Reconciliation of selected GAAP-based measures to Non-GAAP-based measures
for the three months ended March 31, 2019.
(In thousands except for per share amounts)

Three Months Ended March 31, 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

$

103,873

$

(291)

(1)

$

103,582

Customer support

31,844

(310)

(1)

31,534

Professional service and other

56,626

(448)

(1)

56,178

Amortization of acquired technology-based intangible assets

44,596

(44,596)

(2)

—

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

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

479,515

66.7

%

45,645

(3)

525,160

73.0

%

Operating expenses

Research and development

84,905

(1,315)

(1)

83,590

Sales and marketing

132,244

(2,458)

(1)

129,786

General and administrative

51,833

(1,890)

(1)

49,943

Amortization of acquired customer-based intangible assets

48,832

(48,832)

(2)

—

Special charges (recoveries)

796

(796)

(4)

—

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

135,877

100,936

(5)

236,813

Other income (expense), net

5,065

(5,065)

(6)

—

Provision for (recovery of) income taxes

32,542

(4,373)

(7)

28,169

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

72,762

100,244

(8)

173,006

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

$

0.27

$

0.37

(8)

$

0.64