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| 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.