Summary
Oracle Corporation's (ORCL) 10-Q filing for the period ending November 30, 2019, indicates a stable financial performance with slight revenue growth, primarily driven by its Cloud services and license support segment. Total revenues saw a modest increase of 1% year-over-year to $9.614 billion for the quarter, with a constant currency growth of 1%. The company continues to focus on its strategic shift towards cloud offerings, which now constitute 83% of trailing 4-quarter revenues. Profitability remained strong, with operating income increasing by 3% to $3.183 billion and operating margin expanding to 33%.
Financial Highlights
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Financial Statements
Beta
| Revenue | $9.61B |
| R&D Expenses | $1.53B |
| Operating Expenses | $6.43B |
| Operating Income | $3.18B |
| Interest Expense | $465.00M |
| Net Income | $2.31B |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 3.25B |
| Shares Outstanding (Diluted) | 3.33B |
Key Highlights
- 1Total revenues for the three months ended November 30, 2019, were $9.614 billion, a 1% increase year-over-year (1% in constant currency).
- 2Cloud services and license support revenues, the largest segment, increased by 3% year-over-year to $6.811 billion.
- 3Operating income grew by 3% to $3.183 billion, with an operating margin of 33%, up from 32% in the prior year period.
- 4The company repurchased $10.0 billion of common stock during the six months ended November 30, 2019, compared to $20.0 billion in the prior year period, indicating a potentially moderated share buyback program.
- 5Cash, cash equivalents, and marketable securities decreased by 27% to $27.444 billion, primarily due to stock repurchases and debt repayments.
- 6Net cash provided by operating activities decreased by 10% to $6.513 billion for the six months ended November 30, 2019.
- 7The company continues to face ongoing legal proceedings, notably the Hewlett-Packard Company litigation, with uncertain but potentially material financial impacts.
Frequently Asked Questions
Oracle reported total revenues of $9.614 billion for the three months ended November 30, 2019, representing a 1% increase compared to the same period last year. In constant currency, the revenue growth was also 1%.
The primary driver of Oracle's revenue growth remains its Cloud services and license support segment, which increased by 3% year-over-year to $6.811 billion. This segment represents the core of the company's strategic shift towards cloud offerings.
Oracle repurchased $10.0 billion of its common stock during the six months ended November 30, 2019, a decrease from the prior year. The Board of Directors also declared a quarterly cash dividend of $0.24 per share, payable in January 2020.
Yes, Oracle is involved in several legal proceedings, including a significant ongoing litigation with Hewlett-Packard Company that has an uncertain but potentially material impact on future cash flows and results of operations. Other derivative lawsuits related to acquisitions and cloud business are also noted, though the company believes they will not have a material impact.