In an interview with TheStreet, Barrenechea contrasted OpenText's record revenue growth in its quarterly results and annual, released yesterday, with Amazon's disappointing results this quarter. He argued that OpenText's quarter "really stands in contrast to other companies. You look at Amazon, it's not sustainable. You can't be losing $800 million, and customers have to be very worried about moving their workload into a company that's losing $800 million."
In January, OpenText bought GXS, a leading provider of B2B integration services, to expand its enterprise information management business. Barrenechea said in the press release announcing that acquisition, "Our combined cloud will now manage over 16 billion transactions per year, approximately 600,000 trading partners and 40,000 customers." The purchase price was $1.065 billion in cash and 1,297,521 OpenText common shares. OpenText sells its Semantic Navigation software, which "enables organizations to engage online audiences with contextually relevant content and connect them to targeted products and ads," on the Amazon Web Services marketplace, where it competes with Amazon's own information management products.
For its fourth quarter in the 2014 fiscal year, OpenText’s revenue grew a record 42% year-over-year to $494.0 million. The company earned $1.05 per share, up from 72 cents a year ago. Analysts polled by Thomson Reuters expected revenues of $480.02 million and earnings of 94 cents per share.
For the 2014 fiscal year, which ended June 30, total revenue was $1.624 billion, up 19% year-over-year, as cloud services revenue, license revenue, and customer support revenue grew 108%, 11%, and 7% year-over-year, respectively. OpenText earned $3.37 per share in fiscal 2014, up 21% from fiscal 2013. Analysts expected earnings of $3.26 per share on revenues of $1.611 for the full year.