Dear OpenText Stakeholders:
Welcome to Fiscal 2025! It is an exciting time to be a technology company as information automation and AI continue to drive the future of business.
At OpenText, we are acutely focused on creating the future through Information Management that elevates every individual and organization to be their best.
Over the next decade, by 2035, we could see inventions that fundamentally change the way we live and work:
- Average life spans increase to 100
- Brain power that is boosted with AI and physical technology
- Energy is solved with fusion
- Desalination is commonplace
- Information moves from our fingertips to intelligent AI that understands us
- And anything that moves, is autonomous
As part of that, we are designing and building the future of business to support three big industry trends: NextGen Autonomous Cloud, End-to-End Security, and AI for Humans.
When we started this company, the first decade (OpenText 1.0) centered around content management with on-prem software. In the next decade (OpenText 2.0) we transitioned to information management in the hybrid cloud.
Today, we are excited to announce the launch of OpenText 3.0 – Information Reimagined through the power of Cloud, Security, and AI.
OpenText 3.0 is our three-year strategic plan.
- Our Vision: To be the best information management company in the world.
- Our Belief: Information elevates every individual and organization to be their best.
- Our Common Purpose: We sit at the center of connected ecosystems, the internet of clouds, and we play a critical role as our customers adopt cloud, security, and AI.
- Our Differentiators: Putting customers first, expertise in information management, scaled go-to-market, and we care about each other.
- Our Business Priorities: Customer success, market leadership, accelerated growth, expanded margins, and all being powered by our data.
- All supported by our Core Values: Create the Future, Be Deserving of Trust, We NOT I, Raise the Bar and Own the Outcome.
To achieve the ambitions outlined in OpenText 3.0, our quarterly rhythm of innovations will focus on three primary areas:
- Business Clouds: automate and drive productivity for the knowledge worker
- Business AI: apply generative AI to transform business processes; and
- Business Technology: ensure security and compliance for global businesses
In further support of OpenText 3.0, today we announced a Business Optimization Plan focused on: (1) placing the right talent in the right locations of our business, (2) funding growth and innovations, and (3) completing these objectives with higher productivity, lower cost, and expanded margin.
Through our Business Optimization Plan, we expect to reduce approximately 1,200 roles and reinvest in 800 new roles in Sales, PS, and Engineering to support our growth and innovation plans. Combined, this is expected to reduce our annual expense by $150M with the cost of the reduction approximately $60M.
In addition, earlier this year, we announced a $250M share repurchase program. As we disclosed in our monthly SEDI filings in May and June, we completed $150M of the program, and purchased and retired 5M shares. In August, we will provide an update on our share repurchase program for Fiscal 2025.
We are very excited about opportunities going forward to continue our growth and increase our market share by helping our customers transform. Along with our plans to pursue large margin expansion opportunities and execute on strong capital allocation, we are confident we will deliver significant long-term value for all our stakeholders.
We look forward to providing further updates on our business when we report our quarterly financial results in August.
Mark
