AUSTIN, Texas, Sept. 13, 2021 /PRNewswire/ -- Oracle Corporation
(NYSE: ORCL) today announced fiscal 2022 Q1 results. Total
quarterly revenues were up 4% year-over-year to $9.7 billion. Cloud services and license support
revenues were up 6% to $7.4 billion.
Cloud license and on-premise license revenues were down 8% to
$813 million.
Q1 GAAP operating income was up 7% to $3.4 billion, and GAAP operating margin was 35%.
Non-GAAP operating income was up 4% to $4.3
billion, and Non-GAAP operating margin was 45%. GAAP net
income was up 9% to $2.5 billion, and
GAAP earnings per share was up 19% to $0.86. Non-GAAP net income was up 2% to
$2.9 billion, and Non-GAAP earnings
per share was up 11% to $1.03.
Short-term deferred revenues were $10
billion. Operating cash flow was up 17% to $15.3 billion during the trailing twelve
months.
"Q1 results were excellent as constant currency revenue beat
guidance by $100 million with all
revenue segments exceeding forecast, and Non-GAAP earnings per
share beating guidance by $0.08,"
said Oracle CEO, Safra Catz.
"Oracle's two new cloud businesses, IaaS and SaaS, are now over 25%
of our total revenue with an annual run rate of $10 billion. Taken together, IaaS and SaaS are
Oracle's fastest growing and highest margin new businesses. As
these two cloud businesses continue to grow they will help expand
our overall profit margins and push earnings per share
higher."
"Last week, Cloud Wars published an article entitled 'Oracle
Leapfrogs Google in Major Cloud Ranking' summarizing an upcoming
Gartner Report that reviews the leading cloud infrastructure
companies," said Oracle Chairman and CTO, Larry Ellison. "Please read the article and the
Gartner Report for all the essential details. Oracle is delivering
some truly innovative infrastructure services. Last quarter, we
released the next generation of the world's most popular open
source database, MySQL, which now includes the HeatWave in-memory
query accelerator, and the AutoPilot management tools. Many
customers measured our new MySQL cloud service to be much much
faster, less expensive, and easier to use than SnowFlake, Aurora,
RedShift and other commonly used cloud databases. In response to
requests from some of those customers, we decided to make MySQL
HeatWave available on other clouds in addition to the Oracle
Cloud."
The board of directors declared a quarterly cash dividend of
$0.32 per share of outstanding common
stock. This dividend will be paid to stockholders of record as of
the close of business on October 12,
2021, with a payment date of October
26, 2021.
- 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.html.
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, and MySQL are registered
trademarks of Oracle Corporation.
"Safe Harbor" Statement: Statements in this press
release relating to Oracle's future plans, expectations, beliefs,
intentions and prospects, including statements regarding growth in
our cloud businesses, profit margins and EPS, are "forward-looking
statements" and are subject to material risks and uncertainties.
Many factors could affect our current expectations and our actual
results, and could cause actual results to differ materially. We
presently consider the following to be among the important factors
that could cause actual results to differ materially from
expectations: (1) The COVID-19 pandemic has affected how we and our
customers are operating our respective businesses, and the duration
and extent to which this will impact our future results of
operations remains uncertain. (2) Our success depends upon our
ability to develop new products and services, integrate acquired
products and services and enhance our existing products and
services. (3) Our cloud strategy, including our Oracle Cloud
Software-as-a-Service and Infrastructure-as-a-Service offerings,
may adversely affect our revenues and profitability. (4) We might
experience significant coding, manufacturing or configuration
errors in our cloud, license and hardware offerings. (5) If our
security measures for our products and services are compromised and
as a result, our data, our customers' data or our IT systems are
accessed improperly, made unavailable, or improperly modified, our
products and services may be perceived as vulnerable, our brand and
reputation could be damaged, the IT services we provide to our
customers could be disrupted, and customers may stop using our
products and services, any of which could reduce our revenue and
earnings, increase our expenses and expose us to legal claims and
regulatory actions. (6) Our business practices with respect to data
could give rise to operational interruption, liabilities or
reputational harm as a result of governmental regulation, legal
requirements or industry standards relating to privacy and data
protection. (7) Economic, political and market conditions can
adversely affect our business, results of operations and financial
condition, including our revenue growth and profitability, which in
turn could adversely affect our stock price. (8) If we are unable
to compete effectively, the results of operations and prospects for
our business could be harmed. (9) Our international sales and
operations subject us to additional risks that can adversely affect
our operating results. (10) We are susceptible to third-party
manufacturing and logistics delays, which could result in the loss
of sales and customers. 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 Corporation's Investor Relations Department at (650)
506-4073 or by clicking on SEC Filings on Oracle's Investor
Relations website at www.oracle.com/investor/. All information set
forth in this press release is current as of September 13, 2021. Oracle undertakes no duty to
update any statement in light of new information or future
events.
ORACLE
CORPORATION
|
|
Q1 FISCAL 2022
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended August 31,
|
|
%
Increase
|
|
|
|
%
Increase
|
(Decrease)
|
|
|
|
|
%
of
|
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
2021
|
Revenues
|
2020
|
Revenues
|
in US
$
|
Currency
(1)
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
7,371
|
76%
|
$
6,947
|
74%
|
6%
|
5%
|
|
|
Cloud license and
on-premise license
|
813
|
8%
|
886
|
9%
|
(8%)
|
(9%)
|
|
|
Hardware
|
763
|
8%
|
814
|
9%
|
(6%)
|
(7%)
|
|
|
Services
|
781
|
8%
|
720
|
8%
|
8%
|
7%
|
|
|
Total
revenues
|
9,728
|
100%
|
9,367
|
100%
|
4%
|
2%
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
1,214
|
13%
|
1,011
|
11%
|
20%
|
19%
|
|
|
Hardware
|
245
|
2%
|
246
|
2%
|
(1%)
|
(2%)
|
|
|
Services
|
644
|
7%
|
623
|
7%
|
3%
|
2%
|
|
|
Sales and
marketing
|
1,854
|
19%
|
1,854
|
20%
|
0%
|
(1%)
|
|
|
Research and
development
|
1,684
|
18%
|
1,589
|
17%
|
6%
|
5%
|
|
|
General and
administrative
|
298
|
3%
|
295
|
3%
|
1%
|
0%
|
|
|
Amortization of
intangible assets
|
303
|
3%
|
345
|
4%
|
(12%)
|
(12%)
|
|
|
Acquisition related
and other
|
21
|
0%
|
19
|
0%
|
4%
|
4%
|
|
|
Restructuring
|
38
|
0%
|
174
|
2%
|
(78%)
|
(78%)
|
|
|
Total operating
expenses
|
6,301
|
65%
|
6,156
|
66%
|
2%
|
1%
|
|
OPERATING
INCOME
|
3,427
|
35%
|
3,211
|
34%
|
7%
|
5%
|
|
|
Interest
expense
|
(705)
|
(7%)
|
(614)
|
(6%)
|
15%
|
15%
|
|
|
Non-operating
expenses, net
|
(41)
|
(1%)
|
(2)
|
0%
|
*
|
*
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
2,681
|
27%
|
2,595
|
28%
|
3%
|
1%
|
|
|
Provision for income
taxes
|
224
|
2%
|
344
|
4%
|
(35%)
|
(36%)
|
|
NET
INCOME
|
$
2,457
|
25%
|
$
2,251
|
24%
|
9%
|
7%
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.89
|
|
$
0.74
|
|
|
|
|
|
Diluted
|
$
0.86
|
|
$
0.72
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
2,769
|
|
3,041
|
|
|
|
|
|
Diluted
|
2,861
|
|
3,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2021, 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,
2021 compared with the corresponding prior year period increased
our revenues by 2 percentage points, operating expenses by 1
percentage point and
operating income by 2 percentage points.
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
Q1 FISCAL 2022
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)
|
|
|
|
2021
|
|
|
|
2021
|
|
|
2020
|
|
|
|
2020
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
9,728
|
|
$
-
|
|
$
9,728
|
|
|
$
9,367
|
|
$
1
|
|
$
9,368
|
|
4%
|
4%
|
2%
|
2%
|
|
|
Cloud services and license
support
|
|
7,371
|
|
-
|
|
7,371
|
|
|
6,947
|
|
1
|
|
6,948
|
|
6%
|
6%
|
5%
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
6,301
|
|
$
(907)
|
|
$
5,394
|
|
|
$
6,156
|
|
$
(966)
|
|
$
5,190
|
|
2%
|
4%
|
1%
|
3%
|
|
|
Stock-based compensation
(3)
|
|
545
|
|
(545)
|
|
-
|
|
|
428
|
|
(428)
|
|
-
|
|
28%
|
*
|
28%
|
*
|
|
|
Amortization of intangible
assets (4)
|
|
303
|
|
(303)
|
|
-
|
|
|
345
|
|
(345)
|
|
-
|
|
(12%)
|
*
|
(12%)
|
*
|
|
|
Acquisition related and
other
|
|
21
|
|
(21)
|
|
-
|
|
|
19
|
|
(19)
|
|
-
|
|
4%
|
*
|
4%
|
*
|
|
|
Restructuring
|
|
38
|
|
(38)
|
|
-
|
|
|
174
|
|
(174)
|
|
-
|
|
(78%)
|
*
|
(78%)
|
*
|
|
OPERATING
INCOME
|
|
$
3,427
|
|
$
907
|
|
$
4,334
|
|
|
$
3,211
|
|
$
967
|
|
$
4,178
|
|
7%
|
4%
|
5%
|
2%
|
|
OPERATING MARGIN
%
|
|
35%
|
|
|
|
45%
|
|
|
34%
|
|
|
|
45%
|
|
95 bp.
|
(5) bp.
|
74 bp.
|
(18) bp.
|
|
INCOME TAX EFFECTS
(5)
|
|
$
224
|
|
$
420
|
|
$
644
|
|
|
$
344
|
|
$
336
|
|
$
680
|
|
(35%)
|
(5%)
|
(36%)
|
(7%)
|
|
NET
INCOME
|
|
$
2,457
|
|
$
487
|
|
$
2,944
|
|
|
$
2,251
|
|
$
631
|
|
$
2,882
|
|
9%
|
2%
|
7%
|
0%
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
0.86
|
|
|
|
$
1.03
|
|
|
$
0.72
|
|
|
|
$
0.93
|
|
19%
|
11%
|
16%
|
9%
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
|
2,861
|
|
-
|
|
2,861
|
|
|
3,107
|
|
-
|
|
3,107
|
|
(8%)
|
(8%)
|
(8%)
|
(8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2021, 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
|
|
|
|
|
|
|
|
|
|
August
31, 2021
|
|
|
August
31, 2020
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
40
|
|
$
(40)
|
|
$
-
|
|
|
$
30
|
|
$
(30)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
3
|
|
(3)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
14
|
|
(14)
|
|
-
|
|
|
12
|
|
(12)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
95
|
|
(95)
|
|
-
|
|
|
71
|
|
(71)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
344
|
|
(344)
|
|
-
|
|
|
276
|
|
(276)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
49
|
|
(49)
|
|
-
|
|
|
36
|
|
(36)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
545
|
|
$
(545)
|
|
$
-
|
|
|
$
428
|
|
$
(428)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of
August 31, 2021 was as follows:
|
|
|
Remainder of fiscal
2022
|
|
$
834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2027
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
2,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 8.4% and
13.3% in the first quarter of fiscal 2022 and 2021, respectively,
and an effective non-GAAP tax rate of 18.0% and 19.1% in the first
quarter of fiscal 2022 and 2021, respectively. The difference in
our GAAP and non-GAAP tax rates in each of the first quarter of
fiscal 2022 and 2021 was primarily due to the net tax effects on
stock-based compensation expense and acquisition related items,
including the tax effects of amortization of intangible assets,
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
|
|
|
Q1 FISCAL 2022
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
August
31,
|
May
31,
|
|
|
|
2021
|
2021
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
23,059
|
|
$
30,098
|
|
|
Marketable
securities
|
16,251
|
|
16,456
|
|
|
Trade receivables,
net
|
4,482
|
|
5,409
|
|
|
Prepaid expenses and
other current assets
|
3,325
|
|
3,604
|
|
|
|
Total Current
Assets
|
47,117
|
|
55,567
|
|
Non-Current
Assets:
|
|
|
|
|
|
Property, plant and equipment, net
|
7,610
|
|
7,049
|
|
|
Intangible assets, net
|
2,181
|
|
2,430
|
|
|
Goodwill, net
|
43,862
|
|
43,935
|
|
|
Deferred
tax assets
|
13,391
|
|
13,636
|
|
|
Other
non-current assets
|
8,763
|
|
8,490
|
|
|
|
Total Non-Current
Assets
|
75,807
|
|
75,540
|
|
TOTAL
ASSETS
|
$
122,924
|
|
$
131,107
|
|
LIABILITIES AND
STOCKHOLDERS' (DEFICIT) EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Notes payable,
current
|
$
6,748
|
|
$
8,250
|
|
|
Accounts
payable
|
749
|
|
745
|
|
|
Accrued compensation
and related benefits
|
1,470
|
|
2,017
|
|
|
Deferred
revenues
|
10,011
|
|
8,775
|
|
|
Other current
liabilities
|
4,093
|
|
4,377
|
|
|
|
Total Current
Liabilities
|
23,071
|
|
24,164
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, non-current
|
75,970
|
|
75,995
|
|
|
Income taxes
payable
|
12,315
|
|
12,345
|
|
|
Deferred tax
liabilities
|
7,648
|
|
7,864
|
|
|
Other non-current
liabilities
|
5,050
|
|
4,787
|
|
|
|
Total Non-Current
Liabilities
|
100,983
|
|
100,991
|
|
Stockholders'
(Deficit) Equity
|
(1,130)
|
|
5,952
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' (DEFICIT) EQUITY
|
$
122,924
|
|
$
131,107
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
Q1 FISCAL 2022
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Three Months Ended
August 31,
|
|
|
2021
|
2020
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net
income
|
$
2,457
|
|
$
2,251
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
454
|
|
356
|
|
Amortization of
intangible assets
|
303
|
|
345
|
|
Deferred income
taxes
|
(15)
|
|
173
|
|
Stock-based
compensation
|
545
|
|
428
|
|
Other, net
|
(27)
|
|
78
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
Decrease in trade
receivables, net
|
852
|
|
1,077
|
|
Decrease in prepaid
expenses and other assets
|
270
|
|
380
|
|
Decrease in accounts
payable and other liabilities
|
(713)
|
|
(294)
|
|
Decrease in income
taxes payable
|
(221)
|
|
(586)
|
|
Increase in deferred
revenues
|
1,486
|
|
1,745
|
|
Net cash provided
by operating activities
|
5,391
|
|
5,953
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(7,671)
|
|
(10,678)
|
|
Proceeds from sales
and maturities of marketable securities and other
investments
|
8,002
|
|
1,459
|
|
Acquisitions, net of
cash acquired
|
(50)
|
|
-
|
|
Capital
expenditures
|
(1,062)
|
|
(436)
|
|
Net cash used for
investing activities
|
(781)
|
|
(9,655)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
Payments for
repurchases of common stock
|
(7,995)
|
|
(4,945)
|
|
Proceeds from
issuances of common stock
|
148
|
|
567
|
|
Shares repurchased
for tax withholdings upon vesting of restricted stock-based
awards
|
(820)
|
|
(478)
|
|
Payments of dividends
to stockholders
|
(887)
|
|
(730)
|
|
Repayments of
borrowings
|
(1,500)
|
|
(1,000)
|
|
Other, net
|
(414)
|
|
93
|
|
Net cash used for
financing activities
|
(11,468)
|
|
(6,493)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(181)
|
|
232
|
|
Net decrease in
cash and cash equivalents
|
(7,039)
|
|
(9,963)
|
|
Cash and cash
equivalents at beginning of period
|
30,098
|
|
37,239
|
|
Cash and cash
equivalents at end of period
|
$
23,059
|
|
$
27,276
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
Q1 FISCAL
2022 FINANCIAL RESULTS
|
FREE CASH
FLOW - TRAILING 4-QUARTERS (1)
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2021
|
Fiscal
2022
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Cash Flow
|
$
13,092
|
$
13,967
|
$
14,659
|
$
15,887
|
$
15,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(1,614)
|
(1,833)
|
(1,851)
|
(2,135)
|
(2,761)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
11,478
|
$
12,134
|
$
12,808
|
$
13,752
|
$
12,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth over
prior year
|
(6%)
|
(1%)
|
3%
|
19%
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
10,249
|
$
10,380
|
$
12,830
|
$
13,746
|
$
13,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as
a % of Net Income
|
112%
|
117%
|
100%
|
100%
|
90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Q1 FISCAL
2022 FINANCIAL RESULTS
|
|
SUPPLEMENTAL
ANALYSIS OF GAAP REVENUES (1)
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2021
|
|
|
|
|
|
Fiscal
2022
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
REVENUES BY
OFFERINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
$
6,947
|
$
7,112
|
$
7,252
|
$
7,389
|
$
28,700
|
|
$
7,371
|
|
|
|
$
7,371
|
|
|
Cloud license
and on-premise license
|
886
|
1,092
|
1,276
|
2,144
|
5,399
|
|
813
|
|
|
|
813
|
|
|
Hardware
|
814
|
844
|
820
|
882
|
3,359
|
|
763
|
|
|
|
763
|
|
|
Services
|
720
|
752
|
737
|
812
|
3,021
|
|
781
|
|
|
|
781
|
|
|
Total revenues
|
$
9,367
|
$
9,800
|
$
10,085
|
$
11,227
|
$
40,479
|
|
$
9,728
|
|
|
|
$
9,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
2%
|
4%
|
5%
|
8%
|
5%
|
|
6%
|
|
|
|
6%
|
|
|
Cloud license
and on-premise license
|
9%
|
(3%)
|
4%
|
9%
|
5%
|
|
(8%)
|
|
|
|
(8%)
|
|
|
Hardware
|
0%
|
(3%)
|
(4%)
|
(2%)
|
(2%)
|
|
(6%)
|
|
|
|
(6%)
|
|
|
Services
|
(8%)
|
(7%)
|
(5%)
|
11%
|
(3%)
|
|
8%
|
|
|
|
8%
|
|
|
Total revenues
|
2%
|
2%
|
3%
|
8%
|
4%
|
|
4%
|
|
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
2%
|
4%
|
2%
|
4%
|
3%
|
|
5%
|
|
|
|
5%
|
|
|
Cloud license
and on-premise license
|
8%
|
(5%)
|
0%
|
5%
|
2%
|
|
(9%)
|
|
|
|
(9%)
|
|
|
Hardware
|
0%
|
(3%)
|
(6%)
|
(6%)
|
(4%)
|
|
(7%)
|
|
|
|
(7%)
|
|
|
Services
|
(8%)
|
(8%)
|
(8%)
|
6%
|
(5%)
|
|
7%
|
|
|
|
7%
|
|
|
Total
revenues
|
2%
|
1%
|
0%
|
4%
|
2%
|
|
2%
|
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD SERVICES AND
LICENSE SUPPORT REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BY
ECOSYSTEM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
$
2,816
|
$
2,901
|
$
2,952
|
$
3,043
|
$
11,712
|
|
$
3,041
|
|
|
|
$
3,041
|
|
|
Infrastructure
cloud services and license support
|
4,131
|
4,211
|
4,300
|
4,346
|
16,988
|
|
4,330
|
|
|
|
4,330
|
|
|
Total cloud
services and license support revenues
|
$
6,947
|
$
7,112
|
$
7,252
|
$
7,389
|
$
28,700
|
|
$
7,371
|
|
|
|
$
7,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
4%
|
5%
|
5%
|
11%
|
6%
|
|
8%
|
|
|
|
8%
|
|
|
Infrastructure
cloud services and license support
|
1%
|
4%
|
4%
|
6%
|
4%
|
|
5%
|
|
|
|
5%
|
|
|
Total cloud
services and license support revenues
|
2%
|
4%
|
5%
|
8%
|
5%
|
|
6%
|
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
4%
|
5%
|
3%
|
7%
|
5%
|
|
7%
|
|
|
|
7%
|
|
|
Infrastructure
cloud services and license support
|
1%
|
3%
|
2%
|
2%
|
2%
|
|
3%
|
|
|
|
3%
|
|
|
Total cloud
services and license support revenues
|
2%
|
4%
|
2%
|
4%
|
3%
|
|
5%
|
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHIC
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
5,068
|
$
5,259
|
$
5,424
|
$
6,076
|
$
21,828
|
|
$
5,321
|
|
|
|
$
5,321
|
|
|
Europe/Middle
East/Africa
|
2,738
|
2,852
|
2,981
|
3,324
|
11,894
|
|
2,784
|
|
|
|
2,784
|
|
|
Asia
Pacific
|
1,561
|
1,689
|
1,680
|
1,827
|
6,757
|
|
1,623
|
|
|
|
1,623
|
|
|
Total
revenues
|
$
9,367
|
$
9,800
|
$
10,085
|
$
11,227
|
$
40,479
|
|
$
9,728
|
|
|
|
$
9,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2021 and 2020
for the fiscal 2022 and fiscal 2021 constant currency growth rate
calculations presented, respectively, rather than the actual
exchange rates in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX
A
|
|
ORACLE
CORPORATION
|
Q1 FISCAL 2022
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:
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- Cloud services and license support revenues:
Business combination accounting rules require us to account for the
fair values of cloud services and license support contracts assumed
in connection with our acquisitions. The non-GAAP adjustments to
our cloud services and license support revenues are intended to
include, and thus reflect, the full amount of such revenues. We
believe the adjustments to these revenues are useful to investors
as a measure of the ongoing performance of our business as we
generally expect to experience high renewal rates for these
contracts at their stated values during the post combination
periods.
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- Stock-based compensation expenses: We have
excluded the effect of stock-based compensation expenses from our
non-GAAP operating expenses 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.
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- Amortization of intangible assets: We have
excluded the effect of amortization of intangible assets from our
non-GAAP operating expenses 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.
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- 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 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 primarily consist of personnel related
costs for transitional and certain other employees, certain
business combination adjustments including adjustments after the
measurement period has ended and certain other operating items,
net. Restructuring expenses consist 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
generally diminish over time with respect to past acquisitions
and/or strategic initiatives, we generally will incur 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-2022-first-quarter-financial-results-301375644.html
SOURCE Oracle