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AUSTIN, Texas, June 11, 2024 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2024 Q4 and full-year 2024 results. Total quarterly revenues were up 3% year-over-year in USD and up 4% in constant currency to $14.3 billion. Cloud services and license support revenues were up 9% in USD and up 10% in constant currency to $10.2 billion. Cloud license and on-premise license revenues were down 15% in USD and down 14% in constant currency to $1.8 billion.
Q4 GAAP operating income was $4.7 billion. Non-GAAP operating income was $6.7 billion, up 8% in USD and up 9% in constant currency. GAAP operating margin was 33%, and non-GAAP operating margin was 47%. GAAP net income was $3.1 billion, and non-GAAP net income was $4.6 billion. Q4 GAAP earnings per share was $1.11 while non-GAAP earnings per share was $1.63.
Short-term deferred revenues were $9.3 billion. Operating cash flow was $18.7 billion during fiscal year 2024, up 9% in USD.
Fiscal year 2024 total revenues were up 6% in USD and constant currency to $53.0 billion. Cloud services and license support revenues were up 12% in USD and up 11% in constant currency to $39.4 billion. Cloud license and on-premise license revenues were down 12% in USD and constant currency to $5.1 billion.
Fiscal year 2024 GAAP operating income was $15.4 billion, and GAAP operating margin was 29%. Non-GAAP operating income was $23.1 billion, and non-GAAP operating margin was 44%. GAAP net income was $10.5 billion, while non-GAAP net income was $15.7 billion. GAAP earnings per share was $3.71, while non-GAAP earnings per share was $5.56.
"In Q3 and Q4, Oracle signed the largest sales contracts in our history—driven by enormous demand for training AI large language models in the Oracle Cloud," said Oracle CEO, Safra Catz. "These record level sales drove RPO up 44% to $98 billion. Throughout fiscal year 2025, I expect continued strong AI demand to push Oracle sales and RPO even higher—and result in double-digit revenue growth this fiscal year. I also expect that each successive quarter should grow faster than the previous quarter—as OCI capacity begins to catch up with demand. In Q4 alone, Oracle signed over 30 AI sales contracts totaling more than $12.5 billion—including one with Open AI to train ChatGPT in the Oracle Cloud."
"Our multicloud cooperation with Microsoft expanded significantly in Q4, as we agreed to work together to support Open AI and ChatGPT—and 11 of the 23 OCI datacenters we are building inside Azure went live," said Oracle Chairman and CTO, Larry Ellison. "As this Azure/OCI cloud capacity becomes available to the large installed base of Microsoft and Oracle customers, it will turbocharge our cloud database growth. Now customers can run any and every version of the Oracle database—Autonomous, 23ai Vector DB, etc.— in both the Azure and the Oracle Clouds. As customers continue to choose and use multiple clouds, Hyperscalers like Microsoft and Google are responding by interconnecting their clouds. Oracle recently signed an agreement with Google to interconnect our clouds—and initially build 12 OCI datacenters inside the Google Cloud. We expect the Oracle database to be available within the Google Cloud in September this year."
The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 11, 2024, with a payment date of July 25, 2024.
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.
TrademarksOracle, 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 | $ 10,234 | 72 % | $ 9,370 | 68 % | 9 % | 10 % | ||
Cloud license and on-premise license | 1,838 | 13 % | 2,152 | 15 % | (15 %) | (14 %) | ||
Hardware | 842 | 6 % | 850 | 6 % | (1 %) | 0 % | ||
Services | 1,373 | 9 % | 1,465 | 11 % | (6 %) | (6 %) | ||
Total revenues | 14,287 | 100 % | 13,837 | 100 % | 3 % | 4 % | ||
OPERATING EXPENSES | ||||||||
Cloud services and license support | 2,522 | 18 % | 2,157 | 16 % | 17 % | 17 % | ||
Hardware | 241 | 2 % | 261 | 2 % | (7 %) | (7 %) | ||
Services | 1,160 | 8 % | 1,312 | 9 % | (12 %) | (11 %) | ||
Sales and marketing | 2,114 | 15 % | 2,289 | 17 % | (8 %) | (7 %) | ||
Research and development | 2,226 | 15 % | 2,226 | 16 % | 0 % | 0 % | ||
General and administrative | 402 | 3 % | 400 | 3 % | 1 % | 1 % | ||
Amortization of intangible assets | 743 | 5 % | 870 | 6 % | (15 %) | (15 %) | ||
Acquisition related and other | 101 | 1 % | 51 | 0 % | 97 % | 97 % | ||
Restructuring | 92 | 0 % | 131 | 1 % | (29 %) | (29 %) | ||
Total operating expenses | 9,601 | 67 % | 9,697 | 70 % | (1 %) | (1 %) | ||
OPERATING INCOME | 4,686 | 33 % | 4,140 | 30 % | 13 % | 15 % | ||
Interest expense | (878) | (6 %) | (955) | (7 %) | (8 %) | (8 %) | ||
Non-operating expenses, net | (26) | 0 % | (76) | (1 %) | (66 %) | (68 %) | ||
INCOME BEFORE INCOME TAXES | 3,782 | 27 % | 3,109 | 22 % | 22 % | 24 % | ||
(Provision for) benefit from income taxes | (639) | (5 %) | 210 | 2 % | * | * | ||
NET INCOME | $ 3,143 | 22 % | $ 3,319 | 24 % | (5 %) | (4 %) | ||
EARNINGS PER SHARE: | ||||||||
Basic | $ 1.14 | $ 1.23 | ||||||
Diluted | $ 1.11 | $ 1.19 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||
Basic | 2,753 | 2,707 | ||||||
Diluted | 2,834 | 2,796 | ||||||
(1) | We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2023, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended May 31, 2024 compared with the corresponding prior year period decreased our total revenues by 1 percentage point and operating income by 2 percentage points. | |||||||
* | Not meaningful | |||||||
ORACLE CORPORATION | |||||||||||||||||||||
Q4 FISCAL 2024 FINANCIAL RESULTS | |||||||||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) | |||||||||||||||||||||
($ in millions, except per share data) | |||||||||||||||||||||
Three Months Ended May 31, | % Increase (Decrease)in US $ | % Increase (Decrease) inConstant Currency (2) | |||||||||||||||||||
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 SHARES OUTSTANDING | 2,834 | - | 2,834 | 2,796 | - | 2,796 | 1 % | 1 % | 1 % | 1 % | |||||||||||
(1) | This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction withour 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 ourunderlying 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 thanUnited 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 therespective periods. | ||||||||||||||||||||
(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 16.9% and (6.7%) in the fourth quarter of fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 20.1% and 9.2% in thefourth quarter of fiscal 2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarter of fiscal 2024 and 2023 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related toan income tax benefit that was previously recorded due to the partial realignment of our legal entity structure. | ||||||||||||||||||||
* | 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 | $ 39,383 | 74 % | $ 35,307 | 71 % | 12 % | 11 % | ||
Cloud license and on-premise license | 5,081 | 10 % | 5,779 | 12 % | (12 %) | (12 %) | ||
Hardware | 3,066 | 6 % | 3,274 | 6 % | (6 %) | (7 %) | ||
Services | 5,431 | 10 % | 5,594 | 11 % | (3 %) | (3 %) | ||
Total revenues | 52,961 | 100 % | 49,954 | 100 % | 6 % | 6 % | ||
OPERATING EXPENSES | ||||||||
Cloud services and license support | 9,427 | 18 % | 7,763 | 16 % | 21 % | 21 % | ||
Hardware | 891 | 2 % | 1,040 | 2 % | (14 %) | (15 %) | ||
Services | 4,825 | 9 % | 4,761 | 10 % | 1 % | 1 % | ||
Sales and marketing | 8,274 | 15 % | 8,833 | 18 % | (6 %) | (7 %) | ||
Research and development | 8,915 | 17 % | 8,623 | 17 % | 3 % | 3 % | ||
General and administrative | 1,548 | 3 % | 1,579 | 3 % | (2 %) | (2 %) | ||
Amortization of intangible assets | 3,010 | 6 % | 3,582 | 7 % | (16 %) | (16 %) | ||
Acquisition related and other | 314 | 0 % | 190 | 0 % | 65 % | 64 % | ||
Restructuring | 404 | 1 % | 490 | 1 % | (18 %) | (18 %) | ||
Total operating expenses | 37,608 | 71 % | 36,861 | 74 % | 2 % | 2 % | ||
OPERATING INCOME | 15,353 | 29 % | 13,093 | 26 % | 17 % | 16 % | ||
Interest expense | (3,514) | (7 %) | (3,505) | (7 %) | 0 % | 0 % | ||
Non-operating expenses, net | (98) | 0 % | (462) | (1 %) | (79 %) | (80 %) | ||
INCOME BEFORE INCOME TAXES | 11,741 | 22 % | 9,126 | 18 % | 29 % | 27 % | ||
Provision for income taxes | (1,274) | (2 %) | (623) | (1 %) | 105 % | 103 % | ||
NET INCOME | $ 10,467 | 20 % | $ 8,503 | 17 % | 23 % | 22 % | ||
EARNINGS PER SHARE: | ||||||||
Basic | $ 3.82 | $ 3.15 | ||||||
Diluted | $ 3.71 | $ 3.07 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||
Basic | 2,744 | 2,696 | ||||||
Diluted | 2,823 | 2,766 | ||||||
(1) | We compare the percent change in the results from one period to another period using constant currency disclosure. We presentconstant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect offoreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting incurrencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2023,which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.Movements in international currencies relative to the United States dollar during the year ended May 31, 2024 compared with thecorresponding prior year period increased our operating income by 1 percentage point. | |||||||
ORACLE CORPORATION | |||||||||||||||||||||
FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS | |||||||||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) | |||||||||||||||||||||
($ in millions, except per share data) | |||||||||||||||||||||
Year Ended May 31, | % Increase (Decrease)in US $ | % Increase (Decrease)in Constant Currency (2) | |||||||||||||||||||
2024 | 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 SHARES OUTSTANDING | 2,823 | - | 2,823 | 2,766 | - | 2,766 | 2 % | 2 % | 2 % | 2 % | |||||||||||
(1) | This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be readonly in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, thereasons 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 forassessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results forentities 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 priorfiscal year, rather than the actual exchange rates in effect during the respective periods. | ||||||||||||||||||||
(3) | Stock-based compensation was included in the following GAAP operating expense categories: | ||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||
May 31, 2024 | May 31, 2023 | ||||||||||||||||||||
GAAP | Adj. | Non-GAAP | GAAP | Adj. | Non-GAAP | ||||||||||||||||
Cloud services and license support | $ 525 | $ (525) | $ - | $ 435 | $ (435) | $ - | |||||||||||||||
Hardware | 23 | (23) | - | 18 | (18) | - | |||||||||||||||
Services | 167 | (167) | - | 137 | (137) | - | |||||||||||||||
Sales and marketing | 667 | (667) | - | 611 | (611) | - | |||||||||||||||
Research and development | 2,225 | (2,225) | - | 1,983 | (1,983) | - | |||||||||||||||
General and administrative | 367 | (367) | - | 363 | (363) | - | |||||||||||||||
Total stock-based compensation | $ 3,974 | $ (3,974) | $ - | $ 3,547 | $ (3,547) | $ - | |||||||||||||||
(4) | Estimated future annual amortization expense related to intangible assets as of May 31, 2024 was as follows: | ||||||||||||||||||||
Fiscal 2025 | $ 2,303 | ||||||||||||||||||||
Fiscal 2026 | 1,639 | ||||||||||||||||||||
Fiscal 2027 | 672 | ||||||||||||||||||||
Fiscal 2028 | 635 | ||||||||||||||||||||
Fiscal 2029 | 561 | ||||||||||||||||||||
Thereafter | 1,080 | ||||||||||||||||||||
Total intangible assets, net | $ 6,890 | ||||||||||||||||||||
(5) | Income tax effects were calculated reflecting an effective GAAP tax rate of 10.9% and 6.8% in fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 19.2% and 16.3% in fiscal2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of fiscal 2024 and 2023 was primarily due to the net tax effects related to stock-based compensationexpense; 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 anincome tax benefit that was previously recorded due to the partial realignment of our legal entity structure. | ||||||||||||||||||||
* | 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 | $ 140,976 | $ 134,384 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current Liabilities: | ||||||
Notes payable and other borrowings, current | $ 10,605 | $ 4,061 | ||||
Accounts payable | 2,357 | 1,204 | ||||
Accrued compensation and related benefits | 1,916 | 2,053 | ||||
Deferred revenues | 9,313 | 8,970 | ||||
Other current liabilities | 7,353 | 6,802 | ||||
Total Current Liabilities | 31,544 | 23,090 | ||||
Non-Current Liabilities: | ||||||
Notes payable and other borrowings, non-current | 76,264 | 86,420 | ||||
Income taxes payable | 10,817 | 11,077 | ||||
Deferred tax liabilities | 3,692 | 5,772 | ||||
Other non-current liabilities | 9,420 | 6,469 | ||||
Total Non-Current Liabilities | 100,193 | 109,738 | ||||
Stockholders' Equity | 9,239 | 1,556 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 140,976 | $ 134,384 | ||||
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. 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 | ||||||||||||||
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/Middle East/Africa | 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 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 CORPORATIONQ4 FISCAL 2024 FINANCIAL RESULTSEXPLANATION 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:
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SOURCE Oracle Corporation
