Oracle Announces Fiscal 2024 Second Quarter Financial Results
AUSTIN, Texas, Dec. 11, 2023
-- Q2 GAAP Earnings per Share $0.89, Non-GAAP Earnings per Share $1.34
-- Q2 Total Revenue $12.9 billion, up 5% in USD, up 4% in constant currency
-- Q2 Total Remaining Performance Obligations over $65 billion
-- Q2 Cloud Revenue (IaaS plus SaaS) $4.8 billion, up 25% in USD, up 24% in
constant currency
-- Q2 Cloud Infrastructure (IaaS) Revenue $1.6 billion, up 52% in USD, up
50% in constant currency
-- Q2 Cloud Application (SaaS) Revenue $3.2 billion, up 15% in USD, up 14%
in constant currency
-- Q2 Fusion Cloud ERP (SaaS) Revenue $0.8 billion, up 21% in USD, up 19% in
constant currency
-- Q2 NetSuite Cloud ERP (SaaS) Revenue $0.8 billion, up 21% in USD, up 20%
in constant currency
AUSTIN, Texas, Dec. 11, 2023 /PRNewswire/ — Oracle Corporation (NYSE: ORCL) today announced fiscal 2024 Q2 results. Total quarterly revenues were up 5% year-over-year in USD and up 4% in constant currency to $12.9 billion. Cloud services and license support revenues were up 12% in USD and up 11% in constant currency to $9.6 billion. Cloud license and on-premise license revenues were down 18% in USD and down 19% in constant currency to $1.2 billion.
Q2 GAAP operating income was $3.6 billion. Non-GAAP operating income was $5.5 billion, up 9% in USD and up 7% in constant currency. GAAP operating margin was 28%, and non-GAAP operating margin was 43%. GAAP net income was $2.5 billion. Non-GAAP net income was $3.8 billion, up 14% in USD and up 11% in constant currency. Q2 GAAP earnings per share was $0.89 while non-GAAP earnings per share was $1.34, up 11% in USD and up 9% in constant currency.
Short-term deferred revenues were $8.9 billion. Over the last twelve months, operating cash flow was $17.0 billion and free cash flow was $10.1 billion.
“Demand for our Cloud Infrastructure and Generative AI services is increasing at an astronomical rate,” said Oracle CEO, Safra Catz. “As a measure of that demand, Oracle’s total Remaining Performance Obligations (RPO) climbed to over $65 billion–exceeding annual revenue. Our cloud businesses are now at nearly a $20 billion-dollar annual revenue run rate, and cloud services demand continues to grow at unprecedented levels. Business is good and getting better.”
“Oracle is in the process of expanding 66 of our existing cloud datacenters–and building 100 new cloud datacenters–to meet growing demand,” said Oracle Chairman and CTO, Larry Ellison. “We can build our new datacenters very rapidly and operate them inexpensively because they are all highly automated with identical high-performance RDMA networks and the same set of autonomous services. In the next few months, we are turning on 20 new Oracle cloud datacenters collocated with and connected to Microsoft Azure. Simultaneously we are building dozens of new datacenters in countries all over the world. Demand is over the moon.”
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 January 11, 2024, with a payment date of January 25, 2024.
-- A sample list of customers which purchased Oracle Cloud services during
the quarter will be available at .
-- A list of recent technical innovations and announcements is available at
.
-- To learn what industry analysts have been saying about Oracle's products
and services see .
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 .
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 .
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 demand for specific products, expectations for growth in our cloud businesses and plans for expanding our datacenters, 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 . All information set forth in this press release is current as of December 11, 2023. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q2 FISCAL 2024 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
% Increase
------------------
Three Months Ended November 30, % Increase (Decrease)
----------------------------------------------------------
in
% of % of (Decrease) Constant
Currency
2023 Revenues 2022 Revenues in US $ (1)
---- --------------- ------------------ -------- ------------------ -------- ---------- ----------
REVENUES
Cloud services and
license support $ 9,639 74 % $ 8,598 70 % 12 % 11 %
Cloud license and
on-premise license 1,178 9 % 1,435 12 % (18 %) (19 %)
Hardware 756 6 % 850 7 % (11 %) (12 %)
Services 1,368 11 % 1,392 11 % (2 %) (3 %)
-------- --------
Total revenues 12,941 100 % 12,275 100 % 5 % 4 %
------------------ -------- ------------------ --------
OPERATING EXPENSES
Cloud services and
license support 2,274 17 % 1,891 15 % 20 % 19 %
Hardware 213 2 % 286 2 % (25 %) (27 %)
Services 1,253 10 % 1,181 10 % 6 % 5 %
Sales and marketing 2,093 16 % 2,216 18 % (6 %) (7 %)
Research and
development 2,226 17 % 2,158 18 % 3 % 3 %
General and
administrative 375 3 % 366 3 % 3 % 2 %
Amortization of
intangible assets 755 6 % 907 7 % (17 %) (17 %)
Acquisition related
and other 47 0 % 62 1 % (23 %) (24 %)
Restructuring 83 1 % 137 1 % (39 %) (42 %)
-------- --------
Total operating
expenses 9,319 72 % 9,204 75 % 1 % 0 %
------------------ -------- ------------------ --------
OPERATING INCOME 3,622 28 % 3,071 25 % 18 % 15 %
------------------ -------- ------------------ --------
Interest expense (888) (7 %) (856) (7 %) 4 % 4 %
Non-operating
expenses, net (14) 0 % (71) (1 %) (79 %) (81 %)
--------
INCOME BEFORE INCOME
TAXES 2,720 21 % 2,144 17 % 27 % 22 %
------------------ -------- ------------------ --------
Provision for income
taxes 217 2 % 403 3 % (46 %) (48 %)
------------------ -------- ------------------ --------