10-KPeriod: FY2019

ORACLE CORP Annual Report, Year Ended May 31, 2019

Filed June 21, 2019For Securities:ORCLORCL-PD

Summary

Oracle Corporation's (ORCL) 10-K filing for the fiscal year ending May 31, 2019, showcases a company with a dominant position in cloud and license business, which constituted 83% of its total revenues. The report highlights the company's strategic shift towards cloud-based services, with significant investment in research and development to enhance its cloud offerings and infrastructure technologies. While the hardware business saw a decline in revenues, Oracle continued to focus on its more profitable Engineered Systems. The company demonstrated a strong commitment to returning capital to shareholders through substantial stock repurchases and dividends, underscoring its financial health. The filing also addresses risks associated with the rapidly evolving IT landscape, including competition and the integration of acquired companies, while reiterating Oracle's strategy of providing customers with flexible deployment models for its comprehensive suite of applications and infrastructure technologies.

Financial Highlights

56 data points
Beta

Revenue

$39.51B

Net Income

$11.08B

28.1% Net Margin

EPS (Diluted)

$2.97

Total Assets

$108.71B

Cash & Equivalents

$20.51B

Free Cash Flow

$12.89B

Financial Statements
Beta
Revenue$39.51B
R&D Expenses$6.03B
Operating Expenses$25.97B
Operating Income$13.54B
Interest Expense$2.08B
Net Income$11.08B
EPS (Basic)$3.05
EPS (Diluted)$2.97
Shares Outstanding (Basic)3.63B
Shares Outstanding (Diluted)3.73B

Key Highlights

  • 1Cloud and License business is the primary revenue driver, accounting for 83% of total revenues in fiscal year 2019.
  • 2Oracle continued to invest heavily in Research and Development, with $6.0 billion invested in fiscal 2019, reflecting a commitment to innovation in cloud and infrastructure technologies.
  • 3The company repurchased $36.1 billion of its common stock in fiscal 2019, demonstrating a strong focus on returning capital to shareholders.
  • 4Hardware revenues experienced a decline of 7% year-over-year (5% in constant currency), primarily due to a strategic emphasis on cloud-based infrastructure technologies.
  • 5Services revenues also saw a decrease of 5% year-over-year (2% in constant currency), attributed to declines in consulting and education services.
  • 6The company maintained a strong financial position, with $37.8 billion in cash, cash equivalents, and marketable securities as of May 31, 2019.
  • 7Oracle is actively involved in acquisitions as a key element of its corporate strategy to enhance its product and service offerings.

Frequently Asked Questions

Oracle's primary business focus is providing enterprise information technology (IT) solutions, including applications and infrastructure. Its main revenue source is its 'cloud and license' business, which accounted for 83% of total revenues in fiscal year 2019, encompassing cloud services, license support, and software licenses.

Oracle is actively transitioning towards cloud-based services (SaaS and IaaS) as a core part of its strategy. The company offers flexible deployment models, including cloud, on-premise, and hybrid solutions. It is investing heavily in R&D for cloud technologies and has programs to help customers migrate existing workloads to the Oracle Cloud.

Oracle demonstrates a strong commitment to shareholder returns. In fiscal year 2019, the company repurchased approximately $36.1 billion of its common stock and declared cash dividends totaling $2.9 billion. The company has an ongoing stock repurchase program with significant availability.

Oracle's hardware business revenue declined by 7% (5% in constant currency) in fiscal year 2019, as the company shifted focus to cloud infrastructure. The services business also saw a decrease of 5% (2% in constant currency), primarily due to declines in consulting and education services.