Open Text Corp Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Open Text Corp filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance and position.</b>

AI Summary

OPEN TEXT CORP (OTEX) filed a Quarterly Report (10-Q) with the SEC on February 1, 2024. Open Text Corp filed a 10-Q report for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on June 30. The filing was made on February 1, 2024. Open Text Corp is headquartered in Waterloo, Ontario, Canada.

Why It Matters

For investors and stakeholders tracking OPEN TEXT CORP, this filing contains several important signals. This 10-Q filing provides investors with an updated view of Open Text Corp's financial health and operational performance for the second quarter of fiscal year 2024. The detailed financial information within the report is crucial for stakeholders to assess the company's current standing, evaluate investment potential, and understand any changes since the last filing.

Risk Assessment

Risk Level: medium — OPEN TEXT CORP shows moderate risk based on this filing. The company's financial performance and future outlook are subject to market conditions and competitive pressures inherent in the software and services industry, as indicated by the nature of a 10-Q filing which reports on financial results.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand revenue trends and profitability drivers for Open Text Corp.

Key Numbers

• 2023-12-31 — Period End Date (Quarterly report period)
• 2024-02-01 — Filing Date (Date the report was filed)
• 2023-06-30 — Fiscal Year End (Company's fiscal year end date)

Key Players & Entities

• OPEN TEXT CORP (company) — Filer name
• OTEX (company) — Ticker symbol
• 20231231 (date) — Period of report
• 20240201 (date) — Filed as of date
• Waterloo, Ontario, Canada (location) — Business address city, state, country
• 7373 (sic_code) — Standard Industrial Classification code

Forward-Looking Statements

• Open Text's Cloud Services and Subscriptions revenue will continue to grow in the next fiscal year. (Open Text Corp.) — high confidence, target: 2024-06-30

FAQ

Industry Context

Open Text Corp operates in the software and services industry, specifically focusing on computer integrated systems design.

Regulatory Implications

The filing is a Form 10-Q, a mandatory quarterly report filed with the U.S. Securities and Exchange Commission (SEC) by public companies.

What Investors Should Do

1. Analyze the revenue breakdown by segment to identify growth areas and potential challenges.
2. Review the balance sheet for changes in assets, liabilities, and equity compared to the previous period.
3. Examine any disclosures regarding legal proceedings or risk factors that could impact the company's future operations.

Key Dates

• 2023-12-31: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-02-01: Filing Date — Date Open Text Corp submitted its 10-Q to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. Comparative data from the prior year's quarter or preceding filings would be needed for a direct comparison.

Filing Documents

• otex-20231231.htm (10-Q) — 2748KB
• q2-2410xqexhibit311.htm (EX-31.1) — 8KB
• q2-2410xqexhibit312.htm (EX-31.2) — 8KB
• q2-2410xqexhibit321.htm (EX-32.1) — 5KB
• q2-2410xqexhibit322.htm (EX-32.2) — 5KB
• 0001002638-24-000005.txt (&nbsp;) — 13971KB
• otex-20231231.xsd (EX-101.SCH) — 89KB
• otex-20231231_cal.xml (EX-101.CAL) — 157KB
• otex-20231231_def.xml (EX-101.DEF) — 563KB
• otex-20231231_lab.xml (EX-101.LAB) — 1116KB
• otex-20231231_pre.xml (EX-101.PRE) — 857KB
• otex-20231231_htm.xml (XML) — 2234KB

Financial Information

Part I Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Statements of Shareholders' Equity 6 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 44

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 80

Controls and Procedures

Item 4. Controls and Procedures 82

Other Information

Part II Other Information

Risk Factors

Item 1A. Risk Factors 83 Item 5. Other Information 84

Exhibits

Item 6. Exhibits 85

Signatures

Signatures 86 2 Table of Contents

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements OPEN TEXT CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share data) December 31, 2023 June 30, 2023 ASSETS (unaudited) Cash and cash equivalents $ 1,003,134 $ 1,231,625 Accounts receivable trade, net of allowance for credit losses of $ 10,642 as of December 31, 2023 and $ 13,828 as of June 30, 2023 (Note 4) 735,346 682,517 Contract assets (Note 3) 70,656 71,196 Income taxes recoverable (Note 15) 8,342 68,161 Prepaid expenses and other current assets (Note 9) 215,396 221,732 Assets held for sale (Note 19) 2,051,116 — Total current assets 4,083,990 2,275,231 Property and equipment (Note 5) 352,570 356,904 Operating lease right of use assets (Note 6) 245,118 285,723 Long-term contract assets (Note 3) 45,427 64,553 Goodwill (Note 7) 7,604,409 8,662,603 Acquired intangible assets (Note 8) 2,773,220 4,080,879 Deferred tax assets (Note 15) 925,282 926,719 Other assets (Note 9) 318,783 342,318 Long-term income taxes recoverable (Note 15) 94,465 94,270 Total assets $ 16,443,264 $ 17,089,200 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities (Note 10) $ 948,921 $ 996,261 Current portion of long-term debt (Note 11) 45,850 320,850 Operating lease liabilities (Note 6) 86,868 91,425 Deferred revenues (Note 3) 1,535,322 1,721,781 Income taxes payable (Note 15) 119,400 89,297 Liabilities held for sale (Note 19) 222,814 — Total current liabilities 2,959,175 3,219,614 Long-term liabilities: Accrued liabilities (Note 10) 52,632 51,961 Pension liability, net (Note 12) 129,238 126,312 Long-term debt (Note 11) 8,474,599 8,562,096 Long-term operating lease liabilities (Note 6) 236,481 271,579 Long-term deferred revenues (Note 3) 170,273 217,771 Long-term income taxes payable (Note 15) 152,046 193,808 Deferred tax liabilities (Note 15) 238,473 423,955 Total long-term liabilities 9,453,742 9,847,482 Share

View Full Filing

View this 10-Q filing on SEC EDGAR