ORCL
Contact:
Ken Bond
Deborah Hellinger
Oracle Investor Relations
Oracle Corporate Communications
1.650.607.0349
1.212.508.7935
ken.bond@oracle.com
deborah.hellinger@oracle.com
Oracle Announces Fiscal 2025 Second Quarter Financial Results
AUSTIN, Texas, December 9, 2024 -- 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.
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
2024 compared with the corresponding prior year period increased our operating income by 1 percentage point.
1
ORACLE CORPORATION
Q2 FISCAL 2025 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
% Increase (Decrease)
% Increase (Decrease) in
Three Months Ended November 30,
in US $
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%
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
* Not meaningful
2
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
* Not meaningful
3
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)
% Increase (Decrease)
% Increase (Decrease) in
Six Months Ended November 30,
in US $
Constant Currency (2)
2024
2024
2023
2023
GAAP
Adj.
Non-GAAP
GAAP
Adj.
Non-GAAP
GAAP
Non-GAAP
GAAP
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%
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
* Not meaningful
4
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
5
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 co
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
6
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%
7
Disclaimer
Oracle Corporation published this content on December 09, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 09, 2024 at 21:27:48.127.