- Open Text Corporation’s adjusted EPS for Q3 was 94c, matching the estimate and showing an increase from 73c y/y.
- Company revenues rose by 16% y/y to reach $1.45 billion, surpassing the estimated $1.43 billion.
- Cloud revenue for the company, however, stood at $454.5 million, which is a 4.4% increase y/y but below the estimated $462.6 million.
- License revenue was reported at $200.4 million, demonstrating a 43% spike y/y, and beating the estimated $193.3 million.
- The company’s adjusted gross margin for Q3 was 76.7%, again showing a rise against 75.8% y/y, but falling slightly short of the estimated 77.3%.
- CEO & CTO Mark J. Barrenechea reported that this strong financial performance was due to the demand for information management and new AI capabilities.
- The company now holds 9 buys and 4 holds with no sells to its name.
A look at Open Text Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
<p>
Open Text Corp, a provider of intranet, extranet, and corporate portal solutions, has received a mixed bag of Smart Scores. With a solid Growth score of 4, the company shows promising potential for expansion and development in the long term. However, its Resilience score of 2 indicates a lower level of stability and ability to withstand market fluctuations. The Value and Dividend scores both sit at a neutral 3, suggesting a somewhat average performance in terms of value and dividend payouts. Momentum, also at 3, indicates a moderate trend in the company’s stock performance. Overall, while Open Text Corp shows strength in growth, there are areas where it may benefit from improvement to enhance its long-term outlook.</p>
<p>
The flagship product of Open Text Corp, Livelink, is an off-the-shelf, enterprise-scalable collaborative application designed for businesses looking to optimize their information and resources through intranets. This focus on providing solutions for efficient information management positions the company well in the digital age where data organization and accessibility are paramount. Despite facing challenges in resilience according to the Smart Scores, Open Text Corp‘s commitment to innovation and growth through products like Livelink signifies a company striving to adapt and thrive in a competitive market landscape.</p>
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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