Exhibit 99.1
For Immediate Release
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Contact: |
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Ken Bond |
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Deborah Hellinger |
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Oracle Investor Relations |
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Oracle Corporate Communications |
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1.650.607.0349 |
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1.212.508.7935 |
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ken.bond@oracle.com |
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deborah.hellinger@oracle.com |
Oracle Announces Fiscal 2024 Third Quarter Financial Results
AUSTIN, Texas, March 11, 2024 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2024 Q3 results. Total quarterly revenues were up 7% year-over-year in both USD and constant currency to $13.3 billion. Cloud services and license support revenues were up 12% in USD and up 11% in constant currency to $10.0 billion. Cloud license and on-premise license revenues were down 3% in both USD and constant currency to $1.3 billion.
Q3 GAAP operating income was $3.8 billion. Non-GAAP operating income was $5.8 billion, up 12% in both USD and constant currency. GAAP operating margin was 28%, and non-GAAP operating margin was 44%. GAAP net income was $2.4 billion. Non-GAAP net income was $4.0 billion, up 18% in both USD and constant currency. Q3 GAAP earnings per share was $0.85 while non-GAAP earnings per share was $1.41, up 16% in both USD and constant currency.
Short-term deferred revenues were $8.9 billion. Over the last twelve months, operating cash flow was $18.2 billion and free cash flow was $12.3 billion.
“Large new cloud infrastructure contracts signed in Q3 drove Oracle’s total Remaining Performance Obligations up 29% to over $80 billion—an all-time record,“ said Oracle CEO, Safra Catz. “We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply—despite the fact we are opening new and expanding existing cloud datacenters very, very rapidly. We expect that 43% of our current $80 billion of Remaining Performance Obligations will be recognized as revenue over the next four quarters, and that our Gen2 Cloud Infrastructure business will remain in a hypergrowth phase—up 53% in Q3—for the foreseeable future.”
“In Q3, Oracle finished moving the majority of Cerner customers to Oracle’s Gen2 Cloud Infrastructure,” said Oracle Chairman and CTO, Larry Ellison. “In Q4, Oracle will start delivering its completely new Ambulatory Clinic Cloud Application Suite to these same customers. This new AI-driven system features an integrated voice interface called the Clinical Digital Assistant that automatically generates doctors’ notes and updates Electronic Health Records—saving precious time and improving health data accuracy. The delivery of this revolutionary new healthcare technology will enable the rapid modernization of our customers’ health systems over the coming year, and transform Cerner and Oracle Health into a high-growth business for years to come.”
The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on April 10, 2024, with a payment date of April 24, 2024.
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.
About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.
# # #
Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.
"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including demand for Oracle Cloud Infrastructure capacity, expectations for growth in our Cerner, Oracle Health and Gen2 Cloud Infrastructure businesses, the rate and timing of conversion of the Remaining Performance Obligations to revenue and beliefs regarding modernizing digital healthcare systems, are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; economic, political and market conditions; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of March 11, 2024. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q3 FISCAL 2024 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
|
|
Three Months Ended |
|
% Increase |
|
% Increase |
||||||||||
|
|
February 29, |
|
|
% of |
|
February 28, |
|
|
% of |
|
(Decrease) |
|
in Constant |
||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cloud services and license support |
|
$ |
9,963 |
|
|
75% |
|
$ |
8,923 |
|
|
72% |
|
12% |
|
11% |
Cloud license and on-premise license |
|
|
1,256 |
|
|
9% |
|
|
1,288 |
|
|
10% |
|
(3%) |
|
(3%) |
Hardware |
|
|
754 |
|
|
6% |
|
|
811 |
|
|
7% |
|
(7%) |
|
(7%) |
Services |
|
|
1,307 |
|
|
10% |
|
|
1,376 |
|
|
11% |
|
(5%) |
|
(5%) |
Total revenues |
|
|
13,280 |
|
|
100% |
|
|
12,398 |
|
|
100% |
|
7% |
|
7% |
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cloud services and license support |
|
|
2,452 |
|
|
18% |
|
|
1,980 |
|
|
16% |
|
24% |
|
24% |
Hardware |
|
|
217 |
|
|
2% |
|
|
244 |
|
|
2% |
|
(11%) |
|
(11%) |
Services |
|
|
1,200 |
|
|
9% |
|
|
1,215 |
|
|
10% |
|
(1%) |
|
(1%) |
Sales and marketing |
|
|
2,042 |
|
|
15% |
|
|
2,150 |
|
|
18% |
|
(5%) |
|
(6%) |
Research and development |
|
|
2,248 |
|
|
17% |
|
|
2,146 |
|
|
17% |
|
5% |
|
5% |
General and administrative |
|
|
377 |
|
|
3% |
|
|
402 |
|
|
3% |
|
(6%) |
|
(7%) |
Amortization of intangible assets |
|
|
749 |
|
|
6% |
|
|
886 |
|
|
7% |
|
(15%) |
|
(15%) |
Acquisition related and other |
|
|
155 |
|
|
1% |
|
|
37 |
|
|
0% |
|
317% |
|
317% |
Restructuring |
|
|
90 |
|
|
1% |
|
|
78 |
|
|
1% |
|
15% |
|
14% |
Total operating expenses |
|
|
9,530 |
|
|
72% |
|
|
9,138 |
|
|
74% |
|
4% |
|
4% |
OPERATING INCOME |
|
|
3,750 |
|
|
28% |
|
|
3,260 |
|
|
26% |
|
15% |
|
15% |
Interest expense |
|
|
(876 |
) |
|
(6%) |
|
|
(908 |
) |
|
(7%) |
|
(3%) |
|
(3%) |
Non-operating expenses, net |
|
|
(9 |
) |
|
0% |
|
|
(134 |
) |
|
(1%) |
|
(94%) |
|
(93%) |
INCOME BEFORE INCOME TAXES |
|
|
2,865 |
|
|
22% |
|
|
2,218 |
|
|
18% |
|
29% |
|
29% |
Provision for income taxes |
|
|
464 |
|
|
4% |
|
|
322 |
|
|
3% |
|
44% |
|
44% |
NET INCOME |
|
$ |
2,401 |
|
|
18% |
|
$ |
1,896 |
|
|
15% |
|
27% |
|
26% |
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
$ |
0.87 |
|
|
|
|
$ |
0.70 |
|
|
|
|
|
|
|
Diluted |
|
$ |
0.85 |
|
|
|
|
$ |
0.68 |
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
2,748 |
|
|
|
|
|
2,698 |
|
|
|
|
|
|
|
Diluted |
|
|
2,819 |
|
|
|
|
|
2,776 |
|
|
|
|
|
|
|
1
ORACLE CORPORATION
Q3 FISCAL 2024 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
|
|
Three Months Ended |
|
|
% Increase (Decrease) |
|
% Increase (Decrease) in |
|||||||||||||||||||||||||
|
|
February 29, |
|
|
Adj. |
|
|
February 29, |
|
|
February 28, |
|
|
Adj. |
|
|
February 28, |
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
||||||
TOTAL REVENUES |
|
$ |
13,280 |
|
|
$ |
— |
|
|
$ |
13,280 |
|
|
$ |
12,398 |
|
|
$ |
— |
|
|
$ |
12,398 |
|
|
7% |
|
7% |
|
7% |
|
7% |
TOTAL OPERATING EXPENSES |
|
$ |
9,530 |
|
|
$ |
(2,042 |
) |
|
$ |
7,488 |
|
|
$ |
9,138 |
|
|
$ |
(1,925 |
) |
|
$ |
7,213 |
|
|
4% |
|
4% |
|
4% |
|
3% |
Stock-based compensation (3) |
|
|
1,048 |
|
|
|
(1,048 |
) |
|
|
— |
|
|
|
924 |
|
|
|
(924 |
) |
|
|
— |
|
|
13% |
|
* |
|
13% |
|
* |
Amortization of intangible assets (4) |
|
|
749 |
|
|
|
(749 |
) |
|
|
— |
|
|
|
886 |
|
|
|
(886 |
) |
|
|
— |
|
|
(15%) |
|
* |
|
(15%) |
|
* |
Acquisition related and other |
|
|
155 |
|
|
|
(155 |
) |
|
|
— |
|
|
|
37 |
|
|
|
(37 |
) |
|
|
— |
|
|
317% |
|
* |
|
317% |
|
* |
Restructuring |
|
|
90 |
|
|
|
(90 |
) |
|
|
— |
|
|
|
78 |
|
|
|
(78 |
) |
|
|
— |
|
|
15% |
|
* |
|
14% |
|
* |
OPERATING INCOME |
|
$ |
3,750 |
|
|
$ |
2,042 |
|
|
$ |
5,792 |
|
|
$ |
3,260 |
|
|
$ |
1,925 |
|
|
$ |
5,185 |
|
|
15% |
|
12% |
|
15% |
|
12% |
OPERATING MARGIN % |
|
28% |
|
|
|
|
|
44% |
|
|
26% |
|
|
|
|
|
42% |
|
|
194 bp. |
|
179 bp. |
|
194 bp. |
|
183 bp. |
||||||
INCOME TAX EFFECTS (5) |
|
$ |
464 |
|
|
$ |
461 |
|
|
$ |
925 |
|
|
$ |
322 |
|
|
$ |
439 |
|
|
$ |
761 |
|
|
44% |
|
22% |
|
44% |
|
21% |
NET INCOME |
|
$ |
2,401 |
|
|
$ |
1,581 |
|
|
$ |
3,982 |
|
|
$ |
1,896 |
|
|
$ |
1,486 |
|
|
$ |
3,382 |
|
|
27% |
|
18% |
|
26% |
|
18% |
DILUTED EARNINGS PER SHARE |
|
$ |
0.85 |
|
|
|
|
|
$ |
1.41 |
|
|
$ |
0.68 |
|
|
|
|
|
$ |
1.22 |
|
|
25% |
|
16% |
|
24% |
|
16% |
||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
|
|
2,819 |
|
|
|
— |
|
|
|
2,819 |
|
|
|
2,776 |
|
|
|
— |
|
|
|
2,776 |
|
|
2% |
|
2% |
|
2% |
|
2% |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
||||||||||||||||||
|
|
GAAP |
|
|
Adj. |
|
|
Non-GAAP |
|
|
GAAP |
|
|
Adj. |
|
|
Non-GAAP |
|
||||||
Cloud services and license support |
|
$ |
138 |
|
|
$ |
(138 |
) |
|
$ |
— |
|
|
$ |
114 |
|
|
$ |
(114 |
) |
|
$ |
— |
|
Hardware |
|
|
6 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
5 |
|
|
|
(5 |
) |
|
|
— |
|
Services |
|
|
45 |
|
|
|
(45 |
) |
|
|
— |
|
|
|
39 |
|
|
|
(39 |
) |
|
|
— |
|
Sales and marketing |
|
|
179 |
|
|
|
(179 |
) |
|
|
— |
|
|
|
158 |
|
|
|
(158 |
) |
|
|
— |
|
Research and development |
|
|
584 |
|
|
|
(584 |
) |
|
|
— |
|
|
|
517 |
|
|
|
(517 |
) |
|
|
— |
|
General and administrative |
|
|
96 |
|
|
|
(96 |
) |
|
|
— |
|
|
|
91 |
|
|
|
(91 |
) |
|
|
— |
|
Total stock-based compensation |
|
$ |
1,048 |
|
|
$ |
(1,048 |
) |
|
$ |
— |
|
|
$ |
924 |
|
|
$ |
(924 |
) |
|
$ |
— |
|
Remainder of fiscal 2024 |
|
$ |
739 |
|
Fiscal 2025 |
|
|
2,303 |
|
Fiscal 2026 |
|
|
1,639 |
|
Fiscal 2027 |
|
|
672 |
|
Fiscal 2028 |
|
|
635 |
|
Fiscal 2029 |
|
|
561 |
|
Thereafter |
|
|
1,080 |
|
Total intangible assets, net |
|
$ |
7,629 |
|
* |
Not meaningful |
2
ORACLE CORPORATION
Q3 FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
|
|
Nine Months Ended |
|
% Increase |
|
% Increase |
||||||||||
|
|
February 29, |
|
|
% of |
|
February 28, |
|
|
% of |
|
(Decrease) |
|
in Constant |
||
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cloud services and license support |
|
$ |
29,149 |
|
|
75% |
|
$ |
25,938 |
|
|
72% |
|
12% |
|
11% |
Cloud license and on-premise license |
|
|
3,243 |
|
|
8% |
|
|
3,627 |
|
|
10% |
|
(11%) |
|
(11%) |
Hardware |
|
|
2,224 |
|
|
6% |
|
|
2,424 |
|
|
7% |
|
(8%) |
|
(9%) |
Services |
|
|
4,058 |
|
|
11% |
|
|
4,129 |
|
|
11% |
|
(2%) |
|
(2%) |
Total revenues |
|
|
38,674 |
|
|
100% |
|
|
36,118 |
|
|
100% |
|
7% |
|
6% |
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cloud services and license support |
|
|
6,905 |
|
|
18% |
|
|
5,606 |
|
|
16% |
|
23% |
|
22% |
Hardware |
|
|
649 |
|
|
2% |
|
|
780 |
|
|
2% |
|
(17%) |
|
(18%) |
Services |
|
|
3,665 |
|
|
9% |
|
|
3,448 |
|
|
10% |
|
6% |
|
6% |
Sales and marketing |
|
|
6,161 |
|
|
16% |
|
|
6,544 |
|
|
18% |
|
(6%) |
|
(7%) |
Research and development |
|
|
6,689 |
|
|
17% |
|
|
6,397 |
|
|
18% |
|
5% |
|
4% |
General and administrative |
|
|
1,146 |
|
|
3% |
|
|
1,179 |
|
|
3% |
|
(3%) |
|
(4%) |
Amortization of intangible assets |
|
|
2,267 |
|
|
6% |
|
|
2,712 |
|
|
7% |
|
(16%) |
|
(16%) |
Acquisition related and other |
|
|
214 |
|
|
0% |
|
|
140 |
|
|
0% |
|
53% |
|
52% |
Restructuring |
|
|
311 |
|
|
1% |
|
|
359 |
|
|
1% |
|
(13%) |
|
(14%) |
Total operating expenses |
|
|
28,007 |
|
|
72% |
|
|
27,165 |
|
|
75% |
|
3% |
|
3% |
OPERATING INCOME |
|
|
10,667 |
|
|
28% |
|
|
8,953 |
|
|
25% |
|
19% |
|
17% |
Interest expense |
|
|
(2,636 |
) |
|
(7%) |
|
|
(2,550 |
) |
|
(7%) |
|
3% |
|
3% |
Non-operating expenses, net |
|
|
(72 |
) |
|
0% |
|
|
(386 |
) |
|
(2%) |
|
(81%) |
|
(82%) |
INCOME BEFORE INCOME TAXES |
|
|
7,959 |
|
|
21% |
|
|
6,017 |
|
|
16% |
|
32% |
|
29% |
Provision for income taxes |
|
|
636 |
|
|
2% |
|
|
833 |
|
|
2% |
|
(24%) |
|
(25%) |
NET INCOME |
|
$ |
7,323 |
|
|
19% |
|
$ |
5,184 |
|
|
14% |
|
41% |
|
38% |
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
$ |
2.67 |
|
|
|
|
$ |
1.93 |
|
|
|
|
|
|
|
Diluted |
|
$ |
2.60 |
|
|
|
|
$ |
1.88 |
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
2,741 |
|
|
|
|
|
2,692 |
|
|
|
|
|
|
|
Diluted |
|
|
2,820 |
|
|
|
|
|
2,757 |
|
|
|
|
|
|
|
3
ORACLE CORPORATION
Q3 FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
|
|
Nine Months Ended |
|
|
% Increase (Decrease) |
|
% Increase (Decrease) in |
|||||||||||||||||||||||||
|
|
February 29, |
|
|
Adj. |
|
|
February 29, |
|
|
February 28, |
|
|
Adj. |
|
|
February 28, |
|
|
GAAP |
|
Non-GAAP |
|
GAAP |
|
Non-GAAP |
||||||
TOTAL REVENUES |
|
$ |
38,674 |
|
|
$ |
— |
|
|
$ |
38,674 |
|
|
$ |
36,118 |
|
|
$ |
— |
|
|
$ |
36,118 |
|
|
7% |
|
7% |
|
6% |
|
6% |
TOTAL OPERATING EXPENSES |
|
$ |
28,007 |
|
|
$ |
(5,719 |
) |
|
$ |
22,288 |
|
|
$ |
27,165 |
|
|
$ |
(5,794 |
) |
|
$ |
21,371 |
|
|
3% |
|
4% |
|
3% |
|
4% |
Stock-based compensation (3) |
|
|
2,927 |
|
|
|
(2,927 |
) |
|
|
— |
|
|
|
2,583 |
|
|
|
(2,583 |
) |
|
|
— |
|
|
13% |
|
* |
|
13% |
|
* |
Amortization of intangible assets (4) |
|
|
2,267 |
|
|
|
(2,267 |
) |
|
|
— |
|
|
|
2,712 |
|
|
|
(2,712 |
) |
|
|
— |
|
|
(16%) |
|
* |
|
(16%) |
|
* |
Acquisition related and other |
|
|
214 |
|
|
|
(214 |
) |
|
|
— |
|
|
|
140 |
|
|
|
(140 |
) |
|
|
— |
|
|
53% |
|
* |
|
52% |
|
* |
Restructuring |
|
|
311 |
|
|
|
(311 |
) |
|
|
— |
|
|
|
359 |
|
|
|
(359 |
) |
|
|
— |
|
|
(13%) |
|
* |
|
(14%) |
|
* |
OPERATING INCOME |
|
$ |
10,667 |
|
|
$ |
5,719 |
|
|
$ |
16,386 |
|
|
$ |
8,953 |
|
|
$ |
5,794 |
|
|
$ |
14,747 |
|
|
19% |
|
11% |
|
17% |
|
10% |
OPERATING MARGIN % |
|
28% |
|
|
|
|
|
42% |
|
|
25% |
|
|
|
|
|
41% |
|
|
279 bp. |
|
154 bp. |
|
260 bp. |
|
147 bp. |
||||||
INCOME TAX EFFECTS (5) |
|
$ |
636 |
|
|
$ |
1,939 |
|
|
$ |
2,575 |
|
|
$ |
833 |
|
|
$ |
1,457 |
|
|
$ |
2,290 |
|
|
(24%) |
|
12% |
|
(25%) |
|
11% |
NET INCOME |
|
$ |
7,323 |
|
|
$ |
3,780 |
|
|
$ |
11,103 |
|
|
$ |
5,184 |
|
|
$ |
4,337 |
|
|
$ |
9,521 |
|
|
41% |
|
17% |
|
38% |
|
15% |
DILUTED EARNINGS PER SHARE |
|
$ |
2.60 |
|
|
|
|
|
$ |
3.94 |
|
|
$ |
1.88 |
|
|
|
|
|
$ |
3.45 |
|
|
38% |
|
14% |
|
35% |
|
13% |
||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
|
|
2,820 |
|
|
|
— |
|
|
|
2,820 |
|
|
|
2,757 |
|
|
|
— |
|
|
|
2,757 |
|
|
2% |
|
2% |
|
2% |
|
2% |
|
|
Nine Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||
|
|
GAAP |
|
|
Adj. |
|
|
Non-GAAP |
|
|
GAAP |
|
|
Adj. |
|
|
Non-GAAP |
|
||||||
Cloud services and license support |
|
$ |
386 |
|
|
$ |
(386 |
) |
|
$ |
— |
|
|
$ |
319 |
|
|
$ |
(319 |
) |
|
$ |
— |
|
Hardware |
|
|
17 |
|
|
|
(17 |
) |
|
|
— |
|
|
|
13 |
|
|
|
(13 |
) |
|
|
— |
|
Services |
|
|
123 |
|
|
|
(123 |
) |
|
|
— |
|
|
|
99 |
|
|
|
(99 |
) |
|
|
— |
|
Sales and marketing |
|
|
488 |
|
|
|
(488 |
) |
|
|
— |
|
|
|
433 |
|
|
|
(433 |
) |
|
|
— |
|
Research and development |
|
|
1,642 |
|
|
|
(1,642 |
) |
|
|
— |
|
|
|
1,448 |
|
|
|
(1,448 |
) |
|
|
— |
|
General and administrative |
|
|
271 |
|
|
|
(271 |
) |
|
|
— |
|
|
|
271 |
|
|
|
(271 |
) |
|
|
— |
|
Total stock-based compensation |
|
$ |
2,927 |
|
|
$ |
(2,927 |
) |
|
$ |
— |
|
|
$ |
2,583 |
|
|
$ |
(2,583 |
) |
|
$ |
— |
|
Remainder of fiscal 2024 |
|
$ |
739 |
|
Fiscal 2025 |
|
|
2,303 |
|
Fiscal 2026 |
|
|
1,639 |
|
Fiscal 2027 |
|
|
672 |
|
Fiscal 2028 |
|
|
635 |
|
Fiscal 2029 |
|
|
561 |
|
Thereafter |
|
|
1,080 |
|
Total intangible assets, net |
|
$ |
7,629 |
|
* |
Not meaningful |
4
ORACLE CORPORATION
Q3 FISCAL 2024 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
|
|
February 29, |
|
|
May 31, |
|
||
ASSETS |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
9,481 |
|
|
$ |
9,765 |
|
Marketable securities |
|
|
423 |
|
|
|
422 |
|
Trade receivables, net |
|
|
7,297 |
|
|
|
6,915 |
|
Prepaid expenses and other current assets |
|
|
3,862 |
|
|
|
3,902 |
|
Total Current Assets |
|
|
21,063 |
|
|
|
21,004 |
|
Non-Current Assets: |
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
19,117 |
|
|
|
17,069 |
|
Intangible assets, net |
|
|
7,629 |
|
|
|
9,837 |
|
Goodwill, net |
|
|
62,222 |
|
|
|
62,261 |
|
Deferred tax assets |
|
|
12,688 |
|
|
|
12,226 |
|
Other non-current assets |
|
|
14,363 |
|
|
|
11,987 |
|
Total Non-Current Assets |
|
|
116,019 |
|
|
|
113,380 |
|
TOTAL ASSETS |
|
$ |
137,082 |
|
|
$ |
134,384 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Notes payable and other borrowings, current |
|
$ |
5,510 |
|
|
$ |
4,061 |
|
Accounts payable |
|
|
1,658 |
|
|
|
1,204 |
|
Accrued compensation and related benefits |
|
|
1,796 |
|
|
|
2,053 |
|
Deferred revenues |
|
|
8,931 |
|
|
|
8,970 |
|
Other current liabilities |
|
|
6,990 |
|
|
|
6,802 |
|
Total Current Liabilities |
|
|
24,885 |
|
|
|
23,090 |
|
Non-Current Liabilities: |
|
|
|
|
|
|
||
Notes payable and other borrowings, non-current |
|
|
82,470 |
|
|
|
86,420 |
|
Income taxes payable |
|
|
10,451 |
|
|
|
11,077 |
|
Deferred tax liabilities |
|
|
4,483 |
|
|
|
5,772 |
|
Other non-current liabilities |
|
|
8,611 |
|
|
|
6,469 |
|
Total Non-Current Liabilities |
|
|
106,015 |
|
|
|
109,738 |
|
Stockholders’ Equity |
|
|
6,182 |
|
|
|
1,556 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
137,082 |
|
|
$ |
134,384 |
|
5
ORACLE CORPORATION
Q3 FISCAL 2024 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
|
Nine Months Ended |
|
|||||
|
February 29, |
|
|
February 28, |
|
||
Cash Flows From Operating Activities: |
|
|
|
|
|
||
Net income |
$ |
7,323 |
|
|
$ |
5,184 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
||
Depreciation |
|
2,318 |
|
|
|
1,810 |
|
Amortization of intangible assets |
|
2,267 |
|
|
|
2,712 |
|
Deferred income taxes |
|
(1,755 |
) |
|
|
(1,253 |
) |
Stock-based compensation |
|
2,927 |
|
|
|
2,583 |
|
Other, net |
|
631 |
|
|
|
487 |
|
Changes in operating assets and liabilities, net of effects from acquisitions: |
|
|
|
|
|
||
(Increase) decrease in trade receivables, net |
|
(409 |
) |
|
|
460 |
|
Decrease in prepaid expenses and other assets |
|
457 |
|
|
|
515 |
|
Decrease in accounts payable and other liabilities |
|
(682 |
) |
|
|
(783 |
) |
Decrease in income taxes payable |
|
(788 |
) |
|
|
(453 |
) |
Increase in deferred revenues |
|
303 |
|
|
|
256 |
|
Net cash provided by operating activities |
|
12,592 |
|
|
|
11,518 |
|
Cash Flows From Investing Activities: |
|
|
|
|
|
||
Purchases of marketable securities and other investments |
|
(674 |
) |
|
|
(921 |
) |
Proceeds from sales and maturities of marketable securities and other investments |
|
207 |
|
|
|
552 |
|
Acquisitions, net of cash acquired |
|
(59 |
) |
|
|
(27,721 |
) |
Capital expenditures |
|
(4,068 |
) |
|
|
(6,782 |
) |
Net cash used for investing activities |
|
(4,594 |
) |
|
|
(34,872 |
) |
Cash Flows From Financing Activities: |
|
|
|
|
|
||
Payments for repurchases of common stock |
|
(1,050 |
) |
|
|
(1,150 |
) |
Proceeds from issuances of common stock |
|
454 |
|
|
|
759 |
|
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards |
|
(1,865 |
) |
|
|
(1,040 |
) |
Payments of dividends to stockholders |
|
(3,289 |
) |
|
|
(2,586 |
) |
Proceeds from issuances of commercial paper, net of repayments |
|
936 |
|
|
|
1,874 |
|
Proceeds from issuances of senior notes and other borrowings, net of issuance costs |
|
— |
|
|
|
33,494 |
|
Repayments of senior notes and other borrowings |
|
(3,500 |
) |
|
|
(21,050 |
) |
Other, net |
|
34 |
|
|
|
49 |
|
Net cash (used for) provided by financing activities |
|
(8,280 |
) |
|
|
10,350 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(2 |
) |
|
|
(160 |
) |
Net decrease in cash and cash equivalents |
|
(284 |
) |
|
|
(13,164 |
) |
Cash and cash equivalents at beginning of period |
|
9,765 |
|
|
|
21,383 |
|
Cash and cash equivalents at end of period |
$ |
9,481 |
|
|
$ |
8,219 |
|
6
ORACLE CORPORATION
Q3 FISCAL 2024 FINANCIAL RESULTS
FREE CASH FLOW - TRAILING 4-QUARTERS (1)
($ in millions)
|
|
Fiscal 2023 |
|
|
Fiscal 2024 |
|||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
GAAP Operating Cash Flow |
|
$ |
10,542 |
|
$ |
15,073 |
|
$ |
15,503 |
|
$ |
17,165 |
|
|
$ |
17,745 |
|
$ |
17,039 |
|
$ |
18,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Capital Expenditures |
|
|
(5,168 |
) |
|
(6,678 |
) |
|
(8,205 |
) |
|
(8,695 |
) |
|
|
(8,290 |
) |
|
(6,935 |
) |
|
(5,981 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Free Cash Flow |
|
$ |
5,374 |
|
$ |
8,395 |
|
$ |
7,298 |
|
$ |
8,470 |
|
|
$ |
9,455 |
|
$ |
10,104 |
|
$ |
12,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Cash Flow % Growth over prior year |
|
(31%) |
|
47% |
|
49% |
|
80% |
|
|
68% |
|
13% |
|
18% |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Free Cash Flow % Growth over prior year |
|
(57%) |
|
18% |
|
11% |
|
68% |
|
|
76% |
|
20% |
|
68% |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
GAAP Net Income |
|
$ |
5,808 |
|
$ |
8,797 |
|
$ |
8,373 |
|
$ |
8,503 |
|
|
$ |
9,375 |
|
$ |
10,137 |
|
$ |
10,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating Cash Flow as a % of Net Income |
|
182% |
|
171% |
|
185% |
|
202% |
|
|
189% |
|
168% |
|
171% |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Free Cash Flow as a % of Net Income |
|
93% |
|
95% |
|
87% |
|
100% |
|
|
101% |
|
100% |
|
115% |
|
|
|||||||
7
ORACLE CORPORATION
Q3 FISCAL 2024 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)
($ in millions)
|
|
Fiscal 2023 |
|
|
Fiscal 2024 |
|
||||||||||||||||||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
TOTAL |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
TOTAL |
|
|||||||||
REVENUES BY OFFERINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cloud services |
|
$ |
3,579 |
|
$ |
3,813 |
|
$ |
4,053 |
|
$ |
4,437 |
|
$ |
15,881 |
|
|
$ |
4,635 |
|
$ |
4,775 |
|
$ |
5,054 |
|
|
$ |
14,464 |
|
License support |
|
|
4,838 |
|
|
4,785 |
|
|
4,870 |
|
|
4,933 |
|
|
19,426 |
|
|
|
4,912 |
|
|
4,864 |
|
|
4,909 |
|
|
|
14,685 |
|
Cloud services and license support |
|
|
8,417 |
|
|
8,598 |
|
|
8,923 |
|
|
9,370 |
|
|
35,307 |
|
|
|
9,547 |
|
|
9,639 |
|
|
9,963 |
|
|
|
29,149 |
|
Cloud license and on-premise license |
|
|
904 |
|
|
1,435 |
|
|
1,288 |
|
|
2,152 |
|
|
5,779 |
|
|
|
809 |
|
|
1,178 |
|
|
1,256 |
|
|
|
3,243 |
|
Hardware |
|
|
763 |
|
|
850 |
|
|
811 |
|
|
850 |
|
|
3,274 |
|
|
|
714 |
|
|
756 |
|
|
754 |
|
|
|
2,224 |
|
Services |
|
|
1,361 |
|
|
1,392 |
|
|
1,376 |
|
|
1,465 |
|
|
5,594 |
|
|
|
1,383 |
|
|
1,368 |
|
|
1,307 |
|
|
|
4,058 |
|
Total revenues |
|
$ |
11,445 |
|
$ |
12,275 |
|
$ |
12,398 |
|
$ |
13,837 |
|
$ |
49,954 |
|
|
$ |
12,453 |
|
$ |
12,941 |
|
$ |
13,280 |
|
|
$ |
38,674 |
|
AS REPORTED REVENUE GROWTH RATES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cloud services |
|
45% |
|
43% |
|
45% |
|
54% |
|
47% |
|
|
30% |
|
25% |
|
25% |
|
|
26% |
|
|||||||||
License support |
|
(1%) |
|
(2%) |
|
0% |
|
4% |
|
0% |
|
|
2% |
|
2% |
|
1% |
|
|
1% |
|
|||||||||
Cloud services and license support |
|
14% |
|
14% |
|
17% |
|
23% |
|
17% |
|
|
13% |
|
12% |
|
12% |
|
|
12% |
|
|||||||||
Cloud license and on-premise license |
|
11% |
|
16% |
|
0% |
|
(15%) |
|
(2%) |
|
|
(10%) |
|
(18%) |
|
(3%) |
|
|
(11%) |
|
|||||||||
Hardware |
|
0% |
|
11% |
|
2% |
|
(1%) |
|
3% |
|
|
(6%) |
|
(11%) |
|
(7%) |
|
|
(8%) |
|
|||||||||
Services |
|
74% |
|
74% |
|
74% |
|
76% |
|
75% |
|
|
2% |
|
(2%) |
|
(5%) |
|
|
(2%) |
|
|||||||||
Total revenues |
|
18% |
|
18% |
|
18% |
|
17% |
|
18% |
|
|
9% |
|
5% |
|
7% |
|
|
7% |
|
|||||||||
CONSTANT CURRENCY REVENUE GROWTH RATES (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cloud services |
|
50% |
|
48% |
|
48% |
|
55% |
|
50% |
|
|
29% |
|
24% |
|
24% |
|
|
25% |
|
|||||||||
License support |
|
4% |
|
4% |
|
3% |
|
6% |
|
4% |
|
|
0% |
|
0% |
|
1% |
|
|
0% |
|
|||||||||
Cloud services and license support |
|
20% |
|
20% |
|
20% |
|
25% |
|
21% |
|
|
12% |
|
11% |
|
11% |
|
|
11% |
|
|||||||||
Cloud license and on-premise license |
|
19% |
|
23% |
|
4% |
|
(14%) |
|
2% |
|
|
(11%) |
|
(19%) |
|
(3%) |
|
|
(11%) |
|
|||||||||
Hardware |
|
5% |
|
16% |
|
4% |
|
1% |
|
6% |
|
|
(8%) |
|
(12%) |
|
(7%) |
|
|
(9%) |
|
|||||||||
Services |
|
84% |
|
83% |
|
80% |
|
78% |
|
81% |
|
|
1% |
|
(3%) |
|
(5%) |
|
|
(2%) |
|
|||||||||
Total revenues |
|
23% |
|
25% |
|
21% |
|
18% |
|
22% |
|
|
8% |
|
4% |
|
7% |
|
|
6% |
|
|||||||||
CLOUD SERVICES AND LICENSE SUPPORT REVENUES BY ECOSYSTEM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Applications cloud services and license support |
|
$ |
4,016 |
|
$ |
4,080 |
|
$ |
4,166 |
|
$ |
4,390 |
|
$ |
16,651 |
|
|
$ |
4,471 |
|
$ |
4,474 |
|
$ |
4,584 |
|
|
$ |
13,529 |
|
Infrastructure cloud services and license support |
|
|
4,401 |
|
|
4,518 |
|
|
4,757 |
|
|
4,980 |
|
|
18,656 |
|
|
|
5,076 |
|
|
5,165 |
|
|
5,379 |
|
|
|
15,620 |
|
Total cloud services and license support revenues |
|
$ |
8,417 |
|
$ |
8,598 |
|
$ |
8,923 |
|
$ |
9,370 |
|
$ |
35,307 |
|
|
$ |
9,547 |
|
$ |
9,639 |
|
$ |
9,963 |
|
|
$ |
29,149 |
|
AS REPORTED REVENUE GROWTH RATES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Applications cloud services and license support |
|
32% |
|
30% |
|
31% |
|
36% |
|
32% |
|
|
11% |
|
10% |
|
10% |
|
|
10% |
|
|||||||||
Infrastructure cloud services and license support |
|
2% |
|
3% |
|
7% |
|
14% |
|
6% |
|
|
15% |
|
14% |
|
13% |
|
|
14% |
|
|||||||||
Total cloud services and license support revenues |
|
14% |
|
14% |
|
17% |
|
23% |
|
17% |
|
|
13% |
|
12% |
|
12% |
|
|
12% |
|
|||||||||
CONSTANT CURRENCY REVENUE GROWTH RATES (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Applications cloud services and license support |
|
37% |
|
35% |
|
33% |
|
37% |
|
35% |
|
|
11% |
|
9% |
|
10% |
|
|
10% |
|
|||||||||
Infrastructure cloud services and license support |
|
7% |
|
9% |
|
10% |
|
15% |
|
10% |
|
|
14% |
|
12% |
|
13% |
|
|
13% |
|
|||||||||
Total cloud services and license support revenues |
|
20% |
|
20% |
|
20% |
|
25% |
|
21% |
|
|
12% |
|
11% |
|
11% |
|
|
11% |
|
|||||||||
GEOGRAPHIC REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Americas |
|
$ |
7,192 |
|
$ |
7,786 |
|
$ |
7,671 |
|
$ |
8,577 |
|
$ |
31,226 |
|
|
$ |
7,841 |
|
$ |
8,067 |
|
$ |
8,270 |
|
|
$ |
24,177 |
|
Europe/Middle East/Africa |
|
|
2,691 |
|
|
2,895 |
|
|
3,067 |
|
|
3,457 |
|
|
12,109 |
|
|
|
3,005 |
|
|
3,170 |
|
|
3,316 |
|
|
|
9,491 |
|
Asia Pacific |
|
|
1,562 |
|
|
1,594 |
|
|
1,660 |
|
|
1,803 |
|
|
6,619 |
|
|
|
1,607 |
|
|
1,704 |
|
|
1,694 |
|
|
|
5,006 |
|
Total revenues |
|
$ |
11,445 |
|
$ |
12,275 |
|
$ |
12,398 |
|
$ |
13,837 |
|
$ |
49,954 |
|
|
$ |
12,453 |
|
$ |
12,941 |
|
$ |
13,280 |
|
|
$ |
38,674 |
|
8
APPENDIX A
ORACLE CORPORATION
Q3 FISCAL 2024 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:
• Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
• Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
• Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives.
9