The Waterloo, Ont.-based software company reported US$168 million in net income on US$1.33 billion in revenue for its fiscal quarter through December, down 26.9 per cent and 0.6 per cent year over year, respectively. Both figures exceeded analysts’ consensus estimates, as compiled by Visible Alpha. OpenText’s stock traded up as much as 9.7 per cent on the Nasdaq on Friday. (The Logic)

Talking point: OpenText’s cloud business—towards which it’s been gradually pivoting—drove growth last quarter, bringing in US$478 million, up 3.4 per cent on an annual basis. That’s likely to continue, with the division booking US$295 million in contracts for software and services between October and December. But OpenText actually owed its expectation-beating performance to its legacy technology licensing business, which brought in US$184 million, shrinking 2.5 per cent year over year but significantly exceeding the analysts’ consensus of about US$159 million. The firm is set for more change, after recently naming former IBM executive Ayman Antoun as its new CEO starting in April and divesting two units for a combined US$313 million as part of a shift to focus on AI.