News details

Oracle Announces Fiscal 2024 Third Quarter Financial Results

March 11, 2024
  • Q3 GAAP Earnings per Share $0.85, Non-GAAP Earnings per Share up 16% to $1.41
  • Q3 Total Revenue $13.3 billion, up 7% in both USD and constant currency
  • Q3 Total Remaining Performance Obligations up 29% to $80 billion
  • Q3 Cloud Revenue (IaaS plus SaaS) $5.1 billion, up 25% in USD, up 24% in constant currency
  • Q3 Cloud Infrastructure (IaaS) Revenue $1.8 billion, up 49% in both USD and constant currency
  • Q3 Cloud Application (SaaS) Revenue $3.3 billion, up 14% in both USD and constant currency
  • Q3 Fusion Cloud ERP (SaaS) Revenue $0.8 billion, up 18% in both USD and constant currency
  • Q3 NetSuite Cloud ERP (SaaS) Revenue $0.8 billion, up 21% in USD, up 20% in constant currency

AUSTIN, Texas, March 11, 2024 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2024 Q3 results. Total quarterly revenues were up 7% year-over-year in both USD and constant currency to $13.3 billion. Cloud services and license support revenues were up 12% in USD and up 11% in constant currency to $10.0 billion. Cloud license and on-premise license revenues were down 3% in both USD and constant currency to $1.3 billion.  

Q3 GAAP operating income was $3.8 billion. Non-GAAP operating income was $5.8 billion, up 12% in both USD and constant currency. GAAP operating margin was 28%, and non-GAAP operating margin was 44%. GAAP net income was $2.4 billion. Non-GAAP net income was $4.0 billion, up 18% in both USD and constant currency. Q3 GAAP earnings per share was $0.85 while non-GAAP earnings per share was $1.41, up 16% in both USD and constant currency.

Short-term deferred revenues were $8.9 billion. Over the last twelve months, operating cash flow was $18.2 billion and free cash flow was $12.3 billion.

"Large new cloud infrastructure contracts signed in Q3 drove Oracle's total Remaining Performance Obligations up 29% to over $80 billion—an all-time record," said Oracle CEO, Safra Catz. "We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply—despite the fact we are opening new and expanding existing cloud datacenters very, very rapidly. We expect that 43% of our current $80 billion of Remaining Performance Obligations will be recognized as revenue over the next four quarters, and that our Gen2 Cloud Infrastructure business will remain in a hypergrowth phase—up 53% in Q3—for the foreseeable future."

"In Q3, Oracle finished moving the majority of Cerner customers to Oracle's Gen2 Cloud Infrastructure," said Oracle Chairman and CTO, Larry Ellison. "In Q4, Oracle will start delivering its completely new Ambulatory Clinic Cloud Application Suite to these same customers. This new AI-driven system features an integrated voice interface called the Clinical Digital Assistant that automatically generates doctors' notes and updates Electronic Health Records—saving precious time and improving health data accuracy. The delivery of this revolutionary new healthcare technology will enable the rapid modernization of our customers' health systems over the coming year, and transform Cerner and Oracle Health into a high-growth business for years to come."

The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on April 10, 2024, with a payment date of April 24, 2024.

Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.

About Oracle

Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Trademarks

Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including demand for Oracle Cloud Infrastructure capacity, expectations for growth in our Cerner, Oracle Health and Gen2 Cloud Infrastructure businesses, the rate and timing of conversion of the Remaining Performance Obligations to revenue and beliefs regarding modernizing digital healthcare systems, are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; economic, political and market conditions; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of March 11, 2024. Oracle undertakes no duty to update any statement in light of new information or future events.

 

ORACLE  CORPORATION










Q3 FISCAL 2024 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

($ in millions, except per share data) 












Three Months Ended


% Increase




% Increase

(Decrease)




February 29,

% of

February 28,

% of

(Decrease)

in Constant




2024

Revenues

2023

Revenues

in US $

Currency (1)


REVENUES









Cloud services and license support

$           9,963

75 %

$           8,923

72 %

12 %

11 %



Cloud license and on-premise license

1,256

9 %

1,288

10 %

(3 %)

(3 %)



Hardware

754

6 %

811

7 %

(7 %)

(7 %)



Services

1,307

10 %

1,376

11 %

(5 %)

(5 %)



      Total revenues

13,280

100 %

12,398

100 %

7 %

7 %


OPERATING EXPENSES









Cloud services and license support

2,452

18 %

1,980

16 %

24 %

24 %



Hardware

217

2 %

244

2 %

(11 %)

(11 %)



Services

1,200

9 %

1,215

10 %

(1 %)

(1 %)



Sales and marketing

2,042

15 %

2,150

18 %

(5 %)

(6 %)



Research and development

2,248

17 %

2,146

17 %

5 %

5 %



General and administrative

377

3 %

402

3 %

(6 %)

(7 %)



Amortization of intangible assets

749

6 %

886

7 %

(15 %)

(15 %)



Acquisition related and other

155

1 %

37

0 %

317 %

317 %



Restructuring

90

1 %

78

1 %

15 %

14 %



      Total operating expenses

9,530

72 %

9,138

74 %

4 %

4 %


OPERATING INCOME

3,750

28 %

3,260

26 %

15 %

15 %



Interest expense

(876)

(6 %)

(908)

(7 %)

(3 %)

(3 %)



Non-operating expenses, net

(9)

0 %

(134)

(1 %)

(94 %)

(93 %)


INCOME BEFORE INCOME TAXES

2,865

22 %

2,218

18 %

29 %

29 %



Provision for income taxes

464

4 %

322

3 %

44 %

44 %


NET INCOME

$           2,401

18 %

$           1,896

15 %

27 %

26 %











EARNINGS PER SHARE:









Basic

$              0.87


$              0.70






Diluted

$              0.85


$              0.68





WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:









Basic

2,748


2,698






Diluted

2,819


2,776


















































(1)

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 February 29, 2024 compared with the corresponding prior year period had no impact to our total revenues, total operating expenses and operating income.











 

ORACLE  CORPORATION






















Q3 FISCAL 2024 FINANCIAL RESULTS

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

($ in millions, except per share data)

























Three Months Ended


% Increase
(Decrease)
in US $

% Increase
(Decrease) in
Constant
Currency (2)




February 29,




February 29,



February 28,




February 28,


GAAP

Non-GAAP

GAAP

Non-GAAP





2024




2024



2023




2023






GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP
























TOTAL REVENUES


$       13,280


$           -


$       13,280



$       12,398


$           -


$       12,398


7 %

7 %

7 %

7 %























TOTAL OPERATING EXPENSES


$         9,530


$   (2,042)


$         7,488



$         9,138


$   (1,925)


$         7,213


4 %

4 %

4 %

3 %



     Stock-based compensation (3)


1,048


(1,048)


-



924


(924)


-


13 %

*

13 %

*



     Amortization of intangible assets (4)


749


(749)


-



886


(886)


-


(15 %)

*

(15 %)

*



     Acquisition related and other


155


(155)


-



37


(37)


-


317 %

*

317 %

*



     Restructuring


90


(90)


-



78


(78)


-


15 %

*

14 %

*


OPERATING INCOME


$         3,750


$     2,042


$         5,792



$         3,260


$     1,925


$         5,185


15 %

12 %

15 %

12 %


OPERATING MARGIN %


28 %




44 %



26 %




42 %


194 bp.

179 bp.

194 bp.

183 bp.


INCOME TAX EFFECTS (5)


$            464


$        461


$            925



$            322


$        439


$            761


44 %

22 %

44 %

21 %


NET INCOME


$         2,401


$     1,581


$         3,982



$         1,896


$     1,486


$         3,382


27 %

18 %

26 %

18 %


DILUTED EARNINGS PER SHARE


$           0.85




$           1.41



$           0.68




$           1.22


25 %

16 %

24 %

16 %


DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING


2,819


-


2,819



2,776


-


2,776


2 %

2 %

2 %

2 %












































(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



Three Months Ended










February 29, 2024



February 28, 2023










GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP








     Cloud services and license support


$            138


$      (138)


$               -



$            114


$      (114)


$               -








     Hardware


6


(6)


-



5


(5)


-








     Services


45


(45)


-



39


(39)


-








     Sales and marketing


179


(179)


-



158


(158)


-








     Research and development


584


(584)


-



517


(517)


-








     General and administrative


96


(96)


-



91


(91)


-








           Total stock-based compensation


$         1,048


$   (1,048)


$               -



$            924


$      (924)


$               -




























(4)

Estimated future annual amortization expense related to intangible assets as of February 29, 2024 was as follows:



     Remainder of fiscal 2024


$            739



















     Fiscal 2025


2,303



















     Fiscal 2026


1,639



















     Fiscal 2027


672



















     Fiscal 2028


635



















     Fiscal 2029


561



















     Thereafter


1,080



















           Total intangible assets, net


$         7,629







































(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 16.2% and 14.5% in the third quarter of fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 18.9% and 18.4% in the third quarter of fiscal 2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of the third 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




















 

ORACLE  CORPORATION










Q3 FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

($ in millions, except per share data) 












Nine Months Ended


% Increase




% Increase

(Decrease)




February 29,

% of

February 28,

% of

(Decrease)

in Constant




2024

Revenues

2023

Revenues

in US $

Currency (1)


REVENUES









Cloud services and license support

$         29,149

75 %

$         25,938

72 %

12 %

11 %



Cloud license and on-premise license

3,243

8 %

3,627

10 %

(11 %)

(11 %)



Hardware

2,224

6 %

2,424

7 %

(8 %)

(9 %)



Services

4,058

11 %

4,129

11 %

(2 %)

(2 %)



      Total revenues

38,674

100 %

36,118

100 %

7 %

6 %


OPERATING EXPENSES









Cloud services and license support

6,905

18 %

5,606

16 %

23 %

22 %



Hardware

649

2 %

780

2 %

(17 %)

(18 %)



Services

3,665

9 %

3,448

10 %

6 %

6 %



Sales and marketing

6,161

16 %

6,544

18 %

(6 %)

(7 %)



Research and development

6,689

17 %

6,397

18 %

5 %

4 %



General and administrative

1,146

3 %

1,179

3 %

(3 %)

(4 %)



Amortization of intangible assets

2,267

6 %

2,712

7 %

(16 %)

(16 %)



Acquisition related and other

214

0 %

140

0 %

53 %

52 %



Restructuring

311

1 %

359

1 %

(13 %)

(14 %)



      Total operating expenses

28,007

72 %

27,165

75 %

3 %

3 %


OPERATING INCOME

10,667

28 %

8,953

25 %

19 %

17 %



Interest expense

(2,636)

(7 %)

(2,550)

(7 %)

3 %

3 %



Non-operating expenses, net

(72)

0 %

(386)

(2 %)

(81 %)

(82 %)


INCOME BEFORE INCOME TAXES

7,959

21 %

6,017

16 %

32 %

29 %



Provision for income taxes

636

2 %

833

2 %

(24 %)

(25 %)


NET INCOME

$           7,323

19 %

$           5,184

14 %

41 %

38 %











EARNINGS PER SHARE:









Basic

$              2.67


$              1.93






Diluted

$              2.60


$              1.88





WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:









Basic

2,741


2,692






Diluted

2,820


2,757


















































(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 nine months ended February 29, 2024 compared with the corresponding prior year period increased our total revenues by 1 percentage point and operating income by 2 percentage points.











 

ORACLE  CORPORATION






















Q3 FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS

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

($ in millions, except per share data)

























Nine Months Ended


% Increase
(Decrease)
in US $

% Increase
(Decrease)
in Constant
Currency (2)




February 29,




February 29,



February 28,




February 28,


GAAP

Non-GAAP

GAAP

Non-GAAP





2024




2024



2023




2023






GAAP 


Adj.


Non-GAAP



GAAP 


Adj.


Non-GAAP 
























TOTAL REVENUES


$       38,674


$           -


$       38,674



$       36,118


$           -


$       36,118


7 %

7 %

6 %

6 %























TOTAL OPERATING EXPENSES


$       28,007


$   (5,719)


$       22,288



$       27,165


$   (5,794)


$       21,371


3 %

4 %

3 %

4 %



     Stock-based compensation (3)


2,927


(2,927)


-



2,583


(2,583)


-


13 %

*

13 %

*



     Amortization of intangible assets (4)


2,267


(2,267)


-



2,712


(2,712)


-


(16 %)

*

(16 %)

*



     Acquisition related and other


214


(214)


-



140


(140)


-


53 %

*

52 %

*



     Restructuring


311


(311)


-



359


(359)


-


(13 %)

*

(14 %)

*


OPERATING INCOME


$       10,667


$     5,719


$       16,386



$         8,953


$     5,794


$       14,747


19 %

11 %

17 %

10 %


OPERATING MARGIN %


28 %




42 %



25 %




41 %


279 bp.

154 bp.

260 bp.

147 bp.


INCOME TAX EFFECTS (5)


$            636


$     1,939


$         2,575



$            833


$     1,457


$         2,290


(24 %)

12 %

(25 %)

11 %


NET INCOME


$         7,323


$     3,780


$       11,103



$         5,184


$     4,337


$         9,521


41 %

17 %

38 %

15 %


DILUTED EARNINGS PER SHARE


$           2.60




$           3.94



$           1.88




$           3.45


38 %

14 %

35 %

13 %


DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING


2,820


-


2,820



2,757


-


2,757


2 %

2 %

2 %

2 %












































(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:






























Nine Months Ended



Nine Months Ended










February 29, 2024



February 28, 2023










GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP








     Cloud services and license support


$            386


$      (386)


$               -



$            319


$      (319)


$               -








     Hardware


17


(17)


-



13


(13)


-








     Services


123


(123)


-



99


(99)


-








     Sales and marketing


488


(488)


-



433


(433)


-








     Research and development


1,642


(1,642)


-



1,448


(1,448)


-








     General and administrative


271


(271)


-



271


(271)


-








           Total stock-based compensation


$         2,927


$   (2,927)


$               -



$         2,583


$   (2,583)


$               -




























(4)

Estimated future annual amortization expense related to intangible assets as of February 29, 2024 was as follows:



     Remainder of fiscal 2024


$            739



















     Fiscal 2025


2,303



















     Fiscal 2026


1,639



















     Fiscal 2027


672



















     Fiscal 2028


635



















     Fiscal 2029


561



















     Thereafter


1,080



















           Total intangible assets, net


$         7,629







































(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 8.0% and 13.8% in the first nine months of fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 18.8% and 19.4% in the first nine months of fiscal 2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first nine months 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























 

ORACLE  CORPORATION








Q3 FISCAL 2024 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)











February 29,

May 31,




2024

2023

ASSETS





Current Assets:






Cash and cash equivalents

$                 9,481


$                 9,765



Marketable securities

423


422



Trade receivables, net

7,297


6,915



Prepaid expenses and other current assets

3,862


3,902




     Total Current Assets

21,063


21,004


Non-Current Assets:






   Property, plant and equipment, net

19,117


17,069



   Intangible assets, net

7,629


9,837



   Goodwill, net

62,222


62,261



   Deferred tax assets

12,688


12,226



   Other non-current assets

14,363


11,987




     Total Non-Current Assets

116,019


113,380


TOTAL ASSETS

$            137,082


$            134,384


LIABILITIES AND STOCKHOLDERS' EQUITY





Current Liabilities:






Notes payable and other borrowings, current

$                 5,510


$                 4,061



Accounts payable

1,658


1,204



Accrued compensation and related benefits

1,796


2,053



Deferred revenues

8,931


8,970



Other current liabilities

6,990


6,802




     Total Current Liabilities

24,885


23,090


Non-Current Liabilities:






Notes payable and other borrowings, non-current

82,470


86,420



Income taxes payable

10,451


11,077



Deferred tax liabilities

4,483


5,772



Other non-current liabilities

8,611


6,469




     Total Non-Current Liabilities

106,015


109,738


Stockholders' Equity

6,182


1,556


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$            137,082


$            134,384









 

     ORACLE  CORPORATION







Q3 FISCAL 2024 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

($ in millions) 









Nine Months Ended



February 29,
 2024

February 28,
 2023

Cash Flows From Operating Activities:





Net income

$        7,323


$        5,184


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





Depreciation

2,318


1,810


Amortization of intangible assets

2,267


2,712


Deferred income taxes

(1,755)


(1,253)


Stock-based compensation

2,927


2,583


Other, net

631


487


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





(Increase) decrease in trade receivables, net

(409)


460


Decrease in prepaid expenses and other assets

457


515


Decrease in accounts payable and other liabilities

(682)


(783)


Decrease in income taxes payable

(788)


(453)


Increase in deferred revenues

303


256


Net cash provided by operating activities

12,592


11,518


Cash Flows From Investing Activities:





Purchases of marketable securities and other investments

(674)


(921)


Proceeds from sales and maturities of marketable securities and other investments

207


552


Acquisitions, net of cash acquired

(59)


(27,721)


Capital expenditures

(4,068)


(6,782)


Net cash used for investing activities

(4,594)


(34,872)


Cash Flows From Financing Activities:





Payments for repurchases of common stock

(1,050)


(1,150)


Proceeds from issuances of common stock

454


759


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

(1,865)


(1,040)


Payments of dividends to stockholders

(3,289)


(2,586)


Proceeds from issuances of commercial paper, net of repayments

936


1,874


Proceeds from issuances of senior notes and other borrowings, net of issuance costs

-


33,494


Repayments of senior notes and other borrowings

(3,500)


(21,050)


Other, net

34


49


Net cash (used for) provided by financing activities

(8,280)


10,350


Effect of exchange rate changes on cash and cash equivalents

(2)


(160)


Net decrease in cash and cash equivalents

(284)


(13,164)


Cash and cash equivalents at beginning of period

9,765


21,383


Cash and cash equivalents at end of period

$        9,481


$        8,219








 

ORACLE  CORPORATION

 Q3 FISCAL 2024 FINANCIAL RESULTS

 FREE CASH FLOW - TRAILING 4-QUARTERS (1)

 ($ in millions)














 Fiscal 2023

 Fiscal 2024




 Q1

 Q2

 Q3

 Q4

 Q1

 Q2

 Q3

 Q4












GAAP Operating Cash Flow

$            10,542

$            15,073

$            15,503

$            17,165

$            17,745

$            17,039

$            18,239














Capital Expenditures

(5,168)

(6,678)

(8,205)

(8,695)

(8,290)

(6,935)

(5,981)














Free Cash Flow

$               5,374

$               8,395

$               7,298

$               8,470

$               9,455

$            10,104

$            12,258














Operating Cash Flow % Growth over prior year

(31 %)

47 %

49 %

80 %

68 %

13 %

18 %














Free Cash Flow % Growth over prior year

(57 %)

18 %

11 %

68 %

76 %

20 %

68 %

























GAAP Net Income

$               5,808

$               8,797

$               8,373

$               8,503

$               9,375

$            10,137

$            10,642














Operating Cash Flow as a % of Net Income

182 %

171 %

185 %

202 %

189 %

168 %

171 %














Free Cash Flow as a % of Net Income

93 %

95 %

87 %

100 %

101 %

100 %

115 %

























(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


 Q3 FISCAL 2024 FINANCIAL RESULTS


 SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)


 ($ in millions)




















 Fiscal 2023






 Fiscal 2024




 Q1

 Q2

 Q3

 Q4

 TOTAL


 Q1

 Q2

 Q3

 Q4

 TOTAL



REVENUES BY OFFERINGS














 Cloud services

$    3,579

$    3,813

$    4,053

$    4,437

$   15,881


$    4,635

$    4,775

$    5,054


$   14,464



 License support

4,838

4,785

4,870

4,933

19,426


4,912

4,864

4,909


14,685



 Cloud services and license support

8,417

8,598

8,923

9,370

35,307


9,547

9,639

9,963


29,149



 Cloud license and on-premise license

904

1,435

1,288

2,152

5,779


809

1,178

1,256


3,243



 Hardware

763

850

811

850

3,274


714

756

754


2,224



 Services 

1,361

1,392

1,376

1,465

5,594


1,383

1,368

1,307


4,058



                    Total revenues


$  11,445

$  12,275

$  12,398

$  13,837

$   49,954


$  12,453

$  12,941

$  13,280


$   38,674


















AS REPORTED REVENUE GROWTH RATES














Cloud services

45 %

43 %

45 %

54 %

47 %


30 %

25 %

25 %


26 %



License support

(1 %)

(2 %)

0 %

4 %

0 %


2 %

2 %

1 %


1 %



 Cloud services and license support

14 %

14 %

17 %

23 %

17 %


13 %

12 %

12 %


12 %



 Cloud license and on-premise license

11 %

16 %

0 %

(15 %)

(2 %)


(10 %)

(18 %)

(3 %)


(11 %)



 Hardware

0 %

11 %

2 %

(1 %)

3 %


(6 %)

(11 %)

(7 %)


(8 %)



 Services 

74 %

74 %

74 %

76 %

75 %


2 %

(2 %)

(5 %)


(2 %)



                    Total revenues


18 %

18 %

18 %

17 %

18 %


9 %

5 %

7 %


7 %


















CONSTANT CURRENCY REVENUE GROWTH RATES (2)














Cloud services

50 %

48 %

48 %

55 %

50 %


29 %

24 %

24 %


25 %



License support

4 %

4 %

3 %

6 %

4 %


0 %

0 %

1 %


0 %



 Cloud services and license support 

20 %

20 %

20 %

25 %

21 %


12 %

11 %

11 %


11 %



 Cloud license and on-premise license

19 %

23 %

4 %

(14 %)

2 %


(11 %)

(19 %)

(3 %)


(11 %)



 Hardware 

5 %

16 %

4 %

1 %

6 %


(8 %)

(12 %)

(7 %)


(9 %)



 Services 

84 %

83 %

80 %

78 %

81 %


1 %

(3 %)

(5 %)


(2 %)



                     Total revenues


23 %

25 %

21 %

18 %

22 %


8 %

4 %

7 %


6 %


















CLOUD SERVICES AND LICENSE SUPPORT REVENUES















BY ECOSYSTEM














 Applications cloud services and license support

$    4,016

$    4,080

$    4,166

$    4,390

$   16,651


$    4,471

$    4,474

$    4,584


$   13,529



 Infrastructure cloud services and license support

4,401

4,518

4,757

4,980

18,656


5,076

5,165

5,379


15,620



                    Total cloud services and license support revenues


$    8,417

$    8,598

$    8,923

$    9,370

$   35,307


$    9,547

$    9,639

$    9,963


$   29,149


















AS REPORTED REVENUE GROWTH RATES














 Applications cloud services and license support

32 %

30 %

31 %

36 %

32 %


11 %

10 %

10 %


10 %



 Infrastructure cloud services and license support

2 %

3 %

7 %

14 %

6 %


15 %

14 %

13 %


14 %



                    Total cloud services and license support revenues


14 %

14 %

17 %

23 %

17 %


13 %

12 %

12 %


12 %


















CONSTANT CURRENCY REVENUE GROWTH RATES (2)














 Applications cloud services and license support

37 %

35 %

33 %

37 %

35 %


11 %

9 %

10 %


10 %



 Infrastructure cloud services and license support

7 %

9 %

10 %

15 %

10 %


14 %

12 %

13 %


13 %



                   Total cloud services and license support revenues


20 %

20 %

20 %

25 %

21 %


12 %

11 %

11 %


11 %


















GEOGRAPHIC REVENUES














 Americas


$    7,192

$    7,786

$    7,671

$    8,577

$   31,226


$    7,841

$    8,067

$    8,270


$   24,177



 Europe/Middle East/Africa


2,691

2,895

3,067

3,457

12,109


3,005

3,170

3,316


9,491



 Asia Pacific


1,562

1,594

1,660

1,803

6,619


1,607

1,704

1,694


5,006



                    Total revenues


$  11,445

$  12,275

$  12,398

$  13,837

$   49,954


$  12,453

$  12,941

$  13,280


$   38,674

































(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 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 and 2022 for the fiscal 2024 and fiscal 2023 constant currency growth rate calculations presented,
     respectively, rather than the actual exchange rates in effect during the respective periods.





















 

APPENDIX A

ORACLE CORPORATION
Q3 FISCAL 2024 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

  • Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
  • Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
  • Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives.

 

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SOURCE Oracle Corporation