Open Text Corp at Jefferies Software Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Luv Sodha - Jefferies Group LLC - Analyst : Maybe to start out with -- could you just, at a high level, talk about OpenText, the different strategies and products that you have. I know it's a really big business and complex business.

Question: Luv Sodha - Jefferies Group LLC - Analyst : Awesome. No, that's great. That's a great overview. Maybe to start off with, could you, you know -- the macro topic has been top of mind for all the investors that we talk to. Could you maybe talk about the resiliency of the five clouds and which do you think, from a macroeconomic standpoint, would be most resilient in an economic downturn?

Question: Luv Sodha - Jefferies Group LLC - Analyst : Got it. No, that's perfect. And maybe on the sustainability of that growth. I guess the fear is that maybe a lot of that growth was driven by some pull-forward in demand last year. Maybe talk about whether you saw some of that and as we enter this new environment, are you seeing any impact to bookings as we go into the, let's just say, the summer/fall?

Question: Luv Sodha - Jefferies Group LLC - Analyst : Got it. No, that's perfect. You've been an acquirer of assets in the past. Now that valuations have come off quite a bit on the public side, could you maybe talk about your appetite to do M&A?

Question: Luv Sodha - Jefferies Group LLC - Analyst : Got it. Maybe digging in a little bit into the individual businesses and the individual clouds, if you will. Could you talk a little bit about the growth profiles of the different clouds and the way you think about the opportunity in each of these clouds, then maybe which one do you think would be most defensive in a downturn environment?

Question: Luv Sodha - Jefferies Group LLC - Analyst : Got it. And any color on the Carbonite piece, the security piece?

Question: Luv Sodha - Jefferies Group LLC - Analyst : Got it. You know now that we are in different environment, investors are focused on profitability, free cash flow generation. Historically, I mean, you guys have been great at that frame. How do you think of operating leverage as we step into a tougher macro environment and talk about maybe the deployment of that free cash, you know, either into share buybacks or M&A?

Question: Luv Sodha - Jefferies Group LLC - Analyst : Got it. And on the margin side, I guess the question being that in order to get to that long-term target of 30 to 40, could you potentially front-load some of that leverage if, let's say, we get into a tougher macro environment and growth were to slow?

Question: Luv Sodha - Jefferies Group LLC - Analyst : Got it. Maybe the last question around -- obviously, the stock valuation doesn't reflect the story well. So maybe, what are investors missing, I guess? And what do you think that they should focus on more?

Question: Luv Sodha - Jefferies Group LLC - Analyst : Awesome. Thank you again for the time, Harry, really appreciate it, and thank you all for coming.