Summary
Oracle Corporation's (ORCL) Q3 FY2022 results, filed on March 10, 2022, indicate a period of revenue growth driven primarily by its cloud services and license support segment, which continues to be the main revenue contributor. Despite an increase in total revenues to $10.51 billion for the quarter, the company's net income saw a significant decrease to $2.32 billion from $5.02 billion in the prior year period. This decline is largely attributable to a substantial $4.7 billion charge related to litigation, as detailed in the acquisition-related and other expenses. Financially, the company demonstrated strong cash flow from operations, although it declined year-over-year. Significant financing activities included substantial stock repurchases and debt repayments. Oracle also announced a significant pending acquisition of Cerner Corporation for approximately $28.5 billion, which is expected to close in calendar year 2022. The company has also secured new credit facilities, including a $6.0 billion revolving credit agreement and a $15.7 billion delayed draw term loan, to support its operations and the Cerner acquisition.
Financial Highlights
54 data points| Revenue | $10.51B |
| R&D Expenses | $1.82B |
| Operating Expenses | $6.69B |
| Operating Income | $3.82B |
| Interest Expense | $667.00M |
| Net Income | $2.32B |
| EPS (Basic) | $0.87 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 2.67B |
| Shares Outstanding (Diluted) | 2.75B |
Key Highlights
- 1Total revenues increased by 4% to $10.51 billion for the third quarter, driven by a 5% increase in Cloud and License revenues.
- 2Net income for the quarter significantly decreased to $2.32 billion from $5.02 billion in the prior year, largely due to a $4.7 billion litigation charge.
- 3Cloud services and license support revenue, Oracle's largest segment, grew 5% year-over-year to $7.64 billion.
- 4The company announced a definitive agreement to acquire Cerner Corporation for approximately $28.5 billion.
- 5Cash provided by operating activities was $5.55 billion for the nine months ended February 28, 2022, a decrease from $11.05 billion in the prior year.
- 6Oracle repurchased $15.6 billion of its common stock during the nine months ended February 28, 2022.
- 7The company secured new credit agreements totaling $21.7 billion in March 2022 to support general corporate purposes and the Cerner acquisition.