10-QPeriod: Q2 FY2021

ORACLE CORP Quarterly Report for Q2 Ended Nov 30, 2020

Filed December 11, 2020For Securities:ORCLORCL-PD

Summary

Oracle Corporation (ORCL) reported its second-quarter fiscal year 2021 results for the period ending November 29, 2020. The company demonstrated revenue growth, with total revenues increasing by 2% year-over-year to $9.8 billion. This growth was primarily driven by a 3% increase in the Cloud and license business, which now represents 83% of total revenues. The company also saw a 13% increase in operating income to $3.6 billion and a 5% increase in net income to $2.4 billion. Despite a challenging economic environment, Oracle maintained a strong operational performance. However, the Hardware and Services segments experienced revenue declines, reflecting a strategic shift towards cloud offerings. The company's balance sheet shows a decrease in cash and cash equivalents, largely due to significant share repurchases and debt repayments. Oracle also highlighted ongoing investments in research and development to support its cloud strategy and maintain its competitive edge.

Financial Highlights

54 data points
Beta

Revenue

$9.80B

Net Income

$2.44B

24.9% Net Margin

EPS (Diluted)

$0.80

Total Assets

$110.01B

Cash & Equivalents

$28.00B

Free Cash Flow

$820.00M

Financial Statements
Beta
Revenue$9.80B
R&D Expenses$1.60B
Operating Expenses$6.22B
Operating Income$3.58B
Interest Expense$600.00M
Net Income$2.44B
EPS (Basic)$0.82
EPS (Diluted)$0.80
Shares Outstanding (Basic)2.98B
Shares Outstanding (Diluted)3.05B

Key Highlights

  • 1Total revenues grew by 2% year-over-year to $9.8 billion.
  • 2Cloud and license business revenues increased by 3% to $8.2 billion, now representing 83% of total revenues.
  • 3Operating income increased by 13% to $3.6 billion.
  • 4Net income increased by 5% to $2.4 billion.
  • 5Hardware and Services segments experienced revenue declines, indicating a strategic focus on cloud.
  • 6Cash, cash equivalents, and marketable securities decreased by 10% due to share repurchases and debt repayments.
  • 7Remaining performance obligations were $34.4 billion, with approximately 60% expected to be recognized in the next twelve months.

Frequently Asked Questions

Oracle reported total revenues of $9.8 billion for the second quarter ended November 30, 2020, representing a 2% increase compared to the same period in the previous year. The Cloud and license segment was the primary driver of this growth, with revenues up 3%.

The Cloud and license business showed positive growth, increasing by 3%. However, the Hardware and Services segments experienced revenue declines, reflecting Oracle's strategic shift towards its cloud offerings.

As of November 30, 2020, Oracle had $38.6 billion in cash, cash equivalents, and marketable securities, a decrease of 10% from May 31, 2020. This decrease was mainly due to $9.0 billion in stock repurchases and $1.0 billion in debt repayments, partially offset by cash generated from operations.

Oracle reported remaining performance obligations of $34.4 billion as of November 30, 2020. Approximately 60% of this amount is expected to be recognized as revenue over the next twelve months.