Listen for things like "Increased hiring " and " we are returning to growth "
The tide is turning , the company is over the worst
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All these layoffs add up !!!
@ea long way for the remaining six billion!
I listened to the earnings call last night, and I can only call the analysts questions at the end embarrassing. Absolutely no substance to their questions with zero appetite to press or ask the hard questions that need asked even when fed garbage from the responders.
@e2 they paid 350 million off the debt
They always have an excuse on earnings calls. Covid, Presidential elections, war, gas prices, etc. When will analysts call their bluff? They’re so far off from paying off their debt. If they don’t do sell offs, they will continue to cut expenses (headcount) every quarter to make the numbers look better.
@c4 goal is to reduce renewal head count while making customers pay more. The customers that can leave will but the customers needing mission critical support or having mission critical subscriptions will be forced to stay and have no negotiating power. We are banking on that and will test the limits. The company needs new logos and will squeeze asap much money as it can from renewals by reducing headcount and exploiting customers that can’t leave.
@c0 the support renewals are ki-ling their own business. Adding the max 10% increase, plus 5% for "extended support", plus 5% for prime protect.
Fortune 500 companies know they can negotiate. Everyone else just leaves and goes to a competitor
@bz That seems about what I'm feeling.
And we still don't really know if the war is ending anytime soon.
If it does keep going there's going to be all sorts of fights. Both for customer spending, RTO, to name a few.
And I'm still trying to make sense of why we did all those layoffs and firings for the CFO to go 'share cancel/buyback :]' in the press release.
Can yall buy RSU before those go lower at least? Before it's only covering the McDonald's value menu preferably.
@bn potentially.
Or you have Sales fighting the Cloud Renewals team. More than now.
That also means OT can risk looking predatory. That's
Original sale revenue w/ AE commission
Professional services projects/Cloud on-boarding revenue (maybe, not 100% here). I do know the on-boarding team has been caught using internal keys better than most customer licenses though
AE renewal commission
Renewal uplift
And any special SLA/extended support they want to purchase.
That's alot to sell instead of on-prem past a point. I'd call it nickel and dime-ing but it's more than most OT salaries per charge.
Would it get revenue? Probably - but it also may bleed some companies out faster and speed up swapping. At least if AEs press for deals to ensure their own commission there's now not much of a Compliance team to stop them.
@bc The growth in the cloud is being almost entirely offset by the decline in legacy license and maintenance revenue. OpenText is running to stand still by simply swapping old revenue for new revenue without actually expanding the business.
And as for AI our customers want AI tools built directly into their primary platforms (Azure/Copilot) rather than paying for a separate information management layer. Our core products are legacy silos and customer are moving away from that.
Yes there was cloud growth farming the base but that will run out when there are no new customers.
Cloud sales would go up if Sellers got paid for SaaS renewals
Earnings call sounds like they are harvesting existing core client base as best they can (get onprem clients to some kind of cloud recurring revenue) as opposed to growing net new greenfield, non-core biz units are under increasing pressure and from the comments, sounds like they are getting low ball offers for divestiture of business units or no offers (Ayman opened call saying no fire sales, team made excuses for why they are not tracking 1 divestiture per quarter, and think it was James who closed the call Q&A with an answer saying they are waiting for the war to end because buyers cant get funding). Future is leaning down and to the right.
It seems unlikely that the individuals impacted by the recent European layoffs are concerned with the upcoming earnings call. It remains to be seen whether leadership will formally acknowledge the reductions.
Relax it is hardly Gordon Gekko stuff. Someone suggesting it will befull of platitudes hardly constitutes insider trading, some lunatics working for OT 🙈
@ac insider trading doesn’t give a f*ck where you break the law at
@aa if you trade based on this site then I'm not sure what to say to you
Yes. OT management is known for...distorting the truth.
If I were you I’d be praying that those exact words aren’t said because insider trading is no joke.
Yep I'm expecting to hear also that a corner had been turned and the future is bright