Oracle Announces Fiscal 2024 Fourth Quarter and Fiscal Full Year Financial Results
Oracle (NYSE: ORCL) announced its fiscal 2024 Q4 and full-year results. Q4 total revenues reached $14.3 billion, a 3% increase year-over-year in USD and 4% in constant currency. Cloud revenue comprised $5.3 billion, up 20% in USD and constant currency. Notable segments include Cloud Infrastructure (IaaS) at $2.0 billion (up 42%) and Cloud Application (SaaS) at $3.3 billion (up 10%).
Q4 GAAP EPS was $1.11, while non-GAAP EPS was $1.63. Fiscal 2024 total revenue stood at $53.0 billion, a 6% rise. Operating cash flow hit $18.7 billion, up 9%. Oracle's Q4 GAAP net income was $3.1 billion, with non-GAAP net income at $4.6 billion. The company noted a 44% increase in Total Remaining Performance Obligations to $98 billion, driven by AI-related contracts, including a $12.5 billion deal with Open AI to train ChatGPT. The board declared a $0.40/share dividend, payable on July 25, 2024.
- Q4 total revenues increased by 3% YoY to $14.3 billion.
- Cloud revenue grew by 20% YoY to $5.3 billion.
- Cloud Infrastructure (IaaS) revenue increased by 42% YoY to $2.0 billion.
- Fiscal year total revenues up 6% to $53.0 billion.
- Operating cash flow for fiscal year 2024 increased by 9% to $18.7 billion.
- Total Remaining Performance Obligations rose by 44% to $98 billion.
- Non-GAAP operating income increased by 8% YoY to $6.7 billion in Q4.
- Q4 GAAP net income was $3.1 billion.
- Cloud license and on-premise license revenues declined by 15% YoY to $1.8 billion in Q4.
- Fiscal year 2024 cloud license and on-premise license revenues decreased by 12% to $5.1 billion.
- GAAP operating margin was 33%, down from non-GAAP margin of 47%.
Insights
The reported fiscal Q4 and FY 2024 financial results of Oracle Corporation offer a mixed bag for investors. The increase in total revenues of 3% for Q4 and 6% for the full year in USD terms indicates moderate growth. More notably, the substantial growth in cloud revenue (IaaS and SaaS) at 20% in USD and constant currency shows a strong shift towards cloud services, which is a strategically positive sign. The operating margins are robust, with GAAP operating margins at 33% for Q4 and 29% for the full year, suggesting efficient cost management.
However, there are areas of concern as well. The decline in cloud license and on-premise license revenues of 15% for Q4 suggests a significant drop in traditional software sales. This could imply a cannibalization effect as the company transitions to cloud services, but it also highlights a potential vulnerability in licensing revenue. Additionally, while the large AI contracts and partnerships with Microsoft and Google are promising, their successful integration and realization will need to be closely monitored.
For retail investors, the positive cash flows and declared dividend of $0.40 per share are attractive. However, the mixed revenue signals and dependency on cloud growth warrant a watchful eye on future quarters.
Oracle's focus on AI and cloud partnerships stands out in their latest report. Signing over
The launch of 11 OCI datacenters inside Azure and plans for 12 within Google Cloud, reflect significant infrastructure investments that should enhance Oracle's capabilities to handle large-scale data processing and AI workloads. This move also aligns with the growing trend of cloud interoperability among major tech players, which can be a competitive advantage.
However, the technological shift also comes with challenges, particularly in ensuring seamless integration and maintaining service reliability amid rapid scaling. Investors should remain cautious about potential technical and operational risks associated with such large-scale implementations.
The announcement spotlights Oracle's strategic market moves and potential for future growth. The 44% increase in total remaining performance obligations (RPO) to
In the broader market context, Oracle's multicloud strategy offers a competitive edge. By integrating its services with Microsoft and Google clouds, Oracle is positioning itself to attract a diverse customer base, leveraging existing relationships and infrastructures. This can potentially enhance market penetration and customer retention.
Nonetheless, the company faces stiff competition from other cloud service providers like AWS and Azure. Therefore, while Oracle's strategic initiatives are promising, maintaining market share and continuous innovation will be critical for sustained growth.
- Q4 Total Remaining Performance Obligations up
44% to$98 billion - Q4 GAAP Earnings per Share
$1.11 $1.63 - Q4 Total Revenue $14.3 billion, up
3% in USD, up4% 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 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 6% in USD and constant currency
Q4 GAAP operating income was
Short-term deferred revenues were
Fiscal year 2024 total revenues were up
Fiscal year 2024 GAAP operating income was
"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
"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
- 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.
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) | |||||||
% of | % of | (Decrease) | in Constant | |||||
2024 | Revenues | 2023 | Revenues | in US $ | Currency (1) | |||
REVENUES | ||||||||
Cloud services and license support | 72 % | 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 % | 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 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 with the corresponding prior year period decreased our total revenues by 1 percentage point and operating income by 2 percentage points. | |||||||
* | Not meaningful | |||||||
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) | % Increase (Decrease) in | |||||||||||||||||||
2024 | 2024 | 2023 | 2023 | GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||
GAAP | Adj. | Non-GAAP | GAAP | Adj. | 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 | 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 | ||||||||||||||||||||
(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 | ||||||||||||||||||||
(3) | Stock-based compensation was included in the following GAAP operating expense categories: | ||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
May 31, 2024 | 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 | ||||||||||||||||||||
* | Not meaningful
| ||||||||||||||||||||
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) | |||||||
% of | % of | (Decrease) | in Constant | |||||
2024 | Revenues | 2023 | Revenues | in US $ | Currency (1) | |||
REVENUES | ||||||||
Cloud services and license support | 74 % | 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 | 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 | |||||||
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) | % Increase (Decrease) | |||||||||||||||||||
2024 | 2024 | 2023 | 2023 | GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||
GAAP | Adj. | Non-GAAP | GAAP | Adj. | 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 | 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 | ||||||||||||||||||||
(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 | ||||||||||||||||||||
(3) | Stock-based compensation was included in the following GAAP operating expense categories: | ||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||
May 31, | May 31, | ||||||||||||||||||||
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 | ||||||||||||||||||||
* | Not meaningful | ||||||||||||||||||||
ORACLE CORPORATION | ||||||
FISCAL 2024 FINANCIAL RESULTS | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
($ in millions) | ||||||
May 31, | May 31, | |||||
2024 | 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 | ||||||
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 | ||||||
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 | |||
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) | (5,981) | (6,866) | ||
Free Cash Flow | $ 5,374 | $ 8,395 | $ 7,298 | $ 8,470 | $ 9,455 | $ 10,104 | $ 12,258 | $ 11,807 | ||
Operating Cash Flow % Growth over prior year | (31 %) | 47 % | 49 % | 80 % | 68 % | 13 % | 18 % | 9 % | ||
Free Cash Flow % Growth over prior year | (57 %) | 18 % | 11 % | 68 % | 76 % | 20 % | 68 % | 39 % | ||
GAAP Net Income | $ 5,808 | $ 8,797 | $ 8,373 | $ 8,503 | $ 9,375 | $ 10,137 | $ 10,642 | $ 10,467 | ||
Operating Cash Flow as a % of Net Income | 182 % | 171 % | 185 % | 202 % | 189 % | 168 % | 171 % | 178 % | ||
Free Cash Flow as a % of Net Income | 93 % | 95 % | 87 % | 100 % | 101 % | 100 % | 115 % | 113 % | ||
(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. | ||||||||||
ORACLE CORPORATION | ||||||||||||||
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 | $ 5,311 | $ 19,774 | ||||
License support | 4,838 | 4,785 | 4,870 | 4,933 | 19,426 | 4,912 | 4,864 | 4,909 | 4,923 | 19,609 | ||||
Cloud services and license support | 8,417 | 8,598 | 8,923 | 9,370 | 35,307 | 9,547 | 9,639 | 9,963 | 10,234 | 39,383 | ||||
Cloud license and on-premise license | 904 | 1,435 | 1,288 | 2,152 | 5,779 | 809 | 1,178 | 1,256 | 1,838 | 5,081 | ||||
Hardware | 763 | 850 | 811 | 850 | 3,274 | 714 | 756 | 754 | 842 | 3,066 | ||||
Services | 1,361 | 1,392 | 1,376 | 1,465 | 5,594 | 1,383 | 1,368 | 1,307 | 1,373 | 5,431 | ||||
Total revenues | $ 11,445 | $ 12,275 | $ 12,398 | $ 13,837 | $ 49,954 | $ 12,453 | $ 12,941 | $ 13,280 | $ 14,287 | $ 52,961 | ||||
AS REPORTED REVENUE GROWTH RATES | ||||||||||||||
Cloud services | 45 % | 43 % | 45 % | 54 % | 47 % | 30 % | 25 % | 25 % | 20 % | 25 % | ||||
License support | (1 %) | (2 %) | 0 % | 4 % | 0 % | 2 % | 2 % | 1 % | 0 % | 1 % | ||||
Cloud services and license support | 14 % | 14 % | 17 % | 23 % | 17 % | 13 % | 12 % | 12 % | 9 % | 12 % | ||||
Cloud license and on-premise license | 11 % | 16 % | 0 % | (15 %) | (2 %) | (10 %) | (18 %) | (3 %) | (15 %) | (12 %) | ||||
Hardware | 0 % | 11 % | 2 % | (1 %) | 3 % | (6 %) | (11 %) | (7 %) | (1 %) | (6 %) | ||||
Services | 74 % | 74 % | 74 % | 76 % | 75 % | 2 % | (2 %) | (5 %) | (6 %) | (3 %) | ||||
Total revenues | 18 % | 18 % | 18 % | 17 % | 18 % | 9 % | 5 % | 7 % | 3 % | 6 % | ||||
CONSTANT CURRENCY REVENUE GROWTH RATES (2) | ||||||||||||||
Cloud services | 50 % | 48 % | 48 % | 55 % | 50 % | 29 % | 24 % | 24 % | 20 % | 24 % | ||||
License support | 4 % | 4 % | 3 % | 6 % | 4 % | 0 % | 0 % | 1 % | 1 % | 0 % | ||||
Cloud services and license support | 20 % | 20 % | 20 % | 25 % | 21 % | 12 % | 11 % | 11 % | 10 % | 11 % | ||||
Cloud license and on-premise license | 19 % | 23 % | 4 % | (14 %) | 2 % | (11 %) | (19 %) | (3 %) | (14 %) | (12 %) | ||||
Hardware | 5 % | 16 % | 4 % | 1 % | 6 % | (8 %) | (12 %) | (7 %) | 0 % | (7 %) | ||||
Services | 84 % | 83 % | 80 % | 78 % | 81 % | 1 % | (3 %) | (5 %) | (6 %) | (3 %) | ||||
Total revenues | 23 % | 25 % | 21 % | 18 % | 22 % | 8 % | 4 % | 7 % | 4 % | 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 | $ 4,642 | $ 18,172 | ||||
Infrastructure cloud services and license support | 4,401 | 4,518 | 4,757 | 4,980 | 18,656 | 5,076 | 5,165 | 5,379 | 5,592 | 21,211 | ||||
Total cloud services and license support revenues | $ 8,417 | $ 8,598 | $ 8,923 | $ 9,370 | $ 35,307 | $ 9,547 | $ 9,639 | $ 9,963 | $ 10,234 | $ 39,383 | ||||
AS REPORTED REVENUE GROWTH RATES | ||||||||||||||
Applications cloud services and license support | 32 % | 30 % | 31 % | 36 % | 32 % | 11 % | 10 % | 10 % | 6 % | 9 % | ||||
Infrastructure cloud services and license support | 2 % | 3 % | 7 % | 14 % | 6 % | 15 % | 14 % | 13 % | 12 % | 14 % | ||||
Total cloud services and license support revenues | 14 % | 14 % | 17 % | 23 % | 17 % | 13 % | 12 % | 12 % | 9 % | 12 % | ||||
CONSTANT CURRENCY REVENUE GROWTH RATES (2) | ||||||||||||||
Applications cloud services and license support | 37 % | 35 % | 33 % | 37 % | 35 % | 11 % | 9 % | 10 % | 6 % | 9 % | ||||
Infrastructure cloud services and license support | 7 % | 9 % | 10 % | 15 % | 10 % | 14 % | 12 % | 13 % | 13 % | 13 % | ||||
Total cloud services and license support revenues | 20 % | 20 % | 20 % | 25 % | 21 % | 12 % | 11 % | 11 % | 10 % | 11 % | ||||
GEOGRAPHIC REVENUES | ||||||||||||||
Americas | $ 7,192 | $ 7,786 | $ 7,671 | $ 8,577 | $ 31,226 | $ 7,841 | $ 8,067 | $ 8,270 | $ 8,945 | $ 33,122 | ||||
Europe/ | 2,691 | 2,895 | 3,067 | 3,457 | 12,109 | 3,005 | 3,170 | 3,316 | 3,539 | 13,030 | ||||
Asia Pacific | 1,562 | 1,594 | 1,660 | 1,803 | 6,619 | 1,607 | 1,704 | 1,694 | 1,803 | 6,809 | ||||
Total revenues | $ 11,445 | $ 12,275 | $ 12,398 | $ 13,837 | $ 49,954 | $ 12,453 | $ 12,941 | $ 13,280 | $ 14,287 | $ 52,961 | ||||
(1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding. | ||||||||||||||
(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 | ||||||||||||||
APPENDIX A
ORACLE CORPORATION
Q4 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.
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SOURCE Oracle Corporation
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