SlideShare a Scribd company logo
Open Text Corporation (OTEX) 
Technology Sector 
Saken Wang 
October 9, 2014
Company Background 
 Provide software products and services 
 Enterprise Information Management 
 Business Process/Customer Experience 
 Information Exchange 
Open Text Corporation || OTEX 
 Big Content 
 Big data primarily generated by machines 
 Big content generated by people 
 Integrate, structure, manage big content
Growth 
 Technology and service industry has seen most 
demand 
 48 acquisitions over past 20 years 
 GXS acquisition lead to 255% increase in cloud services 
business revenue 
 Emerging markets in Southeast Asia, eastern Europe 
and Middle East 
 Mobility, pricing, reliability 
Open Text Corporation || OTEX
Looking forward 
Open Text Corporation || OTEX 
 Cloud Computing 
 Global business spending for cloud infrastructure and 
services predicted to reach $174.2 billion by end of this 
year 
 By 2017, $235.1 billion, triple of the spending in 2011 
 Demand for Cloud Service 
 67% of CIOs from 70 countries and 20 industries are 
actively looking into cloud technology to improve 
customer engagement
Valuation 
 Market Cap: 6.88 Billion 
 P/E: 14.67 vs. 27.52 (Industry) 
 Rev Growth (3 Yr Avg): 16.3% 
 Operating Margin: 20.42% vs 16.45% (Industry) 
 EBITDA Margin: 31.88% vs 23.44% (Industry) 
Open Text Corporation || OTEX 
 Dividend: 1.25% 
 Plus for a medium sized company
Risks 
 Debt to Equity: 0.8 vs. 0.4 (Industry) 
Open Text Corporation || OTEX 
 Competitors 
 IBM, Oracle, Microsoft 
 Concentrated customer segment
Investment Thesis 
 Trading at a discount 
 Performing better than industry 
 Unique market niche 
 Heavily demanded industry 
 Potential in emerging markets 
 Cloud technology is like “property” 
Open Text Corporation || OTEX

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Open text corporation investment pitch

  • 1. Open Text Corporation (OTEX) Technology Sector Saken Wang October 9, 2014
  • 2. Company Background  Provide software products and services  Enterprise Information Management  Business Process/Customer Experience  Information Exchange Open Text Corporation || OTEX  Big Content  Big data primarily generated by machines  Big content generated by people  Integrate, structure, manage big content
  • 3. Growth  Technology and service industry has seen most demand  48 acquisitions over past 20 years  GXS acquisition lead to 255% increase in cloud services business revenue  Emerging markets in Southeast Asia, eastern Europe and Middle East  Mobility, pricing, reliability Open Text Corporation || OTEX
  • 4. Looking forward Open Text Corporation || OTEX  Cloud Computing  Global business spending for cloud infrastructure and services predicted to reach $174.2 billion by end of this year  By 2017, $235.1 billion, triple of the spending in 2011  Demand for Cloud Service  67% of CIOs from 70 countries and 20 industries are actively looking into cloud technology to improve customer engagement
  • 5. Valuation  Market Cap: 6.88 Billion  P/E: 14.67 vs. 27.52 (Industry)  Rev Growth (3 Yr Avg): 16.3%  Operating Margin: 20.42% vs 16.45% (Industry)  EBITDA Margin: 31.88% vs 23.44% (Industry) Open Text Corporation || OTEX  Dividend: 1.25%  Plus for a medium sized company
  • 6. Risks  Debt to Equity: 0.8 vs. 0.4 (Industry) Open Text Corporation || OTEX  Competitors  IBM, Oracle, Microsoft  Concentrated customer segment
  • 7. Investment Thesis  Trading at a discount  Performing better than industry  Unique market niche  Heavily demanded industry  Potential in emerging markets  Cloud technology is like “property” Open Text Corporation || OTEX