Q1 Total Revenue $13.3 billion, up 7% in USD and up 8% in constant currency
Q1 Total Remaining Performance Obligations up 53% to $99 billion
Q1 Cloud Revenue (IaaS plus SaaS) $5.6 billion, up 21% in USD and up 22% in constant currency
Q1 Cloud Infrastructure (IaaS) Revenue $2.2 billion, up 45% in USD and up 46% in constant currency
Q1 Cloud Application (SaaS) Revenue $3.5 billion, up 10% in both USD and constant currency
Q1 Fusion Cloud ERP (SaaS) Revenue $0.9 billion, up 16% in USD and up 17% in constant currency
Q1 NetSuite Cloud ERP (SaaS) Revenue $0.9 billion, up 20% in both USD and constant currency
AUSTIN, Texas, Sept. 9, 2024 /PRNewswire/ -- Oracle Corporation (NYSE:ORCL) today announced fiscal 2025 Q1 results. Total quarterly revenues were up 7% year-over-year in USD, and up 8% in constant currency to $13.3 billion. Cloud services revenues were up 21% year-over-year in USD, and up 22% in constant currency to $5.6 billion. Cloud license and on-premise license revenues were up 7% in USD and up 8% in constant currency to $870 million.
Q1 GAAP operating income was $4.0 billion. Non-GAAP operating income was $5.7 billion, up 13% in USD and up 14% in constant currency. GAAP operating margin was 30%, and non-GAAP operating margin was 43%. GAAP net income was $2.9 billion. Non-GAAP net income was $4.0 billion, up 18% in USD and up 19% in constant currency. Q1 GAAP earnings per share was $1.03, up 20% in USD and up 22% in constant currency, while non-GAAP earnings per share was $1.39, up 17% in USD and up 18% in constant currency.
Short-term deferred revenues were $11.5 billion. Over the last twelve months, operating cash flow was $19.1 billion and free cash flow was $11.3 billion.
"As Cloud Services became Oracle's largest business, both our operating income and earnings per share growth accelerated," said Oracle CEO, Safra Catz. "Non-GAAP operating income was up 14% in constant currency to $5.7 billion, and non-GAAP EPS was up 18% in constant currency to $1.39 in Q1. RPO was up 53% from last year to a record $99 billion. That strong contract backlog will increase revenue growth throughout FY25. But the biggest news of all was signing a MultiCloud agreement with AWS—including our latest technology Exadata hardware and Version 23ai of our database software—embedded into AWS cloud datacenters. AWS customers will get easy and convenient access to the Oracle database when we go live in December later this year."
"Oracle has 162 cloud datacenters in operation and under construction around the world," said Oracle Chairman and CTO, Larry Ellison. "The largest of these datacenters is 800 megawatts and will contain acres of NVIDIA GPU Clusters for training large scale AI models. In Q1, 42 additional cloud GPU contracts were signed for a total of $3 billion. Our database business growth rate is increasing as a result of our MultiCloud agreements with Microsoft and Google. At the end of Q1, 7 Oracle Cloud regions were live at Microsoft with 24 more being built, and 4 Oracle Cloud regions were live at Google with 14 more being built. Our recently signed AWS contract was a milestone in the MultiCloud Era. Soon customers will be able use the latest Oracle database technology from within every Hyperscaler's cloud."
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 October 10, 2024, with a payment date of October 24, 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 WebcastOracle 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 OracleOracle 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 the expectations for converting the Remaining Performance Obligations to revenue, the timing and build out of additional datacenters, and future growth as a result of our MultiCloud strategy, 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 September 9, 2024. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATIONQ1 FISCAL 2025 FINANCIAL RESULTSCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS($ in millions, except per share data)
Three Months Ended August 31,
% Increase
% Increase
(Decrease)
% of
% of
(Decrease)
in Constant
2024
Revenues
2023
Revenues
in US $
Currency (1)
REVENUES
Cloud services and license support
$ 10,519
79 %
$ 9,547
77 %
10 %
11 %
Cloud license and on-premise license
870
7 %
809
6 %
7 %
8 %
Hardware
655
5 %
714
6 %
(8 %)
(8 %)
Services
1,263
9 %
1,383
11 %
(9 %)
(8 %)
Total revenues
13,307
100 %
12,453
100 %
7 %
8 %
OPERATING EXPENSES
Cloud services and license support
2,597
19 %
2,179
18 %
19 %
20 %
Hardware
162
1 %
219
2 %
(26 %)
(25 %)
Services
1,147
9 %
1,212
10 %
(5 %)
(5 %)
Sales and marketing
2,036
15 %
2,026
16 %
1 %
1 %
Research and development
2,306
17 %
2,216
18 %
4 %
5 %
General and administrative
358
3 %
393
3 %
(9 %)
(8 %)
Amortization of intangible assets
624
5 %
763
6 %
(18 %)
(18 %)
Acquisition related and other
13
0 %
11
0 %
9 %
9 %
Restructuring
73
1 %
138
1 %
(47 %)
(47 %)
Total operating expenses
9,316
70 %
9,157
74 %
2 %
2 %
OPERATING INCOME
3,991
30 %
3,296
26 %
21 %
22 %
Interest expense
(842)
(6 %)
(872)
(7 %)
(3 %)
(3 %)
Non-operating income (expenses), net
20
0 %
(49)
0 %
*
*
INCOME BEFORE INCOME TAXES
3,169
24 %
2,375
19 %
33 %
36 %
(Provision for) benefit from income taxes
(240)
(2 %)
45
0 %
*
*
NET INCOME
$ 2,929
22 %
$ 2,420
19 %
21 %
23 %
EARNINGS PER SHARE:
Basic
$ 1.06
$ 0.89
Diluted
$ 1.03
$ 0.86
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic
2,761
2,728
Diluted
2,851
2,823
(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 August 31, 2024 compared with the corresponding prior year period decreased our total revenues by 1 percentage point and operating income by 1 percentage point.
*
Not meaningful
ORACLE CORPORATION
Q1 FISCAL 2025 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Three Months Ended August 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
$ 13,307
$ -
$ 13,307
$ 12,453
$ -
$ 12,453
7 %
7 %
8 %
8 %
TOTAL OPERATING EXPENSES
$ 9,316
$ (1,717)
$ 7,599
$ 9,157
$ (1,761)
$ 7,396
2 %
3 %
2 %
3 %
Stock-based compensation (3)
1,007
(1,007)
-
849
(849)
-
19 %
*
19 %
*
Amortization of intangible assets (4)
624
(624)
-
763
(763)
-
(18 %)
*
(18 %)
*
Acquisition related and other
13
(13)
-
11
(11)
-
9 %
*
9 %
*
Restructuring
73
(73)
-
138
(138)
-
(47 %)
*
(47 %)
*
OPERATING INCOME
$ 3,991
$ 1,717
$ 5,708
$ 3,296
$ 1,761
$ 5,057
21 %
13 %
22 %
14 %
OPERATING MARGIN %
30 %
43 %
26 %
41 %
353 bp.
228 bp.
366 bp.
232 bp.
INCOME TAX EFFECTS (5)
$ (240)
$ (682)
$ (922)
$ 45
$ (823)
$ (778)
*
18 %
*
20 %
NET INCOME
$ 2,929
$ 1,035
$ 3,964
$ 2,420
$ 938
$ 3,358
21 %
18 %
23 %
19 %
DILUTED EARNINGS PER SHARE
$ 1.03
$ 1.39
$ 0.86
$ 1.19
20 %
17 %
22 %
18 %
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
2,851
-
2,851
2,823
-
