01—Abstract
Summary
Summary of the 10-Q filed March 12, 2024. Cited figures are marked; the original filing is the authoritative source.
Oracle Corporation reported strong performance for the third quarter and the first nine months of fiscal year 2024, driven by continued growth in its Cloud and License segment.
Total revenues increased by 7% year-over-year to $13.28 billiona for the quarter and 7% to $38.67 billion for the nine months. Operating income also saw a healthy increase of 15% to $3.75 billion for the quarter and 19% to $10.67 billion for the nine months, indicating improved profitability. The company's strategic shift towards cloud services is evident, with Cloud services and license support revenues growing significantly, offsetting declines in the Hardware and Services segments.
Oracle maintained a strong operational efficiency, with operating expenses growing at a slower pace than revenues. The company also reported a substantial increase in free cash flow for the trailing twelve months, underscoring its robust cash generation capabilities.
02—Key points
Key Highlights
- Total revenues for the third quarter of fiscal year 2024 increased by 7% to $13.28 billion, with a 7% increase to $38.67 billion for the first nine months.
- Operating income grew by 15% to $3.75 billion for the quarter and 19% to $10.67 billion for the nine months, demonstrating improved profitability.
- Cloud services and license support revenues showed robust growth, increasing by 12% to $9.96 billion for the quarter and 12% to $29.15 billion for the nine months.
- The company's strategic focus on cloud continues to drive results, with cloud services revenue growing by 25% to $5.05 billion for the quarter and 26% to $14.46 billion for the nine months.
- Hardware and Services segments experienced revenue declines (-7% and -5% respectively for the quarter), reflecting a strategic shift towards cloud offerings.
- Free cash flow for the trailing twelve months increased by 68% to $12.26 billion, highlighting strong cash generation.
- Diluted earnings per share increased to $0.85 for the quarter and $2.60 for the nine months, up from $0.68 and $1.88 respectively in the prior year periods.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed March 12, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $13.28B$12.40B | +7.1% |
| R&D Expenses | $2.25B$2.15B | +4.8% |
| Operating Expenses | $9.53B$9.14B | +4.3% |
| Operating Income | $3.75B$3.26B | +15.0% |
| Interest Expense | $876.00M$908.00M | −3.5% |
| Net Income | $2.40B$1.90B | +26.6% |
| EPS (Basic) | $0.87$0.70 | +24.3% |
| EPS (Diluted) | $0.85$0.68 | +25.0% |
| Shares Outstanding (Basic) | 2.75B2.70B | +1.9% |
| Shares Outstanding (Diluted) | 2.82B2.78B | +1.5% |
05—Questions
Frequently Asked Questions
What was Oracle's revenue performance in the reported period?
Oracle reported a 7% increase in total revenues for the third quarter of fiscal year 2024 to $13.28 billion, and a 7% increase for the first nine months of fiscal year 2024 to $38.67 billion. This growth was primarily driven by its Cloud and License segment.
How did Oracle's profitability change during this period?
Profitability improved significantly. Operating income increased by 15% to $3.75 billion for the quarter and by 19% to $10.67 billion for the nine months. Diluted earnings per share rose to $0.85 for the quarter and $2.60 for the nine months.
What is the impact of Oracle's strategic shift to cloud services?
The shift to cloud services is a key driver of growth. Cloud services and license support revenues grew by 12% year-over-year for the quarter. Specifically, cloud services revenue saw a substantial 25% increase for the quarter, indicating strong customer adoption of Oracle's cloud offerings and a successful transition away from legacy hardware and services.
What is Oracle's cash flow situation?
Oracle demonstrated strong cash flow generation. Free cash flow for the trailing twelve months increased by 68% to $12.26 billion. Net cash provided by operating activities increased by 9% for the first nine months of fiscal year 2024 compared to the prior year.
06—Continue