Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights into the current demand environment and any shifts in deal activity? A: Mark Barrenechea, CEO, stated that the demand environment is stable despite global volatility. The company anticipates a stronger second half due to the upcoming release of Titanium X, their largest software and cloud release. They are also seeing increased demand for their new SMB platform and security offerings.
Q: What gives you confidence in achieving your second-half targets? A: Barrenechea highlighted several factors: the on-track delivery of Titanium X, full sales force capacity, a 20% year-over-year increase in pipeline for the second half, and the internal deployment of AI tools to enhance sales efficiency.
Q: How is Project Athena progressing, and what are the early results? A: Barrenechea explained that Project Athena is focused on developer productivity, with early feedback being positive. The project aims to generate applications on top of Open Text's API services, with the first production apps expected by April 2025.
Q: Can you discuss the impact of AI and Microsoft Copilot on customer adoption patterns? A: Barrenechea noted that AI is becoming a standard feature, akin to a search button, with 15 aviators and over 100 agents integrated into Titanium X. The company is making steady progress in embedding AI across its offerings, which is expected to support bookings and cloud revenue growth.
Q: What are the key drivers for cloud revenue growth in fiscal 2025? A: Barrenechea identified three main drivers: customer adoption of SaaS capabilities in Titanium X, revenue contributions from AI and aviators, and product-specific growth, particularly in security with XTR as a service.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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