false000134143900013414392024-06-112024-06-110001341439us-gaap:CommonStockMember2024-06-112024-06-110001341439orcl:SeniorNotesDueJuly2025Member2024-06-112024-06-11

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 11, 2024

Oracle Corporation

(Exact name of registrant as specified in its charter)

Delaware

001-35992

54-2185193

(State or other jurisdiction of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

2300 Oracle Way, Austin, Texas 78741

(Address of principal executive offices) (Zip Code)

(737) 867-1000

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

3.125% senior notes due July 2025

ORCL

 

New York Stock Exchange

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Section 2—Financial Information

Item 2.02 Results of Operations and Financial Condition

On June 11, 2024, Oracle Corporation (“Oracle”) issued a press release announcing financial results for its fiscal fourth quarter ended May 31, 2024. A copy of this press release is furnished as Exhibit 99.1 to this report.

Section 8—Other Events

Item 8.01 Other Events

Oracle announced that its Board of Directors has declared a cash dividend of $0.40 per share of outstanding common stock payable on July 25, 2024, to stockholders of record as of the close of business on July 11, 2024.

Section 9—Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

 

Exhibit No.

 

Description of Exhibit

99.1

 

Press Release dated June 11, 2024

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

ORACLE CORPORATION

 

 

 

 

Dated: June 11, 2024

 

By:

/s/ MARIA SMITH

 

 

 

Maria Smith

Executive Vice President, Chief Accounting Officer

(Principal Accounting Officer)

 


Exhibit 99.1

 

img17877081_0.jpg 

For Immediate Release

 

 

 

 

 

Contact:

Ken Bond

Deborah Hellinger

 

Oracle Investor Relations

Oracle Corporate Communications

 

1.650.607.0349

1.212.508.7935

 

ken.bond@oracle.com

deborah.hellinger@oracle.com

 

Oracle Announces Fiscal 2024 Fourth Quarter and Fiscal Full Year Financial Results

 

Q4 Total Remaining Performance Obligations up 44% to $98 billion
Q4 GAAP Earnings per Share $1.11, Non-GAAP Earnings per Share $1.63
Q4 Total Revenue $14.3 billion, up 3% in USD, up 4% in constant currency
Q4 Cloud Revenue (IaaS plus SaaS) $5.3 billion, up 20% in USD and constant currency
Q4 Cloud Infrastructure (IaaS) Revenue $2.0 billion, up 42% in USD and constant currency
Q4 Cloud Application (SaaS) Revenue $3.3 billion, up 10% in USD and constant currency
Q4 Fusion Cloud ERP (SaaS) Revenue $0.8 billion, up 14% in USD and constant currency
Q4 NetSuite Cloud ERP (SaaS) Revenue $0.8 billion, up 19% in USD and constant currency
FY 2024 Total Revenue $53.0 billion, up 6% in USD and constant currency

AUSTIN, Texas, June 11, 2024 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2024 Q4 and full-year 2024 results. Total quarterly revenues were up 3% year-over-year in USD and up 4% in constant currency to $14.3 billion. Cloud services and license support revenues were up 9% in USD and up 10% in constant currency to $10.2 billion. Cloud license and on-premise license revenues were down 15% in USD and down 14% in constant currency to $1.8 billion.

Q4 GAAP operating income was $4.7 billion. Non-GAAP operating income was $6.7 billion, up 8% in USD and up 9% in constant currency. GAAP operating margin was 33%, and non-GAAP operating margin was 47%. GAAP net income was $3.1 billion, and non-GAAP net income was $4.6 billion. Q4 GAAP earnings per share was $1.11 while non-GAAP earnings per share was $1.63.

Short-term deferred revenues were $9.3 billion. Operating cash flow was $18.7 billion during fiscal year 2024, up 9% in USD.

Fiscal year 2024 total revenues were up 6% in USD and constant currency to $53.0 billion. Cloud services and license support revenues were up 12% in USD and up 11% in constant currency to $39.4 billion. Cloud license and on-premise license revenues were down 12% in USD and constant currency to $5.1 billion.

Fiscal year 2024 GAAP operating income was $15.4 billion, and GAAP operating margin was 29%. Non-GAAP operating income was $23.1 billion, and non-GAAP operating margin was 44%. GAAP net income was $10.5 billion, while non-GAAP net income was $15.7 billion. GAAP earnings per share was $3.71, while non-GAAP earnings per share was $5.56.

“In Q3 and Q4, Oracle signed the largest sales contracts in our history—driven by enormous demand for training AI large language models in the Oracle Cloud,” said Oracle CEO, Safra Catz. “These record level sales drove RPO up 44% to $98 billion. Throughout fiscal year 2025, I expect continued strong AI demand to push Oracle sales and RPO even higher—and result in double-digit revenue growth this fiscal year. I also expect that each successive quarter should grow faster than the previous quarter—as OCI capacity begins to catch up with demand. In Q4 alone, Oracle signed over 30 AI sales contracts totaling more than $12.5 billion—including one with Open AI to train ChatGPT in the Oracle Cloud.”

“Our multicloud cooperation with Microsoft expanded significantly in Q4, as we agreed to work together to support Open AI and ChatGPT—and 11 of the 23 OCI datacenters we are building inside Azure went live,” said Oracle Chairman and CTO, Larry Ellison. “As this Azure/OCI cloud capacity becomes available to the large installed base of Microsoft and Oracle customers, it will turbocharge our cloud database growth. Now customers can run any and every version of the Oracle database—Autonomous, 23ai Vector DB, etc.— in both the Azure and the Oracle Clouds. As customers continue to choose and use multiple clouds, Hyperscalers like Microsoft and Google are responding by interconnecting their clouds. Oracle recently signed an agreement with Google to interconnect our clouds—and initially build 12 OCI datacenters inside the Google Cloud. We expect the Oracle database to be available within the Google Cloud in September this year.”

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 July 11, 2024, with a payment date of July 25, 2024.

A sample list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings/.
A list of recent technical innovations and announcements is available at www.oracle.com/news/.
To learn what industry analysts have been saying about Oracle’s products and services see www.oracle.com/corporate/analyst-reports/.

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 expectations for AI demand driving revenue growth and the timing of such growth, the effects of our multicloud strategy on cloud database growth, and our plans for datacenters and Oracle database availability inside the Google Cloud, 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 June 11, 2024. Oracle undertakes no duty to update any statement in light of new information or future events.

 


 

ORACLE CORPORATION

Q4 FISCAL 2024 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Three Months Ended May 31,

 

% Increase

 

% Increase
(Decrease)

 

 

2024

 

 

% of
Revenues

 

2023

 

 

% of
Revenues

 

(Decrease)
in US $

 

in Constant
Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

10,234

 

 

72%

 

$

9,370

 

 

68%

 

9%

 

10%

Cloud license and on-premise license

 

 

1,838

 

 

13%

 

 

2,152

 

 

15%

 

(15%)

 

(14%)

Hardware

 

 

842

 

 

6%

 

 

850

 

 

6%

 

(1%)

 

0%

Services

 

 

1,373

 

 

9%

 

 

1,465

 

 

11%

 

(6%)

 

(6%)

Total revenues

 

 

14,287

 

 

100%

 

 

13,837

 

 

100%

 

3%

 

4%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

2,522

 

 

18%

 

 

2,157

 

 

16%

 

17%

 

17%

Hardware

 

 

241

 

 

2%

 

 

261

 

 

2%

 

(7%)

 

(7%)

Services

 

 

1,160

 

 

8%

 

 

1,312

 

 

9%

 

(12%)

 

(11%)

Sales and marketing

 

 

2,114

 

 

15%

 

 

2,289

 

 

17%

 

(8%)

 

(7%)

Research and development

 

 

2,226

 

 

15%

 

 

2,226

 

 

16%

 

0%

 

0%

General and administrative

 

 

402

 

 

3%

 

 

400

 

 

3%

 

1%

 

1%

Amortization of intangible assets

 

 

743

 

 

5%

 

 

870

 

 

6%

 

(15%)

 

(15%)

Acquisition related and other

 

 

101

 

 

1%

 

 

51

 

 

0%

 

97%

 

97%

Restructuring

 

 

92

 

 

0%

 

 

131

 

 

1%

 

(29%)

 

(29%)

Total operating expenses

 

 

9,601

 

 

67%

 

 

9,697

 

 

70%

 

(1%)

 

(1%)

OPERATING INCOME

 

 

4,686

 

 

33%

 

 

4,140

 

 

30%

 

13%

 

15%

Interest expense

 

 

(878

)

 

(6%)

 

 

(955

)

 

(7%)

 

(8%)

 

(8%)

Non-operating expenses, net

 

 

(26

)

 

0%

 

 

(76

)

 

(1%)

 

(66%)

 

(68%)

INCOME BEFORE INCOME TAXES

 

 

3,782

 

 

27%

 

 

3,109

 

 

22%

 

22%

 

24%

(Provision for) benefit from income taxes

 

 

(639

)

 

(5%)

 

 

210

 

 

2%

 

*

 

*

NET INCOME

 

$

3,143

 

 

22%

 

$

3,319

 

 

24%

 

(5%)

 

(4%)

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.14

 

 

 

 

$

1.23

 

 

 

 

 

 

 

Diluted

 

$

1.11

 

 

 

 

$

1.19

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,753

 

 

 

 

 

2,707

 

 

 

 

 

 

 

Diluted

 

 

2,834

 

 

 

 

 

2,796

 

 

 

 

 

 

 

 

(1)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2023, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended May 31, 2024 compared with the corresponding prior year period decreased our total revenues by 1 percentage point and operating income by 2 percentage points.

*

Not meaningful

 

1


 

ORACLE CORPORATION

Q4 FISCAL 2024 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

 

 

 

Three Months Ended May 31,

 

 

% Increase (Decrease)
in US $

 

% Increase (Decrease) in
Constant Currency (2)

 

 

2024
GAAP

 

 

Adj.

 

 

2024
Non-GAAP

 

 

2023
GAAP

 

 

Adj.

 

 

2023
Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

14,287

 

 

$

 

 

$

14,287

 

 

$

13,837

 

 

$

 

 

$

13,837

 

 

3%

 

3%

 

4%

 

4%

TOTAL OPERATING EXPENSES

 

$

9,601

 

 

$

(1,983

)

 

$

7,618

 

 

$

9,697

 

 

$

(2,016

)

 

$

7,681

 

 

(1%)

 

(1%)

 

(1%)

 

(1%)

Stock-based compensation (3)

 

 

1,047

 

 

 

(1,047

)

 

 

 

 

 

964

 

 

 

(964

)

 

 

 

 

9%

 

*

 

9%

 

*

Amortization of intangible assets (4)

 

 

743

 

 

 

(743

)

 

 

 

 

 

870

 

 

 

(870

)

 

 

 

 

(15%)

 

*

 

(15%)

 

*

Acquisition related and other

 

 

101

 

 

 

(101

)

 

 

 

 

 

51

 

 

 

(51

)

 

 

 

 

97%

 

*

 

97%

 

*

Restructuring

 

 

92

 

 

 

(92

)

 

 

 

 

 

131

 

 

 

(131

)

 

 

 

 

(29%)

 

*

 

(29%)

 

*

OPERATING INCOME

 

$

4,686

 

 

$

1,983

 

 

$

6,669

 

 

$

4,140

 

 

$

2,016

 

 

$

6,156

 

 

13%

 

8%

 

15%

 

9%

OPERATING MARGIN %

 

33%

 

 

 

 

 

47%

 

 

30%

 

 

 

 

 

44%

 

 

288 bp.

 

219 bp.

 

311 bp.

 

235 bp.

INCOME TAX EFFECTS (5)

 

$

(639

)

 

$

(519

)

 

$

(1,158

)

 

$

210

 

 

$

(680

)

 

$

(470

)

 

*

 

147%

 

*

 

149%

NET INCOME

 

$

3,143

 

 

$

1,464

 

 

$

4,607

 

 

$

3,319

 

 

$

1,336

 

 

$

4,655

 

 

(5%)

 

(1%)

 

(4%)

 

0%

DILUTED EARNINGS PER SHARE

 

$

1.11

 

 

 

 

 

$

1.63

 

 

$

1.19

 

 

 

 

 

$

1.67

 

 

(7%)

 

(2%)

 

(5%)

 

(1%)

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

2,834

 

 

 

 

 

 

2,834

 

 

 

2,796

 

 

 

 

 

 

2,796

 

 

1%

 

1%

 

1%

 

1%

 

(1)
This presentation includes non-GAAP measures. Our non-GAAP 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. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2023, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:

 

 

Three Months Ended
May 31, 2024

 

 

Three Months Ended
May 31, 2023

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

140

 

 

$

(140

)

 

$

 

 

$

117

 

 

$

(117

)

 

$

 

Hardware

 

 

6

 

 

 

(6

)

 

 

 

 

 

5

 

 

 

(5

)

 

 

 

Services

 

 

44

 

 

 

(44

)

 

 

 

 

 

38

 

 

 

(38

)

 

 

 

Sales and marketing

 

 

178

 

 

 

(178

)

 

 

 

 

 

177

 

 

 

(177

)

 

 

 

Research and development

 

 

583

 

 

 

(583

)

 

 

 

 

 

535

 

 

 

(535

)

 

 

 

General and administrative

 

 

96

 

 

 

(96

)

 

 

 

 

 

92

 

 

 

(92

)

 

 

 

Total stock-based compensation

$

1,047

 

 

$

(1,047

)

 

$

 

 

$

964

 

 

$

(964

)

 

$

 

(4)
Estimated future annual amortization expense related to intangible assets as of May 31, 2024 was as follows:

 

Fiscal 2025

 

$

2,303

 

Fiscal 2026

 

 

1,639

 

Fiscal 2027

 

 

672

 

Fiscal 2028

 

 

635

 

Fiscal 2029

 

 

561

 

Thereafter

 

 

1,080

 

Total intangible assets, net

$

6,890

 

 

(5)
Income tax effects were calculated reflecting an effective GAAP tax rate of 16.9% and (6.7%) in the fourth quarter of fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 20.1% and 9.2% in the fourth quarter of fiscal 2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarter of fiscal 2024 and 2023 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.

*

Not meaningful

 

2


 

ORACLE CORPORATION

FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Year Ended May 31,

 

% Increase

 

% Increase
(Decrease)

 

 

2024

 

 

% of
Revenues

 

2023

 

 

% of
Revenues

 

(Decrease)
in US $

 

in Constant
Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

39,383

 

 

74%

 

$

35,307

 

 

71%

 

12%

 

11%

Cloud license and on-premise license

 

 

5,081

 

 

10%

 

 

5,779

 

 

12%

 

(12%)

 

(12%)

Hardware

 

 

3,066

 

 

6%

 

 

3,274

 

 

6%

 

(6%)

 

(7%)

Services

 

 

5,431

 

 

10%

 

 

5,594

 

 

11%

 

(3%)

 

(3%)

Total revenues

 

 

52,961

 

 

100%

 

 

49,954

 

 

100%

 

6%

 

6%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

9,427

 

 

18%

 

 

7,763

 

 

16%

 

21%

 

21%

Hardware

 

 

891

 

 

2%

 

 

1,040

 

 

2%

 

(14%)

 

(15%)

Services

 

 

4,825

 

 

9%

 

 

4,761

 

 

10%

 

1%

 

1%

Sales and marketing

 

 

8,274

 

 

15%

 

 

8,833

 

 

18%

 

(6%)

 

(7%)

Research and development

 

 

8,915

 

 

17%

 

 

8,623

 

 

17%

 

3%

 

3%

General and administrative

 

 

1,548

 

 

3%

 

 

1,579

 

 

3%

 

(2%)

 

(2%)

Amortization of intangible assets

 

 

3,010

 

 

6%

 

 

3,582

 

 

7%

 

(16%)

 

(16%)

Acquisition related and other

 

 

314

 

 

0%

 

 

190

 

 

0%

 

65%

 

64%

Restructuring

 

 

404

 

 

1%

 

 

490

 

 

1%

 

(18%)

 

(18%)

Total operating expenses

 

 

37,608

 

 

71%

 

 

36,861

 

 

74%

 

2%

 

2%

OPERATING INCOME

 

 

15,353

 

 

29%

 

 

13,093

 

 

26%

 

17%

 

16%

Interest expense

 

 

(3,514

)

 

(7%)

 

 

(3,505

)

 

(7%)

 

0%

 

0%

Non-operating expenses, net

 

 

(98

)

 

0%

 

 

(462

)

 

(1%)

 

(79%)

 

(80%)

INCOME BEFORE INCOME TAXES

 

 

11,741

 

 

22%

 

 

9,126

 

 

18%

 

29%

 

27%

Provision for income taxes

 

 

(1,274

)

 

(2%)

 

 

(623

)

 

(1%)

 

105%

 

103%

NET INCOME

 

$

10,467

 

 

20%

 

$

8,503

 

 

17%

 

23%

 

22%

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

3.82

 

 

 

 

$

3.15

 

 

 

 

 

 

 

Diluted

 

$

3.71

 

 

 

 

$

3.07

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,744

 

 

 

 

 

2,696

 

 

 

 

 

 

 

Diluted

 

 

2,823

 

 

 

 

 

2,766

 

 

 

 

 

 

 

 

(1)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2023, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the year ended May 31, 2024 compared with the corresponding prior year period increased our operating income by 1 percentage point.

3


 

ORACLE CORPORATION

FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

 

 

 

Year Ended May 31,

 

 

% Increase (Decrease)
in US $

 

% Increase (Decrease) in
Constant Currency (2)

 

 

2024
GAAP

 

 

Adj.

 

 

2024
Non-GAAP

 

 

2023
GAAP

 

 

Adj.

 

 

2023
Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

52,961

 

 

$

 

 

$

52,961

 

 

$

49,954

 

 

$

 

 

$

49,954

 

 

6%

 

6%

 

6%

 

6%

TOTAL OPERATING EXPENSES

 

$

37,608

 

 

$

(7,702

)

 

$

29,906

 

 

$

36,861

 

 

$

(7,809

)

 

$

29,052

 

 

2%

 

3%

 

2%

 

2%

Stock-based compensation (3)

 

 

3,974

 

 

 

(3,974

)

 

 

 

 

 

3,547

 

 

 

(3,547

)

 

 

 

 

12%

 

*

 

12%

 

*

Amortization of intangible assets (4)

 

 

3,010

 

 

 

(3,010

)

 

 

 

 

 

3,582

 

 

 

(3,582

)

 

 

 

 

(16%)

 

*

 

(16%)

 

*

Acquisition related and other

 

 

314

 

 

 

(314

)

 

 

 

 

 

190

 

 

 

(190

)

 

 

 

 

65%

 

*

 

64%

 

*

Restructuring

 

 

404

 

 

 

(404

)

 

 

 

 

 

490

 

 

 

(490

)

 

 

 

 

(18%)

 

*

 

(18%)

 

*

OPERATING INCOME

 

$

15,353

 

 

$

7,702

 

 

$

23,055

 

 

$

13,093

 

 

$

7,809

 

 

$

20,902

 

 

17%

 

10%

 

16%

 

10%

OPERATING MARGIN %

 

29%

 

 

 

 

 

44%

 

 

26%

 

 

 

 

 

42%

 

 

278 bp.

 

169 bp.

 

271 bp.

 

169 bp.

INCOME TAX EFFECTS (5)

 

$

(1,274

)

 

$

(2,459

)

 

$

(3,733

)

 

$

(623

)

 

$

(2,136

)

 

$

(2,759

)

 

105%

 

35%

 

103%

 

35%

NET INCOME

 

$

10,467

 

 

$

5,243

 

 

$

15,710

 

 

$

8,503

 

 

$

5,673

 

 

$

14,176

 

 

23%

 

11%

 

22%

 

10%

DILUTED EARNINGS PER SHARE

 

$

3.71

 

 

 

 

 

$

5.56

 

 

$

3.07

 

 

 

 

 

$

5.12

 

 

21%

 

9%

 

20%

 

8%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

2,823

 

 

 

 

 

 

2,823

 

 

 

2,766

 

 

 

 

 

 

2,766

 

 

2%

 

2%

 

2%

 

2%

 

(1)
This presentation includes non-GAAP measures. Our non-GAAP 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. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2)
We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2023, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.
(3)
Stock-based compensation was included in the following GAAP operating expense categories:

 

 

 

Year Ended
May 31, 2024

 

 

Year Ended
May 31, 2023

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

525

 

 

$

(525

)

 

$

 

 

$

435

 

 

$

(435

)

 

$

 

Hardware

 

 

23

 

 

 

(23

)

 

 

 

 

 

18

 

 

 

(18

)

 

 

 

Services

 

 

167

 

 

 

(167

)

 

 

 

 

 

137

 

 

 

(137

)

 

 

 

Sales and marketing

 

 

667

 

 

 

(667

)

 

 

 

 

 

611

 

 

 

(611

)

 

 

 

Research and development

 

 

2,225

 

 

 

(2,225

)

 

 

 

 

 

1,983

 

 

 

(1,983

)

 

 

 

General and administrative

 

 

367

 

 

 

(367

)

 

 

 

 

 

363

 

 

 

(363

)

 

 

 

Total stock-based compensation

$

3,974

 

 

$

(3,974

)

 

$

 

 

$

3,547

 

 

$

(3,547

)

 

$

 

 

(4)
Estimated future annual amortization expense related to intangible assets as of May 31, 2024 was as follows:

 

Fiscal 2025

 

$

2,303

 

Fiscal 2026

 

 

1,639

 

Fiscal 2027

 

 

672

 

Fiscal 2028

 

 

635

 

Fiscal 2029

 

 

561

 

Thereafter

 

 

1,080

 

Total intangible assets, net

$

6,890

 

 

(5)
Income tax effects were calculated reflecting an effective GAAP tax rate of 10.9% and 6.8% in fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 19.2% and 16.3% in fiscal 2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of fiscal 2024 and 2023 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.

*

Not meaningful

 

4


 

ORACLE CORPORATION

FISCAL 2024 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

 

 

 

May 31,
 2024

 

 

May 31,
 2023

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,454

 

 

$

9,765

 

Marketable securities

 

 

207

 

 

 

422

 

Trade receivables, net

 

 

7,874

 

 

 

6,915

 

Prepaid expenses and other current assets

 

 

4,019

 

 

 

3,902

 

Total Current Assets

 

 

22,554

 

 

 

21,004

 

Non-Current Assets:

 

 

 

 

 

 

Property, plant and equipment, net

 

 

21,536

 

 

 

17,069

 

Intangible assets, net

 

 

6,890

 

 

 

9,837

 

Goodwill, net

 

 

62,230

 

 

 

62,261

 

Deferred tax assets

 

 

12,273

 

 

 

12,226

 

Other non-current assets

 

 

15,493

 

 

 

11,987

 

Total Non-Current Assets

 

 

118,422

 

 

 

113,380

 

TOTAL ASSETS

 

$

140,976

 

 

$

134,384

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Notes payable and other borrowings, current

 

$

10,605

 

 

$

4,061

 

Accounts payable

 

 

2,357

 

 

 

1,204

 

Accrued compensation and related benefits

 

 

1,916

 

 

 

2,053

 

Deferred revenues

 

 

9,313

 

 

 

8,970

 

Other current liabilities

 

 

7,353

 

 

 

6,802

 

Total Current Liabilities

 

 

31,544

 

 

 

23,090

 

Non-Current Liabilities:

 

 

 

 

 

 

Notes payable and other borrowings, non-current

 

 

76,264

 

 

 

86,420

 

Income taxes payable

 

 

10,817

 

 

 

11,077

 

Deferred tax liabilities

 

 

3,692

 

 

 

5,772

 

Other non-current liabilities

 

 

9,420

 

 

 

6,469

 

Total Non-Current Liabilities

 

 

100,193

 

 

 

109,738

 

Stockholders’ Equity

 

 

9,239

 

 

 

1,556

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

140,976

 

 

$

134,384

 

 

 

 

 

 

5


 

ORACLE CORPORATION

FISCAL 2024 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

 

 

Year Ended May 31,

 

 

2024

 

 

2023

 

Cash Flows From Operating Activities:

 

 

 

 

 

Net income

$

10,467

 

 

$

8,503

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation

 

3,129

 

 

 

2,526

 

Amortization of intangible assets

 

3,010

 

 

 

3,582

 

Deferred income taxes

 

(2,139

)

 

 

(2,167

)

Stock-based compensation

 

3,974

 

 

 

3,547

 

Other, net

 

720

 

 

 

661

 

Changes in operating assets and liabilities, net of effects from acquisitions:

 

 

 

 

 

Increase in trade receivables, net

 

(965

)

 

 

(151

)

Decrease in prepaid expenses and other assets

 

542

 

 

 

317

 

Decrease in accounts payable and other liabilities

 

(594

)

 

 

(281

)

Decrease in income taxes payable

 

(127

)

 

 

(153

)

Increase in deferred revenues

 

656

 

 

 

781

 

Net cash provided by operating activities

 

18,673

 

 

 

17,165

 

Cash Flows From Investing Activities:

 

 

 

 

 

Purchases of marketable securities and other investments

 

(1,003

)

 

 

(1,181

)

Proceeds from sales and maturities of marketable securities and other investments

 

572

 

 

 

1,113

 

Acquisitions, net of cash acquired

 

(63

)

 

 

(27,721

)

Capital expenditures

 

(6,866

)

 

 

(8,695

)

Net cash used for investing activities

 

(7,360

)

 

 

(36,484

)

Cash Flows From Financing Activities:

 

 

 

 

 

Payments for repurchases of common stock

 

(1,202

)

 

 

(1,300

)

Proceeds from issuances of common stock

 

742

 

 

 

1,192

 

Shares repurchased for tax withholdings upon vesting of restricted stock-based awards

 

(2,040

)

 

 

(1,203

)

Payments of dividends to stockholders

 

(4,391

)

 

 

(3,668

)

(Repayments of) proceeds from issuances of commercial paper, net

 

(167

)

 

 

500

 

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

 

4

 

 

 

(55

)

Net cash (used for) provided by financing activities

 

(10,554

)

 

 

7,910

 

Effect of exchange rate changes on cash and cash equivalents

 

(70

)

 

 

(209

)

Net increase (decrease) in cash and cash equivalents

 

689

 

 

 

(11,618

)

Cash and cash equivalents at beginning of period

 

9,765

 

 

 

21,383

 

Cash and cash equivalents at end of period

$

10,454

 

 

$

9,765

 

 

 

 

6


 

ORACLE CORPORATION

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

 

$

18,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

(5,168

)

 

(6,678

)

 

(8,205

)

 

(8,695

)

 

 

(8,290

)

 

(6,935