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OpenText Reports Second Quarter Fiscal Year 2021 Financial Results Record Annual Recurring Revenues ( ARR ) , Record Cloud Revenues Exhibit 99.1 Second Quarter Highlights Total Revenues . . • . ( in millions ) Annual Recurring Revenues ( in millions ) Reported $ 855.6 + 10.9 % Constant Currency Reported Constant Currency Cloud Revenues ( in millions ) Reported $ 839.4 $ 684.9 $ 673.6 $ 350.5 + 8.8 % + 21.5 % + 19.5 % + 41.1 % Constant Currency $ 346.7 + 39.6 % Annual Recurring Revenues represents 80 % of Total Revenues Operating Cash Flows of $ 282.5 million in the quarter , up 36.3 % Y / Y Free Cash Flows of $ 274.8 million in the quarter , up 46.5 % Y / Y GAAP - based net income ( loss ) of ( $ 65.5 ) million , down 160.9 % Y / Y , margin of ( 7.7 ) % down 2,160 basis points Y / Y , primarily due to one - time IRS settlement charge of $ 299 million Adjusted EBITDA of $ 360.8 million , up 13.8 % , margin of 42.2 % , up 110 basis points Y / Y GAAP - based diluted earnings ( loss ) per share of ( $ 0.24 ) , down 160.0 % Y / Y Non - GAAP diluted earnings per share of $ 0.95 , up 13.1 % , and $ 0.92 in constant currency , up 9.5 % Y / Y Waterloo , ON , February 4 , 2021 - Open Text Corporation ( NASDAQ : OTEX ) , ( TSX : OTEX ) , " The Information Company , " today announced its financial results for the second quarter ended December 31 , 2020 . " OpenText delivered another quarter of strong growth , reflecting the power of our business model and exceptional performance in all of our key metrics , " said Mark J. Barrenechea , OpenText CEO & CTO . " Total revenues grew to $ 855.6 million , up 10.9 % year - over - year , and Cloud Services and Subscriptions revenues grew to $ 350.5 million , up 41.1 % year - over - year . Annual Recurring Revenues ( ARR ) grew to a record $ 684.9 million , up 21.5 % year - over - year , now representing 80 % of total revenues . " " Increasing demand for OpenText's Information Management cloud offerings strongly positions us to achieve market share gains through continued alignment with our customers ' digital transformation and business needs , " said Mr. Barrenechea . " OpenText demonstrated strong operational excellence in our second quarter , generating free cash flows of $ 274.8 million , with a record Adjusted EBITDA of $ 360.8 million " , said OpenText EVP , CFO , Madhu Ranganathan . “ Our balance sheet and liquidity position of approximately $ 1.5 billion of cash at the end of the quarter and a 1.6x net leverage ratio , supports our goals to grow , generate cash and pursue our Total Growth strategy . " 1