Open Text (OTEX) Tops Q2 EPS by 8c

Open Text (NASDAQ: OTEX) reported Q2 EPS of $0.80, $0.08 better than the analyst estimate of $0.72. Revenue for the quarter came in at $735 million versus the consensus estimate of $728.5 million.

"OpenText delivered another strong quarter in Q2. Total revenues grew to $735 million, Annual Recurring Revenues grew to $530 million, up 3%, year over year, with record Adjusted EBITDA margin of 42%," said Mark J. Barrenechea, OpenText CEO & CTO. "The OpenText Cloud continues to gain momentum as cloud revenues grew 5% and delivered 60% Adjusted Gross Margin. The OpenText Cloud is our greatest opportunity."

Barrenechea further added, "Our strategy is Total Growth, where M&A will continue to be our largest growth driver, augmented with organic growth. Over the last 60 days, we have deployed approximately $386 million in capital and closed two cloud-based acquisitions. With a highly talented team and an increasingly strategic position with customers, we are well positioned to scale OpenText to new levels in the coming years."

"Q2 Fiscal 2019 financial performance continues to demonstrate our commitment to Total Growth, a focus on scaling productivity, solid execution of our acquisition framework, expanding margins and strengthening our balance sheet," said Madhu Ranganathan, OpenText EVP & CFO. "During Q2 we demonstrated solid margin performance across the company, generating $308 million of Adjusted EBITDA, $189 million in Operating Cash Flows, an increase of 14% over the prior fiscal year, and $595 million of cash on the balance sheet."

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

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