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Open Text Corporation (OTEX-0.38%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing details a total revenue of $1,334.5 million for the quarter, representing a decrease from the previous year. This decline is attributed to the divestiture of the AMC business, which contributed $131.2 million in the prior year's quarter.
Cloud services and subscriptions revenue increased by 2.7% to $462.3 million, while customer support revenue decreased by 15.1% to $590.6 million. License revenue also saw a decline of 34.7% to $188.9 million.
The company's gross margin was 73.3%, slightly down from 73.6% in the previous year. Operating expenses decreased to $682.2 million, primarily due to reduced general and administrative expenses.
Net income attributable to OpenText was $229.9 million, a significant increase from $37.7 million in the previous year. The increase in net income is partly due to other income and expense adjustments.
Adjusted EBITDA for the quarter was $501.5 million, compared to $566.3 million in the previous year. The decrease is attributed to lower revenues from the divestiture of the AMC business.
Operating cash flow for the six months ended December 31, 2024, was $270.2 million, down from $397.8 million in the previous year. This decrease is primarily due to changes in working capital and tax payments related to the AMC divestiture.
Open Text Corporation did not repurchase any common shares in the quarter. The company declared a dividend of $0.2625 per common share, with a payment date of March 21, 2025.
The filing also notes that the company continues to monitor geopolitical conflicts and their potential impacts on operations, although no material adverse effects are anticipated at this time.
The company has not recorded any accruals for the Canadian Revenue Agency reassessments, which it continues to contest.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Open Text Corporation quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.