenues. These record results demonstrate the strength and resiliency of our business, supported by a predictable Annual Recurring Revenue framework, that we believe positions OpenText very well for future cloud growth and market share gains.”
“I would like to thank our talented employees for their focus and commitment to our customers during the global pandemic,” said Barrenechea. “OpenText is making the largest investments in products and sales in our history. We have the products and partner relationships that matter, in order to help customers accelerate their digital transformation. We continue to grow, generate cash, and remain committed to our proven Total Growth strategy.”
“I am proud of the company’s performance in the first quarter of Fiscal 2021. OpenText’s strong execution amid the global pandemic reflects the underlying discipline and agility of our operating framework,” said OpenText EVP and CFO, Madhu Ranganathan. “In Q1 we generated $342.3 million of adjusted EBITDA, up 34.7% year-over-year and $218.6 million of free cash flow, up 84.0% year-over-year. We expanded our margins delivering a record adjusted EBITDA margin of 42.6%. The Carbonite integration remains on track, with their operations already 2 within the OpenText Adjusted EBITDA target model range. Our strong balance sheet also provides ample opportunity to generate substantial long-term value for our shareholders.”
