Open Text (OTEX) Tops Q2 EPS by 10c, Revenues Beat
- Wall Street rebounds after two-day decline; Netflix slides
- Netflix (NFLX) Plunges Following Q1 Sub Miss, But One Analyst Sees Chance to Turn Bullish
- Oil prices drop 2% on U.S. crude build, COVID-19 surge in India
- Intuitive Surgical (ISRG) Q1 Beat Prompts Two Street Upgrades
- U.S. dollar losses bounce after Canada tips toward higher rates
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
Open Text (NASDAQ: OTEX) reported Q2 EPS of $0.95, $0.10 better than the analyst estimate of $0.85. Revenue for the quarter came in at $855.6 million versus the consensus estimate of $814.84 million.
- Operating Cash Flows of $282.5 million in the quarter, up 36.3% Y/Y
- Free Cash Flows of $274.8 million in the quarter, up 46.5% Y/Y
- GAAP-based net income (loss) of ($65.5) million, down 160.9% Y/Y, margin of (7.7)% down 2,160 basis points Y/Y, primarily due to one-time IRS settlement charge of $299 million
- Adjusted EBITDA of $360.8 million, up 13.8%, margin of 42.2%, up 110 basis points Y/Y
- GAAP-based diluted earnings (loss) per share of ($0.24), down 160.0% Y/Y
- Non-GAAP diluted earnings per share of $0.95, up 13.1%, and $0.92 in constant currency, up 9.5% Y/Y
"OpenText delivered another quarter of strong growth, reflecting the power of our business model and exceptional performance in all of our key metrics," said Mark J. Barrenechea, OpenText CEO & CTO. "Total revenues grew to $855.6 million, up 10.9% year-over-year, and Cloud Services and Subscriptions revenues grew to $350.5 million, up 41.1% year-over-year. Annual Recurring Revenues (ARR) grew to a record $684.9 million, up 21.5% year-over-year, now representing 80% of total revenues."
"Increasing demand for OpenText's Information Management cloud offerings strongly positions us to achieve market share gains through continued alignment with our customers' digital transformation and business needs," said Mr. Barrenechea.
"OpenText demonstrated strong operational excellence in our second quarter, generating free cash flows of $274.8 million, with a record Adjusted EBITDA of $360.8 million", said OpenText EVP, CFO, Madhu Ranganathan. "Our balance sheet and liquidity position of approximately $1.5 billion of cash at the end of the quarter and a 1.6x net leverage ratio, supports our goals to grow, generate cash and pursue our Total Growth strategy."
For earnings history and earnings-related data on Open Text (OTEX) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Equifax (EFX) Tops Q1 EPS by 11c, Revenues Beat; Raises FY21 EPS/Revenue Guidance Above Consensus, Offers 2Q EPS/Revenue Views Above Consensus
- Netgear, Inc. (NTGR) Tops Q1 EPS by 33c
- First Internet Bancorp (INBK) Tops Q1 EPS by 10c
Create E-mail Alert Related CategoriesCorporate News, Earnings, Management Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!