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.