Thank you for standing by. This is the conference operator. Welcome to the Open Text Corporation fourth quarter and year-end fiscal 2020 conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, simply press star and one on your touchtone phone. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. I would now like to turn the conference over to Harry Blount, Senior Vice President, Investor Relations. Please go ahead.
Thank you, operator, and good afternoon, everyone. On the call today is Open Text's Chief Executive Officer and Chief Technology Officer, Mark J. Barrenechea, and our Executive Vice President and Chief Financial Officer, Madhu Ranganathan. We have some prepared remarks, which will be followed by a question and answer session. This call will last approximately 60 minutes, with a replay available shortly thereafter. I'd like to take a moment and direct investors to the investor relations section of our website, investors.opentext.com, where we have posted two presentations that will supplement our prepared remarks today. First, our strategic overview, titled Open Text Investor Presentation August 2020. The second, titled Q4 and Fiscal 2020 Financial Results, includes information and financials specific to our quarterly results, notably our updated quarterly factors on page eight.
During the months of August and September, Open Text management will be pleased to virtually meet with investors at the following conferences: Oppenheimer's Annual Technology, Internet, and Communications Conference on August 11th, BMO's Virtual Technology Summit on August 26th, Citi's Global Technology Virtual Conference on September 8th, Deutsche Bank Technology Conference on September 14th, and Jefferies Virtual Software Conference on September 15th. In addition, I'm pleased to announce that we will be hosting an Investor Day on Thursday, November 12th. This virtual event will consist of our annual investor update, featuring strategic presentations from key members of our executive leadership team. Please save the date in your calendar and contact investors@opentext.com to register for the event. Please feel free to reach out to me or the IR team for additional information. Now I will proceed with the reading of our Safe Harbor statement.
Please note that during the course of this conference call, we may make statements relating to the future performance of Open Text that contain forward-looking information. While these forward-looking statements represent our current judgment, actual results could differ materially from a conclusion, forecast, or projection in the forward-looking statements made today. Certain material factors and assumptions were applied in drawing any such statement. Additional information about the material factors that could cause actual results to differ materially from a conclusion, forecast, or projection in the forward-looking information, as well as risk factors including in relation to the current global pandemic that may project future performance results of Open Text are contained in Open Text's recent forms 10-K and 10-Q, as well as in our press release that was distributed earlier this afternoon, which may be found on our website.
We undertake no obligation to update these forward-looking statements unless required to do so by law. In addition, our conference call may include discussions of certain non-GAAP financial measures. Reconciliations of any non-GAAP financial measures to their most directly comparable GAAP measures may be found within our public filings and other materials, which are available on our website. With that, I will hand the call over to Mark.
Thank you, Harry. Well, good afternoon to everyone, and thank you for joining today's call. I wish everyone health, well-being, and happiness. The last six months have made it very clear that digital technologies are the key to business resilience and durability. Organizations that own their digital capacity will recover faster and emerge stronger from this ongoing crisis. Resilience is the ability to recover quickly. Durability is permanence, the ability to resist stress or force. It is also very clear that while the crisis persists, there will be economic volatility and uncertainty, and there will be challenges and opportunities alike. Fiscal 2020 was a seminal year for Open Text. We rallied around the principles of resilience, durability, change, and opportunity to guide us through this difficult time. The pandemic has validated our purpose to help companies digitize and transform.
Now more than ever, customers trust and rely on Open Text products and expertise to help them digitize their business as they navigate through a changing global environment. The world runs on information. From the debate on truth, to global pandemic response, to the modern civil rights movement, the fact is information is more important than ever. For nearly 30 years, we have helped companies on a global basis across all industries build cultures of knowing with our information management software and expertise.
Our leadership position in information management has never been stronger, and customers of all sizes continue to trust Open Text as they reset to a new equilibrium at work, at home, and at play. The preemptive actions we took at the beginning of the pandemic are enabling us now to make significant investments in sales, products and more automation, positioning us to compete better and to gain market share regardless of the economic scenarios ahead. Let me begin by discussing our FY 2020 results and accomplishments. For fiscal 2020, Open Text delivered record revenue, record annual recurring revenue, record cloud revenue, record gross margin dollars, record operating cash flow, and record free cash flow, all during the most challenging economic period in our lifetime. Total revenue of $3.1 billion, up 8% year-over-year.
Record annual recurring revenue of $2.4 billion, up 13% year-over-year and now 78% of total revenues, 300 basis points higher than fiscal 2019. Cloud revenues of $1.2 billion, up 28% year-over-year, with a 347 basis points margin increase to 61%. Record customer support revenues of $1.3 billion, up 2% year-over-year, with a 25 basis points margin increase to 90.4%. We also cleared the year with record enterprise customer support renewal rates of 93.8%. We generated $1.15 billion of adjusted EBITDA dollars, up 4% or 37% of total revenues. Record operating cash flow of $955 million, up 9% year-over-year. Record free cash flow of $882 million, up 9% or 28.4% of revenue. Please note, we're going to be using free cash flow going forward, versus operating cash flows. We ended the quarter with $1.69 billion in cash and a net leverage ratio of approximately two times.
Looking back from fiscal 2011 through today, just looking back a little bit through today, ARR has expanded from 54% to 78% of total revenues. Cloud revenues have grown from zero to $1.2 billion, or 37% of total revenues. License mix is only 13% of our business today, compared to near 30% in fiscal 2011. We've delivered strong gross margins over time, regardless of the mix of business. Back strong gross margins in the low to mid-70s%, and we expect continuous improvements in the future. We've grown adjusted EBITDA from the high 20s% to the high 30s% from fiscal 2011 through today. Open Text business model is based on recurring revenue, which is significantly predictable, strong margins and strong cash flows, and we've de-risked away from a volatile license-led model, an exceptional accomplishment in the software industry. Let me transition and provide a few highlights from the quarter.
Within Q4, total revenues of $827 million, up 11% year-over-year. ARR of $658 million, up 18% year-over-year. ARR was 79.5% of total revenue. Cloud revenue of $333 million, up 38%. Adjusted EBITDA of $317 million, up 12%, and a 38.4% margin. OCF of $284 million, up 22% within the quarter, and free cash flow of $263 million, up 21% within the quarter. In constant currency, this quarter also represents our 22nd consecutive quarter of year-over-year growth in total revenue and ARR. We're now a cloud-first company with a rich install base of customers. For the second consecutive quarter, Cloud has become our largest revenue line. Cloud gross margins were 61.3% for the year and 65.1% for the quarter. We have more room for margin improvement through scale, mix and more automation.
As the cloud business continues to scale, it will get more efficient. Overall, it was a great quarter by all measures, and I'm so proud of my colleagues for their focus and commitment to our customers. We continue to generate cash, grow, and have returns in the right places, leveraging the increased predictability that ARR brings to our business model while we continue to take market share. We had many notable customer wins in Q4 that included the National Institute of Allergy and Infectious Diseases, the NIAID or the NIH, which we announced today. Becton Dickinson, Rapid Radiology, U.S. Defense Health Agency, Panasonic, Michelin, Merck, the Williams Companies, and Amway. Let me highlight two today. The National Institute of Allergy Infectious Diseases. It's a leading research to understand, treat, and prevent infectious, immunologic, and allergenic diseases, including COVID-19.
The NIAID is expanding its partnership with Open Text and selected Open Text Content Suite and AppWorks to support enterprise-wide business operations to advance the NIH mission of turning discovery into health. We're very proud of our partnership with the NIH. Rapid Radiology, one of the largest teleradiology providers in the U.S. They selected Open Text Business Network to streamline the delivery of radiology test results to electronic medical records. The Open Text Business Network solution delivers the industry's only cloud integration service to provide interoperability between all electronic medical record systems and the long-term care market, ensuring seamless delivery of clinical results between providers and improving patient care. This is particularly important with the move to increase remote work as physicians and nurses are able to review lab results online and support personnel can review orders remotely.
These wins highlight how information management is relevant and imperative, and that digital technologies are the key to business resilience and durability. Customer purchasing decisions in the quarter continue to support the acceleration to digitize and the demand trends we outlined in our last call. Content Services is being driven by the urgent need to digitize and migrate to the cloud. Content Services saw a particular strength in healthcare and government, but we also saw notable wins in other industries. The momentum in Content Services is a direct result of the investments made in both R&D and vertical go-to-market since our acquisition of Documentum. In Business Network, we saw volumes begin to recover through the quarter as supply chain reconfiguration continues, offset by lower secure messaging volumes in some impacted industries. In Cyber Resilience, we saw a very strong quarter given work from anywhere is here to stay.
In Digital Experience, the shift to supporting a customer through their entire life cycle via an omni-channel digital delivery direct to consumer and contactless experiences. Our cloud-based digital experience will become even stronger with some of our upcoming quarterly product releases. Turning to our FY 2020 acquisitions, Carbonite delivered another strong quarter of operations, validating our expansion into SMB market and enhancing the strength of our cyber resiliency offering. Carbonite delivered $116 million of revenues in Q4 or $235 million since the date of acquisition and continues to be accretive to adjusted earnings and cash flows and is on track to be on our operating model by the end of fiscal 2021. In fiscal 2021, we will release new security enterprise offerings that leverage the capabilities of Carbonite, Webroot, BrightCloud integrated with our existing EnCase offerings. We had other notable accomplishments in fiscal 2020.
We strengthened and extended partnerships with Google and Amazon as part of our Open Text Anywhere strategy and enhanced our longstanding relationship with SAP for cloud-based content management. We launched our next-generation platform, the Open Text Cloud Editions in April, CE 20.2, and recently extended our Content Services technology for Microsoft Teams. Four years ago, we were releasing product every 15 months. Today, we are releasing product every 90 days. Each release has more features, and 20.3 is on schedule for this quarter. Our delivery speed and capability is a long-term competitive advantage. We used to get haircuts every six weeks, but now we release software every 12 weeks. Finally, we were recognized by SAP as their Pinnacle Award winner as the SAP Solution Extension Provider of the Year for our 13th consecutive year, and by IDC and Aspire for our leadership in customer communications management.
Let me transition and begin to look forward to the quarters and years ahead. We continue to execute on our total growth strategy of retain, grow, and acquire that we outlined at our last Investor Day from New York City. Let me touch base briefly on each of these three pillars. First, retain. We have a rich install base of customers. Customer support and cloud renewals are a highly predictable business that continues to expand in parallel with our growth in the cloud. We remain committed to giving customers choice in how they buy our products, where they deploy our products, and giving them world-class support, maintenance, and update rights. Customer support is an important contributor to our ARR, and we achieved the highest enterprise customer retention in our history this year at 93.8%, and enterprise cloud renewals in the mid-90s.
As good as this is, we continue to see opportunities to improve. How? Compelling new features and expanded product offerings, faster cloud native product releases, products designed with automation for upsell and increased consumption built in, and apply our best-in-class customer support capabilities to our SMB channel. Second pillar, growth. We intend on growing and taking share regardless of the economic environment through continued investments in sales coverage, partnerships, cross-selling opportunities, and product innovation. Let me double-click on each one of those. First, continue to broaden sales coverage and expand our sales force in fiscal 2021. Second, continue to deepen sales coverage through the expansion of specialized sales groups, especially in the public sector, security, life sciences, and legal tech. Third, deepen relationships with enterprise partners such as SAP, Google, Amazon, and Microsoft. Grow the number of partners in our SMB channel.
In addition, each of our specialty sales units has built a partnership growth strategy. Fourth, cross-selling our products. We will introduce an enterprise-ready security platform in the second half of fiscal 2021 that leverages the combined capabilities of Carbonite, Webroot, BrightCloud, and EnCase. We're also now selling select Open Text products such as Open Text Core and Hightail through our enhanced SMB channel. Finally, we are delivering more products to market at a faster pace than ever before. Open Text future product releases will include more SaaS offerings, self-service onboarding, seamless app-to-app and cloud-to-cloud integration, and new industry-specific capabilities. The third pillar is acquisitions. We continue to be a strategic, disciplined, value-based buyer of companies. This is an important aspect of our total growth strategy. With these strategic acquisitions, we are better positioned to expand our product portfolio and improve our ability to innovate.
We have the proven track record of integration, and we will continue to acquire businesses that deepen and strengthen our platform. We believe return on invested capital, or ROIC, is the best measure of success of our strategy. In fiscal 2020, we achieved a ROIC of 17.6%, which remains consistent with our target range in the upper teens. We have a robust pipeline of acquisition opportunities that span the entire portfolio and of companies of all sizes. We do expect to close deals in fiscal 2021. These are our three pillars: retain, grow, and acquire. Let me turn to business outlook. First and foremost, we view our business as an annual business. It is annual performance and annual trends over the long term that create value. 90-day cycles are just too short a measure. The economic volatility remains high and will persist during the global pandemic.
We have some customer areas negatively impacted, like auto, airlines, retail, construction, and services. We have some areas positively affected, like government, customer experience management, security, and work-from-anywhere technologies. However, as of today, the positives do not outweigh the negatives given the global crisis. With that introduction, let me detail our annual business outlook for fiscal 2021. We expect on a year-over-year basis, as it relates to revenue, cloud revenue to grow low double digits, customer support revenue to be constant, ARR to grow mid-single digits, license and professional services businesses to decline, which is consistent with the trends in the broader software industry impacted by the pandemic and consistent with our multi-year transition to cloud and ARR. For total revenue to be constant, and perhaps we get a few points of growth should the economy recover sooner.
Constant total revenue is our base case in this volatile economy. On innovation, let me call out engineering investments to expand to 12%-14% of revenues. Continuing on our business outlook, on non-GAAP margin, cloud margin targets expanding 500 basis points to 63%-65%, total gross margin targets improving 100 basis points to 74%-76%, and adjusted EBITDA targets expanding 200 basis points to 37%-38%. Lastly, and as noted earlier, we expect to deploy capital via acquisitions in fiscal 2021. Our balance sheet and pipeline are strong. The strength of our business model and operating excellence is demonstrated in our annual historical results and strong FY 2021 business outlook. For fiscal 2021 Q1, we expect total revenue to increase high single-digit year-over-year, and adjusted EBITDA dollars to increase low double-digits. FX is expected to be neutral in the quarter.
As for our fiscal 2023 aspirations, our three-year aspirations, in light of the global crisis, we are simply shifting our FY 2022 aspirations for adjusted EBITDA and cash flows out 12 months to fiscal 2023. If the economy recovers sooner, we'll adjust the aspirations as appropriate. Specifically, our FY 2023 adjusted EBITDA margin aspiration is in the range of 38%-40%. Our fiscal 2023 free cash flow aspiration is $0.9 billion-$1 billion. Remember, we're moving to free cash flow versus operating cash flow. The outlook continues to represent upper quartile performance in adjusted EBITDA and free cash flow. Also note that our long-term growth planning remains unchanged, and we expect to continue to reinvest incremental adjusted EBITDA margin above 40% back into the business, supporting our long-term objective of driving further organic growth in a normalized demand environment.
Today, we declared a regular dividend, quarterly dividend, of $0.1746 per share, the same as the prior quarter. Open Text strongly believes in returning value to its shareholders, and we intend on holding our dividend constant during the pandemic, subject to board approval. Today, I'm also pleased to announce that our inaugural corporate citizen report will be released on our website next week on August 14th. I encourage everyone to read it. In the age of information disruption, we see opportunity to use technology for the greater good, and we aspire to unlock its potential to advance societal goals and accelerate positive change. This inaugural report establishes our ESG baseline, and we intend to hold ourselves accountable to, and we will report to you annually. We welcome your feedback in continuing and contributing to a better world. Let me summarize my prepared remarks.
The world runs on information. We are the leader in information management. Against the backdrop of the most challenging economic environment in our lifetime, we delivered record results because we have the products that matter, customer relationships that matter, a balance sheet that gives customers confidence that we will deliver on our commitments. An experienced leadership team that is ready for all scenarios. We're in a new equilibrium and a new world. We intend to gain market share regardless of the economic environment, because we are delivering more product innovation to the market faster than in our history. We continue to make investments in initiatives that will generate further and future organic growth. We are a cloud-first company that is committed to providing our rich install base of customers a choice of cloud, off cloud, integration, and a combination of both.
We remain committed to our proven total growth strategy and will deploy capital when the right opportunity presents itself. We also remain highly disciplined and are dedicated to driving shareholder returns through growth and free cash flows, transparent communications, and return of capital through dividends. On behalf of Open Text, we commend the brave women and men serving on the front lines of this pandemic, keeping us healthy, safe, and productive. I'd like to thank our shareholders, loyal customers, partners, and 14,000-plus employees for all contributing to our success in fiscal 2020. I am so proud of the resilience and durability that Open Text employees continue to demonstrate. Open Text truly represents the culture of humble and hungry, and our resolve is only strengthened by the energy and transformative impact of our customers, such as the NIAID, the U.S. Defense Health Agency, Panasonic, Merck, and the Williams Companies.
The most trusted companies truly trust Open Text. It's my pleasure to turn the call over to Madhu Ranganathan, Open Text Chief Financial Officer. Madhu?
Thank you, Mark. Thank you all for joining us today. Our fiscal 2020 was a groundbreaking year in many respects. One where the Open Text operational excellence came through with solid financial results. I'm humbled and proud to share them with you today. I will speak to Q4, to fiscal 2020, fiscal 2021 target model, and our long-term aspirations. Q4 investor presentations that are posted on our IR website will also be referred to in my comments. All references will be in millions of USD and compared to prior fiscal year. Let me start with revenues and earnings. Total revenues for the quarter were $826.6, up 10.6%, or up 12.2% on a constant currency basis. For fiscal 2020, our total revenues were $3.1 billion, up 8.4%, or up 9.7% on a constant currency basis.
There was an unfavorable FX impact to revenue of $12 million in Q4 and $37 million in fiscal 2020. The geographical split of total revenues in the year was Americas 61%, EMEA 30%, and APJ 9%. Annual recurring revenues for the quarter were $657.5 million, up 18%, or up 19.5% on a constant currency basis. For fiscal 2020, ARR was $2.4 billion, up 12.9%, or up 14.1% on a constant currency basis. As a % of total revenues, ARR was 80% for the quarter and 78% for fiscal 2020, up from 75% in fiscal 2019. Our cloud revenues were particularly strong at $332.6 million for Q4, up 37.5%, or up 38.8% on a constant currency basis. For fiscal 2020, cloud revenues of $1.2 billion, up 27.5%, or up 28.4% on a constant currency basis. The growth was primarily driven by continued success with Open Text Business Network and the integration of Carbonite.
Our cloud renewal rate in the quarter remains in the mid-90s. Our customer support revenues were $324.9 in Q4, up 3.1%, or up 2.7% on a constant currency basis. For fiscal 2020, customer support revenues of $1.3 billion, up 2.2%, or up 3.7% on a constant currency basis. Our customer support renewal rate for fiscal 2020 was 94%, reflecting the strength of our rich install base, even during COVID-19 times. Off-cloud revenues, which represent our license and professional services revenues, are $169.1 in Q4, down 11%, and $676.5 in fiscal 2020, down 5.1%. Our license revenues are $105.8 in Q4, down 11.6%, or down 10.3% on a constant currency basis. For fiscal 2020, license revenues are $402.9, down 5.9%, or down 4.5% on a constant currency basis, primarily COVID-19 related. Our professional services revenues are $63.3 in Q4, down 10.1%, or down 7.7% on a constant currency basis.
For fiscal 2020, PS revenues were $273.6, down 4%, and down 2.2% on a constant currency basis, in line with declining licenses. Turning to GAAP net income and GAAP earnings per share, they were both impacted by Carbonite acquisition-related items and special charges due to our recent restructuring. GAAP net income was $26.4 in Q4, down 63.2%, and primarily due to $47 million of intangible amortization from Carbonite and $24 million of special charges relating to our recent restructuring. For fiscal 2020, GAAP net income was $234.2, down 18%. Adjusted net income was $217.8 in Q4, up 12%, or up 12.5% on a constant currency basis. For fiscal 2020, adjusted net income was $784.5, up 5.2%, or up 7.2% on a constant currency basis. GAAP earnings per share diluted was $0.10 in Q4, down from $0.27, and $0.86 in fiscal 2020, down $0.20 from $1.06.
Non-GAAP earnings per share diluted was $0.80 in Q4, up $0.08 from $0.72, and also up $0.08 on a constant currency basis. For fiscal 2020, it was $2.89, up $0.13 from $2.76, or up $0.18 per share on a constant currency basis. Turning to margins. GAAP gross margin for the quarter was 68.5%, up 20 basis points, and for fiscal 2020 was 67.7%, up 10 basis points. Adjusted gross margin for the quarter was 75.8%, up 160 basis points, and for fiscal 2020 was 74.5%, up 40 basis points, both solid improvements on a year-over-year basis. Also on an adjusted basis, cloud margin was 65.1% for Q4 and 61.3% for fiscal 2020, up from 57.8%, driven by continued improvements and higher in the low 80s gross margin from Carbonite revenues, which are predominantly cloud.
Our customer support margin was 90.1% for Q4 and 90.4% for fiscal 2020, up from 90.1%, affecting continued strong renewal performance. Our license margin was 96.8% for Q4 and was 97.2% for fiscal 2020, up from 96.6%. Our professional services margin was 24.1% for Q4 and was 22.7% for fiscal 2020, up from 21.8%. Adjusted EBITDA was $317.4 this quarter, up 11.8%, or up 12.1% on a constant currency basis. For fiscal 2020, adjusted EBITDA was $1.1 billion, up 4.3%, or up 5.7% on a constant currency basis. This represents a 36.9% margin, down from 38.4% as we integrate two full quarters of Carbonite and higher than our fiscal 2020 target model range of 35%-36%.
For our fiscal 2020 target model, we ended fiscal 2020 at or at the high end of our target model ranges, notably in annual recurring revenue, cloud gross margin, overall gross margin, and adjusted EBITDA margin. Turning to operating cash flow. It was excellent performance. $280.3 for the quarter and a record $954.5 for fiscal 2020, up 8.9%. Our free cash flow for fiscal 2020 was strong at $882 million and an increase of 8.5%. Q4 DSO was 51 days compared to 56 days in Q4 2019. Our continued investment in operational improvements and the integration of Carbonite led to higher collection efficiencies, lower DSOs, and strong cash conversion cycles.
Additionally, during Q4, we deferred approximately $41 million in tax payments primarily as a result of the CARES Act that was enacted in the United States in the third quarter of fiscal 2020 and other COVID-19 related tax relief programs in EMEA. These deferrals will be paid during fiscal 2021 and 2022. We have built a tight and near real-time framework internally to closely monitor customer trends and remain watchful of the economic backdrop as it relates to both our enterprise and SMB customer base. Looking ahead, we are introducing free cash flow metrics in our long-term aspirations. Turning to the balance sheet. We ended the year with approximately $1.7 billion in cash, given our strong cash flow performance. Our $600 million revolver remains drawn as a preemptive measure in the current environment. Our consolidated net leverage ratio is 2.04 times, an improvement from 2.25 times last quarter.
An update on Carbonite. Q4 is our second full quarter with Carbonite results. Our proven track record of integration experience is being illustrated through Carbonite. Since the close of the acquisition on December 24th, 2019, the integration activities have remained steadfast in every aspect of the business: go-to-market, product and engineering, G&A, and systems. You see proof in our results. Carbonite delivered another strong quarter of results, adding to critical elements of our financial model: annual recurring revenues, cloud margin, adjusted EBITDA, and working capital. We remain on target to get Carbonite to our operating model end of fiscal 2021. Now to our restructuring plan. During the quarter, we implemented COVID-driven restructuring activities to streamline operations and reduce real estate around the world, as previously announced during our fiscal Q3 earnings call. We incurred approximately $54 million of special charges relating to these activities during the quarter.
As a reminder, we anticipate annualized expense savings of approximately $65 million-$75 million once completed, with substantial realization of the savings to start in fiscal 2021 and incorporated in our target model for fiscal 2021. Let me summarize the quarterly factors we anticipate for upcoming Q1, also provided in our quarterly deck on the IR website. On a year-over-year basis, we expect Q1 fiscal 2021 FX impact to be constant, our revenues to increase high single digits, and adjusted EBITDA dollars to increase in the low double digits. Now turning to fiscal 2021 target model. We published our model today, which as a reminder, is included in our quarterly deck on the IR website. First, and for the first time, ARR is expected in the range of 80%-82% of total revenues, up from our full fiscal 2020 results of 78.2% of revenues.
For the first time, cloud services and subscription revenue to increase to a range of 41%-43%, up from 37.2%. Our customer support will remain in the range of 38%-42%. Off-cloud revenues license to decrease to a range of 10%-13%, and professional services to decrease to a range of 6%-9%. We're expanding our gross margin by 100 basis points to a range of 74%-76%, and adjusted EBITDA margin range also expanded to 37%-38%. Let me provide more context to the expansion of margins. Throughout our history, as the mix of license and cloud has shifted, we have continually expanded the gross margins from 72.2% in fiscal 2015 to 74.5% in fiscal 2020.
We expect this trend to continue as a cloud-first company, a rich installed base of customers with high renewal rates, and high and expanding annual recurring revenue. Our cloud revenue should grow in the low double digits during fiscal 2021, with gross margin target model ranges between 63%-65%, aided by Carbonite in the low 80s% gross margin, along with continued improvements with scale, mix, and automation. With respect to customer support, while revenues remain constant during fiscal 2021, our expanded product offerings, compelling features, including those designed with automation for upsell, will enable us to maintain and even slightly grow the gross margins for customer support. The expanded gross margin range of 74%-76% will enable us to fully integrate Carbonite, expand our R&D investment to a range of 12%-14% of revenue, and deliver an adjusted EBITDA range of 37%-38%.
Now for long-term aspirations. As outlined in Mark's and my earlier comments, growing annual recurring revenue and expanding margins has been a highly successful multi-year journey at Open Text. We expect that trend to continue, as reflected in our long-term aspirations. Looking into fiscal 2023, we're targeting adjusted EBITDA aspirations of 38%-40% and reminding you of our plan to reinvest any margin gains above 40% into additional growth initiatives. Our long-term aspirations will include FCF. For fiscal 2023, our FCF target is $900 million-$1 billion, and our OCF target is $1 billion-$1.1 billion. For a tax update, the IRS matter is still in the appeals phase, and our resolve remains strong as we continue to vigorously defend our position. Finally, turning to our dividend program, today, we announced a quarterly dividend of $0.1746 per share, payable on September 25th, 2020.
Organic growth on an annual and year-over-year basis. Annual recurring revenue, ARR, it remains and will continue to be a key indicator of our organic growth. In constant currency, our ARR grew organically by 0.5% during fiscal 2020. Total organic revenue was down 1.3% in constant currency during fiscal 2020, impacted primarily by license volatility due to the pandemic and global macro environment, noting that we were tracking towards positive organic growth in fiscal 2020 prior to the pandemic. Turning to ROIC, our return on invested capital, it was 17.6% compared to 18.7% last year, which remains within our target range to be in the upper teens. In summary, we humbly and proudly take our solid fiscal 2020 results as a platform to strongly navigate the macro environment challenges into fiscal 2021 and the long term.
We believe we are well-positioned to take market share regardless of the economic environment. Finally, a special thank you to the entire Open Text community for your incredible efforts and to our shareholders, whose trust and confidence we greatly value, and wishing each of you all safety and good health. I would now like to turn the call over for your questions. Operator?
Thank you. We will now begin the question and answer session. Our first question comes from Raimo Lenschow of Barclays. Please go ahead.
Hey, this is Frank on for Raimo. Congrats on another really strong quarter. Just one for me on the customer conversation. Last quarter you mentioned that the pandemic made things very binary, where if you had a need, you bought something and bought it very quickly. Could you give us a little bit more color into how those customer conversations kind of progressed throughout the quarter?
Mark here. Thanks for the question. Just like I kicked off my introductory remarks on the script, the last six months have just made it very clear that digital technologies are the key to business resilience and durability. We've seen very solid conversations around core digitalization. The ability to support a work-from-anywhere environment, so data management, collaboration, workflows, electronic signatures. That's an area that we think that will continue to accelerate for us. Second is in the world of contactless and direct-to-consumer, we've seen a real strong interest in our digital experience platform, which was another place of strength for us. The conversations on digital continue to accelerate. They are right in the core of our wheelhouse of content services, plus our technologies of work from anywhere and customer experiences and our customer experience platform supporting direct-to-consumer and contactless activities.
Great. Thank you, guys.
Our next question comes from Stephanie Price of CIBC World Markets. Please go ahead.
Good evening.
Hi, Steph.
Wondering if you could dig into the fiscal 2021 revenue expectations a little bit more. I guess I'm talking about the puts and takes that led to an expectation of constant revenue growth, maybe specifically around the off-cloud business and the Cloud ex Carbonite.
Sure thing, Steph. Thanks for the plan. Thanks for the question. As we look into fiscal 2021, we expect cloud revenue to grow low double digits, customer support revenue to remain constant in the year, and that sort of models out annual recurring revenue to grow in the mid-single digits. We're communicating today that we expect licensed professional services to decline, sort of consistent with the broader trends in the software industry, impacted by the pandemic and the deferral by some companies of transactions here in the short term. Airlines, auto, hospitality, retail, those industries are down for us. We're also seeing industries up, like government, healthcare, manufacturing, work from home. The up areas don't offset all the down areas at this point. We think it's prudent to kind of look at licensed and professional services to decline.
That brings us to total revenue, which we're expecting to be constant year-over-year. If we get some help from the economy, we're hoping to get a few points of growth. That's more dependent on the economy than us. I'll also note, we are not losing to competitors, right? In fact, we see competitive strength. This is more driven by the demand environment than by a competitive environment. Within cloud, we see Carbonite on plan. Our managed services remain strong, but the transactional volumes, as we talked about last call, did decline. We're off our lows, and we're increasing again, but the new volumes don't completely offset the affected volumes, if you will. We haven't lost customers, and we're not losing to competitors. Again, we did see, as we talked about last time, volumes were down. We're off those lows now.
Okay, great. Thanks. That's good color. In terms of Carbonite, sounds like it's still doing well. Can you talk a little bit about the demand you're seeing, especially in the SMB market there?
Yeah. The business has been incredibly resilient in our first six, seven months of owning it. Winding back to December when we closed the transaction, our thesis was that it's not just the cloud alone, it's cloud plus the edge. No edge or no cloud, no cloud, no edge. Here we are, we're all on the edge, so to speak, working from everywhere. The two go hand-in-hand, and we really like the technologies of data protection, threat intelligence, threat protection, and having those technologies available from work from anywhere. We're pleased with our progress. We're on target to complete the integration here in fiscal 2021. The business has been on our internal plan. The SMB channel's been very resilient. We've actually, in one of the areas of where demand is up, it's actually our work from home technologies, work from anywhere technologies.
We're very pleased with our progress.
Thanks so much for the color. I'll pass the line.
Our next question comes from Thanos Moschopoulos of BMO Capital Markets. Please go ahead.
Hi, good afternoon. Mark, just expanding on Carbonite, clearly much stronger than you'd expected. Was that more about churn holding in better than you expected or new customer activity being stronger than expected or a combination of both?
Yeah, it's a basket of activities. Overall, the business has been amazingly resilient here during the pandemic. Let's take it in its pieces. The OEM part of the business, BrightCloud, been very resilient. In fact, we've added, here in the first six months, a few dozen new embedded partners. The SMB channel. Our channel is probably a little more resistant than others since we have larger RMMs that help consolidate SMBs for us. Renewal rates for end consumers have been very strong given work from anywhere. Our new kind of direct marketing activities has shown some early signs of promise. Actually, if anything else, as we come into fiscal 2021, one of our big efforts is cross-selling and having our enterprise teams now bring Carbonite to the enterprise. We're also on plan on all our integrations, systems, people, et cetera.
It's a combination of renewals, combination of some new demand of work from anywhere, and some early signs of cross-selling into the enterprise.
You mentioned launching Core and Hightail through the channel.
Yeah.
What was the timing of that, and how may the pandemic affect the uptake you might see in that regard?
Yeah. The start of any new fiscal year gives you an opportunity to do new things and align your organization. We launched in July, just a few weeks ago, having our SMB C teams bring Core Share, Core Signature, and Hightail through the SMB channel. We've only been at it for a few weeks, but it's very relevant and applicable in a very leverageable sales play from how they bring Carbonite and Webroot to market. We've only been at it for a few weeks, and we'll keep you updated as we go along here in fiscal 2021.
Great. Thanks a lot, Paul.
Our next question comes from Paul Steep of Scotia Capital. Please go ahead.
Mark, could you talk a little bit about what changes, if any, you've made to sales comp or key metrics that might be looking to drive greater cloud revenues into fiscal 2021 and maybe further de-emphasize the license side of the business? Thanks.
Yeah, Paul, thanks for the question. We've had great stability in our sales organization, both the leadership, our sort of field structure. We call them selling hubs, U.S. West, U.S. East, Canada, Southern Europe. We call them selling hubs, if you will. We've had great stability in kind of our named account model, specifically in the enterprise. As we come into fiscal 2021, leadership very stable, structure very stable. We haven't changed our comp plans coming into fiscal 2021. An AE is incented to hit an annual number that can be either retired through MCV, a guaranteed cloud contract or license. It's really driven by how the customer wants to consume. I've never believed that, quote, unquote, "Back at corporate, we can tell an AE in Toulouse, France, and their customers in Toulouse how they should consume." We haven't made any changes.
We certainly go in and advocate cloud first in what we're doing. We have, though, made some changes around account prioritization. We're emphasizing a little less the affected industries like airlines and auto, and spending more time on healthcare, government, and manufacturing. Paul, no changes to the comp plans coming into fiscal 2021.
Great. One quick follow-up to that or clarification.
Sure.
Embedded in the numbers next year with the further acceleration of cloud, is there an implicit assumption that 20.3 or the security offering actually force broader migration of the base? Thank you.
We are a cloud-first company. It's very clear in our history of how we have transitioned to an annual recurring revenue, which we expect for fiscal 2021 to be between 80%-82% of our business. We're releasing every 90 days, new product releases. We release first into the cloud. We're still going to support customer choice of how they consume. We have one code line for cloud and off cloud. We release first into the cloud. There's great benefit to being in the cloud. It's our largest opportunity. We will, of course, continue to sell licenses and support hybrid, but it is a cloud-first world. 20.3 certainly supports those principles.
Thank you.
Our next question comes from Richard Tse of National Bank Financial. Please go ahead.
Hey, thank you. Mark, I think you said you guys are still going to be active on acquisitions here. My question is, can you maintain the same level of cadence in terms of the number of deals, in terms of order magnitude? Can you also still pursue these larger opportunities, assuming this backdrop continues for, I don't know, another four quarters or so?
I believe we can. We have a very experienced team, very experienced processes, got a great leader, Doug Parker, of the organization. We have our approach and methodology. We also know our markets intimately. There are ample targets within our core markets of content services, business network, digital experience platform, cyber resilience, and advanced technology. I wouldn't want to enter a new market segment at this point in time while the pandemic persists. Richard, we know our core markets extremely well. We know those competitors, we know their business models, and it is ample pipeline and opportunity for us. It's steady as we go on M&A, where our balance sheet's ready, our team is ready, the pipeline's a little stronger, and we expect to deploy capital in fiscal 2021. The pandemic isn't going to slow us down.
Of course, our due diligence is going to include how COVID-19 has affected a potential target and their customers. Excuse me. That's an important filter, but it hasn't affected the target set for us.
Okay. That's fair. Thanks. I don't know if this is a fair question, but looking at your investor deck that you had when you had the investor day down in New York. Two of the growth drivers was, one, expanding into the Global 10,000 customer base, and then two, expanding adoption within the install base of 74,000 customers. I don't know if it's fair given the backdrop, but can you give us maybe a sense of whether you're going to have to push those objectives out to your next investor day and looking into 2021, or did you make quite a bit of progress on that in 2020?
Yeah, I don't recall. Excuse me. Let me just get a little drink of water there. I don't recall the specific metrics. Madhu, maybe you have them, that we had in the New York investor deck. I can say, of course, two of our greatest enterprise sales opportunities is expanding the G 10K, and we did expand coverage. One of the things we did in fiscal 2020 is we put a new global account management team in place. I'm real pleased and excited about that dedicated team looking at global accounts, and we expanded the coverage. I'll let Madhu see if there was a specific number there. Richard, cross-selling into the install base, the greatest opportunity is cloud.
We continue to drive managed services, which is private cloud, cross-selling opportunities, like customer experience management, work from home technologies, Carbonite, and other offerings, and upgrading into 20.2 and 20.3. G 10K install base remains front and center for us for growth.
Okay.
No, thank you, Mark. Richard, I was just going to add, if you look at our investor deck on page 25, we continue to reiterate that as a goal in terms of doubling the coverage of Global 10K in the next two years. Like Mark said, that's front and center for us.
Okay. Thank you.
Thank you.
Richard, it's also an important point, if I can just add to it. In a time like this, it's important to leverage existing relationships, and that's why the install base is so important. We're a trusted provider. We got a proven track record. Being able to go into our install base and leverage that history, a track record of delivering benefits, and balance sheet strength to sell the next module, the next platform, is a long-term strength for us and one that will help us gain share over smaller, less stable competitors.
Our next question comes from Paul Treiber of RBC Capital Markets. Please go ahead.
Thanks very much, good afternoon. In regards to the outlook for fiscal 2021, in regards to the pandemic, do you see the headwinds or the delays from the pandemic weighing both equally on license and cloud for new bookings? Are you seeing cloud demand as more resilient or even increasing, whereas the majority of the headwinds are on licenses?
Paul, thanks for the question. I'd say the following. Renewals have been amazingly resilient for us, as you can see in the numbers. Renewals are not just support. It's the ability to get value from the software. It's the ability to speak to experts. It's product updates. It's security patches and update services. As you can see in the numbers, that's been amazingly strong for us. Year-over-year growth, great margins, high renewal rates. There is certainly, in a time of crisis, it's accelerated customer interest and time to value. I would put the emphasis on time to value. If we can show time to value in a managed service, that could include a license, or time to value in our cloud, there's really a premium on time to value.
As you know, through time, we've been on an ARR and cloud transition, where back in fiscal 2011, license was near 30% of our business, and today it's 13% of our mix. I think the pandemic is revealing the need for time to value. We still can provide that regardless of the way a customer consumes. It also does put a bit of an emphasis on cloud, because typically you can get time to value in our managed service, or in one of our SaaS offerings.
Following up on that, Cloud Editions just launched. How's the pipeline building versus your expectations? In terms of bookings or MCV for cloud products this past quarter, maybe without providing a specific number, but just how was the new deal closed environment for cloud this past quarter?
With 20.2 and now 20.3 almost here, the reaction to 20.2 has been really very favorable. We are on these EP releases and getting features out. You see it in the renewal rates, just how strong they are. You also see it in, I think, a strong cloud number from fiscal 2020. Customers have really liked our ability to release quickly. We're getting better at having customers be able to consume it very quickly. We've solved for releasing every 90 days. We've solved for having it run anywhere through containers. We're now solving for the ease of consumption and the automatic way to turn on new modules. First take is very positive. As I highlighted in the script, I think this is a long-term differentiator for us.
If you think it as a series of things, getting the time down, it's getting the features up, it's getting it to run anywhere. It's now turning into the ability to consume it much more quickly, and automatically turn on new capabilities.
Okay. Thanks. Take my questions.
This concludes the question and answer session. I will hand the call back over to Mr. Barrenechea for closing remarks.
All right. Well, look, I'd like to thank everyone for joining today's call. Again, I wish everyone all health, wellbeing, and happiness, and look forward to continuing to engage here in the coming days and weeks and seeing you digitally in our upcoming conferences. Thank you for joining today's call.
This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.