Oracle Announces Fiscal 2024 Second Quarter Financial Results

• Q2 GAAP Earnings per Share $0.89, Non-GAAP Earnings per Share $1.34
• Q2 Total Revenue $12.9 billion, up 5% in USD, up 4% in constant currency
• Q2 Total Remaining Performance Obligations over $65 billion
• Q2 Cloud Revenue (IaaS plus SaaS) $4.8 billion, up 25% in USD, up 24% in constant currency
• Q2 Cloud Infrastructure (IaaS) Revenue $1.6 billion, up 52% in USD, up 50% in constant currency
• Q2 Cloud Application (SaaS) Revenue $3.2 billion, up 15% in USD, up 14% in constant currency
• Q2 Fusion Cloud ERP (SaaS) Revenue $0.8 billion, up 21% in USD, up 19% in constant currency
• Q2 NetSuite Cloud ERP (SaaS) Revenue $0.8 billion, up 21% in USD, up 20% in constant currency

AUSTIN, Texas, Dec. 11, 2023 /PRNewswire/ — Oracle Corporation (NYSE: ORCL) today announced fiscal 2024 Q2 results. Total quarterly revenues were up 5% year-over-year in USD and up 4% in constant currency to $12.9 billion. Cloud services and license support revenues were up 12% in USD and up 11% in constant currency to $9.6 billion. Cloud license and on-premise license revenues were down 18% in USD and down 19% in constant currency to $1.2 billion. 

Q2 GAAP operating income was $3.6 billion. Non-GAAP operating income was $5.5 billion, up 9% in USD and up 7% in constant currency. GAAP operating margin was 28%, and non-GAAP operating margin was 43%. GAAP net income was $2.5 billion. Non-GAAP net income was $3.8 billion, up 14% in USD and up 11% in constant currency. Q2 GAAP earnings per share was $0.89 while non-GAAP earnings per share was $1.34, up 11% in USD and up 9% in constant currency.

Short-term deferred revenues were $8.9 billion. Over the last twelve months, operating cash flow was $17.0 billion and free cash flow was $10.1 billion.

“Demand for our Cloud Infrastructure and Generative AI services is increasing at an astronomical rate,” said Oracle CEO, Safra Catz. “As a measure of that demand, Oracle’s total Remaining Performance Obligations (RPO) climbed to over $65 billion—exceeding annual revenue. Our cloud businesses are now at nearly a $20 billion-dollar annual revenue run rate, and cloud services demand continues to grow at unprecedented levels.  Business is good and getting better.”

“Oracle is in the process of expanding 66 of our existing cloud datacenters—and building 100 new cloud datacenters—to meet growing demand,” said Oracle Chairman and CTO, Larry Ellison. “We can build our new datacenters very rapidly and operate them inexpensively because they are all highly automated with identical high-performance RDMA networks and the same set of autonomous services. In the next few months, we are turning on 20 new Oracle cloud datacenters collocated with and connected to Microsoft Azure. Simultaneously we are building dozens of new datacenters in countries all over the world. Demand is over the moon.”

The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 11, 2024, with a payment date of January 25, 2024.

• A sample list of customers which purchased Oracle Cloud services during the quarter will be available at 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 demand for specific products, expectations for growth in our cloud businesses and plans for expanding our datacenters, are “forward-looking statements” and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions;  economic, political and market conditions; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or by contacting Oracle’s Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of December 11, 2023. Oracle undertakes no duty to update any statement in light of new information or future events.

ORACLE  CORPORATION
Q2 FISCAL 2024 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
		Three Months Ended November 30,					% Increase
						% Increase	(Decrease)
			% of		% of	(Decrease)	in Constant
		2023	Revenues	2022	Revenues	in US $	Currency (1)
REVENUES
	Cloud services and license support	nbsp;          9,639	74 %	nbsp;          8,598	70 %	12 %	11 %
	Cloud license and on-premise license	1,178	9 %	1,435	12 %	(18 %)	(19 %)
	Hardware	756	6 %	850	7 %	(11 %)	(12 %)
	Services	1,368	11 %	1,392	11 %	(2 %)	(3 %)
	Total revenues	12,941	100 %	12,275	100 %	5 %	4 %
OPERATING EXPENSES
	Cloud services and license support	2,274	17 %	1,891	15 %	20 %	19 %
	Hardware	213	2 %	286	2 %	(25 %)	(27 %)
	Services	1,253	10 %	1,181	10 %	6 %	5 %
	Sales and marketing	2,093	16 %	2,216	18 %	(6 %)	(7 %)
	Research and development	2,226	17 %	2,158	18 %	3 %	3 %
	General and administrative	375	3 %	366	3 %	3 %	2 %
	Amortization of intangible assets	755	6 %	907	7 %	(17 %)	(17 %)
	Acquisition related and other	47	0 %	62	1 %	(23 %)	(24 %)
	Restructuring	83	1 %	137	1 %	(39 %)	(42 %)
	Total operating expenses	9,319	72 %	9,204	75 %	1 %	0 %
OPERATING INCOME		3,622	28 %	3,071	25 %	18 %	15 %
	Interest expense	(888)	(7 %)	(856)	(7 %)	4 %	4 %
	Non-operating expenses, net	(14)	0 %	(71)	(1 %)	(79 %)	(81 %)
INCOME BEFORE INCOME TAXES		2,720	21 %	2,144	17 %	27 %	22 %
	Provision for income taxes	217	2 %	403	3 %	(46 %)	(48 %)
NET INCOME		nbsp;          2,503	19 %	nbsp;          1,741	14 %	44 %	39 %
EARNINGS PER SHARE:
	Basic	nbsp;             0.91		nbsp;             0.65
	Diluted	nbsp;             0.89		nbsp;             0.63
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
	Basic	2,746		2,695
	Diluted	2,817		2,746
(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 November 30, 2023 compared with the corresponding prior year period increased our total revenues by 1 percentage point, total operating expenses by 1 percentage point and operating income by 3 percentage points.

 

ORACLE  CORPORATION
Q2 FISCAL 2024 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)
			2023				2023			2022				2022		GAAP	Non-GAAP	GAAP	Non-GAAP
			GAAP		Adj.		Non-GAAP			GAAP		Adj.		Non-GAAP
TOTAL REVENUES			nbsp; 12,941		nbsp;          –		nbsp; 12,941			nbsp; 12,275		nbsp;          –		nbsp; 12,275		5 %	5 %	4 %	4 %
TOTAL OPERATING EXPENSES			nbsp;    9,319		nbsp;  (1,914)		nbsp;    7,405			nbsp;    9,204		nbsp;  (2,015)		nbsp;    7,189		1 %	3 %	0 %	2 %
	Stock-based compensation (3)		1,029		(1,029)		–			909		(909)		–		13 %	*	13 %	*
	Amortization of intangible assets (4)		755		(755)		–			907		(907)		–		(17 %)	*	(17 %)	*
	Acquisition related and other		47		(47)		–			62		(62)		–		(23 %)	*	(24 %)	*
	Restructuring		83		(83)		–			137		(137)		–		(39 %)	*	(42 %)	*
OPERATING INCOME			nbsp;    3,622		nbsp;    1,914		nbsp;    5,536			nbsp;    3,071		nbsp;    2,015		nbsp;    5,086		18 %	9 %	15 %	7 %
OPERATING MARGIN %			28 %				43 %			25 %				41 %		297 bp.	135 bp.	266 bp.	121 bp.
INCOME TAX EFFECTS (5)			nbsp;       217		nbsp;       655		nbsp;       872			nbsp;       403		nbsp;       444		nbsp;       847		(46 %)	3 %	(48 %)	1 %
NET INCOME			nbsp;    2,503		nbsp;    1,259		nbsp;    3,762			nbsp;    1,741		nbsp;    1,571		nbsp;    3,312		44 %	14 %	39 %	11 %
DILUTED EARNINGS PER SHARE			nbsp;      0.89				nbsp;      1.34			nbsp;      0.63				nbsp;      1.21		40 %	11 %	35 %	9 %
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING			2,817		–		2,817			2,746		–		2,746		3 %	3 %	3 %	3 %
(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
			November 30,  2023							November 30,  2022
			GAAP		Adj.		Non-GAAP			GAAP		Adj.		Non-GAAP
	Cloud services and license support		nbsp;       137		nbsp;     (137)		nbsp;          –			nbsp;       113		nbsp;     (113)		nbsp;          –
	Hardware		6		(6)		–			5		(5)		–
	Services		45		(45)		–			35		(35)		–
	Sales and marketing		174		(174)		–			151		(151)		–
	Research and development		573		(573)		–			510		(510)		–
	General and administrative		94		(94)		–			95		(95)		–
	Total stock-based compensation		nbsp;    1,029		nbsp;  (1,029)		nbsp;          –			nbsp;       909		nbsp;     (909)		nbsp;          –
(4)	Estimated future annual amortization expense related to intangible assets as of November 30, 2023 was as follows:
	Remainder of fiscal 2024		nbsp;    1,488
	Fiscal 2025		2,303
	Fiscal 2026		1,639
	Fiscal 2027		672
	Fiscal 2028		635
	Fiscal 2029		561
	Thereafter		1,080
	Total intangible assets, net		nbsp;    8,378
(5)	Income tax effects were calculated reflecting an effective GAAP tax rate of 8.0% and 18.8% in the second quarter of fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 18.8% and 20.4% in the second quarter of fiscal 2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of the second 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
Q2 FISCAL 2024 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
		2023	Revenues	2022	Revenues	in US $	Currency (1)
REVENUES
	Cloud services and license support	nbsp;        19,186	75 %	nbsp;        17,015	72 %	13 %	11 %
	Cloud license and on-premise license	1,987	8 %	2,339	10 %	(15 %)	(16 %)
	Hardware	1,470	6 %	1,613	7 %	(9 %)	(10 %)
	Services	2,751	11 %	2,753	11 %	0 %	(1 %)
	Total revenues	25,394	100 %	23,720	100 %	7 %	6 %
OPERATING EXPENSES
	Cloud services and license support	4,452	18 %	3,626	15 %	23 %	22 %
	Hardware	432	2 %	536	2 %	(19 %)	(21 %)
	Services	2,465	10 %	2,233	9 %	10 %	9 %
	Sales and marketing	4,118	16 %	4,393	19 %	(6 %)	(7 %)
	Research and development	4,442	17 %	4,251	18 %	4 %	4 %
	General and administrative	769	3 %	777	3 %	(1 %)	(2 %)
	Amortization of intangible assets	1,518	6 %	1,826	8 %	(17 %)	(17 %)
	Acquisition related and other	58	0 %	103	1 %	(43 %)	(43 %)
	Restructuring	222	1 %	281	1 %	(21 %)	(22 %)
	Total operating expenses	18,476	73 %	18,026	76 %	2 %	2 %
OPERATING INCOME		6,918	27 %	5,694	24 %	22 %	19 %
	Interest expense	(1,760)	(7 %)	(1,643)	(7 %)	7 %	7 %
	Non-operating expenses, net	(63)	0 %	(251)	(1 %)	(75 %)	(76 %)
INCOME BEFORE INCOME TAXES		5,095	20 %	3,800	16 %	34 %	30 %
	Provision for income taxes	172	1 %	511	2 %	(66 %)	(68 %)
NET INCOME		nbsp;          4,923	19 %	nbsp;          3,289	14 %	50 %	45 %
EARNINGS PER SHARE:
	Basic	nbsp;             1.80		nbsp;             1.22
	Diluted	nbsp;             1.75		nbsp;             1.20
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
	Basic	2,737		2,690
	Diluted	2,820		2,747
(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 six months ended November 30, 2023 compared with the corresponding prior year period increased our total revenues by 1 percentage point and operating income by 3 percentage points.

 

ORACLE  CORPORATION
Q2 FISCAL 2024 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)
			2023				2023			2022				2022		GAAP	Non-GAAP	GAAP	Non-GAAP
			GAAP		Adj.		Non-GAAP			GAAP		Adj.		Non-GAAP
TOTAL REVENUES			nbsp; 25,394		nbsp;          –		nbsp; 25,394			nbsp; 23,720		nbsp;          –		nbsp; 23,720		7 %	7 %	6 %	6 %
TOTAL OPERATING EXPENSES			nbsp; 18,476		nbsp;  (3,676)		nbsp; 14,800			nbsp; 18,026		nbsp;  (3,869)		nbsp; 14,157		2 %	5 %	2 %	4 %
	Stock-based compensation (3)		1,878		(1,878)		–			1,659		(1,659)		–		13 %	*	13 %	*
	Amortization of intangible assets (4)		1,518		(1,518)		–			1,826		(1,826)		–		(17 %)	*	(17 %)	*
	Acquisition related and other		58		(58)		–			103		(103)		–		(43 %)	*	(43 %)	*
	Restructuring		222		(222)		–			281		(281)		–		(21 %)	*	(22 %)	*
OPERATING INCOME			nbsp;    6,918		nbsp;    3,676		nbsp; 10,594			nbsp;    5,694		nbsp;    3,869		nbsp;    9,563		22 %	11 %	19 %	9 %
OPERATING MARGIN %			27 %				42 %			24 %				40 %		324 bp.	141 bp.	293 bp.	128 bp.
INCOME TAX EFFECTS (5)			nbsp;       172		nbsp;    1,478		nbsp;    1,650			nbsp;       511		nbsp;    1,018		nbsp;    1,529		(66 %)	8 %	(68 %)	6 %
NET INCOME			nbsp;    4,923		nbsp;    2,198		nbsp;    7,121			nbsp;    3,289		nbsp;    2,851		nbsp;    6,140		50 %	16 %	45 %	14 %
DILUTED EARNINGS PER SHARE			nbsp;      1.75				nbsp;      2.53			nbsp;      1.20				nbsp;      2.24		46 %	13 %	41 %	11 %
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING			2,820		–		2,820			2,747		–		2,747		3 %	3 %	3 %	3 %
(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:
			Six Months Ended							Six Months Ended
			November 30,2023							November 30, 2022
			GAAP		Adj.		Non-GAAP			GAAP		Adj.		Non-GAAP
	Cloud services and license support		nbsp;       248		nbsp;     (248)		nbsp;          –			nbsp;       204		nbsp;     (204)		nbsp;          –
	Hardware		11		(11)		–			9		(9)		–
	Services		78		(78)		–			60		(60)		–
	Sales and marketing		309		(309)		–			275		(275)		–
	Research and development		1,057		(1,057)		–			932		(932)		–
	General and administrative		175		(175)		–			179		(179)		–
	Total stock-based compensation		nbsp;    1,878		nbsp;  (1,878)		nbsp;          –			nbsp;    1,659		nbsp;  (1,659)		nbsp;          –
(4)	Estimated future annual amortization expense related to intangible assets as of November 30, 2023 was as follows:
	Remainder of fiscal 2024		nbsp;    1,488
	Fiscal 2025		2,303
	Fiscal 2026		1,639
	Fiscal 2027		672
	Fiscal 2028		635
	Fiscal 2029		561
	Thereafter		1,080
	Total intangible assets, net		nbsp;    8,378
(5)	Income tax effects were calculated reflecting an effective GAAP tax rate of 3.4% and 13.4% in the first half of fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 18.8% and 19.9% in the first half of fiscal 2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first half 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
Q2 FISCAL 2024 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
			November 30,		May 31,
			2023		2023
ASSETS
Current Assets:
	Cash and cash equivalents		nbsp;                8,244		nbsp;                9,765
	Marketable securities		446		422
	Trade receivables, net		6,804		6,915
	Prepaid expenses and other current assets		3,795		3,902
		Total Current Assets	19,289		21,004
Non-Current Assets:
	Property, plant and equipment, net		18,009		17,069
	Intangible assets, net		8,378		9,837
	Goodwill, net		62,231		62,261
	Deferred tax assets		12,758		12,226
	Other non-current assets		13,659		11,987
		Total Non-Current Assets	115,035		113,380
TOTAL ASSETS			nbsp;           134,324		nbsp;           134,384
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
	Notes payable and other borrowings, current		nbsp;                6,321		nbsp;                4,061
	Accounts payable		1,107		1,204
	Accrued compensation and related benefits		1,706		2,053
	Deferred revenues		8,878		8,970
	Other current liabilities		6,395		6,802
		Total Current Liabilities	24,407		23,090
Non-Current Liabilities:
	Notes payable and other borrowings, non-current		82,468		86,420
	Income taxes payable		10,046		11,077
	Deferred tax liabilities		5,244		5,772
	Other non-current liabilities		7,781		6,469
		Total Non-Current Liabilities	105,539		109,738
Stockholders’ Equity			4,378		1,556
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			nbsp;           134,324		nbsp;           134,384

 

ORACLE  CORPORATION
Q2 FISCAL 2024 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
		Six Months Ended November 30,
		2023		2022
Cash Flows From Operating Activities:
Net income		nbsp;       4,923		nbsp;       3,289
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,510		1,138
Amortization of intangible assets		1,518		1,826
Deferred income taxes		(1,049)		(852)
Stock-based compensation		1,878		1,659
Other, net		331		289
Changes in operating assets and liabilities, net of effects from acquisitions:
Decrease in trade receivables, net		145		516
Decrease in prepaid expenses and other assets		301		121
Decrease in accounts payable and other liabilities		(1,048)		(785)
Decrease in income taxes payable		(1,541)		(327)
Increase in deferred revenues		149		369
Net cash provided by operating activities		7,117		7,243
Cash Flows From Investing Activities:
Purchases of marketable securities and other investments		(515)		(603)
Proceeds from sales and maturities of marketable securities and other investments		157		462
Acquisitions, net of cash acquired		(59)		(27,799)
Capital expenditures		(2,394)		(4,154)
Net cash used for investing activities		(2,811)		(32,094)
Cash Flows From Financing Activities:
Payments for repurchases of common stock		(600)		(1,000)
Proceeds from issuances of common stock		426		661
Shares repurchased for tax withholdings upon vesting of restricted stock-based awards		(1,733)		(895)
Payments of dividends to stockholders		(2,190)		(1,723)
Proceeds from issuances of commercial paper, net of repayments		1,749		1,880
Proceeds from issuances of senior notes and other borrowings, net of issuance costs		–		28,280
Repayments of senior notes and other borrowings		(3,500)		(16,692)
Other, net		31		(56)
Net cash (used for) provided by financing activities		(5,817)		10,455
Effect of exchange rate changes on cash and cash equivalents		(10)		(174)
Net decrease in cash and cash equivalents		(1,521)		(14,570)
Cash and cash equivalents at beginning of period		9,765		21,383
Cash and cash equivalents at end of period		nbsp;       8,244		nbsp;       6,813

 

 

ORACLE  CORPORATION
Q2 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		nbsp;           10,542	nbsp;           15,073	nbsp;           15,503	nbsp;           17,165	nbsp;           17,745	nbsp;           17,039
Capital Expenditures		(5,168)	(6,678)	(8,205)	(8,695)	(8,290)	(6,935)
Free Cash Flow		nbsp;              5,374	nbsp;              8,395	nbsp;              7,298	nbsp;              8,470	nbsp;              9,455	nbsp;           10,104
Operating Cash Flow % Growth over prior year		(31 %)	47 %	49 %	80 %	68 %	13 %
Free Cash Flow % Growth over prior year		(57 %)	18 %	11 %	68 %	76 %	20 %
GAAP Net Income		nbsp;              5,808	nbsp;              8,797	nbsp;              8,373	nbsp;              8,503	nbsp;              9,375	nbsp;           10,137
Operating Cash Flow as a % of Net Income		182 %	171 %	185 %	202 %	189 %	168 %
Free Cash Flow as a % of Net Income		93 %	95 %	87 %	100 %	101 %	100 %
(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 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		nbsp;   3,579	nbsp;   3,813	nbsp;   4,053	nbsp;   4,437	nbsp;  15,881		nbsp;   4,635	nbsp;   4,775			nbsp;     9,410
	License support		4,838	4,785	4,870	4,933	19,426		4,912	4,864			9,776
	Cloud services and license support		8,417	8,598	8,923	9,370	35,307		9,547	9,639			19,186
	Cloud license and on-premise license		904	1,435	1,288	2,152	5,779		809	1,178			1,987
	Hardware		763	850	811	850	3,274		714	756			1,470
	Services		1,361	1,392	1,376	1,465	5,594		1,383	1,368			2,751
	Total revenues		nbsp; 11,445	nbsp; 12,275	nbsp; 12,398	nbsp; 13,837	nbsp;  49,954		nbsp; 12,453	nbsp; 12,941			$   25,394
	AS REPORTED REVENUE GROWTH RATES
	Cloud services		45 %	43 %	45 %	54 %	47 %		30 %	25 %			27 %
	License support		(1 %)	(2 %)	0 %	4 %	0 %		2 %	2 %			2 %
	Cloud services and license support		14 %	14 %	17 %	23 %	17 %		13 %	12 %			13 %
	Cloud license and on-premise license		11 %	16 %	0 %	(15 %)	(2 %)		(10 %)	(18 %)			(15 %)
	Hardware		0 %	11 %	2 %	(1 %)	3 %		(6 %)	(11 %)			(9 %)
	Services		74 %	74 %	74 %	76 %	75 %		2 %	(2 %)			0 %
	Total revenues		18 %	18 %	18 %	17 %	18 %		9 %	5 %			7 %
	CONSTANT CURRENCY REVENUE GROWTH RATES (2)
	Cloud services		50 %	48 %	48 %	55 %	50 %		29 %	24 %			26 %
	License support		4 %	4 %	3 %	6 %	4 %		0 %	0 %			0 %
	Cloud services and license support		20 %	20 %	20 %	25 %	21 %		12 %	11 %			11 %
	Cloud license and on-premise license		19 %	23 %	4 %	(14 %)	2 %		(11 %)	(19 %)			(16 %)
	Hardware		5 %	16 %	4 %	1 %	6 %		(8 %)	(12 %)			(10 %)
	Services		84 %	83 %	80 %	78 %	81 %		1 %	(3 %)			(1 %)
	Total revenues		23 %	25 %	21 %	18 %	22 %		8 %	4 %			6 %
	CLOUD SERVICES AND LICENSE SUPPORT REVENUES
	BY ECOSYSTEM
	Applications cloud services and license support		nbsp;   4,016	nbsp;   4,080	nbsp;   4,166	nbsp;   4,390	nbsp;  16,651		nbsp;   4,471	nbsp;   4,474			nbsp;     8,945
	Infrastructure cloud services and license support		4,401	4,518	4,757	4,980	18,656		5,076	5,165			10,241
	Total cloud services and license support revenues		nbsp;   8,417	nbsp;   8,598	nbsp;   8,923	nbsp;   9,370	nbsp;  35,307		nbsp;   9,547	nbsp;   9,639			nbsp;  19,186
	AS REPORTED REVENUE GROWTH RATES
	Applications cloud services and license support		32 %	30 %	31 %	36 %	32 %		11 %	10 %			11 %
	Infrastructure cloud services and license support		2 %	3 %	7 %	14 %	6 %		15 %	14 %			15 %
	Total cloud services and license support revenues		14 %	14 %	17 %	23 %	17 %		13 %	12 %			13 %
	CONSTANT CURRENCY REVENUE GROWTH RATES (2)
	Applications cloud services and license support		37 %	35 %	33 %	37 %	35 %		11 %	9 %			10 %
	Infrastructure cloud services and license support		7 %	9 %	10 %	15 %	10 %		14 %	12 %			13 %
	Total cloud services and license support revenues		20 %	20 %	20 %	25 %	21 %		12 %	11 %			11 %
	GEOGRAPHIC REVENUES
	Americas		nbsp;   7,192	nbsp;   7,786	nbsp;   7,671	nbsp;   8,577	nbsp;  31,226		nbsp;   7,841	nbsp;   8,067			nbsp;  15,907
	Europe/Middle East/Africa		2,691	2,895	3,067	3,457	12,109		3,005	3,170			6,175
	Asia Pacific		1,562	1,594	1,660	1,803	6,619		1,607	1,704			3,312
	Total revenues		nbsp; 11,445	nbsp; 12,275	nbsp; 12,398	nbsp; 13,837	nbsp;  49,954		nbsp; 12,453	nbsp; 12,941			nbsp;  25,394
(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

Q2 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