Open Text (NASDAQ: OTEX) reported Q3 EPS of $0.61, $0.04 better than the analyst estimate of $0.57. Revenue for the quarter came in at $814.7 million versus the consensus estimate of $788.49 million.

• Record Operating Cash Flows of $329.6 million in the quarter, up 15.2% Y/Y and $904.1 million for the trailing twelve months
• Declares cash dividend of $0.1746 per common share
• GAAP net income of $26.0 million, down 64.3% Y/Y
• Adjusted EBITDA of $259.5 million, down 0.9%, margin of 31.8%, down 460 basis points Y/Y
• GAAP diluted EPS of $0.10, down 63.0% Y/Y
• Non-GAAP diluted EPS of $0.61, down 4.7%, and $0.62 in constant currency, down 3.1% Y/Y
• Announces COVID-19 restructuring plan and compensation update

"On behalf of the OpenText community, we honor the brave women and men who are serving on the front lines of this pandemic: our healthcare professionals, first responders, infrastructure experts and other essential workers who are keeping us healthy and safe," said Mark J. Barrenechea, OpenText CEO & CTO. "OpenText's solid third quarter performance is a reflection of our business model resilience amid these challenging times. In constant currency, total revenues in the quarter grew 14.1% year-over-year to $820.4 million, Cloud Services and Subscriptions revenues, now our largest business revenue stream, grew a record 42.8% year-over-year to $340.6 million and our Annual Recurring Revenues which represent a record 81% of total revenues, grew 21.3% year-over-year to $666.3 million. These results reflect the strength of OpenText and the mission-critical nature of our product portfolio."

"Our investments in technology and infrastructure enabled us to serve our customers around the globe with more than 95% of our employees working from home. I am proud of the dedication and professionalism of our employees who put customers first. Further, OpenText's release of Cloud Editions (CE) 20.2 fully positions us as a cloud first company and provides customers with options to empower and protect the value of their information assets," said Barrenechea. "Our leadership position in Information Management has never been stronger and with the addition of cyber resilience products from the Carbonite acquisition, our customers continue to trust OpenText as they adapt to a changing business climate defined by new ways to work."

"OpenText delivered a solid Q3 with Adjusted EBITDA of $259.5 million and record Operating Cash Flows of $329.6 million," said OpenText EVP, CFO, Madhu Ranganathan. "We ended the quarter with a strong balance sheet of $1.45 billion in cash and a 2.3x consolidated net leverage ratio. Further, we have taken pre-emptive measures to manage expenses and introduced a COVID-19 restructuring plan that continues our operational rigor, while supporting key initiatives that drive our Total Growth strategy."

For earnings history and earnings-related data on Open Text (OTEX) click here.