- Q1 GAAP Earnings per Share up 20% to $1.03, Non-GAAP Earnings per Share up 17% to
$1.39
- Q1 Total Revenue $13.3 billion,
up 7% in USD and up 8% in constant currency
- Q1 Total Remaining Performance Obligations up 53% to
$99 billion
- Q1 Cloud Revenue (IaaS plus SaaS) $5.6
billion, up 21% in USD and up 22% in constant currency
- Q1 Cloud Infrastructure (IaaS) Revenue $2.2 billion, up 45% in USD and up 46% in
constant currency
- Q1 Cloud Application (SaaS) Revenue $3.5
billion, up 10% in both USD and constant currency
- Q1 Fusion Cloud ERP (SaaS) Revenue $0.9
billion, up 16% in USD and up 17% in constant currency
- Q1 NetSuite Cloud ERP (SaaS) Revenue $0.9 billion, up 20% in both USD and constant
currency
AUSTIN,
Texas, Sept. 9, 2024 /PRNewswire/ -- Oracle
Corporation (NYSE: ORCL) today announced fiscal 2025 Q1 results.
Total quarterly revenues were up 7% year-over-year in USD, and up
8% in constant currency to $13.3
billion. Cloud services revenues were up 21% year-over-year
in USD, and up 22% in constant currency to $5.6 billion. Cloud license and on-premise
license revenues were up 7% in USD and up 8% in constant currency
to $870
million.
Q1 GAAP operating income was $4.0
billion. Non-GAAP operating income was $5.7 billion, up 13% in USD and up 14% in
constant currency. GAAP operating margin was 30%, and non-GAAP
operating margin was 43%. GAAP net income was $2.9 billion. Non-GAAP net income was
$4.0 billion, up 18% in USD and up
19% in constant currency. Q1 GAAP earnings per share was
$1.03, up 20% in USD and up 22% in
constant currency, while non-GAAP earnings per share was
$1.39, up 17% in USD and up 18% in
constant currency.
Short-term deferred revenues were $11.5
billion. Over the last twelve months, operating cash flow
was $19.1 billion and free cash flow
was $11.3 billion.
"As Cloud Services became Oracle's largest business, both our
operating income and earnings per share growth accelerated," said
Oracle CEO, Safra Catz. "Non-GAAP
operating income was up 14% in constant currency to $5.7 billion, and non-GAAP EPS was up 18% in
constant currency to $1.39 in Q1. RPO
was up 53% from last year to a record $99
billion. That strong contract backlog will increase revenue
growth throughout FY25. But the biggest news of all was signing a
MultiCloud agreement with AWS—including our latest technology
Exadata hardware and Version 23ai of our database software—embedded
into AWS cloud datacenters. AWS customers will get easy and
convenient access to the Oracle database when we go live in
December later this year."
"Oracle has 162 cloud datacenters in operation and under
construction around the world," said Oracle Chairman and CTO,
Larry Ellison. "The largest of these
datacenters is 800 megawatts and will contain acres of NVIDIA GPU
Clusters for training large scale AI models. In Q1, 42 additional
cloud GPU contracts were signed for a total of $3 billion. Our database business growth rate is
increasing as a result of our MultiCloud agreements with Microsoft
and Google. At the end of Q1, 7 Oracle Cloud regions were live at
Microsoft with 24 more being built, and 4 Oracle Cloud regions were
live at Google with 14 more being built. Our recently signed AWS
contract was a milestone in the MultiCloud Era. Soon
customers will be able use the latest Oracle database technology
from within every Hyperscaler's cloud."
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 October 10,
2024, with a payment date of October
24, 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 the expectations for converting the
Remaining Performance Obligations to revenue, the timing and build
out of additional datacenters, and future growth as a result of our
MultiCloud strategy, 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, including our AI
products; our management of complex cloud and hardware offerings,
including the sourcing of technologies and technology components;
our ability to secure data center capacity; 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 September 9,
2024. Oracle undertakes no duty to update any statement in
light of new information or future events.
|
ORACLE
CORPORATION
Q1 FISCAL 2025 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
|
|
|
|
|
Three Months Ended
August 31,
|
|
%
Increase
|
|
|
|
%
Increase
|
(Decrease)
|
|
|
|
|
%
of
|
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
2024
|
Revenues
|
2023
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
10,519
|
79 %
|
$
9,547
|
77 %
|
10 %
|
11 %
|
|
|
Cloud license and
on-premise license
|
870
|
7 %
|
809
|
6 %
|
7 %
|
8 %
|
|
|
Hardware
|
655
|
5 %
|
714
|
6 %
|
(8 %)
|
(8 %)
|
|
|
Services
|
1,263
|
9 %
|
1,383
|
11 %
|
(9 %)
|
(8 %)
|
|
|
Total
revenues
|
13,307
|
100 %
|
12,453
|
100 %
|
7 %
|
8 %
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
2,597
|
19 %
|
2,179
|
18 %
|
19 %
|
20 %
|
|
|
Hardware
|
162
|
1 %
|
219
|
2 %
|
(26 %)
|
(25 %)
|
|
|
Services
|
1,147
|
9 %
|
1,212
|
10 %
|
(5 %)
|
(5 %)
|
|
|
Sales and
marketing
|
2,036
|
15 %
|
2,026
|
16 %
|
1 %
|
1 %
|
|
|
Research and
development
|
2,306
|
17 %
|
2,216
|
18 %
|
4 %
|
5 %
|
|
|
General and
administrative
|
358
|
3 %
|
393
|
3 %
|
(9 %)
|
(8 %)
|
|
|
Amortization of
intangible assets
|
624
|
5 %
|
763
|
6 %
|
(18 %)
|
(18 %)
|
|
|
Acquisition related and
other
|
13
|
0 %
|
11
|
0 %
|
9 %
|
9 %
|
|
|
Restructuring
|
73
|
1 %
|
138
|
1 %
|
(47 %)
|
(47 %)
|
|
|
Total operating
expenses
|
9,316
|
70 %
|
9,157
|
74 %
|
2 %
|
2 %
|
|
|
OPERATING
INCOME
|
3,991
|
30 %
|
3,296
|
26 %
|
21 %
|
22 %
|
|
|
Interest
expense
|
(842)
|
(6 %)
|
(872)
|
(7 %)
|
(3 %)
|
(3 %)
|
|
|
Non-operating income
(expenses), net
|
20
|
0 %
|
(49)
|
0 %
|
*
|
*
|
|
|
INCOME BEFORE INCOME
TAXES
|
3,169
|
24 %
|
2,375
|
19 %
|
33 %
|
36 %
|
|
|
(Provision for) benefit
from income taxes
|
(240)
|
(2 %)
|
45
|
0 %
|
*
|
*
|
|
|
NET
INCOME
|
$
2,929
|
22 %
|
$
2,420
|
19 %
|
21 %
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.06
|
|
$
0.89
|
|
|
|
|
|
Diluted
|
$
1.03
|
|
$
0.86
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
2,761
|
|
2,728
|
|
|
|
|
|
Diluted
|
2,851
|
|
2,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2024, 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 August 31, 2024 compared with the corresponding
prior year period decreased our total revenues by 1 percentage
point and
operating income by 1 percentage point.
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 FISCAL 2025
FINANCIAL RESULTS
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(1)
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
% Increase
(Decrease)
in US $
|
% Increase
(Decrease)
in Constant Currency
(2)
|
|
|
|
2024
|
|
|
|
2024
|
|
|
2023
|
|
|
|
2023
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
13,307
|
|
$
-
|
|
$
13,307
|
|
|
$
12,453
|
|
$
-
|
|
$
12,453
|
|
7 %
|
7 %
|
8 %
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
9,316
|
|
$
(1,717)
|
|
$
7,599
|
|
|
$
9,157
|
|
$
(1,761)
|
|
$
7,396
|
|
2 %
|
3 %
|
2 %
|
3 %
|
|
|
Stock-based compensation
(3)
|
|
1,007
|
|
(1,007)
|
|
-
|
|
|
849
|
|
(849)
|
|
-
|
|
19 %
|
*
|
19 %
|
*
|
|
|
Amortization of intangible
assets (4)
|
|
624
|
|
(624)
|
|
-
|
|
|
763
|
|
(763)
|
|
-
|
|
(18 %)
|
*
|
(18 %)
|
*
|
|
|
Acquisition related and
other
|
|
13
|
|
(13)
|
|
-
|
|
|
11
|
|
(11)
|
|
-
|
|
9 %
|
*
|
9 %
|
*
|
|
|
Restructuring
|
|
73
|
|
(73)
|
|
-
|
|
|
138
|
|
(138)
|
|
-
|
|
(47 %)
|
*
|
(47 %)
|
*
|
|
|
OPERATING
INCOME
|
|
$
3,991
|
|
$ 1,717
|
|
$
5,708
|
|
|
$
3,296
|
|
$
1,761
|
|
$
5,057
|
|
21 %
|
13 %
|
22 %
|
14 %
|
|
|
OPERATING MARGIN
%
|
|
30 %
|
|
|
|
43 %
|
|
|
26 %
|
|
|
|
41 %
|
|
353 bp.
|
228 bp.
|
366 bp.
|
232 bp.
|
|
|
INCOME TAX EFFECTS
(5)
|
|
$
(240)
|
|
$
(682)
|
|
$
(922)
|
|
|
$
45
|
|
$
(823)
|
|
$
(778)
|
|
*
|
18 %
|
*
|
20 %
|
|
|
NET
INCOME
|
|
$
2,929
|
|
$ 1,035
|
|
$
3,964
|
|
|
$
2,420
|
|
$
938
|
|
$
3,358
|
|
21 %
|
18 %
|
23 %
|
19 %
|
|
|
DILUTED EARNINGS PER
SHARE
|
|
$
1.03
|
|
|
|
$
1.39
|
|
|
$
0.86
|
|
|
|
$
1.19
|
|
20 %
|
17 %
|
22 %
|
18 %
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
|
2,851
|
|
-
|
|
2,851
|
|
|
2,823
|
|
-
|
|
2,823
|
|
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, 2024, 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
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
August 31,
2024
|
|
|
August 31,
2023
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
141
|
|
$ (141)
|
|
$
-
|
|
|
$
111
|
|
$ (111)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
6
|
|
(6)
|
|
-
|
|
|
5
|
|
(5)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
43
|
|
(43)
|
|
-
|
|
|
34
|
|
(34)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
162
|
|
(162)
|
|
-
|
|
|
135
|
|
(135)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
569
|
|
(569)
|
|
-
|
|
|
484
|
|
(484)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
86
|
|
(86)
|
|
-
|
|
|
80
|
|
(80)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
1,007
|
|
$
(1,007)
|
|
$
-
|
|
|
$
849
|
|
$ (849)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future annual
amortization expense related to intangible assets as of August 31,
2024 was as follows:
|
|
|
Remainder of fiscal
2025
|
|
$
1,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
1,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2027
|
|
672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2028
|
|
635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2029
|
|
561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2030
|
|
522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
6,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects were
calculated reflecting an effective GAAP tax rate of 7.6% and (1.9%)
in the first quarter of fiscal 2025 and 2024, respectively, and an
effective non-GAAP tax rate of 18.9% and 18.8% in the first
quarter of fiscal 2025
and 2024, respectively. The difference in our GAAP and non-GAAP tax
rates in each of the first quarters of fiscal 2025 and 2024 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
Q1 FISCAL 2025
FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
August
31,
|
May
31,
|
|
|
|
2024
|
2024
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
10,616
|
|
$
10,454
|
|
|
Marketable
securities
|
295
|
|
207
|
|
|
Trade receivables,
net
|
8,021
|
|
7,874
|
|
|
Prepaid expenses and
other current assets
|
4,140
|
|
4,019
|
|
|
|
Total Current
Assets
|
23,072
|
|
22,554
|
|
|
Non-Current
Assets:
|
|
|
|
|
|
Property,
plant and equipment, net
|
23,094
|
|
21,536
|
|
|
Intangible
assets, net
|
6,270
|
|
6,890
|
|
|
Goodwill,
net
|
62,249
|
|
62,230
|
|
|
Deferred
tax assets
|
12,219
|
|
12,273
|
|
|
Other
non-current assets
|
17,310
|
|
15,493
|
|
|
|
Total Non-Current
Assets
|
121,142
|
|
118,422
|
|
|
TOTAL
ASSETS
|
$
144,214
|
|
$
140,976
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Notes payable and other
borrowings, current
|
$
9,201
|
|
$
10,605
|
|
|
Accounts
payable
|
2,207
|
|
2,357
|
|
|
Accrued compensation
and related benefits
|
1,772
|
|
1,916
|
|
|
Deferred
revenues
|
11,455
|
|
9,313
|
|
|
Other current
liabilities
|
7,410
|
|
7,353
|
|
|
|
Total Current
Liabilities
|
32,045
|
|
31,544
|
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
Notes payable and other
borrowings, non-current
|
75,314
|
|
76,264
|
|
|
Income taxes
payable
|
11,038
|
|
10,817
|
|
|
Deferred tax
liabilities
|
3,442
|
|
3,692
|
|
|
Other non-current
liabilities
|
11,106
|
|
9,420
|
|
|
|
Total Non-Current
Liabilities
|
100,900
|
|
100,193
|
|
|
Stockholders'
Equity
|
11,269
|
|
9,239
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
144,214
|
|
$
140,976
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
Q1 FISCAL 2025
FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
|
2024
|
2023
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
Net
income
|
$
2,929
|
|
$
2,420
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
804
|
|
712
|
|
|
Amortization of
intangible assets
|
624
|
|
763
|
|
|
Deferred income
taxes
|
(151)
|
|
(517)
|
|
|
Stock-based
compensation
|
1,007
|
|
849
|
|
|
Other, net
|
130
|
|
169
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
(Increase) decrease in
trade receivables, net
|
(81)
|
|
380
|
|
|
Decrease in prepaid
expenses and other assets
|
367
|
|
269
|
|
|
Decrease in accounts
payable and other liabilities
|
(531)
|
|
(457)
|
|
|
Increase in income
taxes payable
|
24
|
|
69
|
|
|
Increase in deferred
revenues
|
2,305
|
|
2,317
|
|
|
Net cash provided by
operating activities
|
7,427
|
|
6,974
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
Purchases of marketable
securities and other investments
|
(477)
|
|
(333)
|
|
|
Proceeds from sales and
maturities of marketable securities and other
investments
|
15
|
|
85
|
|
|
Capital
expenditures
|
(2,303)
|
|
(1,314)
|
|
|
Net cash used for
investing activities
|
(2,765)
|
|
(1,562)
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
Payments for
repurchases of common stock
|
(150)
|
|
(150)
|
|
|
Proceeds from issuances
of common stock
|
179
|
|
308
|
|
|
Shares repurchased for
tax withholdings upon vesting of restricted stock-based
awards
|
(851)
|
|
(1,060)
|
|
|
Payments of dividends
to stockholders
|
(1,103)
|
|
(1,091)
|
|
|
Repayments of
commercial paper, net
|
(396)
|
|
(562)
|
|
|
Proceeds from issuances
of term loan credit agreements
|
5,627
|
|
-
|
|
|
Repayments of senior
notes and term loan credit agreements
|
(7,630)
|
|
(1,000)
|
|
|
Other, net
|
(261)
|
|
27
|
|
|
Net cash used for
financing activities
|
(4,585)
|
|
(3,528)
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
85
|
|
(36)
|
|
|
Net increase in cash
and cash equivalents
|
162
|
|
1,848
|
|
|
Cash and cash
equivalents at beginning of period
|
10,454
|
|
9,765
|
|
|
Cash and cash
equivalents at end of period
|
$ 10,616
|
|
$ 11,613
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
Q1 FISCAL 2025
FINANCIAL RESULTS
|
|
FREE CASH FLOW
- TRAILING 4-QUARTERS (1)
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2024
|
Fiscal
2025
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Cash
Flow
|
$
17,745
|
$
17,039
|
$
18,239
|
$
18,673
|
$
19,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(8,290)
|
(6,935)
|
(5,981)
|
(6,866)
|
(7,855)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
9,455
|
$
10,104
|
$
12,258
|
$
11,807
|
$
11,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow
% Growth over prior year
|
68 %
|
13 %
|
18 %
|
9 %
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow %
Growth over prior year
|
76 %
|
20 %
|
68 %
|
39 %
|
19 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
9,375
|
$
10,137
|
$
10,642
|
$
10,467
|
$
10,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow
as a % of Net Income
|
189 %
|
168 %
|
171 %
|
178 %
|
174 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a
% of Net Income
|
101 %
|
100 %
|
115 %
|
113 %
|
103 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) To supplement our
statements of cash flows presented on a GAAP basis, we use non-GAAP
measures of cash flows on a trailing 4-quarter basis to analyze
cash flow generated from
operations. We believe free cash flow is also
useful as one of the bases for comparing our performance with our
competitors. The presentation of non-GAAP free cash flow is not
meant
to be considered in isolation or as an
alternative to net income as an indicator of our performance, or as
an alternative to cash flows from operating activities as a measure
of liquidity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
Q1 FISCAL 2025
FINANCIAL RESULTS
|
|
|
SUPPLEMENTAL
ANALYSIS OF GAAP REVENUES (1)
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2024
|
|
|
|
|
|
Fiscal
2025
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
REVENUES BY
OFFERINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud
services
|
$
4,635
|
$
4,775
|
$
5,054
|
$
5,311
|
$
19,774
|
|
$
5,623
|
|
|
|
$ 5,623
|
|
|
License
support
|
4,912
|
4,864
|
4,909
|
4,923
|
19,609
|
|
4,896
|
|
|
|
4,896
|
|
|
Cloud services
and license support
|
9,547
|
9,639
|
9,963
|
10,234
|
39,383
|
|
10,519
|
|
|
|
10,519
|
|
|
Cloud license and
on-premise license
|
809
|
1,178
|
1,256
|
1,838
|
5,081
|
|
870
|
|
|
|
870
|
|
|
Hardware
|
714
|
756
|
754
|
842
|
3,066
|
|
655
|
|
|
|
655
|
|
|
Services
|
1,383
|
1,368
|
1,307
|
1,373
|
5,431
|
|
1,263
|
|
|
|
1,263
|
|
|
Total revenues
|
$
12,453
|
$
12,941
|
$
13,280
|
$
14,287
|
$
52,961
|
|
$
13,307
|
|
|
|
$
13,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED REVENUE
GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud
services
|
30 %
|
25 %
|
25 %
|
20 %
|
25 %
|
|
21 %
|
|
|
|
21 %
|
|
|
License
support
|
2 %
|
2 %
|
1 %
|
0 %
|
1 %
|
|
0 %
|
|
|
|
0 %
|
|
|
Cloud services
and license support
|
13 %
|
12 %
|
12 %
|
9 %
|
12 %
|
|
10 %
|
|
|
|
10 %
|
|
|
Cloud license and
on-premise license
|
(10 %)
|
(18 %)
|
(3 %)
|
(15 %)
|
(12 %)
|
|
7 %
|
|
|
|
7 %
|
|
|
Hardware
|
(6 %)
|
(11 %)
|
(7 %)
|
(1 %)
|
(6 %)
|
|
(8 %)
|
|
|
|
(8 %)
|
|
|
Services
|
2 %
|
(2 %)
|
(5 %)
|
(6 %)
|
(3 %)
|
|
(9 %)
|
|
|
|
(9 %)
|
|
|
Total revenues
|
9 %
|
5 %
|
7 %
|
3 %
|
6 %
|
|
7 %
|
|
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud
services
|
29 %
|
24 %
|
24 %
|
20 %
|
24 %
|
|
22 %
|
|
|
|
22 %
|
|
|
License
support
|
0 %
|
0 %
|
1 %
|
1 %
|
0 %
|
|
0 %
|
|
|
|
0 %
|
|
|
Cloud services
and license support
|
12 %
|
11 %
|
11 %
|
10 %
|
11 %
|
|
11 %
|
|
|
|
11 %
|
|
|
Cloud license and
on-premise license
|
(11 %)
|
(19 %)
|
(3 %)
|
(14 %)
|
(12 %)
|
|
8 %
|
|
|
|
8 %
|
|
|
Hardware
|
(8 %)
|
(12 %)
|
(7 %)
|
0 %
|
(7 %)
|
|
(8 %)
|
|
|
|
(8 %)
|
|
|
Services
|
1 %
|
(3 %)
|
(5 %)
|
(6 %)
|
(3 %)
|
|
(8 %)
|
|
|
|
(8 %)
|
|
|
Total revenues
|
8 %
|
4 %
|
7 %
|
4 %
|
6 %
|
|
8 %
|
|
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD SERVICES AND
LICENSE SUPPORT REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BY
ECOSYSTEM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
$
4,471
|
$
4,474
|
$
4,584
|
$
4,642
|
$
18,172
|
|
$
4,769
|
|
|
|
$ 4,769
|
|
|
Infrastructure
cloud services and license support
|
5,076
|
5,165
|
5,379
|
5,592
|
21,211
|
|
5,750
|
|
|
|
5,750
|
|
|
Total cloud services and license support
revenues
|
$
9,547
|
$
9,639
|
$
9,963
|
$
10,234
|
$
39,383
|
|
$
10,519
|
|
|
|
$
10,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED REVENUE
GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
11 %
|
10 %
|
10 %
|
6 %
|
9 %
|
|
7 %
|
|
|
|
7 %
|
|
|
Infrastructure
cloud services and license support
|
15 %
|
14 %
|
13 %
|
12 %
|
14 %
|
|
13 %
|
|
|
|
13 %
|
|
|
Total cloud services and license support
revenues
|
13 %
|
12 %
|
12 %
|
9 %
|
12 %
|
|
10 %
|
|
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
11 %
|
9 %
|
10 %
|
6 %
|
9 %
|
|
7 %
|
|
|
|
7 %
|
|
|
Infrastructure
cloud services and license support
|
14 %
|
12 %
|
13 %
|
13 %
|
13 %
|
|
14 %
|
|
|
|
14 %
|
|
|
Total cloud services and license support
revenues
|
12 %
|
11 %
|
11 %
|
10 %
|
11 %
|
|
11 %
|
|
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
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|
GEOGRAPHIC
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
7,841
|
$
8,067
|
$
8,270
|
$
8,945
|
$
33,122
|
|
$
8,372
|
|
|
|
$ 8,372
|
|
|
Europe/Middle
East/Africa
|
|
3,005
|
3,170
|
3,316
|
3,539
|
13,030
|
|
3,228
|
|
|
|
3,228
|
|
|
Asia
Pacific
|
|
1,607
|
1,704
|
1,694
|
1,803
|
6,809
|
|
1,707
|
|
|
|
1,707
|
|
|
Total revenues
|
$
12,453
|
$
12,941
|
$
13,280
|
$
14,287
|
$
52,961
|
|
$
13,307
|
|
|
|
$
13,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1) The sum of
the quarterly information presented may vary from the year-to-date
information presented due to rounding.
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(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, 2024 and 2023 for the
fiscal 2025
and fiscal 2024 constant currency growth rate
calculations presented, respectively, rather than the actual
exchange rates in effect during the respective periods.
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APPENDIX A
ORACLE CORPORATION
Q1 FISCAL 2025
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.
View original
content:https://www.prnewswire.com/news-releases/oracle-announces-fiscal-2025-first-quarter-financial-results-302242550.html
SOURCE Oracle