10-QPeriod: Q2 FY2025

ORACLE CORP Quarterly Report for Q2 Ended Nov 30, 2024

Filed December 10, 2024For Securities:ORCLORCL-PD

Summary

Oracle Corporation (ORCL) has filed its 10-Q for the period ending November 29, 2024. The company reported total revenues of $14.06 billion for the quarter, an increase of 9% year-over-year, driven by a strong performance in its Cloud and License segment, which saw an 11% revenue increase. This growth was primarily fueled by a significant rise in Cloud Services revenue, indicating a continued shift towards subscription-based models. Net income for the quarter rose to $3.15 billion, or $1.10 per diluted share, up from $2.50 billion and $0.89 per diluted share in the prior year's comparable period. This improvement was supported by operating income growth and effective cost management, although operating expenses did see an increase due to investments in cloud infrastructure and R&D. The company also highlighted its robust cash flow generation, with net cash provided by operating activities increasing by 23% year-over-year for the six-month period. Oracle's balance sheet remains strong, with substantial cash and marketable securities, and the company continues its capital return programs through dividends and share repurchases.

Financial Highlights

54 data points
Beta

Revenue

$14.06B

Net Income

$3.15B

22.4% Net Margin

EPS (Diluted)

$1.10

Total Assets

$148.48B

Cash & Equivalents

$10.94B

Free Cash Flow

-$2.67B

Financial Statements
Beta
Revenue$14.06B
R&D Expenses$2.47B
Operating Expenses$9.84B
Operating Income$4.22B
Interest Expense$866.00M
Net Income$3.15B
EPS (Basic)$1.13
EPS (Diluted)$1.10
Shares Outstanding (Basic)2.79B
Shares Outstanding (Diluted)2.87B

Key Highlights

  • 1Total revenues reached $14.06 billion for the quarter, a 9% increase year-over-year, driven by strong cloud adoption.
  • 2Cloud and License segment revenue grew by 11% to $12.00 billion, representing 86% of total revenue.
  • 3Cloud services revenue specifically increased by 24% year-over-year to $5.94 billion.
  • 4Net income rose to $3.15 billion, or $1.10 per diluted share, compared to $2.50 billion, or $0.89 per diluted share, in the prior year.
  • 5Operating income increased by 17% to $4.22 billion, reflecting improved operational efficiency.
  • 6Net cash provided by operating activities for the six months ended November 30, 2024, increased by 23% to $8.73 billion.
  • 7The company ended the period with $10.94 billion in cash and cash equivalents, with total liquidity (including marketable securities) at $11.31 billion.

Frequently Asked Questions

Oracle reported total revenues of $14.06 billion for the three months ended November 30, 2024, an increase of 9% compared to $12.94 billion in the prior year's comparable period. This growth was primarily driven by the Cloud and License segment.

Net income for the quarter increased to $3.15 billion from $2.50 billion in the prior year. Diluted earnings per share rose to $1.10 from $0.89 year-over-year.

The Cloud and License segment's revenue growth of 11% to $12.00 billion was primarily fueled by a substantial 24% increase in Cloud services revenue, indicating strong customer adoption of Oracle's cloud offerings.

Oracle demonstrated strong operating cash flow, with net cash provided by operating activities increasing by 23% to $8.73 billion for the six months ended November 30, 2024. The company maintained a healthy liquidity position with $10.94 billion in cash and cash equivalents and continues its capital return strategy through dividends and share repurchases.