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Total Revenue: $14.1 billion, up 9% from last year.
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Cloud Revenue: $5.9 billion, up 24%.
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SaaS Revenue: $3.5 billion, up 10%.
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IaaS Revenue: $2.4 billion, up 52%.
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Cloud Services and License Support: $10.8 billion, up 12%.
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Infrastructure Subscription Revenues: $6 billion, up 17%.
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Operating Income: Grew 10%, with an operating margin of 43%.
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Non-GAAP EPS: $1.47, up 10% in USD.
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GAAP EPS: $1.10, up 24% in USD.
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Cash and Marketable Securities: $11.3 billion at quarter end.
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Free Cash Flow: Negative $2.7 billion.
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Operating Cash Flow: Positive $1.3 billion.
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RPO (Remaining Performance Obligation): $97.3 billion, up 50% in constant currency.
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Cloud Regions: 98 live cloud regions.
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Dividend: Quarterly dividend of $0.40 per share.
Release Date: December 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Oracle Corp (NYSE:ORCL) reported total revenue at the high end of constant currency guidance, with EPS exceeding expectations by a cent.
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Cloud services and license support now represent 77% of total revenue, driving overall revenue growth.
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Cloud revenue is expected to reach $25 billion this fiscal year, with significant growth in AI workloads and multicloud agreements.
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Infrastructure cloud services have an annualized revenue of $9.7 billion, with OCI consumption revenue up 58%.
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The remaining performance obligation (RPO) grew 50% in constant currency, reflecting strong customer demand and longer contracts.
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Currency fluctuations negatively impacted revenue and EPS, with a 2% negative effect on revenue and a $0.03 negative effect on EPS.
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Free cash flow was negative $2.7 billion for the quarter, despite positive operating cash flow.
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The non-GAAP tax rate was higher than expected, impacting EPS by $0.02.
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CapEx is expected to double in fiscal year 2025 compared to FY24, indicating significant investment requirements.
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An investment loss in another company is expected to negatively impact Q3 EPS by $0.05.
Q: Can you explain how the architectural difference of Oracle Cloud Infrastructure (OCI) impacts data center regions and CapEx growth? A: Lawrence Ellison, Chairman and CTO, explained that Oracle’s data centers are modular, starting with six racks for the smallest region, scaling up to 1.6 gigawatts for the largest. This modularity allows Oracle to deploy smaller footprints initially and expand as needed, aligning CapEx with revenue growth. Safra Catz, CEO, added that this flexibility helps Oracle match capital expenditure with revenue, enhancing profitability.
