Market Research and Financial Analysis on "Open text" as a part of Information Systems course project at IFMR GSB, Krea University

1. Opentext Co.
Business and Financial Analysis
ISB Final Project

2. Introduction
OpenText Corporation is a Canadian company that develops and sells enterprise information
management (EIM) & enterprise content management (ECM) software.
Headquartered in Waterloo, Ontario.
OpenText software applications manage content or unstructured data for large companies, government
agencies, and professional service firms.
OpenText employs over 12,000 people worldwide and is a publicly traded company, listed on the NASDAQ
(OTEX) and the Toronto Stock Exchange (OTEX).
The EIM market leader for enterprise software and cloud solutions enabling enterprises to create connected
and intelligent organizations
35 countries300 products 100K customers

3. EIM Solutions:
● Content Services
● Business Network
● Artificial Intelligence
● AppWorks
● Security
EIM benefits:
● Become an Intelligent and Connected
Enterprise
● Unlock the value of content
● Ensure compliance
● Flexible deployment
ECM Solutions:
● Simple, responsive user interface
● Cloud content management
● Intelligent enterprise capture solution
● Content archiving solutions
ECM benefits:
● Fuel the digital workplace
● Content in context
● Mitigate compliance risk
● Unlock the value of content

4. Product and solutions
Customer Experience
Management
● Digital Asset management
● Marketing Optimization
Digital Process
Automation
● Active Client Management
● People Center
Business Network ● Supply chain
optimization.
● Digital Fax
Enterprise Content
Management
● Content Suite
● eDOCS
Security ● Encase Endpoint Security
● Encase Risk Manager
Discovery ● InfoFusion
AI and Analytics ● Magellan Analytics Suite ECM Market Share

5. Target Market
● Industrial users
● ECM vendors
● System integrators
● IT developers
● Third-party vendors
● Cloud service providers
● Network operators
● Infrastructure providers
● Regulatory and compliance agencies

6. Risk Factors as per Annual Report 2019
● Our success depends on our relationships with strategic partners, distributors and third party
service providers and any reduction in the sales efforts by distributors, cooperative efforts from our
partners or service from third party providers could materially impact our revenues
● If we do not continue to develop technologically advanced products that successfully integrate
with the software products and enhancements used by our customers, future revenues and our
operating results may be negatively affected.
● Our existing customers might cancel contracts with us, fail to renew contracts on their renewal
dates, and/or fail to purchase additional services and products, and we may be unable to attract
new customers, which could materially adversely affect our operating results
● Our investment in our current research & development efforts may not provide a sufficient, timely
return
● Product development is a long, expensive and uncertain process, and we may terminate one or
more of our development programs
● Failure to protect our intellectual property could harm our ability to compete effectively

7. Acquisitions over the years
Acquisitions Year
Artesia 2004
Hummingbird 2006
Captaris 2008
Vignette 2009
StreamServe 2010
Easylink 2012
Cordys 2013
Resonate KT 2013
GXS 2014
Actuate 2015
Daegis 2015
Informative Graphics Corporation 2015
(IGC) 2015
ANXeBusiness 2016
Recommind 2016
Covisint 2017
Documentum 2017
OpenText has had significant number of
acquisitions after 2014 and till 2017.

8. Perception Map
A perceptual map is a visual representation of
the perceptions of customers or potential
customers about specific attributes of an
organization, brand, product, service, or
idea.
Technique asks participants to place products
relative to one another along 2 or more axis. The
resulting map shows how consumers see
the strengths of competing products in a
particular market.
OpenText has been perceived as visionary
company as per Gartner report

9. Competitors and YOY growth
0
5
10
15
20
25
30
35
40
YOY(%) Growth
YOY (%)
OpenText YOY(%) growth has been
22.9 % and is lagging behind due to
competition by DropBox and Box Inc.
Other competitors include:
● International Business Machines
Corporation (IBM)
● Veeva
● Systems Inc.,
● j2 Global Inc.
● Pegasystems Inc.
● Hyland Software Inc.
● SPS Commerce Inc.

10. 0
0.5
1
1.5
2
Current
Ratio
Current Ratio
(Current Asset/Current Liability)
2017 2018 2019
0.64
0.66
0.68
0.7
0.72
0.74
Debt
Equity
Ratio
Debt Equity Ratio
(Debt/Equity)
2017 2018 2019
Over the years company
has been able to
generate more Cash,
and thus Current Ratio
increased.
As the company generated
cash over the years, it was
able to payoff it’s Debts
which led to decrease in
Debt-Equity Ratio
0
0.5
1
Cash
ratio
Cash Ratio
(Cash/Total Liability)
2017 2018 2019
Cash ratio has
increased over the
years which maybe the
case that company
might acquire some
new firm in the future.
Key Ratios

11. 0.26
0.28
0.3
0.32
0.34
0.36
0.38
Asset Turnover Ratio
Asset Turnover Ratio
(Net Sales/Avg. Total Assets)
2017 2018 2019
Asset Turnover ratio
increased in 2018
because of increase in
Revenue from its
product offerings.
0.395
0.4
0.405
0.41
0.415
Long
Term
Debt
Ratio
Long Term Debt Ratio
(Long Term Debt/ Capital)
2017 2018 2019
Defined as a measurement
of a company's financial
leverage.
It has remained almost
same for all the years,
which implies that
company has not
increased its long term
debt
0
20
40
60
80
Average collection Period Ratio
(Credit Sales/Trade Receivable)
2017 2018 2019
Company has been
successful in reducing the
ACP Ratio over the years (76
days to 63 days)
Implies that company has
been efficient in collecting
Trade receivables.

12. Thanks