01—Abstract
Summary
Summary of the 10-Q filed December 10, 2024. Cited figures are marked; the original filing is the authoritative source.
Oracle Corporation (ORCL) has filed its 10-Q for the period ending November 29, 2024.
The company reported total revenues of $14.06 billiona 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%b 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.
02—Key points
Key Highlights
- Total revenues reached $14.06 billion for the quarter, a 9% increase year-over-year, driven by strong cloud adoption.
- Cloud and License segment revenue grew by 11% to $12.00 billion, representing 86% of total revenue.
- Cloud services revenue specifically increased by 24% year-over-year to $5.94 billion.
- Net 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.
- Operating income increased by 17% to $4.22 billion, reflecting improved operational efficiency.
- Net cash provided by operating activities for the six months ended November 30, 2024, increased by 23% to $8.73 billion.
- The company ended the period with $10.94 billion in cash and cash equivalents, with total liquidity (including marketable securities) at $11.31 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed December 10, 2024Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $14.06B$12.94B | +8.6% |
| R&D Expenses | $2.47B$2.23B | +11.0% |
| Operating Expenses | $9.84B$9.32B | +5.6% |
| Operating Income | $4.22B$3.62B | +16.5% |
| Interest Expense | $866.00M$888.00M | −2.5% |
| Net Income | $3.15B$2.50B | +25.9% |
| EPS (Basic) | $1.13$0.91 | +24.2% |
| EPS (Diluted) | $1.10$0.89 | +23.6% |
| Shares Outstanding (Basic) | 2.79B2.75B | +1.6% |
| Shares Outstanding (Diluted) | 2.87B2.82B | +1.8% |
05—Questions
Frequently Asked Questions
What was Oracle's revenue performance for the quarter?
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.
How did Oracle's profitability change?
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.
What is driving the growth in the Cloud and License segment?
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.
How is Oracle managing its cash flow and capital resources?
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.
06—Continue