- Q2 GAAP Earnings per Share up 24% to $1.10, Non-GAAP Earnings per Share up 10% to
$1.47
- Q2 Total Revenue $14.1 billion,
up 9% in both USD and constant currency
- Q2 Total Remaining Performance Obligations $97 billion, up 49% in USD & 50% in constant
currency
- Q2 Cloud Revenue (IaaS plus SaaS) $5.9
billion, up 24% in both USD and constant currency
- Q2 Cloud Infrastructure (IaaS) Revenue $2.4 billion, up 52% in both USD and constant
currency
- Q2 Cloud Application (SaaS) Revenue $3.5
billion, up 10% in both USD and constant currency
- Q2 Fusion Cloud ERP (SaaS) Revenue $0.9
billion, up 18% in both USD and constant currency
- Q2 NetSuite Cloud ERP (SaaS) Revenue $0.9 billion, up 20% in USD and 19% in constant
currency
AUSTIN,
Texas, Dec. 9, 2024 /PRNewswire/ -- Oracle
Corporation (NYSE: ORCL) today announced fiscal 2025 Q2 results.
Total quarterly revenues were up 9% year-over-year, in both USD and
constant currency, to $14.1 billion.
Cloud services and license support revenues were up 12%
year-over-year, in both USD and constant currency, to $10.8 billion. Cloud license and on-premise
license revenues were up 1% in USD and up 3% in constant currency,
to $1.2 billion.
Q2 GAAP operating income was $4.2
billion. Non-GAAP operating income was $6.1 billion, up 10% in both USD and constant
currency. GAAP operating margin was 30%, and non-GAAP operating
margin was 43%. GAAP net income was $3.2
billion. Non-GAAP net income was $4.2
billion, up 12% in both USD and constant currency. Q2 GAAP
earnings per share was $1.10, up 24%
in USD and up 23% in constant currency, while non-GAAP earnings per
share was $1.47, up 10% in both USD
and constant currency.
Short-term deferred revenues were $9.4
billion. Over the last twelve months, operating cash flow
was $20.3 billion and free cash flow
was $9.5 billion.
"Record level AI demand drove Oracle Cloud Infrastructure
revenue up 52% in Q2, a much higher growth rate than any of our
hyperscale cloud infrastructure competitors," said Oracle CEO,
Safra Catz. "Growth in the AI
segment of our Infrastructure business was extraordinary—GPU
consumption was up 336% in the quarter—and we delivered the world's
largest and fastest AI SuperComputer scaling up to 65,000 NVIDIA
H200 GPUs. With our remaining performance obligation (RPO) up 50%
to $97 billion, we believe our
already impressive growth rates will continue to climb even higher.
This fiscal year, total Oracle Cloud revenue should top
$25 billion."
"Oracle Cloud Infrastructure trains several of the world's most
important generative AI models because we are faster and less
expensive than other clouds," said Oracle Chairman and CTO,
Larry Ellison. "And we just signed
an agreement with Meta—for them to use Oracle's AI Cloud
Infrastructure—and collaborate with Oracle on the development of AI
Agents based on Meta's Llama models. The Oracle Cloud trains dozens
of specialized AI models and embeds hundreds of AI Agents in cloud
applications. For example, Oracle's AI Agents automate drug design,
image and genomic analysis for cancer diagnostics, audio updates to
electronic health records for patient care, satellite image
analysis to predict and improve agricultural output, fraud and
money laundering detection, dual-factor biometric computer logins,
and real time video weapons detection in schools. Oracle trained AI
models and AI Agents will improve the rate of scientific discovery,
economic development and corporate growth throughout the world. The
scale of the opportunity is unimaginable."
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 9,
2025, with a payment date of January
23, 2025.
- A sample list of customers which purchased Oracle Cloud
services during the quarter will be available at
www.oracle.com/customers/earnings/.
- A list of recent technical innovations and announcements is
available at www.oracle.com/news/.
- To learn what industry analysts have been saying about Oracle's
products and services see
www.oracle.com/corporate/analyst-reports/.
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast
today to discuss these results at 4:00
p.m. Central. A live and replay webcast will be available on
the Oracle Investor Relations website at
www.oracle.com/investor/.
About Oracle
Oracle offers integrated suites of applications plus secure,
autonomous infrastructure in the Oracle Cloud. For more information
about Oracle (NYSE: ORCL), please visit us
at www.oracle.com.
Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of
Oracle Corporation. NetSuite was the first cloud company—ushering
in the new era of cloud computing.
"Safe Harbor" Statement: Statements in this press
release relating to future plans, expectations, beliefs, intentions
and prospects, including the expectations for converting the
Remaining Performance Obligations to revenue, future total Oracle
Cloud revenue this fiscal year and the scale of opportunity for
Oracle trained AI models and AI Agents, are "forward-looking
statements" and are subject to material risks and uncertainties.
Risks and uncertainties that could affect our current expectations
and our actual results, include, among others: our ability to
develop new products and services, integrate acquired products and
services and enhance our existing products and services, including
our AI products; our management of complex cloud and hardware
offerings, including the sourcing of technologies and technology
components; our ability to secure data center capacity; significant
coding, manufacturing or configuration errors in our offerings;
risks associated with acquisitions; economic, political and market
conditions; information technology system failures, privacy and
data security concerns; cybersecurity breaches; unfavorable legal
proceedings, government investigations, and complex and changing
laws and regulations. A detailed discussion of these factors and
other risks that affect our business is contained in our SEC
filings, including our most recent reports on Form 10-K and Form
10-Q, particularly under the heading "Risk Factors." Copies of
these filings are available online from the SEC or by contacting
Oracle's Investor Relations Department at (650) 506-4073 or by
clicking on SEC Filings on the Oracle Investor Relations website at
www.oracle.com/investor/. All information set forth in this press
release is current as of December 9,
2024. Oracle undertakes no duty to update any statement in
light of new information or future events.
|
ORACLE CORPORATION
|
|
|
|
Q2 FISCAL 2025 FINANCIAL
RESULTS
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
($ in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30,
|
|
% Increase
|
|
|
|
% Increase
|
(Decrease)
|
|
|
|
|
% of
|
|
% of
|
(Decrease)
|
in Constant
|
|
|
|
2024
|
Revenues
|
2023
|
Revenues
|
in US $
|
Currency (1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
10,806
|
77 %
|
$
9,639
|
74 %
|
12 %
|
12 %
|
|
|
Cloud license and
on-premise license
|
1,195
|
9 %
|
1,178
|
9 %
|
1 %
|
3 %
|
|
|
Hardware
|
728
|
5 %
|
756
|
6 %
|
(4 %)
|
(3 %)
|
|
|
Services
|
1,330
|
9 %
|
1,368
|
11 %
|
(3 %)
|
(3 %)
|
|
|
Total
revenues
|
14,059
|
100 %
|
12,941
|
100 %
|
9 %
|
9 %
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
2,746
|
19 %
|
2,274
|
17 %
|
21 %
|
21 %
|
|
|
Hardware
|
172
|
1 %
|
213
|
2 %
|
(20 %)
|
(19 %)
|
|
|
Services
|
1,167
|
8 %
|
1,253
|
10 %
|
(7 %)
|
(7 %)
|
|
|
Sales and
marketing
|
2,190
|
16 %
|
2,093
|
16 %
|
5 %
|
5 %
|
|
|
Research and
development
|
2,471
|
18 %
|
2,226
|
17 %
|
11 %
|
11 %
|
|
|
General and
administrative
|
387
|
3 %
|
375
|
3 %
|
3 %
|
3 %
|
|
|
Amortization of
intangible assets
|
591
|
4 %
|
755
|
6 %
|
(22 %)
|
(22 %)
|
|
|
Acquisition related and
other
|
31
|
0 %
|
47
|
0 %
|
(34 %)
|
(33 %)
|
|
|
Restructuring
|
84
|
1 %
|
83
|
1 %
|
0 %
|
1 %
|
|
|
Total operating
expenses
|
9,839
|
70 %
|
9,319
|
72 %
|
6 %
|
6 %
|
|
|
OPERATING INCOME
|
4,220
|
30 %
|
3,622
|
28 %
|
17 %
|
16 %
|
|
|
Interest
expense
|
(866)
|
(6 %)
|
(888)
|
(7 %)
|
(3 %)
|
(3 %)
|
|
|
Non-operating income
(expenses), net
|
36
|
0 %
|
(14)
|
0 %
|
*
|
*
|
|
|
INCOME BEFORE INCOME TAXES
|
3,390
|
24 %
|
2,720
|
21 %
|
25 %
|
24 %
|
|
|
Provision for income
taxes
|
239
|
2 %
|
217
|
2 %
|
11 %
|
10 %
|
|
|
NET INCOME
|
$
3,151
|
22 %
|
$
2,503
|
19 %
|
26 %
|
26 %
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.13
|
|
$
0.91
|
|
|
|
|
|
Diluted
|
$
1.10
|
|
$
0.89
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
2,790
|
|
2,746
|
|
|
|
|
|
Diluted
|
2,869
|
|
2,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2024, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods. Movements in international
currencies relative to the United States dollar during the three
months ended November 30, 2024 compared with the corresponding
prior year period increased our operating income by 1 percentage
point.
|
|
|
*
|
Not
meaningful
|
|
|
ORACLE CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL 2025 FINANCIAL
RESULTS
|
|
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP
MEASURES (1)
|
|
($ in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended November 30,
|
|
% 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
|
|
$
14,059
|
|
$
-
|
|
$
14,059
|
|
|
$
12,941
|
|
$
-
|
|
$
12,941
|
|
9 %
|
9 %
|
9 %
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING EXPENSES
|
|
$
9,839
|
|
$
(1,876)
|
|
$
7,963
|
|
|
$
9,319
|
|
$
(1,914)
|
|
$
7,405
|
|
6 %
|
8 %
|
6 %
|
8 %
|
|
|
Stock-based compensation
(3)
|
|
1,170
|
|
(1,170)
|
|
-
|
|
|
1,029
|
|
(1,029)
|
|
-
|
|
14 %
|
*
|
14 %
|
*
|
|
|
Amortization of intangible
assets (4)
|
|
591
|
|
(591)
|
|
-
|
|
|
755
|
|
(755)
|
|
-
|
|
(22 %)
|
*
|
(22 %)
|
*
|
|
|
Acquisition related and
other
|
|
31
|
|
(31)
|
|
-
|
|
|
47
|
|
(47)
|
|
-
|
|
(34 %)
|
*
|
(33 %)
|
*
|
|
|
Restructuring
|
|
84
|
|
(84)
|
|
-
|
|
|
83
|
|
(83)
|
|
-
|
|
0 %
|
*
|
1 %
|
*
|
|
|
OPERATING INCOME
|
|
$
4,220
|
|
$ 1,876
|
|
$
6,096
|
|
|
$
3,622
|
|
$ 1,914
|
|
$
5,536
|
|
17 %
|
10 %
|
16 %
|
10 %
|
|
|
OPERATING MARGIN %
|
|
30 %
|
|
|
|
43 %
|
|
|
28 %
|
|
|
|
43 %
|
|
203 bp.
|
58 bp.
|
196 bp.
|
52 bp.
|
|
|
INCOME TAX EFFECTS (5)
|
|
$
239
|
|
$
820
|
|
$
1,059
|
|
|
$
217
|
|
$
655
|
|
$
872
|
|
11 %
|
22 %
|
10 %
|
21 %
|
|
|
NET INCOME
|
|
$
3,151
|
|
$ 1,056
|
|
$
4,207
|
|
|
$
2,503
|
|
$ 1,259
|
|
$
3,762
|
|
26 %
|
12 %
|
26 %
|
12 %
|
|
|
DILUTED EARNINGS PER SHARE
|
|
$
1.10
|
|
|
|
$
1.47
|
|
|
$
0.89
|
|
|
|
$
1.34
|
|
24 %
|
10 %
|
23 %
|
10 %
|
|
|
DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
|
|
2,869
|
|
-
|
|
2,869
|
|
|
2,817
|
|
-
|
|
2,817
|
|
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, 2024, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
November 30,
2024
|
|
|
November 30,
2023
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
158
|
|
$ (158)
|
|
$
-
|
|
|
$
137
|
|
$ (137)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
8
|
|
(8)
|
|
-
|
|
|
6
|
|
(6)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
53
|
|
(53)
|
|
-
|
|
|
45
|
|
(45)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
195
|
|
(195)
|
|
-
|
|
|
174
|
|
(174)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
657
|
|
(657)
|
|
-
|
|
|
573
|
|
(573)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
99
|
|
(99)
|
|
-
|
|
|
94
|
|
(94)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
1,170
|
|
$
(1,170)
|
|
$
-
|
|
|
$
1,029
|
|
$
(1,029)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of
November 30, 2024 was as follows:
|
|
|
Remainder of fiscal
2025
|
|
$
1,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
1,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2027
|
|
672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2028
|
|
635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2029
|
|
561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2030
|
|
522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
5,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 7.1% and
8.0% in the second quarter of fiscal 2025 and 2024, respectively,
and an effective non-GAAP tax rate of 20.1% and 18.8% in the second
quarter of fiscal 2025 and 2024, respectively. The difference in
our GAAP and non-GAAP tax rates in each of the second quarters of
fiscal 2025 and 2024 was primarily due to the net tax effects
related to stock-based compensation expense; acquisition related
and other items, including the tax effects on amortization of
intangible assets; and restructuring expense, partially offset by
the net deferred tax effects related to an income tax benefit that
was previously recorded due to the partial realignment of our legal
entity structure.
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE CORPORATION
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL 2025 YEAR TO DATE FINANCIAL
RESULTS
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
($ in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended November 30,
|
|
% Increase
|
|
|
|
% Increase
|
(Decrease)
|
|
|
|
|
% of
|
|
% of
|
(Decrease)
|
in Constant
|
|
|
|
2024
|
Revenues
|
2023
|
Revenues
|
in US $
|
Currency (1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
21,324
|
78 %
|
$
19,186
|
75 %
|
11 %
|
11 %
|
|
|
Cloud license and
on-premise license
|
2,065
|
8 %
|
1,987
|
8 %
|
4 %
|
5 %
|
|
|
Hardware
|
1,383
|
5 %
|
1,470
|
6 %
|
(6 %)
|
(5 %)
|
|
|
Services
|
2,594
|
9 %
|
2,751
|
11 %
|
(6 %)
|
(5 %)
|
|
|
Total
revenues
|
27,366
|
100 %
|
25,394
|
100 %
|
8 %
|
8 %
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
5,344
|
20 %
|
4,452
|
18 %
|
20 %
|
20 %
|
|
|
Hardware
|
333
|
1 %
|
432
|
2 %
|
(23 %)
|
(22 %)
|
|
|
Services
|
2,314
|
8 %
|
2,465
|
10 %
|
(6 %)
|
(6 %)
|
|
|
Sales and
marketing
|
4,226
|
15 %
|
4,118
|
16 %
|
3 %
|
3 %
|
|
|
Research and
development
|
4,777
|
18 %
|
4,442
|
17 %
|
8 %
|
8 %
|
|
|
General and
administrative
|
745
|
3 %
|
769
|
3 %
|
(3 %)
|
(3 %)
|
|
|
Amortization of
intangible assets
|
1,215
|
4 %
|
1,518
|
6 %
|
(20 %)
|
(20 %)
|
|
|
Acquisition related and
other
|
44
|
0 %
|
58
|
0 %
|
(25 %)
|
(25 %)
|
|
|
Restructuring
|
157
|
1 %
|
222
|
1 %
|
(29 %)
|
(29 %)
|
|
|
Total operating
expenses
|
19,155
|
70 %
|
18,476
|
73 %
|
4 %
|
4 %
|
|
|
OPERATING INCOME
|
8,211
|
30 %
|
6,918
|
27 %
|
19 %
|
19 %
|
|
|
Interest
expense
|
(1,708)
|
(6 %)
|
(1,760)
|
(7 %)
|
(3 %)
|
(3 %)
|
|
|
Non-operating income
(expenses), net
|
57
|
0 %
|
(63)
|
0 %
|
*
|
*
|
|
|
INCOME BEFORE INCOME TAXES
|
6,560
|
24 %
|
5,095
|
20 %
|
29 %
|
30 %
|
|
|
Provision for income
taxes
|
480
|
2 %
|
172
|
1 %
|
179 %
|
181 %
|
|
|
NET INCOME
|
$
6,080
|
22 %
|
$
4,923
|
19 %
|
24 %
|
24 %
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
2.19
|
|
$
1.80
|
|
|
|
|
|
Diluted
|
$
2.13
|
|
$
1.75
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
2,775
|
|
2,737
|
|
|
|
|
|
Diluted
|
2,860
|
|
2,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2024, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods. Movements in international
currencies relative to the United States dollar during the six
months ended November 30, 2024 compared with the corresponding
prior year period had no impact to our total revenues, total
operating expenses and operating income.
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL 2025 YEAR TO DATE FINANCIAL
RESULTS
|
|
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP
MEASURES (1)
|
|
($ in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended November 30,
|
|
% 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
|
|
$
27,366
|
|
$
-
|
|
$
27,366
|
|
|
$
25,394
|
|
$
-
|
|
$
25,394
|
|
8 %
|
8 %
|
8 %
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING EXPENSES
|
|
$
19,155
|
|
$
(3,592)
|
|
$
15,563
|
|
|
$
18,476
|
|
$
(3,676)
|
|
$
14,800
|
|
4 %
|
5 %
|
4 %
|
6 %
|
|
|
Stock-based compensation
(3)
|
|
2,176
|
|
(2,176)
|
|
-
|
|
|
1,878
|
|
(1,878)
|
|
-
|
|
16 %
|
*
|
16 %
|
*
|
|
|
Amortization of intangible
assets (4)
|
|
1,215
|
|
(1,215)
|
|
-
|
|
|
1,518
|
|
(1,518)
|
|
-
|
|
(20 %)
|
*
|
(20 %)
|
*
|
|
|
Acquisition related and
other
|
|
44
|
|
(44)
|
|
-
|
|
|
58
|
|
(58)
|
|
-
|
|
(25 %)
|
*
|
(25 %)
|
*
|
|
|
Restructuring
|
|
157
|
|
(157)
|
|
-
|
|
|
222
|
|
(222)
|
|
-
|
|
(29 %)
|
*
|
(29 %)
|
*
|
|
|
OPERATING INCOME
|
|
$
8,211
|
|
$ 3,592
|
|
$
11,803
|
|
|
$
6,918
|
|
$ 3,676
|
|
$
10,594
|
|
19 %
|
11 %
|
19 %
|
12 %
|
|
|
OPERATING MARGIN %
|
|
30 %
|
|
|
|
43 %
|
|
|
27 %
|
|
|
|
42 %
|
|
276 bp.
|
141 bp.
|
279 bp.
|
140 bp.
|
|
|
INCOME TAX EFFECTS (5)
|
|
$
480
|
|
$ 1,500
|
|
$
1,980
|
|
|
$
172
|
|
$ 1,478
|
|
$
1,650
|
|
179 %
|
20 %
|
181 %
|
21 %
|
|
|
NET INCOME
|
|
$
6,080
|
|
$ 2,092
|
|
$
8,172
|
|
|
$
4,923
|
|
$ 2,198
|
|
$
7,121
|
|
24 %
|
15 %
|
24 %
|
15 %
|
|
|
DILUTED EARNINGS PER SHARE
|
|
$
2.13
|
|
|
|
$
2.86
|
|
|
$
1.75
|
|
|
|
$
2.53
|
|
22 %
|
13 %
|
23 %
|
14 %
|
|
|
DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
|
|
2,860
|
|
-
|
|
2,860
|
|
|
2,820
|
|
-
|
|
2,820
|
|
1 %
|
1 %
|
1 %
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This presentation
includes non-GAAP measures. Our non-GAAP measures are not meant to
be considered in isolation or as a substitute for comparable GAAP
measures, and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP.
For a detailed explanation of the adjustments made to comparable
GAAP measures, the reasons why management uses these measures, the
usefulness of these measures and the material limitations on the
usefulness of these measures, please see Appendix A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2024, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
November
30, 2024
|
|
|
November 30,
2023
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
299
|
|
$ (299)
|
|
$
-
|
|
|
$
248
|
|
$ (248)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
14
|
|
(14)
|
|
-
|
|
|
11
|
|
(11)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
96
|
|
(96)
|
|
-
|
|
|
78
|
|
(78)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
356
|
|
(356)
|
|
-
|
|
|
309
|
|
(309)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
1,226
|
|
(1,226)
|
|
-
|
|
|
1,057
|
|
(1,057)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
185
|
|
(185)
|
|
-
|
|
|
175
|
|
(175)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
2,176
|
|
$
(2,176)
|
|
$
-
|
|
|
$
1,878
|
|
$
(1,878)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of
November 30, 2024 was as follows:
|
|
|
Remainder of fiscal
2025
|
|
$
1,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
1,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2027
|
|
672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2028
|
|
635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2029
|
|
561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2030
|
|
522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
5,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 7.3% and
3.4% in the first half of fiscal 2025 and 2024, respectively, and
an effective non-GAAP tax rate of 19.5% and 18.8% in the first half
of fiscal 2025 and 2024, respectively. The difference in our GAAP
and non-GAAP tax rates in each of the first half of fiscal 2025 and
2024 was primarily due to the net tax effects related to
stock-based compensation expense; acquisition related and other
items, including the tax effects on amortization of intangible
assets; and restructuring expense, partially offset by the net
deferred tax effects related to an income tax benefit that was
previously recorded due to the partial realignment of our legal
entity structure.
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE CORPORATION
|
|
|
|
|
|
|
|
|
Q2 FISCAL 2025 FINANCIAL
RESULTS
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
November 30,
|
May 31,
|
|
|
|
2024
|
2024
|
|
ASSETS
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
10,941
|
|
$
10,454
|
|
|
Marketable
securities
|
370
|
|
207
|
|
|
Trade receivables,
net
|
8,177
|
|
7,874
|
|
|
Prepaid expenses and
other current assets
|
4,015
|
|
4,019
|
|
|
|
Total Current
Assets
|
23,503
|
|
22,554
|
|
|
Non-Current Assets:
|
|
|
|
|
|
Property,
plant and equipment, net
|
26,432
|
|
21,536
|
|
|
Intangible assets, net
|
5,679
|
|
6,890
|
|
|
Goodwill,
net
|
62,204
|
|
62,230
|
|
|
Deferred
tax assets
|
11,984
|
|
12,273
|
|
|
Other
non-current assets
|
18,681
|
|
15,493
|
|
|
|
Total Non-Current
Assets
|
124,980
|
|
118,422
|
|
|
TOTAL ASSETS
|
$
148,483
|
|
$
140,976
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, current
|
$
8,162
|
|
$
10,605
|
|
|
Accounts
payable
|
2,679
|
|
2,357
|
|
|
Accrued compensation
and related benefits
|
1,653
|
|
1,916
|
|
|
Deferred
revenues
|
9,430
|
|
9,313
|
|
|
Other current
liabilities
|
7,128
|
|
7,353
|
|
|
|
Total Current
Liabilities
|
29,052
|
|
31,544
|
|
|
Non-Current Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, non-current
|
80,462
|
|
76,264
|
|
|
Income taxes
payable
|
9,553
|
|
10,817
|
|
|
Deferred tax
liabilities
|
2,864
|
|
3,692
|
|
|
Other non-current
liabilities
|
12,316
|
|
9,420
|
|
|
|
Total Non-Current
Liabilities
|
105,195
|
|
100,193
|
|
|
Stockholders' Equity
|
14,236
|
|
9,239
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
|
$
148,483
|
|
$
140,976
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
Q2 FISCAL 2025 FINANCIAL
RESULTS
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
Six Months Ended November 30,
|
|
|
2024
|
2023
|
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
Net income
|
$
6,080
|
|
$
4,923
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
1,712
|
|
1,510
|
|
|
Amortization of
intangible assets
|
1,215
|
|
1,518
|
|
|
Deferred income
taxes
|
(601)
|
|
(1,049)
|
|
|
Stock-based
compensation
|
2,176
|
|
1,878
|
|
|
Other, net
|
298
|
|
331
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
(Increase) decrease in
trade receivables, net
|
(451)
|
|
145
|
|
|
Decrease in prepaid
expenses and other assets
|
676
|
|
301
|
|
|
Decrease in accounts
payable and other liabilities
|
(1,143)
|
|
(1,048)
|
|
|
Decrease in income
taxes payable
|
(1,685)
|
|
(1,541)
|
|
|
Increase in deferred
revenues
|
454
|
|
149
|
|
|
Net cash provided by operating
activities
|
8,731
|
|
7,117
|
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(636)
|
|
(515)
|
|
|
Proceeds from sales
and maturities of marketable securities and other
investments
|
356
|
|
157
|
|
|
Acquisitions, net of
cash acquired
|
-
|
|
(59)
|
|
|
Capital
expenditures
|
(6,273)
|
|
(2,394)
|
|
|
Net cash used for investing
activities
|
(6,553)
|
|
(2,811)
|
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
Payments for
repurchases of common stock
|
(300)
|
|
(600)
|
|
|
Proceeds from
issuances of common stock
|
307
|
|
426
|
|
|
Shares repurchased for
tax withholdings upon vesting of restricted stock-based
awards
|
(898)
|
|
(1,733)
|
|
|
Payments of dividends
to stockholders
|
(2,221)
|
|
(2,190)
|
|
|
(Repayments of)
proceeds from issuances of commercial paper, net
|
(396)
|
|
1,749
|
|
|
Proceeds from
issuances of senior notes and term loan credit agreements, net of
issuance costs
|
11,837
|
|
-
|
|
|
Repayments of senior
notes and term loan credit agreements
|
(9,700)
|
|
(3,500)
|
|
|
Other, net
|
(276)
|
|
31
|
|
|
Net cash used for financing
activities
|
(1,647)
|
|
(5,817)
|
|
|
Effect of exchange rate changes on cash and cash
equivalents
|
(44)
|
|
(10)
|
|
|
Net increase (decrease) in cash and cash
equivalents
|
487
|
|
(1,521)
|
|
|
Cash and cash equivalents at beginning of
period
|
10,454
|
|
9,765
|
|
|
Cash and cash equivalents at end of
period
|
$ 10,941
|
|
$
8,244
|
|
|
|
|
|
|
|
|
ORACLE CORPORATION
|
|
Q2 FISCAL 2025 FINANCIAL
RESULTS
|
|
FREE CASH FLOW - TRAILING 4-QUARTERS
(1)
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
Fiscal 2025
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Cash Flow
|
$
17,745
|
$
17,039
|
$
18,239
|
$
18,673
|
$
19,126
|
$
20,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
(8,290)
|
(6,935)
|
(5,981)
|
(6,866)
|
(7,855)
|
(10,745)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
$
9,455
|
$
10,104
|
$
12,258
|
$
11,807
|
$
11,271
|
$
9,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow % Growth over prior
year
|
68 %
|
13 %
|
18 %
|
9 %
|
8 %
|
19 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow % Growth over prior
year
|
76 %
|
20 %
|
68 %
|
39 %
|
19 %
|
(6 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income
|
$
9,375
|
$
10,137
|
$
10,642
|
$
10,467
|
$
10,976
|
$
11,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow as a % of Net
Income
|
189 %
|
168 %
|
171 %
|
178 %
|
174 %
|
175 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a % of Net
Income
|
101 %
|
100 %
|
115 %
|
113 %
|
103 %
|
82 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
Q2 FISCAL 2025 FINANCIAL
RESULTS
|
|
|
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES
(1)
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
|
|
|
|
Fiscal 2025
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
REVENUES BY OFFERINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud
services
|
$
4,635
|
$
4,775
|
$
5,054
|
$
5,311
|
$
19,774
|
|
$
5,623
|
$
5,937
|
|
|
$
11,559
|
|
|
License
support
|
4,912
|
4,864
|
4,909
|
4,923
|
19,609
|
|
4,896
|
4,869
|
|
|
9,765
|
|
|
Cloud services
and license support
|
9,547
|
9,639
|
9,963
|
10,234
|
39,383
|
|
10,519
|
10,806
|
|
|
21,324
|
|
|
Cloud license
and on-premise license
|
809
|
1,178
|
1,256
|
1,838
|
5,081
|
|
870
|
1,195
|
|
|
2,065
|
|
|
Hardware
|
714
|
756
|
754
|
842
|
3,066
|
|
655
|
728
|
|
|
1,383
|
|
|
Services
|
1,383
|
1,368
|
1,307
|
1,373
|
5,431
|
|
1,263
|
1,330
|
|
|
2,594
|
|
|
Total revenues
|
$
12,453
|
$
12,941
|
$
13,280
|
$
14,287
|
$
52,961
|
|
$
13,307
|
$
14,059
|
|
|
$
27,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED REVENUE GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud
services
|
30 %
|
25 %
|
25 %
|
20 %
|
25 %
|
|
21 %
|
24 %
|
|
|
23 %
|
|
|
License
support
|
2 %
|
2 %
|
1 %
|
0 %
|
1 %
|
|
0 %
|
0 %
|
|
|
0 %
|
|
|
Cloud services
and license support
|
13 %
|
12 %
|
12 %
|
9 %
|
12 %
|
|
10 %
|
12 %
|
|
|
11 %
|
|
|
Cloud license
and on-premise license
|
(10 %)
|
(18 %)
|
(3 %)
|
(15 %)
|
(12 %)
|
|
7 %
|
1 %
|
|
|
4 %
|
|
|
Hardware
|
(6 %)
|
(11 %)
|
(7 %)
|
(1 %)
|
(6 %)
|
|
(8 %)
|
(4 %)
|
|
|
(6 %)
|
|
|
Services
|
2 %
|
(2 %)
|
(5 %)
|
(6 %)
|
(3 %)
|
|
(9 %)
|
(3 %)
|
|
|
(6 %)
|
|
|
Total revenues
|
9 %
|
5 %
|
7 %
|
3 %
|
6 %
|
|
7 %
|
9 %
|
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY REVENUE GROWTH RATES
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud
services
|
29 %
|
24 %
|
24 %
|
20 %
|
24 %
|
|
22 %
|
24 %
|
|
|
23 %
|
|
|
License
support
|
0 %
|
0 %
|
1 %
|
1 %
|
0 %
|
|
0 %
|
0 %
|
|
|
0 %
|
|
|
Cloud services
and license support
|
12 %
|
11 %
|
11 %
|
10 %
|
11 %
|
|
11 %
|
12 %
|
|
|
11 %
|
|
|
Cloud license
and on-premise license
|
(11 %)
|
(19 %)
|
(3 %)
|
(14 %)
|
(12 %)
|
|
8 %
|
3 %
|
|
|
5 %
|
|
|
Hardware
|
(8 %)
|
(12 %)
|
(7 %)
|
0 %
|
(7 %)
|
|
(8 %)
|
(3 %)
|
|
|
(5 %)
|
|
|
Services
|
1 %
|
(3 %)
|
(5 %)
|
(6 %)
|
(3 %)
|
|
(8 %)
|
(3 %)
|
|
|
(5 %)
|
|
|
Total revenues
|
8 %
|
4 %
|
7 %
|
4 %
|
6 %
|
|
8 %
|
9 %
|
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD SERVICES AND LICENSE SUPPORT
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BY ECOSYSTEM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
$
4,471
|
$
4,474
|
$
4,584
|
$
4,642
|
$
18,172
|
|
$
4,769
|
$
4,784
|
|
|
$ 9,552
|
|
|
Infrastructure
cloud services and license support
|
5,076
|
5,165
|
5,379
|
5,592
|
21,211
|
|
5,750
|
6,022
|
|
|
11,772
|
|
|
Total cloud services and
license support revenues
|
$
9,547
|
$
9,639
|
$
9,963
|
$
10,234
|
$
39,383
|
|
$
10,519
|
$
10,806
|
|
|
$
21,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED REVENUE GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
11 %
|
10 %
|
10 %
|
6 %
|
9 %
|
|
7 %
|
7 %
|
|
|
7 %
|
|
|
Infrastructure
cloud services and license support
|
15 %
|
14 %
|
13 %
|
12 %
|
14 %
|
|
13 %
|
17 %
|
|
|
15 %
|
|
|
Total cloud services and
license support revenues
|
13 %
|
12 %
|
12 %
|
9 %
|
12 %
|
|
10 %
|
12 %
|
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY REVENUE GROWTH RATES
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
11 %
|
9 %
|
10 %
|
6 %
|
9 %
|
|
7 %
|
7 %
|
|
|
7 %
|
|
|
Infrastructure
cloud services and license support
|
14 %
|
12 %
|
13 %
|
13 %
|
13 %
|
|
14 %
|
17 %
|
|
|
16 %
|
|
|
Total cloud services and
license support revenues
|
12 %
|
11 %
|
11 %
|
10 %
|
11 %
|
|
11 %
|
12 %
|
|
|
11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHIC REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
7,841
|
$
8,067
|
$
8,270
|
$
8,945
|
$
33,122
|
|
$
8,372
|
$
8,933
|
|
|
$
17,305
|
|
|
Europe/Middle
East/Africa
|
|
3,005
|
3,170
|
3,316
|
3,539
|
13,030
|
|
3,228
|
3,381
|
|
|
6,609
|
|
|
Asia
Pacific
|
|
1,607
|
1,704
|
1,694
|
1,803
|
6,809
|
|
1,707
|
1,745
|
|
|
3,452
|
|
|
Total revenues
|
$
12,453
|
$
12,941
|
$
13,280
|
$
14,287
|
$
52,961
|
|
$
13,307
|
$
14,059
|
|
|
$
27,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2024 and 2023 for the fiscal 2025 and
fiscal 2024 constant currency growth rate calculations presented,
respectively, rather than the actual exchange rates in effect
during
the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX A
ORACLE CORPORATION
Q2 FISCAL 2025
FINANCIAL RESULTS
EXPLANATION OF NON-GAAP
MEASURES
To supplement our financial results presented on a GAAP basis,
we use the non-GAAP measures indicated in the tables, which exclude
certain business combination accounting entries and expenses
related to acquisitions, as well as other significant expenses
including stock-based compensation, that we believe are helpful in
understanding our past financial performance and our future
results. Our non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP.
Our management regularly uses our supplemental non-GAAP financial
measures internally to understand, manage and evaluate our business
and make operating decisions. These non-GAAP measures are among the
primary factors management uses in planning for and forecasting
future periods. Compensation of our executives is based in part on
the performance of our business based on these non-GAAP measures.
Our non-GAAP financial measures reflect adjustments based on the
following items, as well as the related income tax effects:
- Stock-based compensation expenses: We have excluded the effect
of stock-based compensation expenses from our non-GAAP operating
expenses, income tax effects and net income measures. Although
stock-based compensation is a key incentive offered to our
employees, and we believe such compensation contributed to the
revenues earned during the periods presented and also believe it
will contribute to the generation of future period revenues, we
continue to evaluate our business performance excluding stock-based
compensation expenses. Stock-based compensation expenses will recur
in future periods.
- Amortization of intangible assets: We have excluded the effect
of amortization of intangible assets from our non-GAAP operating
expenses, income tax effects and net income measures. Amortization
of intangible assets is inconsistent in amount and frequency and is
significantly affected by the timing and size of our acquisitions.
Investors should note that the use of intangible assets contributed
to our revenues earned during the periods presented and will
contribute to our future period revenues as well. Amortization of
intangible assets will recur in future periods.
- Acquisition related and other expenses; and restructuring
expenses: We have excluded the effect of acquisition related and
other expenses and the effect of restructuring expenses from our
non-GAAP operating expenses, income tax effects and net income
measures. We incurred expenses in connection with our acquisitions
and also incurred certain other operating expenses or income, which
we generally would not have otherwise incurred in the periods
presented as a part of our continuing operations. Acquisition
related and other expenses consisted of personnel related costs for
transitional and certain other employees, certain business
combination adjustments including certain adjustments after the
measurement period has ended, and certain other operating items,
net. Restructuring expenses consisted of employee severance and
other exit costs. We believe it is useful for investors to
understand the effects of these items on our total operating
expenses. Although acquisition related and other expenses and
restructuring expenses may diminish over time with respect to past
acquisitions and/or strategic initiatives, we generally will incur
certain of these expenses in connection with any future
acquisitions and/or strategic initiatives.
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content:https://www.prnewswire.com/news-releases/oracle-announces-fiscal-2025-second-quarter-financial-results-302326639.html
SOURCE Oracle