ORCL Oracle Corp

 ORACLE  CORPORATION

Q4 FISCAL 2024 FINANCIAL RESULTS

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Three Months Ended May 31,

% Increase

% Increase

(Decrease)

% of 

% of 

(Decrease)

in Constant

Revenues

2023

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support 

$ 10,234

72 %

$ 9,370

68 %

9 %

10 %

Cloud license and on-premise license

1,838

13 %

2,152

15 %

(15 %)

(14 %)

Hardware

842

6 %

850

6 %

(1 %)

0 %

Services

1,373

9 %

1,465

11 %

(6 %)

(6 %)

      Total revenues

14,287

100 %

13,837

100 %

3 %

4 %

OPERATING EXPENSES

Cloud services and license support 

2,522

18 %

2,157

16 %

17 %

17 %

Hardware

241

2 %

261

2 %

(7 %)

(7 %)

Services

1,160

8 %

1,312

9 %

(12 %)

(11 %)

Sales and marketing

2,114

15 %

2,289

17 %

(8 %)

(7 %)

Research and development 

2,226

15 %

2,226

16 %

0 %

0 %

General and administrative

402

3 %

400

3 %

1 %

1 %

Amortization of intangible assets

743

5 %

870

6 %

(15 %)

(15 %)

Acquisition related and other

101

1 %

51

0 %

97 %

97 %

Restructuring

92

0 %

131

1 %

(29 %)

(29 %)

      Total operating expenses 

9,601

67 %

9,697

70 %

(1 %)

(1 %)

OPERATING INCOME

4,686

33 %

4,140

30 %

13 %

15 %

Interest expense

(878)

(6 %)

(955)

(7 %)

(8 %)

(8 %)

Non-operating expenses, net

(26)

0 %

(76)

(1 %)

(66 %)

(68 %)

INCOME BEFORE INCOME TAXES

3,782

27 %

3,109

22 %

22 %

24 %

(Provision for) benefit from income taxes

(639)

(5 %)

210

2 %

*

*

NET INCOME

$    3,143

22 %

$ 3,319

24 %

(5 %)

(4 %)

EARNINGS PER SHARE:

Basic

$      1.14

$    1.23

Diluted

$      1.11

$    1.19

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,753

2,707

Diluted

2,834

2,796

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present

constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of

foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in

currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2023,

which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

Movements in international currencies relative to the United States dollar during the three months ended May 31, 2024 compared

with the corresponding prior year period decreased our total revenues by 1 percentage point and operating income by 2 percentage

points.

*

Not meaningful

ORACLE  CORPORATION

Q4 FISCAL 2024 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) 

($ in millions, except per share data)

Three Months Ended May 31,

% Increase (Decrease)
in US $

% Increase (Decrease) in
Constant Currency (2) 

2024

2024

2023

2023

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$       14,287

$           -

$       14,287

$       13,837

$             -

$       13,837

3 %

3 %

4 %

4 %

TOTAL OPERATING EXPENSES

$         9,601

$   (1,983)

$         7,618

$         9,697

$    (2,016)

$         7,681

(1 %)

(1 %)

(1 %)

(1 %)

     Stock-based compensation (3)

1,047

(1,047)

-

964

(964)

-

9 %

*

9 %

*

     Amortization of intangible assets (4)

743

(743)

-

870

(870)

-

(15 %)

*

(15 %)

*

     Acquisition related and other

101

(101)

-

51

(51)

-

97 %

*

97 %

*

     Restructuring

92

(92)

-

131

(131)

-

(29 %)

*

(29 %)

*

OPERATING INCOME

$         4,686

$    1,983

$         6,669

$         4,140

$     2,016

$         6,156

13 %

8 %

15 %

9 %

OPERATING MARGIN %

33 %

47 %

30 %

44 %

288 bp.

219 bp.

311 bp.

235 bp.

INCOME TAX EFFECTS (5)

$           (639)

$      (519)

$        (1,158)

$            210

$       (680)

$           (470)

*

147 %

*

149 %

NET INCOME

$         3,143

$    1,464

$         4,607

$         3,319

$     1,336

$         4,655

(5 %)

(1 %)

(4 %)

0 %

DILUTED EARNINGS PER SHARE

$           1.11

$           1.63

$           1.19

$           1.67

(7 %)

(2 %)

(5 %)

(1 %)

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,834

-

2,834

2,796

-

2,796

1 %

1 %

1 %

1 %

(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction 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

May 31, 2024

May 31, 2023

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

     Cloud services and license support

$            140

$      (140)

$               -

$            117

$      (117)

$               -

     Hardware

6

(6)

-

5

(5)

-

     Services

44

(44)

-

38

(38)

-

     Sales and marketing

178

(178)

-

177

(177)

-

     Research and development

583

(583)

-

535

(535)

-

     General and administrative

96

(96)

-

92

(92)

-

           Total stock-based compensation

$         1,047

$   (1,047)

$               -

$            964

$      (964)

$               -

(4)

Estimated future annual amortization expense related to intangible assets as of May 31, 2024 was as follows:

     Fiscal 2025

$         2,303

     Fiscal 2026

1,639

     Fiscal 2027

672

     Fiscal 2028

635

     Fiscal 2029

561

     Thereafter

1,080

           Total intangible assets, net

$         6,890

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 16.9% and (6.7%) in the fourth quarter of fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 20.1% and 9.2% in the
fourth quarter of fiscal 2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarter of fiscal 2024 and 2023 was primarily due to the net tax effects related to stock-
based compensation expense; acquisition related and other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to
an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.

ORACLE  CORPORATION 

FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

($ in millions, except per share data)

Year Ended May 31,

% Increase

% Increase

(Decrease)

% of 

% of 

(Decrease)

in Constant

2024

Revenues

2023

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support 

$ 39,383

74 %

$ 35,307

71 %

12 %

11 %

Cloud license and on-premise license

5,081

10 %

5,779

12 %

(12 %)

(12 %)

Hardware 

3,066

6 %

3,274

6 %

(6 %)

(7 %)

Services

5,431

10 %

5,594

11 %

(3 %)

(3 %)

      Total revenues

52,961

100 %

49,954

100 %

6 %

6 %

OPERATING EXPENSES

Cloud services and license support 

9,427

18 %

7,763

16 %

21 %

21 %

Hardware

891

2 %

1,040

2 %

(14 %)

(15 %)

Services

4,825

9 %

4,761

10 %

1 %

1 %

Sales and marketing

8,274

15 %

8,833

18 %

(6 %)

(7 %)

Research and development 

8,915

17 %

8,623

17 %

3 %

3 %

General and administrative

1,548

3 %

1,579

3 %

(2 %)

(2 %)

Amortization of intangible assets

3,010

6 %

3,582

7 %

(16 %)

(16 %)

Acquisition related and other

314

0 %

190

0 %

65 %

64 %

Restructuring

404

1 %

490

1 %

(18 %)

(18 %)

      Total operating expenses 

37,608

71 %

36,861

74 %

2 %

2 %

OPERATING INCOME 

15,353

29 %

13,093

26 %

17 %

16 %

Interest expense

(3,514)

(7 %)

(3,505)

(7 %)

0 %

0 %

Non-operating expenses, net

(98)

0 %

(462)

(1 %)

(79 %)

(80 %)

INCOME BEFORE INCOME TAXES

11,741

22 %

9,126

18 %

29 %

27 %

Provision for income taxes

(1,274)

(2 %)

(623)

(1 %)

105 %

103 %

NET INCOME 

$ 10,467

20 %

$    8,503

17 %

23 %

22 %

EARNINGS PER SHARE:

Basic

$      3.82

$      3.15

Diluted

$      3.71

$      3.07

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,744

2,696

Diluted

2,823

2,766

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We 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 year ended May 31, 2024 compared with the
corresponding prior year period increased our operating income by 1 percentage point.

ORACLE  CORPORATION

FISCAL 2024 YEAR TO DATE FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1) 

($ in millions, except per share data)

Year Ended May 31,

% Increase (Decrease)
in US $

% Increase (Decrease)
in Constant Currency (2) 

2024

2024

2023

2023

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

TOTAL REVENUES

$       52,961

$            -

$       52,961

$       49,954

$            -

$       49,954

6 %

6 %

6 %

6 %

TOTAL OPERATING EXPENSES

$       37,608

$   (7,702)

$       29,906

$       36,861

$   (7,809)

$       29,052

2 %

3 %

2 %

2 %

     Stock-based compensation (3)

3,974

(3,974)

-

3,547

(3,547)

-

12 %

*

12 %

*

     Amortization of intangible assets (4)

3,010

(3,010)

-

3,582

(3,582)

-

(16 %)

*

(16 %)

*

     Acquisition related and other

314

(314)

-

190

(190)

-

65 %

*

64 %

*

     Restructuring

404

(404)

-

490

(490)

-

(18 %)

*

(18 %)

*

OPERATING INCOME

$       15,353

$    7,702

$       23,055

$       13,093

$    7,809

$      20,902

17 %

10 %

16 %

10 %

OPERATING MARGIN %

29 %

44 %

26 %

42 %

278 bp.

169 bp.

271 bp.

169 bp.

INCOME TAX EFFECTS (5)

$        (1,274)

$   (2,459)

$        (3,733)

$           (623)

$   (2,136)

$       (2,759)

105 %

35 %

103 %

35 %

NET INCOME 

$       10,467

$    5,243

$       15,710

$         8,503

$    5,673

$      14,176

23 %

11 %

22 %

10 %

DILUTED EARNINGS PER SHARE

$           3.71

$           5.56

$           3.07

$          5.12

21 %

9 %

20 %

8 %

DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING

2,823

-

2,823

2,766

-

2,766

2 %

2 %

2 %

2 %

(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be 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:

Year Ended

Year Ended

May 31,
 2024

May 31,
 2023

GAAP

Adj.

Non-GAAP

GAAP

Adj.

Non-GAAP

     Cloud services and license support

$            525

$      (525)

$               -

$            435

$      (435)

$               -

     Hardware

23

(23)

-

18

(18)

-

     Services

167

(167)

-

137

(137)

-

     Sales and marketing

667

(667)

-

611

(611)

-

     Research and development

2,225

(2,225)

-

1,983

(1,983)

-

     General and administrative

367

(367)

-

363

(363)

-

           Total stock-based compensation

$         3,974

$   (3,974)

$               -

$         3,547

$   (3,547)

$               -

(4)

Estimated future annual amortization expense related to intangible assets as of May 31, 2024 was as follows:

     Fiscal 2025

$         2,303

     Fiscal 2026

1,639

     Fiscal 2027

672

     Fiscal 2028

635

     Fiscal 2029

561

     Thereafter

1,080

           Total intangible assets, net

$         6,890

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 10.9% and 6.8% in fiscal 2024 and 2023, respectively, and an effective non-GAAP tax rate of 19.2% and 16.3% in fiscal
2024 and 2023, respectively. The difference in our GAAP and non-GAAP tax rates in each of fiscal 2024 and 2023 was primarily due to the net tax effects related to stock-based 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

FISCAL 2024 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

May 31,

2023

ASSETS

Current Assets:

Cash and cash equivalents

$   10,454

$      9,765

Marketable securities

207

422

Trade receivables, net

7,874

6,915

Prepaid expenses and other current assets

4,019

3,902

Total Current Assets

22,554

21,004

Non-Current Assets:

   Property, plant and equipment, net

21,536

17,069

   Intangible assets, net

6,890

9,837

   Goodwill, net

62,230

62,261

   Deferred tax assets

12,273

12,226

   Other non-current assets

15,493

11,987

Total Non-Current Assets

118,422

113,380

TOTAL ASSETS

$ 140,976

$ 134,384

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Notes payable and other borrowings, current 

$   10,605

$      4,061

Accounts payable

2,357

1,204

Accrued compensation and related benefits

1,916

2,053

Deferred revenues

9,313

8,970

Other current liabilities

7,353

6,802

Total Current Liabilities

31,544

23,090

Non-Current Liabilities:

Notes payable and other borrowings, non-current

76,264

86,420

Income taxes payable

10,817

11,077

Deferred tax liabilities

3,692

5,772

Other non-current liabilities

9,420

6,469

Total Non-Current Liabilities

100,193

109,738

Stockholders' Equity

9,239

1,556

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 140,976

$ 134,384

ORACLE  CORPORATION 

FISCAL 2024 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

Year Ended May 31,

Cash Flows From Operating Activities:

Net income 

$      10,467

$        8,503

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

3,129

2,526

Amortization of intangible assets

3,010

3,582

Deferred income taxes

(2,139)

(2,167)

Stock-based compensation

3,974

3,547

Other, net

720

661

Changes in operating assets and liabilities, net of effects from acquisitions:

Increase in trade receivables, net

(965)

(151)

Decrease in prepaid expenses and other assets

542

317

Decrease in accounts payable and other liabilities

(594)

(281)

Decrease in income taxes payable

(127)

(153)

Increase in deferred revenues

656

781

   Net cash provided by operating activities

18,673

17,165

Cash Flows From Investing Activities:

Purchases of marketable securities and other investments

(1,003)

(1,181)

Proceeds from sales and maturities of marketable securities and other investments

572

1,113

Acquisitions, net of cash acquired

(63)

(27,721)

Capital expenditures

(6,866)

(8,695)

   Net cash used for investing activities

(7,360)

(36,484)

Cash Flows From Financing Activities:

Payments for repurchases of common stock

(1,202)

(1,300)

Proceeds from issuances of common stock

742

1,192

Shares repurchased for tax withholdings upon vesting of restricted stock-based awards

(2,040)

(1,203)

Payments of dividends to stockholders

(4,391)

(3,668)

(Repayments of) proceeds from issuances of commercial paper, net

(167)

500

Proceeds from issuances of senior notes and other borrowings, net of issuance costs

-

33,494

Repayments of senior notes and other borrowings

(3,500)

(21,050)

Other, net

4

(55)

   Net cash (used for) provided by financing activities

(10,554)

7,910

Effect of exchange rate changes on cash and cash equivalents

(70)

(209)

Net increase (decrease) in cash and cash equivalents

689

(11,618)

Cash and cash equivalents at beginning of period

9,765

21,383

Cash and cash equivalents at end of period

$      10,454

$        9,765

 ORACLE  CORPORATION