Earnings call: OpenText reports record revenues and bullish cloud growth
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OpenText Corporation (OTEX) reported record revenues of $1.3 billion, a 71% YoY growth, and a 63% YoY growth in enterprise cloud bookings totaling $236 million for the second quarter of fiscal year 2024. The company's strategic focus on cloud offerings, AI integration, and partnerships with key industry players has positioned it well for continued growth. OpenText has raised its fiscal year 2024 cloud revenue outlook and expects a cloud growth range of 6% to 8%. The company is targeting 7% to 9% cloud organic revenue growth by 2026 and expects a total cloud revenue range of $5.85 billion to $5.95 billion for fiscal year 2024. OpenText is focused on embedding AI in all products and plans to complete the AMC divestiture by the end of the fiscal year. The company's Q3 EBITDA margin is expected to be lower due to seasonality and investments in AI and cloud infrastructure. OpenText's strong financial performance and strategic advancements position it well for continued growth in the information management industry.