WATERLOO, Ontario, May 1, 2019 /PRNewswire/ — Open Text Corporation announced its financial results for the third quarter ended March 31, 2019.
“OpenText delivered record third quarter results with total revenues of $719 million, up 5% or $739 million, up 8% in constant currency. We also delivered strong adjusted EBITDA margin of 36%, representing 15% growth,” said Mark J. Barrenechea, OpenText CEO & CTO. “OpenText annual recurring revenues grew 5% to $549 million, and cloud revenues grew 14% to $239 million. Customers are looking for an information advantage provided through Enterprise Information Management (EIM). Building upon our vision of the Intelligent and Connected Enterprise, with a continued focus on customer-driven innovation, we are strategically well positioned to compete and win in the EIM marketplace.”
Barrenechea further added, “Our commitment to Total Growth leverages the OpenText Business System as a framework for both organic growth and future M&A opportunities. With this framework we are well positioned to scale OpenText to new levels in the coming years. Supported by confidence in our long-term model and cash flow performance, we are announcing a 15% increase to our quarterly cash dividend to $0.1746 per share.”
“We had solid business execution during the quarter, with a focus on growing margins and cash flows,” said Madhu Ranganathan, OpenText EVP and CFO. “We generated operating cash flows of $286 million, an increase of 6% from the prior year, while integrating two acquisitions during the quarter. The results reflect continued strength of our operational focus.”
Ranganathan added, “Our balance sheet and liquidity position remain strong with approximately $765 million of cash at the end of the quarter and a 1.7x consolidated net leverage ratio to support our Total Growth strategy.”