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10-QPeriod: Q2 FY2020

ORACLE CORP Quarterly Report for Q2 Ended Nov 30, 2019

Filed December 13, 2019For Securities:ORCL

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 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.

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