Open Text Corporation (NASDAQ:OTEX) Q2 2023 Earnings Call Transcript

Mark Barrenechea: Yeah. Thank you, Kevin. The first is, as I outlined in my remarks, we want to win each of the markets. And so I don’t think of that as cross-selling per se, but winning that stack. We want to win the cybersecurity full stack. It’s suite selling. Win the cybersecurity suite, win the content suite, win the business network suite. And that is a straightforward growth on-ramp for us to win the stack in each of those six markets. Second is select strategic integrations across the six markets like Vertica and Magellan across the six, security across the six, private cloud, our cloud APIs across the six. So it’s a very straightforward play for us, and we’ve actually organized the company around that. Ted in enterprise, sales apprentices or we’re giving cybersecurity, a lot of focus, apprentice leading cybersecurity.

We have James McGourlay leading Enterprise Sales, Paul Duggan running all worldwide of renewals through Customer Success and Kristina leading our Corporate Sales. So we structure follows strategy, and we put that structure underneath that growth play of winning each. Now there’s, some very select things that we think are going to stand out, Idle and Content Services. Our ability to compete against FileNet, Fox, Highland and others by incorporating facial recognition, voice immitery, we’re going to take a big step up with this capability. It’s a gem. And they would like to integrate security, voltage into content and having the most secure content platform. So play number one is, win the stack. Number two, select integrations; and then three, fixing the things that need fixing Micro Focus, Acceleration in private cloud, get the renewal rate up as we outlined.

And Kevin, it’s a pretty straightforward run of plate, easy to articulate, and we’re putting it all in motion.

Kevin Krishnaratne: Okay. Thanks for that color, Mark Maybe just a follow-up there then. Microsoft integrations sound really unique and interesting. I’m wondering, how do we think about once they’re integrated and up and running and being offered to customers, is the opportunity more that they’re opening up new TAMs or in your use cases? Or are these — are you being are these better competitive products and you’re displacing? Just how do you think about where and how the wins are coming when you’re looking at the other end?

Mark Barrenechea: Yeah. I mean, the — these markets are bringing us to a galactic TAM of $200 billion, right? So we don’t need to TAM expansion. This says we got a big playing field in front of us at $200 billion plus. Its two things, we have new use cases we can go after. Smart cities, smart transportation, as we move, X and Y move from using their fingers and using more voice, we’re in a great position to capture that. So there’s, just new use cases and I’m just giving one in content, new market, cybersecurity for us. We’ll be larger in some brand names out there like RSA, which is a comprehensive stack that we have. And our competitive position is going to increase. It’s the same competitors out there. Our positioning at FileNet just got stronger.

Our position against Box just got stronger. Our position against Sterling Commerce just got stronger. Our position against some of the security providers just got stronger. So it’s new use cases. We love the TAM, don’t need to expand it, win the full stack, stronger against our competitors. And we’ll spend more time on that, at an Investor Day and another presentation to lay out that competitive landscape. But it’s a really interesting question, and thanks for it.

Kevin Krishnaratne: Great. Look forward to the progress and congrats again and pass the line.

Madhu Ranganathan: Thank you.

Operator: The next question comes from Stephanie Price of CIBC. Please go ahead.

Stephanie Price: Good evening and thanks for taking my question.

Mark Barrenechea: Hi Stephanie.