Reconciliation of selected GAAP-based measures to Non-GAAP-based measures
for the year ended June 30, 2019.
(In thousands except for per share amounts)

Year Ended June 30, 2019

GAAP-based
Measures

GAAP-based
Measures
% of Total
Revenue

Adjustments

Note

Non-GAAP-
based
Measures

Non-GAAP-
based
Measures
% of Total
Revenue

Cost of revenues

Cloud services and subscriptions

$

383,993

$

(948)

(1)

$

383,045

Customer support

124,343

(1,242)

(1)

123,101

Professional service and other

224,635

(1,764)

(1)

222,871

Amortization of acquired technology-based intangible assets

183,385

(183,385)

(2)

—

GAAP-based gross profit and gross margin (%) /

Non-GAAP-based gross profit and gross margin (%)

1,938,052

67.6

%

187,339

(3)

2,125,391

74.1

%

Operating expenses

Research and development

321,836

(4,991)

(1)

316,845

Sales and marketing

518,035

(7,880)

(1)

510,155

General and administrative

207,909

(9,945)

(1)

197,964

Amortization of acquired customer-based intangible assets

189,827

(189,827)

(2)

—

Special charges (recoveries)

35,719

(35,719)

(4)

—

GAAP-based income from operations / Non-GAAP-based income from operations

567,010

435,701

(5)

1,002,711

Other income (expense), net

10,156

(10,156)

(6)

—

Provision for (recovery of) income taxes

154,937

(33,680)

(7)

121,257

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

285,501

459,225

(8)

744,726

GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText

$

1.06

$

1.70

(8)

$

2.76