Open Text Corp 8-K, filed May 4, 2023

Open Text Corp (OTEX)

8-K 2023-05-04 For: 2023-05-04

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Added on April 09, 2026

About this 8-K

Open Text Corp filed this 8-K on May 4, 2023.

Items reported

Item 2.02: Financial results
Item 8.01: Other events
Item 9.01: Financial statements and exhibits

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Canada	0-27544	98-0154400
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock without par value	OTEX	NASDAQ Global Select Market


Exhibit No.						Description

99.1						Press release of financial results issued by Open Text Corporation on May 4 , 2023
101.INS						XBRL instance document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						Inline XBRL taxonomy extension schema.
101.CAL						Inline XBRL taxonomy extension calculation linkbase.
101.DEF						Inline XBRL taxonomy extension definition linkbase.
101.LAB						Inline XBRL taxonomy extension label linkbase.
101.PRE						Inline XBRL taxonomy extension presentation.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


Exhibit No.						Description

99.1						Press release of financial results issued by Open Text Corporation on May 4 , 2023
101.INS						XBRL instance document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						Inline XBRL taxonomy extension schema.
101.CAL						Inline XBRL taxonomy extension calculation linkbase.
101.DEF						Inline XBRL taxonomy extension definition linkbase.
101.LAB						Inline XBRL taxonomy extension label linkbase.
101.PRE						Inline XBRL taxonomy extension presentation.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


Summary of Quarterly Results
(In millions, except per share data)	Q3 FY'23	Q3 FY'22	$ Change	% Change		Q3 FY'23 in CC*	% Change in CC*
Revenues:
Cloud services and subscriptions	$435.4	$401.9	$33.5	8.3	%	$443.7	10.4	%
Customer support	575.9	332.5	243.4	73.2	%	592.8	78.3	%
Total annual recurring revenues**	$1,011.3	$734.5	$276.9	37.7	%	$1,036.5	41.1	%
License	139.7	80.6	59.1	73.3	%	145.0	79.9	%
Professional service and other	93.6	67.2	26.4	39.4	%	96.8	44.1	%
Total revenues	$1,244.7	$882.3	$362.4	41.1	%	$1,278.3	44.9	%
GAAP-based operating income	$64.0	$131.6	($67.6)	(51.4)	%	N/A	N/A
Non-GAAP-based operating income (1)	$334.6	$262.2	$72.4	27.6	%	$336.4	28.3	%
GAAP-based net income attributable to OpenText	$57.6	$74.7	($17.1)	(22.9)	%	N/A	N/A
GAAP-based EPS, diluted	$0.21	$0.28	($0.07)	(25.0)	%	N/A	N/A
Non-GAAP-based EPS, diluted (1)(2)	$0.73	$0.70	$0.03	4.3	%	$0.73	4.3	%
Adjusted EBITDA (1)	$365.1	$284.5	$80.6	28.3	%	$367.3	29.1	%
Operating cash flows	$336.8	$323.6	$13.2	4.1	%	N/A	N/A
Free cash flows (1)	$305.5	$306.0	($0.4)	(0.1)	%	N/A	N/A


Summary of YTD Results
(In millions, except per share data)	FY'23 YTD	FY'22 YTD	$ Change	% Change		FY'23 YTD in CC*	% Change in CC*
Revenues:
Cloud services and subscriptions	$1,248.8	$1,123.4	$125.4	11.2	%	$1,283.7	14.3	%
Customer support	1,209.7	1,002.6	207.1	20.7	%	1,267.4	26.4	%
Total annual recurring revenues**	$2,458.5	$2,126.0	$332.5	15.6	%	$2,551.0	20.0	%
License	310.2	263.7	46.6	17.7	%	326.2	23.7	%
Professional service and other	225.4	201.7	23.7	11.8	%	237.8	17.9	%
Total revenues	$2,994.2	$2,591.4	$402.8	15.5	%	$3,115.1	20.2	%
GAAP-based operating income	$395.0	$507.2	($112.2)	(22.1)	%	N/A	N/A
Non-GAAP-based operating income (1)	$933.6	$886.0	$47.6	5.4	%	$966.0	9.0	%
GAAP-based net income attributable to OpenText	$199.1	$294.9	($95.8)	(32.5)	%	N/A	N/A
GAAP-based EPS, diluted	$0.74	$1.08	($0.34)	(31.5)	%	N/A	N/A
Non-GAAP-based EPS, diluted (1)(2)	$2.39	$2.43	($0.04)	(1.6)	%	$2.50	2.9	%
Adjusted EBITDA (1)	$1,010.1	$951.4	$58.7	6.2	%	$1,043.1	9.6	%
Operating cash flows	$663.9	$729.9	($66.0)	(9.0)	%	N/A	N/A
Free cash flows (1)	$564.1	$674.9	($110.8)	(16.4)	%	N/A	N/A


Summary of Quarterly Results
	Q3 FY'23		Q2 FY'23		Q3 FY'22		% Change (Q3 FY'23 vs Q2 FY'23)			% Change (Q3 FY'23 vs Q3 FY'22)
Revenue (millions)	$1,244.7		$897.4		$882.3		38.7	%		41.1	%
GAAP-based gross margin	70.3	%	70.8	%	68.9	%	(50)		bps	140		bps
Non-GAAP-based gross margin (1)	75.8	%	76.0	%	74.5	%	(20)		bps	130		bps
GAAP-based earnings (loss) per share, diluted	$0.21		$0.96		$0.28		(78.1)	%		(25.0)	%
Non-GAAP-based EPS, diluted (1)(2)	$0.73		$0.89		$0.70		(18.0)	%		4.3	%


	March 31, 2023		June 30, 2022
ASSETS	(unaudited)
Cash and cash equivalents	$	1,396,817	$	1,693,741
Accounts receivable trade, net of allowance for credit losses of $16,550 as of March 31, 2023 and $16,473 as of June 30, 2022	676,280		426,652
Contract assets	61,374		26,167
Income taxes recoverable	47,803		18,255
Prepaid expenses and other current assets	250,661		120,552
Total current assets	2,432,935		2,285,367
Property and equipment	340,615		244,709
Operating lease right of use assets	297,640		198,132
Long-term contract assets	63,380		19,719
Goodwill	8,748,543		5,244,653
Acquired intangible assets	4,221,885		1,075,208
Deferred tax assets	889,143		810,154
Other assets	343,677		256,987
Long-term income taxes recoverable	89,730		44,044
Total assets	$	17,427,548	$	10,178,973
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	910,713	$	448,607
Current portion of long-term debt	495,850		10,000
Operating lease liabilities	94,015		56,380
Deferred revenues	1,785,121		902,202
Income taxes payable	198,371		51,069
Total current liabilities	3,484,070		1,468,258
Long-term liabilities:
Accrued liabilities	64,120		18,208
Pension liability	112,168		60,951
Long-term debt	8,565,238		4,209,567
Long-term operating lease liabilities	286,025		198,695
Long-term deferred revenues	240,357		91,144
Long-term income taxes payable	189,351		34,003
Deferred tax liabilities	363,072		65,887
Total long-term liabilities	9,820,331		4,678,455
Shareholders' equity:
Share capital and additional paid-in capital
270,479,181 and 269,522,639 Common Shares issued and outstanding at March 31, 2023 and June 30, 2022, respectively; authorized Common Shares: unlimited	2,130,343		2,038,674
Accumulated other comprehensive income (loss)	(33,114)		(7,659)
Retained earnings	2,163,338		2,160,069
Treasury stock, at cost (3,216,394 and 3,706,420 shares at March 31, 2023 and June 30, 2022, respectively)	(138,700)		(159,966)
Total OpenText shareholders' equity	4,121,867		4,031,118
Non-controlling interests	1,280		1,142
Total shareholders' equity	4,123,147		4,032,260
Total liabilities and shareholders' equity	$	17,427,548	$	10,178,973


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Revenues:
Cloud services and subscriptions	$	435,449	$	401,947	$	1,248,774	$	1,123,422
Customer support	575,884		332,514		1,209,743		1,002,626
License	139,722		80,641		310,230		263,663
Professional service and other	93,619		67,181		225,403		201,679
Total revenues	1,244,674		882,283		2,994,150		2,591,390
Cost of revenues:
Cloud services and subscriptions	157,658		136,020		423,771		377,928
Customer support	67,067		31,763		123,010		90,914
License	3,840		3,196		10,461		10,906
Professional service and other	78,526		56,693		186,390		161,459
Amortization of acquired technology-based intangible assets	62,639		46,564		146,139		152,333
Total cost of revenues	369,730		274,236		889,771		793,540
Gross profit	874,944		608,047		2,104,379		1,797,850
Operating expenses:
Research and development	210,731		117,730		430,629		321,517
Sales and marketing	271,013		180,955		615,354		491,133
General and administrative	127,047		88,137		282,724		231,127
Depreciation	30,577		22,370		76,609		65,535
Amortization of acquired customer-based intangible assets	97,237		56,215		205,121		160,764
Special charges (recoveries)	74,350		11,031		98,937		20,592
Total operating expenses	810,955		476,438		1,709,374		1,290,668
Income from operations	63,989		131,609		395,005		507,182
Other income (expense), net	85,706		24,392		59,824		29,137
Interest and other related expense, net	(104,502)		(40,238)		(183,599)		(117,538)
Income before income taxes	45,193		115,763		271,230		418,781
Provision for (recovery of) income taxes	(12,420)		41,041		71,979		123,757
Net income for the period	$	57,613	$	74,722	$	199,251	$	295,024
Net (income) loss attributable to non-controlling interests	(57)		(41)		(138)		(130)
Net income attributable to OpenText	$	57,556	$	74,681	$	199,113	$	294,894
Earnings per share—basic attributable to OpenText	$	0.21	$	0.28	$	0.74	$	1.09
Earnings per share—diluted attributable to OpenText	$	0.21	$	0.28	$	0.74	$	1.08
Weighted average number of Common Shares outstanding—basic (in '000's)	270,441		270,693		270,143		271,623
Weighted average number of Common Shares outstanding—diluted (in '000's)	270,650		271,211		270,173		272,439


	Three Months Ended March 31, 2023
	Common Shares and Additional Paid in Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income		Non-Controlling Interests		Total
	Shares	Amount		Shares	Amount
Balance as of December 31, 2022	270,235	$	2,092,079	(3,295)	$	(142,126)	$	2,171,236	$	(1,028)	$	1,223	$	4,121,384
Issuance of Common Shares
Under employee stock option plans	16	479		—	—		—		—		—		479
Under employee stock purchase plans	228	5,776		—	—		—		—		—		5,776
Share-based compensation	—	36,505		—	—		—		—		—		36,505

Issuance of treasury stock	—	(4,496)		79	3,426		—		—		—		(1,070)

Dividends declared ($0.24299 per Common Share)	—	—		—	—		(65,454)		—		—		(65,454)

Other comprehensive income (loss) - net	—	—		—	—		—		(32,086)		—		(32,086)
Net income for the period	—	—		—	—		57,556		—		57		57,613
Balance as of March 31, 2023	270,479	$	2,130,343	(3,216)	$	(138,700)	$	2,163,338	$	(33,114)	$	1,280	$	4,123,147


	Three Months Ended March 31, 2022
	Common Shares and Additional Paid in Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income		Non-Controlling Interests		Total
	Shares	Amount		Shares	Amount
Balance as of December 31, 2021	271,006	$	1,990,913	(1,476)	$	(67,966)	$	2,174,467	$	31,349	$	1,062	$	4,129,825
Issuance of Common Shares
Under employee stock option plans	53	1,863		—	—		—		—		—		1,863
Under employee stock purchase plans	172	7,003		—	—		—		—		—		7,003
Share-based compensation	—	16,748		—	—		—		—		—		16,748
Purchase of treasury stock	—	—		(1,300)	(56,067)		—		—		—		(56,067)

Repurchase of Common Shares	(1,000)	(6,381)		—	—		(38,702)		—		—		(45,083)
Dividends declared ($0.2209 per Common Share)	—	—		—	—		(59,077)		—		—		(59,077)

Other comprehensive income (loss) - net	—	—		—	—		—		(14,083)		—		(14,083)
Net income for the period	—	—		—	—		74,681		—		41		74,722
Balance as of March 31, 2022	270,231	$	2,010,146	(2,776)	$	(124,033)	$	2,151,369	$	17,266	$	1,103	$	4,055,851


	Nine Months Ended March 31, 2023
	Common Shares and Additional Paid in Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income		Non-Controlling Interests		Total
	Shares	Amount		Shares	Amount
Balance as of June 30, 2022	269,523	$	2,038,674	(3,706)	$	(159,966)	$	2,160,069	$	(7,659)	$	1,142	$	4,032,260
Issuance of Common Shares
Under employee stock option plans	88	2,473		—	—		—		—		—		2,473
Under employee stock purchase plans	868	22,997		—	—		—		—		—		22,997
Share-based compensation	—	88,535		—	—		—		—		—		88,535

Issuance of treasury stock	—	(22,336)		490	21,266		—		—		—		(1,070)

Dividends declared ($0.72897 per Common Share)	—	—		—	—		(195,844)		—		—		(195,844)

Other comprehensive income (loss) - net	—	—		—	—		—		(25,455)		—		(25,455)
Net income for the period	—	—		—	—		199,113		—		138		199,251
Balance as of March 31, 2023	270,479	$	2,130,343	(3,216)	$	(138,700)	$	2,163,338	$	(33,114)	$	1,280	$	4,123,147


	Nine Months Ended March 31, 2022
	Common Shares and Additional Paid in Capital			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income		Non-Controlling Interests		Total
	Shares	Amount		Shares	Amount
Balance as of June 30, 2021	271,541	$	1,947,764	(1,568)	$	(69,386)	$	2,153,326	$	66,238	$	1,511	$	4,099,453
Issuance of Common Shares
Under employee stock option plans	905	31,128		—	—		—		—		—		31,128
Under employee stock purchase plans	595	24,913		—	—		—		—		—		24,913
Share-based compensation	—	45,091		—	—		—		—		—		45,091
Purchase of treasury stock	—	—		(1,700)	(75,660)		—		—		—		(75,660)
Issuance of treasury stock	—	(21,013)		492	21,013		—		—		—		—
Repurchase of Common Shares	(2,810)	(17,879)		—	—		(118,238)		—		—		(136,117)
Dividends declared ($0.6627 per Common Share)	—	—		—	—		(178,613)		—		—		(178,613)

Other comprehensive income (loss) - net	—	—		—	—		—		(48,972)		—		(48,972)
Distribution to non-controlling interest	—	142		—	—		—		—		(538)		(396)
Net income for the period	—	—		—	—		294,894		—		130		295,024
Balance as of March 31, 2022	270,231	$	2,010,146	(2,776)	$	(124,033)	$	2,151,369	$	17,266	$	1,103	$	4,055,851


Reconciliation of cash, cash equivalents and restricted cash:	March 31, 2023		March 31, 2022
Cash and cash equivalents	$	1,396,817	$	1,633,702
Restricted cash (1)	2,903		2,149
Total cash, cash equivalents and restricted cash	$	1,399,720	$	1,635,851

(1) Restricted cash is classified under the Prepaid expenses and other current assets and Other assets line items on the Consolidated Balance Sheets.


Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended March 31, 2023 (In thousands, except for per share data)
	Three Months Ended March 31, 2023
	GAAP-based Measures		GAAP-based Measures % of Total Revenue	Adjustments		Note	Non-GAAP-based Measures		Non-GAAP-based Measures % of Total Revenue
Cost of revenues
Cloud services and subscriptions	$	157,658		$	(2,943)	(1)	$	154,715
Customer support	67,067			(1,157)		(1)	65,910
Professional service and other	78,526			(1,884)		(1)	76,642
Amortization of acquired technology-based intangible assets	62,639			(62,639)		(2)	—
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%)	874,944		70.3%	68,623		(3)	943,567		75.8%
Operating expenses
Research and development	210,731			(10,801)		(1)	199,930
Sales and marketing	271,013			(11,947)		(1)	259,066
General and administrative	127,047			(7,636)		(1)	119,411
Amortization of acquired customer-based intangible assets	97,237			(97,237)		(2)	—
Special charges (recoveries)	74,350			(74,350)		(4)	—
GAAP-based income from operations / Non-GAAP-based income from operations	63,989			270,594		(5)	334,583
Other income (expense), net	85,706			(85,706)		(6)	—
Provision for (recovery of) income taxes	(12,420)			44,631		(7)	32,211
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText	57,556			140,257		(8)	197,813
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText	$	0.21		$	0.52	(8)	$	0.73


	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
Cash flows from operating activities:
Net income for the period	$	57,613	$	74,722	$	199,251	$	295,024
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangible assets	190,453		125,149		427,869		378,632
Share-based compensation expense	36,368		16,748		88,398		45,091
Pension expense	2,362		1,868		5,806		4,883
Amortization of debt issuance costs	5,330		1,482		8,496		3,936
Write off of right of use assets	3,344		—		7,119		—
Loss on extinguishment of debt	21		—		8,152		27,413
Loss on sale and write down of property and equipment	1,307		58		1,428		96
Deferred taxes	(131,898)		22,440		(178,700)		43,332
Share in net (income) loss of equity investees	4,724		(27,746)		11,547		(59,103)
Changes in financial instruments	102,713		—		112,567		—
Changes in operating assets and liabilities:
Accounts receivable	167,866		17,241		141,269		68,428
Contract assets	(11,442)		(8,463)		(29,896)		(27,208)
Prepaid expenses and other current assets	(62,121)		(4,501)		(65,186)		(15,722)
Income taxes	87,277		(14,011)		131,517		(11,235)
Accounts payable and accrued liabilities	(146,638)		42,891		(137,674)		(65,738)
Deferred revenue	(13,498)		76,335		(42,631)		25,642
Other assets	54,708		(386)		(5,998)		16,527
Operating lease assets and liabilities, net	(11,714)		(270)		(19,430)		(128)
Net cash provided by operating activities	336,775		323,557		663,904		729,870
Cash flows from investing activities:
Additions of property and equipment	(31,233)		(17,590)		(99,772)		(54,937)
Purchase of Micro Focus International PLC, net of cash acquired	(5,655,606)		—		(5,655,606)		—
Purchase of Zix Corporation, net of cash acquired	—		(18,602)		—		(856,175)
Purchase of Bricata Inc.	—		—		—		(17,927)


Realized gain on financial instruments	131,248		—		131,248		—
Other investing activities	—		(651)		(873)		(3,922)
Net cash used in investing activities	(5,555,591)		(36,843)		(5,625,003)		(932,961)
Cash flows from financing activities:
Proceeds from issuance of Common Shares from exercise of stock options and ESPP	9,399		10,788		25,172		56,476
Proceeds from long-term debt and Revolver	3,927,450		—		4,927,450		1,500,000
Repayment of long-term debt and Revolver	(11,463)		(2,500)		(16,463)		(857,500)


	Three Months Ended March 31, 2023
			Per share diluted
GAAP-based net income, attributable to OpenText	$	57,556	$	0.21
Add:
Amortization	159,876		0.59
Share-based compensation	36,368		0.13
Special charges (recoveries)	74,350		0.28
Other (income) expense, net	(85,706)		(0.32)
GAAP-based provision for (recovery of) income taxes	(12,420)		(0.04)
Non-GAAP-based provision for income taxes	(32,211)		(0.12)
Non-GAAP-based net income, attributable to OpenText	$	197,813	$	0.73


	Three Months Ended March 31, 2023
GAAP-based cash flows provided by operating activities	$	336,775
Add:
Capital expenditures (1)	(31,233)
Free cash flows	$	305,542

(1) Defined as “Additions of property and equipment” in the Consolidated Statements of Cash Flows.


Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the nine months ended March 31, 2023 (In thousands, except for per share data)
	Nine Months Ended March 31, 2023
	GAAP-based Measures		GAAP-based Measures % of Total Revenue	Adjustments		Note	Non-GAAP-based Measures		Non-GAAP-based Measures % of Total Revenue
Cost of revenues
Cloud services and subscriptions	$	423,771		$	(7,788)	(1)	$	415,983
Customer support	123,010			(2,414)		(1)	120,596
Professional service and other	186,390			(5,172)		(1)	181,218
Amortization of acquired technology-based intangible assets	146,139			(146,139)		(2)	—
GAAP-based gross profit and gross margin (%) / Non-GAAP-based gross profit and gross margin (%)	2,104,379		70.3%	161,513		(3)	2,265,892		75.7%
Operating expenses
Research and development	430,629			(25,481)		(1)	405,148
Sales and marketing	615,354			(28,243)		(1)	587,111
General and administrative	282,724			(19,300)		(1)	263,424
Amortization of acquired customer-based intangible assets	205,121			(205,121)		(2)	—
Special charges (recoveries)	98,937			(98,937)		(4)	—
GAAP-based income from operations / Non-GAAP-based income from operations	395,005			538,595		(5)	933,600
Other income (expense), net	59,824			(59,824)		(6)	—
Provision for income taxes	71,979			33,021		(7)	105,000
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText	199,113			445,750		(8)	644,863
GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText	$	0.74		$	1.65	(8)	$	2.39


Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended December 31, 2022 (In thousands, except for per share data)
	Three Months Ended December 31, 2022
	GAAP-based Measures		GAAP-based Measures % of Total Revenue	Adjustments		Note	Non-GAAP-based Measures		Non-GAAP-based Measures % of Total Revenue
Cost of revenues
Cloud services and subscriptions	$	134,314		$	(2,812)	(1)	$	131,502
Customer support	28,589			(690)		(1)	27,899
Professional service and other	54,064			(1,763)		(1)	52,301
Amortization of acquired technology-based intangible assets	40,863			(40,863)		(2)	—
GAAP-based gross profit and gross margin (%) /Non-GAAP-based gross profit and gross margin (%)	635,747		70.8%	46,128		(3)	681,875		76.0%
Operating expenses
Research and development	109,700			(7,826)		(1)	101,874
Sales and marketing	177,171			(9,437)		(1)	167,734
General and administrative	77,603			(6,294)		(1)	71,309
Amortization of acquired customer-based intangible assets	53,446			(53,446)		(2)	—
Special charges (recoveries)	10,306			(10,306)		(4)	—
GAAP-based income from operations / Non-GAAP-based income from operations	184,663			133,437		(5)	318,100
Other income (expense), net	163,349			(163,349)		(6)	—
Provision for income taxes	50,774			(11,660)		(7)	39,114
GAAP-based net income (loss) / Non-GAAP-based net income, attributable to OpenText	258,486			(18,252)		(8)	240,234
GAAP-based earnings (loss) per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText	$	0.96		$	(0.07)	(8)	$	0.89


	Three Months Ended December 31, 2022
			Per share diluted
GAAP-based net income (loss), attributable to OpenText	$	258,486	$	0.96
Add:
Amortization	94,309		0.35
Share-based compensation	28,822		0.10
Special charges (recoveries)	10,306		0.04
Other (income) expense, net	(163,349)		(0.60)
GAAP-based provision for income taxes	50,774		0.19
Non-GAAP-based provision for income taxes	(39,114)		(0.15)
Non-GAAP-based net income, attributable to OpenText	$	240,234	$	0.89


	Three Months Ended December 31, 2022
GAAP-based cash flows provided by operating activities	$	195,170
Add:
Capital expenditures (1)	(32,215)
Free cash flows	$	162,955

(1) Defined as “Additions of property and equipment” in the Consolidated Statements of Cash Flows.


	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
Currencies	% of Revenue		% of Expenses(1)		% of Revenue		% of Expenses(1)
EURO	21	%	12	%	21	%	12	%
GBP	5	%	8	%	5	%	5	%
CAD	3	%	11	%	3	%	14	%
USD	61	%	50	%	63	%	53	%
Other	10	%	19	%	8	%	16	%
Total	100	%	100	%	100	%	100	%