Open Text (OTEX) BMO 2025 Virtual Software Conference summary

Strategic priorities and business overview

• Focused on competitive advantage, total revenue growth, and operational excellence, with six core business clouds and a strong position in enterprise content, security, and multi-cloud integration.

• Emphasizing stable, consistent long-term shareholder returns and leveraging a broad, complex product portfolio.

• AI-first approach is embedded across all operations, products, and internal processes, supporting both customer and internal productivity.

• Company is a key enabler for enterprise and government clients, providing foundational infrastructure for content and security.

• Ongoing efforts to simplify the business narrative and improve transparency for stakeholders.

Organic growth, challenges, and reporting

• Organic growth has been impacted by strategic repositioning, Micro Focus acquisition, and macroeconomic factors, including FX and U.S. government actions.

• ADM and ITOM businesses have faced underperformance, with ITOM stabilizing and ADM undergoing a focused go-to-market reorientation.

• Enhanced transparency and business clarity are expected in the next quarterly report, with more detailed revenue breakdowns by product pillar.

• Continuous improvement and reinvestment in mature and growth businesses are prioritized to drive up free cash flow margins.

• License-to-cloud transition is ongoing but not a significant headwind; customer preferences for on-prem and cloud are accommodated.

AI adoption and internal transformation

• AI adoption among customers is in early stages, with growing interest in Aviator and Titanium X products.

• Internal deployment of AI is widespread, enhancing code generation, customer support, sales efficiency, and knowledge work.

• AI is central to hiring, training, and operational processes, with ongoing measurement of AI-driven productivity.

• AI is expected to drive margin expansion and operational efficiencies, with a focus on proprietary tools and automation.

• Compute costs for AI are monitored but not yet materially impacting margins.