OTEX Earnings Prediction
The chart below shows how OTEX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OTEX sees a +0.21% change in stock price 10 days leading up to the earnings, and a -0.76% change 10 days following the report. On the earnings day itself, the stock moves by -1.45%. This data can give you a slight idea of what to expect for the next quarter's release.
OTEX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.33B
-13.05%
5.16%
Gross Margin
64.82%
1.33%
3.25%
Operating Margin
23.31%
16.14%
16.73%
Net Margin
17.23%
600.41%
159.10%
EPS
0.87
521.43%
171.88%
No Data Available
OTEX Earnings Analysis
Open Text Corp Corporation (OTEX.O) Earnings Conference Call
Positive
Earnings Performance Exceeds Expectations: Open Text Corporation reported an adjusted EPS of $1.11, exceeding expectations of $0.92, indicating strong earnings performance.
Adjusted EBITDA Performance: The company achieved $501 million in adjusted EBITDA, resulting in a robust adjusted EBITDA margin of 37.6%, reflecting operational efficiency.
Strong Cash Generation: Free cash flow for the quarter was $307 million, showcasing strong cash generation capabilities.
Cloud Revenue Growth: Cloud revenues grew by 2.7%, with $250 million in new cloud contract value, marking a record quarter for customer demand and bookings.
Increased Free Cash Flow Outlook: The company raised its free cash flow outlook for the year to a range of $600 to $650 million, demonstrating confidence in financial performance.
Negative
Revenue Decline Analysis: Revenue decreased by 4.9% to $1.33 billion, excluding the impact of the AMC acquisition.
EPS Decline Analysis: Non-GAAP diluted EPS fell by 10.5% to $1.11, primarily due to the AMC divestiture.
Gross Margin Decline: GAAP gross margin declined to 73.3%, down from 73.6% year-over-year, reflecting lower margin license revenue from the previous year.
Revenue Outlook Revision: The company revised its FY25 revenue outlook downward by $130 million, attributing 50% of this reduction to poor performance in ITOM and ADM segments.
Negative Maintenance Revenue Growth: Total maintenance revenue growth rate is expected to be negative this year, indicating ongoing challenges in the maintenance segment.
OTEX FAQs
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OTEX Earning Call Sentiment
Open Text Corporation (NASDAQ:OTEX) Q2 2025 Earnings Call Transcript
OTEX.O
-0.97%Positive
The earnings call reveals mixed signals. Financial performance shows a drop in revenue and EPS, but strong cash flow and EBITDA margins. Positive elements include AI integration, cloud growth, and shareholder returns through dividends and buybacks. However, challenges in ITOM and ADM, and lack of specific guidance on new initiatives, create uncertainty. The Q&A highlights management's optimism in strategic areas but lacks clarity in key metrics. The stock's reaction is likely neutral, balancing positive strategic moves against financial and operational challenges.
