Shares in OpenText Corp. rose slightly in late trading today after the enterprise software provider reported better-than-expected earnings in its fiscal second quarter.

For the quarter that ended Dec. 31, OpenText reported adjusted earnings per share of $1.24, up from 89 cents in the same quarter of the previous year, on revenue of $1.535 billion, up an impressive 71% year-over-year. Analysts had expected adjusted earnings per share of $1.13.

OpenText saw strong growth across the board, with cloud revenue coming in at $450 million, up 10% year-over-year, quarterly enterprise cloud bookings growing 62.8% year-over-year, to $236 million, and annual recurring revenue growing 58%, to $1.146 billion.

The most impressive figure, though, was OpenText’s customer support division, which saw revenue of $695.8 million, up 116% year-over-year. Licensing revenue also grew 163% year-over-year, to $289.2 million.

“We delivered $566 million of adjusted EBITDA, up 66% year-over-year and free cash flows of $305 million, up 87% year-over-year,” Madhu Ranganathan, executive vice president and chief financial officer of OpenText, said in the company’s earnings release. “Our balance sheet and liquidity position remain strong with approximately $1 billion in cash.”

Business highlights in the quarter included OpenText announcing in October that it is incorporating large language model-based generative artificial intelligence capabilities throughout its Information Management Cloud for content, experience, business networks, information technology operations, developer operations and cybersecurity.

Called Aviator, the LLM supports natural language queries, conversational chat and personalized, automatically generated content. OpenText users can use the generative capabilities within applications or via OpenText Cloud application programming interface services to enable AI orchestration and information flows across multiple clouds and knowledge bases.

Along with the AI announcement, OpenText also announced a suite of tools to aid information technology administrators in creating and managing data lakes, analyzing structured and unstructured data and creating visualizations.

OpenText did not provide an outlook with its earnings release. A transcript of OpenText’s investor call, where an outlook may have been given, was unavailable at the time of writing.

Photo: OpenText