Strategic M&A: Foundation for Our Business
Strategic & Continuous Investments to Drive Organic Growth
Revenue Type:
Fiscal 2019 Fiscal 2020 Fiscal 2021
Results
Results
Model (2)
Cloud Services and Subscriptions
31.6%
37.2%
Customer Support
43.5%
41.0%
41% -43%
38% -42%
Annual Recurring Revenue (ARR)
75.1%
78.2%
81% - 83%
License
14.9%
13.0%
9% -12%
Professional Services and Other
9.9%
8.8%
6% -9%
Non-GAAP Gross Margin
Cloud Services and Subscriptions
57.8%
61.3%
63% - 65%
Customer Support
90.1%
90.4%
89% - 91%
License
96.6%
97.2%
96%-98%
Professional Services and Other
21.8%
22.7%
20% -22%
Non-GAAP Gross Margin (1)
74.1%
74.5%
74% - 76%
Non-GAAP Operating Expenses:
Research & Development
11.0%
11.7%
12% - 14%
Sales & Marketing
17.8%
18.5%
18% - 20%
General & Admin
6.9%
7.3%
6% - 8%
Depreciation
3.4%
2.9%
A-EBITDA Margin (1)
38.4%
Free Cash Flow Conversion(1)
Capital Expenditures (USD M
28.3%
$64
36.9%
28.4%
$73
2% - 4%
37% -38%
32.4% (1)
$85 - $95
Investing in Growth
TTM R&D = ~$400M & +$2.2 B investment over
the next 5 years
Direct sales model, strategic partnerships,
channel-first SMB
2,000 field-facing direct sales professionals, high-
touch model for Global 10K
Acquisitions to operating model - GXS, ECD,
Carbonite - all integrated in 12 months or less
Key driver for innovation and organic growth
Upper Quartile position for A-EBITDA Margin and
FCF Conversion % (FCF/Total Revenue)
1. Please refer to "Use of Non-GAAP Financial Measures" in the Q2 FY'21 Investor presentation (February 4th, 2021) and "Reconciliation of selected GAAP-based measures to
Non-GAAP-based measures" included within our current and historical filings on Forms 10-Q, 10-K and 8-K.
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2. This model is not guidance.
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