REDWOOD SHORES, Calif., June 21,
2017 /PRNewswire/ -- Oracle Corporation
(NYSE: ORCL) today announced fiscal 2017 Q4 results and fiscal 2017
full year results. Comparing Q4 2017 to Q4 last year, SaaS
(Software as a Service) cloud revenues were up 67% to $964 million, and non-GAAP SaaS revenues were up
75% to $1.0 billion. Cloud PaaS
(Platform as a Service) plus IaaS (Infrastructure as a Service)
revenues were up 40% to $397 million,
and non-GAAP PaaS plus IaaS revenues were up 42% to $403 million. Total cloud revenues were up 58% to
$1.4 billion, and non-GAAP total
cloud revenues were up 64% to $1.4
billion. Cloud plus on-premise software revenues were up 5%
to $8.9 billion, and non-GAAP cloud
and on-premise software revenues were up 6% to $8.9 billion. Total revenues were up 3% to
$10.9 billion.
Operating Income was up 3% to $4.1
billion, and the operating margin was 37%. Non-GAAP
Operating Income was up 5% to $5.0
billion, and the non-GAAP operating margin was 46%. Net
Income was $3.2 billion, and non-GAAP
Net Income was $3.8 billion. Earnings
Per Share was $0.76, while non-GAAP
Earnings Per Share was $0.89. Without
the impact of the U.S. dollar strengthening compared to foreign
currencies, Oracle's reported GAAP Earnings Per Share would have
been 2 cents higher, and non-GAAP
Earnings Per Share would have been 1
cent higher.
Short-term deferred revenues were up 8% to $8.2 billion compared with a year ago. Operating
cash flow on a trailing twelve-month basis was up 3% to
$14.1 billion.
For fiscal 2017, Cloud SaaS revenues were up 61% to $3.2 billion compared to fiscal 2016. Non-GAAP
SaaS revenues were up 68% to $3.4
billion. Cloud PaaS and IaaS revenues were up 60% to
$1.4 billion for both GAAP and
Non-GAAP. Total cloud revenues were up 60% to $4.6 billion. Non-GAAP cloud revenues were up 66%
to $4.7 billion. Cloud and on-premise
software revenues were up 4% to $30.2
billion. Non-GAAP cloud and on-premise software revenues
were up 5% to $30.4 billion. Total
Revenues were up 2% to $37.7 billion.
Non-GAAP Total Revenues were up 2% to $37.9
billion.
Operating Income was $12.7
billion, and operating margin was 34%. Non-GAAP Operating
Income was $16.2 billion and non-GAAP
operating margin was 43%. Net Income was $9.3 billion while non-GAAP Net Income was
$11.6 billion. Earnings Per Share was
$2.21, while Non-GAAP Earnings Per
Share was $2.74. Without the impact
of the U.S. dollar strengthening compared to foreign currencies,
Oracle's reported GAAP Earnings Per Share would have been
4 cents higher and non-GAAP Earnings
Per Share would have been 3 cents
higher.
"Our fourth quarter results were very strong as revenue growth
and earnings per share both substantially exceeded the high end of
guidance," said Oracle CEO, Safra
Catz. "We continue to experience rapid adoption of the
Oracle Cloud led by the 75% growth in our SaaS business in
Q4. This cloud hyper-growth is expanding our operating
margins, and we expect earnings per share growth to accelerate in
fiscal 2018."
"We sold $855 million of new
annually recurring cloud revenue (ARR) in Q4, putting us over our
$2 billion ARR bookings goal for
fiscal year 2017," said Oracle CEO, Mark
Hurd. "We also delivered over $1
billion in quarterly SaaS revenue for the first time. Next
year is going to be even better. We expect to sell a lot more than
$2 billion in new cloud ARR in fiscal
year 2018."
"AT&T has agreed to migrate thousands of existing Oracle
databases containing petabytes of data plus their associated
applications workloads to the Oracle Cloud," said Oracle Chairman
and CTO, Larry Ellison. "In the
coming year, I expect more of our big customers to migrate their
Oracle databases and database applications to the Oracle Cloud.
These large-scale migrations will dramatically increase the size of
both our PaaS and IaaS cloud businesses."
The Board of Directors also declared a quarterly cash dividend
of $0.19 per share of outstanding
common stock. This dividend will be paid to stockholders of record
as of the close of business on July 19,
2017, with a payment date of August
2, 2017.
Q4 Fiscal 2017 Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss
these results at 2:00 p.m. Pacific.
You may listen to the call by dialing (816) 287-5563, Passcode:
425392. To access the live webcast of this event, please visit the
Oracle Investor Relations website at
http://www.oracle.com/investor. In addition, Oracle's Q4 results
and fiscal 2017 financial tables are available on the Oracle
Investor Relations website.
A replay of the conference call will also be available by
dialing (855) 859-2056 or (404) 537-3406, Pass Code: 34656498.
About Oracle
Oracle offers a comprehensive and fully integrated stack of
cloud applications and platform services. For more information
about Oracle (NYSE: ORCL), visit www.oracle.com or contact Investor
Relations at investor_us@oracle.com or (650) 506-4073.
Trademarks
Oracle and Java are registered trademarks of Oracle and/or its
affiliates. Other names may be trademarks of their respective
owners.
"Safe Harbor" Statement: Statements in this press
release relating to Oracle's future plans, expectations, beliefs,
intentions and prospects, including statements regarding our future
sales and non-GAAP financial results, expectations of future
customer migrations to the Oracle Cloud and growth in the size of
our PaaS and IaaS cloud business, are "forward-looking statements"
and are subject to material risks and uncertainties. Many factors
could affect our current expectations and our actual results, and
could cause actual results to differ materially. We presently
consider the following to be among the important factors that could
cause actual results to differ materially from expectations: (1)
Our cloud computing strategy, including our Oracle Cloud SaaS,
PaaS, IaaS and data as a service offerings, may not be successful.
(2) If we are unable to develop new or sufficiently differentiated
products and services, or to enhance and improve our products and
support services in a timely manner or to position and/or price our
products and services to meet market demand, customers may not buy
new software licenses, cloud software subscriptions or hardware
systems products or purchase or renew support contracts.
(3) If the security measures for our products and
services are compromised or if our products and services contain
significant coding, manufacturing or configuration errors, we may
experience reputational harm, legal claims and reduced sales. (4)
We may fail to achieve our financial forecasts due to such factors
as delays or size reductions in transactions, fewer large
transactions in a particular quarter, fluctuations in currency
exchange rates, delays in delivery of new products or releases or a
decline in our renewal rates for support contracts. (5) Our
international sales and operations subject us to additional risks
that can adversely affect our operating results, including risks
relating to foreign currency gains and losses. (6) Economic,
geopolitical and market conditions can adversely affect our
business, results of operations and financial condition, including
our revenue growth and profitability, which in turn could adversely
affect our stock price. (7) We have an active acquisition program
and our acquisitions may not be successful, may involve
unanticipated costs or other integration issues or may disrupt our
existing operations. A detailed discussion of these factors and
other risks that affect our business is contained in our SEC
filings, including our most recent reports on Form 10-K and Form
10-Q, particularly under the heading "Risk Factors." Copies of
these filings are available online from the SEC or by contacting
Oracle Corporation's Investor Relations Department at (650)
506-4073 or by clicking on SEC Filings on Oracle's Investor
Relations website at http://www.oracle.com/investor. All
information set forth in this press release is current as of
June 21, 2017. Oracle undertakes no
duty to update any statement in light of new information or future
events.
|
|
ORACLE
CORPORATION
|
|
|
Q4 FISCAL 2017
FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
May 31,
|
%
Increase
|
% Increase
(Decrease)
|
|
|
|
|
|
|
%
of
|
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
2017
|
Revenues
|
2016
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud software as a
service
|
$
964
|
9%
|
$
576
|
5%
|
67%
|
69%
|
|
|
Cloud platform as a
service and infrastructure as a service
|
397
|
4%
|
283
|
3%
|
40%
|
42%
|
|
|
Total cloud
revenues
|
1,361
|
13%
|
859
|
8%
|
58%
|
60%
|
|
|
New software
licenses
|
2,626
|
24%
|
2,766
|
26%
|
(5%)
|
(4%)
|
|
|
Software license
updates and product support
|
4,897
|
45%
|
4,814
|
46%
|
2%
|
3%
|
|
|
Total on-premise
software revenues
|
7,523
|
69%
|
7,580
|
72%
|
(1%)
|
0%
|
|
|
Total cloud and
on-premise software revenues
|
8,884
|
82%
|
8,439
|
80%
|
5%
|
6%
|
|
|
Hardware
revenues
|
1,114
|
10%
|
1,283
|
12%
|
(13%)
|
(12%)
|
|
|
Services
revenues
|
894
|
8%
|
872
|
8%
|
3%
|
4%
|
|
|
Total
revenues
|
10,892
|
100%
|
10,594
|
100%
|
3%
|
4%
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud software as a
service
|
355
|
3%
|
272
|
3%
|
31%
|
32%
|
|
|
Cloud platform as a
service and infrastructure as a service
|
214
|
2%
|
131
|
1%
|
64%
|
65%
|
|
|
Software license
updates and product support
|
266
|
3%
|
268
|
2%
|
(1%)
|
0%
|
|
|
Hardware
|
440
|
4%
|
573
|
6%
|
(23%)
|
(22%)
|
|
|
Services
|
728
|
7%
|
692
|
7%
|
5%
|
6%
|
|
|
Sales and
marketing
|
2,313
|
21%
|
2,306
|
22%
|
0%
|
1%
|
|
|
Research and
development
|
1,609
|
15%
|
1,534
|
14%
|
5%
|
5%
|
|
|
General and
administrative
|
317
|
3%
|
323
|
3%
|
(2%)
|
(1%)
|
|
|
Amortization of
intangible assets
|
441
|
4%
|
355
|
3%
|
24%
|
24%
|
|
|
Acquisition related
and other
|
18
|
0%
|
7
|
0%
|
165%
|
165%
|
|
|
Restructuring
|
118
|
1%
|
165
|
2%
|
(29%)
|
(26%)
|
|
|
Total operating
expenses
|
6,819
|
63%
|
6,626
|
63%
|
3%
|
4%
|
|
|
OPERATING
INCOME
|
4,073
|
37%
|
3,968
|
37%
|
3%
|
4%
|
|
|
Interest
expense
|
(481)
|
(4%)
|
(362)
|
(3%)
|
33%
|
33%
|
|
|
Non-operating income,
net
|
168
|
2%
|
126
|
1%
|
34%
|
32%
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
3,760
|
35%
|
3,732
|
35%
|
1%
|
3%
|
|
|
Provision for income
taxes
|
529
|
5%
|
918
|
8%
|
(42%)
|
(43%)
|
|
|
NET
INCOME
|
$ 3,231
|
30%
|
$ 2,814
|
27%
|
15%
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.78
|
|
$
0.68
|
|
|
|
|
|
Diluted
|
$
0.76
|
|
$
0.66
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
4,132
|
|
4,147
|
|
|
|
|
|
Diluted
|
4,248
|
|
4,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods. Movements in international
currencies relative to the United States dollar during the three
months ended May 31, 2017 compared with the corresponding prior
year period decreased our revenues by 1 percentage point, operating
expenses by 1 percentage point and operating income by 1 percentage
point.
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FISCAL
2017 FINANCIAL RESULTS
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(1)
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
May 31,
|
|
% Increase
(Decrease)
in US $
|
% Increase
(Decrease) in
Constant Currency (2)
|
|
|
|
2017
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2016
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$ 10,892
|
|
$
50
|
|
$
10,942
|
|
|
$10,594
|
|
$
2
|
|
$
10,596
|
|
3%
|
3%
|
4%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CLOUD AND
ON-PREMISE SOFTWARE REVENUES
|
|
$
8,884
|
|
$
50
|
|
$
8,934
|
|
|
$
8,439
|
|
$
2
|
|
$
8,441
|
|
5%
|
6%
|
6%
|
7%
|
|
|
TOTAL CLOUD
REVENUES
|
|
1,361
|
|
50
|
|
1,411
|
|
|
859
|
|
1
|
|
860
|
|
58%
|
64%
|
60%
|
66%
|
|
|
Cloud software as a
service
|
|
964
|
|
44
|
|
1,008
|
|
|
576
|
|
1
|
|
577
|
|
67%
|
75%
|
69%
|
76%
|
|
|
Cloud platform as a
service and infrastructure as a service
|
|
397
|
|
6
|
|
403
|
|
|
283
|
|
-
|
|
283
|
|
40%
|
42%
|
42%
|
45%
|
|
|
New software
licenses
|
|
2,626
|
|
-
|
|
2,626
|
|
|
2,766
|
|
-
|
|
2,766
|
|
(5%)
|
(5%)
|
(4%)
|
(4%)
|
|
|
Software license
updates and product support
|
|
4,897
|
|
-
|
|
4,897
|
|
|
4,814
|
|
1
|
|
4,815
|
|
2%
|
2%
|
3%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
6,819
|
|
$(893)
|
|
$
5,926
|
|
|
$
6,626
|
|
$(796)
|
|
$
5,830
|
|
3%
|
2%
|
4%
|
3%
|
|
|
Cloud software as a
service (4)
|
|
355
|
|
(6)
|
|
349
|
|
|
272
|
|
(4)
|
|
268
|
|
31%
|
30%
|
32%
|
32%
|
|
|
Cloud platform as a
service and infrastructure as a service (4)
|
|
214
|
|
(2)
|
|
212
|
|
|
131
|
|
(1)
|
|
130
|
|
64%
|
64%
|
65%
|
65%
|
|
|
Sales and marketing
(3)
|
|
2,313
|
|
(62)
|
|
2,251
|
|
|
2,306
|
|
(57)
|
|
2,249
|
|
0%
|
0%
|
1%
|
1%
|
|
|
Stock-based
compensation (4)
|
|
246
|
|
(246)
|
|
-
|
|
|
207
|
|
(207)
|
|
-
|
|
19%
|
*
|
19%
|
*
|
|
|
Amortization of
intangible assets (5)
|
|
441
|
|
(441)
|
|
-
|
|
|
355
|
|
(355)
|
|
-
|
|
24%
|
*
|
24%
|
*
|
|
|
Acquisition related
and other
|
|
18
|
|
(18)
|
|
-
|
|
|
7
|
|
(7)
|
|
-
|
|
165%
|
*
|
165%
|
*
|
|
|
Restructuring
|
|
118
|
|
(118)
|
|
-
|
|
|
165
|
|
(165)
|
|
-
|
|
(29%)
|
*
|
(26%)
|
*
|
|
|
CLOUD SOFTWARE AS
A SERVICE MARGIN %
|
|
63%
|
|
|
|
65%
|
|
|
53%
|
|
|
|
54%
|
|
1,040 bp.
|
1,176 bp.
|
1,030 bp.
|
1,164 bp
|
|
|
CLOUD PLATFORM AS
A SERVICE AND INFRASTRUCTURE AS A SERVICE MARGIN %
|
|
46%
|
|
|
|
47%
|
|
|
54%
|
|
|
|
54%
|
|
(783) bp.
|
(698) bp.
|
(738) bp.
|
(656) bp.
|
|
|
OPERATING
INCOME
|
|
$
4,073
|
|
$
943
|
|
$
5,016
|
|
|
$
3,968
|
|
$
798
|
|
$
4,766
|
|
3%
|
5%
|
4%
|
7%
|
|
|
OPERATING MARGIN
%
|
|
37%
|
|
|
|
46%
|
|
|
37%
|
|
|
|
45%
|
|
(7) bp.
|
86 bp.
|
13 bp.
|
98 bp.
|
|
|
INCOME TAX EFFECTS
(6)
|
|
$
529
|
|
$
412
|
|
$
941
|
|
|
$
918
|
|
$
188
|
|
$
1,106
|
|
(42%)
|
(15%)
|
(43%)
|
(14%)
|
|
|
NET
INCOME
|
|
$
3,231
|
|
$
531
|
|
$
3,762
|
|
|
$
2,814
|
|
$
610
|
|
$
3,424
|
|
15%
|
10%
|
17%
|
11%
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
0.76
|
|
|
|
$
0.89
|
|
|
$
0.66
|
|
|
|
$
0.81
|
|
15%
|
10%
|
17%
|
11%
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
|
4,248
|
|
-
|
|
4,248
|
|
|
4,238
|
|
-
|
|
4,238
|
|
0%
|
0%
|
0%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This presentation
includes non-GAAP measures. Our non-GAAP measures are not meant to
be considered in isolation or as a substitute for comparable GAAP
measures, and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP.
For a detailed explanation of the adjustments made to comparable
GAAP measures, the reasons why management uses these measures, the
usefulness of these measures and the material limitations on the
usefulness of these measures, please see Appendix A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Non-GAAP adjustments
to sales and marketing expenses were as follows:
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
(4)
|
|
$
(78)
|
|
$
(57)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired deferred sales
commissions amortization
|
|
16
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP sales and marketing adjustments
|
|
$
(62)
|
|
$
(57)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
May 31,
2017
|
|
|
May 31,
2016
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Software license updates and
product support
|
|
$
6
|
|
$
(6)
|
|
$
-
|
|
|
$
6
|
|
$
(6)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
3
|
|
(3)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
14
|
|
(14)
|
|
-
|
|
|
7
|
|
(7)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
197
|
|
(197)
|
|
-
|
|
|
157
|
|
(157)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
26
|
|
(26)
|
|
-
|
|
|
34
|
|
(34)
|
|
-
|
|
|
|
|
|
|
|
Subtotal
|
|
246
|
|
(246)
|
|
-
|
|
|
207
|
|
(207)
|
|
-
|
|
|
|
|
|
|
|
Cloud software as a
service
|
|
6
|
|
(6)
|
|
-
|
|
|
4
|
|
(4)
|
|
-
|
|
|
|
|
|
|
|
Cloud platform as a service
and infrastructure as a service
|
|
2
|
|
(2)
|
|
-
|
|
|
1
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
78
|
|
(78)
|
|
-
|
|
|
57
|
|
(57)
|
|
-
|
|
|
|
|
|
|
|
Acquisition related and
other
|
|
2
|
|
(2)
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
334
|
|
$
(334)
|
|
$
-
|
|
|
$
269
|
|
$
(269)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Estimated future
annual amortization expense related to intangible assets as of May
31, 2017 was as follows:
|
|
|
Fiscal 2018
|
|
$
1,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2019
|
|
1,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2020
|
|
1,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2021
|
|
1,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
|
947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
1,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible
assets, net
|
|
$
7,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 14.1% and
24.6% in the fourth quarter of fiscal 2017 and 2016, respectively,
and an effective non-GAAP tax rate of 20.0% and 24.4% in the fourth
quarter of fiscal 2017 and 2016, respectively. The difference
between our GAAP and non-GAAP tax rate in the fourth quarter of
fiscal 2017 was primarily due to the net tax effects on stock-based
compensation expense and acquisition related items, including the
tax effects of amortization of intangible assets. The difference
between our GAAP and non-GAAP tax rate in the fourth quarter of
fiscal 2016 was primarily due to the net tax effects of acquisition
related items, including the tax effects of amortization of
intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017 YEAR
TO DATE FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May
31,
|
|
%
Increase
|
|
|
|
%
Increase
|
(Decrease)
|
|
|
|
|
%
of
|
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
2017
|
Revenues
|
2016
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud software as a
service
|
$ 3,211
|
8%
|
$ 2,001
|
5%
|
61%
|
62%
|
|
|
Cloud platform as a
service and infrastructure as a service
|
1,360
|
4%
|
852
|
3%
|
60%
|
62%
|
|
|
Total cloud
revenues
|
4,571
|
12%
|
2,853
|
8%
|
60%
|
62%
|
|
|
New software
licenses
|
6,418
|
17%
|
7,276
|
19%
|
(12%)
|
(11%)
|
|
|
Software license
updates and product support
|
19,229
|
51%
|
18,861
|
51%
|
2%
|
3%
|
|
|
Total on-premise
software revenues
|
25,647
|
68%
|
26,137
|
70%
|
(2%)
|
(1%)
|
|
|
Total cloud and
on-premise software revenues
|
30,218
|
80%
|
28,990
|
78%
|
4%
|
5%
|
|
|
Hardware
revenues
|
4,152
|
11%
|
4,668
|
13%
|
(11%)
|
(10%)
|
|
|
Services
revenues
|
3,358
|
9%
|
3,389
|
9%
|
(1%)
|
1%
|
|
|
Total
revenues
|
37,728
|
100%
|
37,047
|
100%
|
2%
|
3%
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud software as a
service
|
1,285
|
4%
|
1,049
|
3%
|
22%
|
24%
|
|
|
Cloud platform as a
service and infrastructure as a service
|
678
|
2%
|
469
|
1%
|
45%
|
46%
|
|
|
Software license
updates and product support
|
1,052
|
3%
|
1,146
|
3%
|
(8%)
|
(7%)
|
|
|
Hardware
|
1,653
|
4%
|
2,064
|
6%
|
(20%)
|
(19%)
|
|
|
Services
|
2,801
|
7%
|
2,751
|
8%
|
2%
|
3%
|
|
|
Sales and
marketing
|
8,197
|
22%
|
7,884
|
21%
|
4%
|
5%
|
|
|
Research and
development
|
6,159
|
16%
|
5,787
|
16%
|
6%
|
7%
|
|
|
General and
administrative
|
1,176
|
3%
|
1,155
|
3%
|
2%
|
3%
|
|
|
Amortization of
intangible assets
|
1,451
|
4%
|
1,638
|
4%
|
(11%)
|
(11%)
|
|
|
Acquisition related
and other
|
103
|
0%
|
42
|
0%
|
145%
|
147%
|
|
|
Restructuring
|
463
|
1%
|
458
|
1%
|
1%
|
4%
|
|
|
Total operating
expenses
|
25,018
|
66%
|
24,443
|
66%
|
2%
|
3%
|
|
|
OPERATING
INCOME
|
12,710
|
34%
|
12,604
|
34%
|
1%
|
2%
|
|
|
Interest
expense
|
(1,798)
|
(5%)
|
(1,467)
|
(4%)
|
23%
|
23%
|
|
|
Non-operating income,
net
|
605
|
2%
|
305
|
1%
|
98%
|
96%
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
11,517
|
31%
|
11,442
|
31%
|
1%
|
2%
|
|
|
Provision for income
taxes
|
2,182
|
6%
|
2,541
|
7%
|
(14%)
|
(15%)
|
|
|
NET
INCOME
|
$ 9,335
|
25%
|
$ 8,901
|
24%
|
5%
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
2.27
|
|
$
2.11
|
|
|
|
|
|
Diluted
|
$
2.21
|
|
$
2.07
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
4,115
|
|
4,221
|
|
|
|
|
|
Diluted
|
4,217
|
|
4,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods. Movements in international
currencies relative to the United States dollar during the year
ended May 31, 2017 compared with the corresponding prior year
period decreased our revenues by 1 percentage point, operating
expenses by 1 percentage point and operating income by 1 percentage
point.
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
FISCAL 2017 YEAR
TO DATE FINANCIAL RESULTS
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(1)
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May
31,
|
|
% Increase
(Decrease)
in US $
|
% Increase
(Decrease) in
Constant Currency (2)
|
|
|
|
2017
|
|
|
|
2017
|
|
|
2016
|
|
|
|
2016
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$37,728
|
|
$
171
|
|
$
37,899
|
|
|
$37,047
|
|
$
10
|
|
$
37,057
|
|
2%
|
2%
|
3%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CLOUD AND
ON-PREMISE SOFTWARE REVENUES
|
|
$30,218
|
|
$
171
|
|
$
30,389
|
|
|
$28,990
|
|
$
9
|
|
$
28,999
|
|
4%
|
5%
|
5%
|
6%
|
|
|
TOTAL CLOUD
REVENUES
|
|
4,571
|
|
170
|
|
4,741
|
|
|
2,853
|
|
7
|
|
2,860
|
|
60%
|
66%
|
62%
|
68%
|
|
|
Cloud software as a
service
|
|
3,211
|
|
164
|
|
3,375
|
|
|
2,001
|
|
7
|
|
2,008
|
|
61%
|
68%
|
62%
|
70%
|
|
|
Cloud platform as a
service and infrastructure as a service
|
|
1,360
|
|
6
|
|
1,366
|
|
|
852
|
|
-
|
|
852
|
|
60%
|
60%
|
62%
|
63%
|
|
|
New software
licenses
|
|
6,418
|
|
-
|
|
6,418
|
|
|
7,276
|
|
-
|
|
7,276
|
|
(12%)
|
(12%)
|
(11%)
|
(11%)
|
|
|
Software license
updates and product support
|
|
19,229
|
|
1
|
|
19,230
|
|
|
18,861
|
|
2
|
|
18,863
|
|
2%
|
2%
|
3%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL HARDWARE
REVENUES
|
|
$
4,152
|
|
$
-
|
|
$
4,152
|
|
|
$
4,668
|
|
$
1
|
|
$
4,669
|
|
(11%)
|
(11%)
|
(10%)
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$25,018
|
|
$ (3,286)
|
|
$
21,732
|
|
|
$24,443
|
|
$(3,172)
|
|
$
21,271
|
|
2%
|
2%
|
3%
|
3%
|
|
|
Cloud software as a
service (4)
|
|
1,285
|
|
(23)
|
|
1,262
|
|
|
1,049
|
|
(17)
|
|
1,032
|
|
22%
|
22%
|
24%
|
24%
|
|
|
Cloud platform as a
service and infrastructure as a service (4)
|
|
678
|
|
(5)
|
|
673
|
|
|
469
|
|
(4)
|
|
465
|
|
45%
|
45%
|
46%
|
47%
|
|
|
Sales and marketing
(3)
|
|
8,197
|
|
(260)
|
|
7,937
|
|
|
7,884
|
|
(220)
|
|
7,664
|
|
4%
|
4%
|
5%
|
4%
|
|
|
Stock-based
compensation (4)
|
|
981
|
|
(981)
|
|
-
|
|
|
793
|
|
(793)
|
|
-
|
|
24%
|
*
|
24%
|
*
|
|
|
Amortization of
intangible assets (5)
|
|
1,451
|
|
(1,451)
|
|
-
|
|
|
1,638
|
|
(1,638)
|
|
-
|
|
(11%)
|
*
|
(11%)
|
*
|
|
|
Acquisition related
and other
|
|
103
|
|
(103)
|
|
-
|
|
|
42
|
|
(42)
|
|
-
|
|
145%
|
*
|
147%
|
*
|
|
|
Restructuring
|
|
463
|
|
(463)
|
|
-
|
|
|
458
|
|
(458)
|
|
-
|
|
1%
|
*
|
4%
|
*
|
|
|
CLOUD SOFTWARE AS
A SERVICE MARGIN %
|
|
60%
|
|
|
|
63%
|
|
|
48%
|
|
|
|
49%
|
|
1,247 bp.
|
1,407 bp.
|
1,223 bp.
|
1,382 bp.
|
|
|
CLOUD PLATFORM AS
A SERVICE AND INFRASTRUCTURE AS A SERVICE MARGIN %
|
|
50%
|
|
|
|
51%
|
|
|
45%
|
|
|
|
46%
|
|
504 bp.
|
513 bp.
|
542 bp.
|
550 bp.
|
|
|
OPERATING
INCOME
|
|
$12,710
|
|
$
3,457
|
|
$
16,167
|
|
|
$12,604
|
|
$
3,182
|
|
$
15,786
|
|
1%
|
2%
|
2%
|
3%
|
|
|
OPERATING MARGIN
%
|
|
34%
|
|
|
|
43%
|
|
|
34%
|
|
|
|
43%
|
|
(33) bp.
|
6 bp.
|
(29) bp.
|
5 bp.
|
|
|
INCOME TAX EFFECTS
(6)
|
|
$
2,182
|
|
$
1,233
|
|
$
3,415
|
|
|
$
2,541
|
|
$
846
|
|
$
3,387
|
|
(14%)
|
1%
|
(15%)
|
2%
|
|
|
NET
INCOME
|
|
$
9,335
|
|
$
2,224
|
|
$
11,559
|
|
|
$
8,901
|
|
$
2,336
|
|
$
11,237
|
|
5%
|
3%
|
6%
|
4%
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
2.21
|
|
|
|
$
2.74
|
|
|
$
2.07
|
|
|
|
$
2.61
|
|
7%
|
5%
|
9%
|
6%
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
|
4,217
|
|
-
|
|
4,217
|
|
|
4,305
|
|
-
|
|
4,305
|
|
(2%)
|
(2%)
|
(2%)
|
(2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This presentation
includes non-GAAP measures. Our non-GAAP measures are not meant to
be considered in isolation or as a substitute for comparable GAAP
measures, and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP.
For a detailed explanation of the adjustments made to
comparable GAAP measures, the reasons why management uses
these measures, the usefulness of these measures and the
material limitations on the usefulness of these measures,
please see Appendix A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Non-GAAP adjustments
to sales and marketing expenses were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
(4)
|
|
$
(306)
|
|
$
(220)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired deferred sales
commissions amortization
|
|
46
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP sales and marketing adjustments
|
|
$
(260)
|
|
$
(220)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
May 31,
2017
|
|
|
May 31,
2016
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Software license updates and
product support
|
|
$
26
|
|
$
(26)
|
|
$
-
|
|
|
$
23
|
|
$
(23)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
11
|
|
(11)
|
|
-
|
|
|
12
|
|
(12)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
44
|
|
(44)
|
|
-
|
|
|
29
|
|
(29)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
770
|
|
(770)
|
|
-
|
|
|
609
|
|
(609)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
130
|
|
(130)
|
|
-
|
|
|
120
|
|
(120)
|
|
-
|
|
|
|
|
|
|
|
Subtotal
|
|
981
|
|
(981)
|
|
-
|
|
|
793
|
|
(793)
|
|
-
|
|
|
|
|
|
|
|
Cloud software as a
service
|
|
23
|
|
(23)
|
|
-
|
|
|
17
|
|
(17)
|
|
-
|
|
|
|
|
|
|
|
Cloud platform as a service
and infrastructure as a service
|
|
5
|
|
(5)
|
|
-
|
|
|
4
|
|
(4)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
306
|
|
(306)
|
|
-
|
|
|
220
|
|
(220)
|
|
-
|
|
|
|
|
|
|
|
Acquisition related and
other
|
|
35
|
|
(35)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
1,350
|
|
$
(1,350)
|
|
$
-
|
|
|
$
1,037
|
|
$
(1,037)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Estimated future
annual amortization expense related to intangible assets as of May
31, 2017 was as follows:
|
|
|
Fiscal 2018
|
|
$
1,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2019
|
|
1,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2020
|
|
1,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2021
|
|
1,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
|
947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
1,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible
assets, net
|
|
$
7,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 18.9% and
22.2% in fiscal 2017 and 2016, respectively, and an effective
non-GAAP tax rate of 22.8% and 23.2% in fiscal 2017 and 2016,
respectively. The difference between our GAAP and non-GAAP tax rate
in fiscal 2017 was primarily due to the net tax effects on
stock-based compensation expense and acquisition related items,
including the tax effects of amortization of intangible
assets. The difference between our GAAP and non-GAAP tax rate
in fiscal 2016 was primarily due to the net tax effects of
acquisition related items, including the tax effects of
amortization of intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017
FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
May
31,
|
May
31,
|
|
|
|
2017
|
2016
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
21,784
|
|
$
20,152
|
|
|
Marketable
securities
|
44,294
|
|
35,973
|
|
|
Trade receivables,
net
|
5,300
|
|
5,385
|
|
|
Inventories
|
300
|
|
212
|
|
|
Prepaid expenses and
other current assets
|
2,837
|
|
2,591
|
|
|
|
Total Current
Assets
|
74,515
|
|
64,313
|
|
|
Non-Current
Assets:
|
|
|
|
|
|
Property, plant and equipment, net
|
5,315
|
|
4,000
|
|
|
Intangible assets, net
|
7,679
|
|
4,943
|
|
|
Goodwill, net
|
43,045
|
|
34,590
|
|
|
Deferred
tax assets
|
1,143
|
|
1,291
|
|
|
Other
assets
|
3,294
|
|
3,043
|
|
|
|
Total Non-Current
Assets
|
60,476
|
|
47,867
|
|
|
TOTAL
ASSETS
|
$134,991
|
|
$112,180
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, current
|
$
9,797
|
|
$
3,750
|
|
|
Accounts
payable
|
599
|
|
504
|
|
|
Accrued compensation
and related benefits
|
1,966
|
|
1,966
|
|
|
Deferred
revenues
|
8,233
|
|
7,655
|
|
|
Other current
liabilities
|
3,583
|
|
3,333
|
|
|
|
Total Current
Liabilities
|
24,178
|
|
17,208
|
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, non-current
|
48,112
|
|
40,105
|
|
|
Income taxes
payable
|
5,681
|
|
4,908
|
|
|
Other non-current
liabilities
|
2,774
|
|
2,169
|
|
|
|
Total Non-Current
Liabilities
|
56,567
|
|
47,182
|
|
|
Equity
|
54,246
|
|
47,790
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$134,991
|
|
$112,180
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017
FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Year Ended May
31,
|
|
|
2017
|
2016
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
Net income
|
$
9,335
|
|
$
8,901
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
1,000
|
|
871
|
|
|
Amortization of
intangible assets
|
1,451
|
|
1,638
|
|
|
Deferred income
taxes
|
(486)
|
|
(105)
|
|
|
Stock-based
compensation
|
1,350
|
|
1,037
|
|
|
Tax benefits on the
vesting of restricted stock-based awards and exercise of stock
options
|
614
|
|
311
|
|
|
Other, net
|
123
|
|
143
|
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
Decrease in trade
receivables, net
|
147
|
|
226
|
|
|
(Increase) decrease
in inventories
|
(88)
|
|
88
|
|
|
Decrease (increase)
in prepaid expenses and other assets
|
64
|
|
(90)
|
|
|
Decrease in accounts
payable and other liabilities
|
(37)
|
|
(13)
|
|
|
Increase in income
taxes payable
|
118
|
|
2
|
|
|
Increase in deferred
revenues
|
535
|
|
676
|
|
|
Net cash provided
by operating activities
|
14,126
|
|
13,685
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(25,867)
|
|
(24,562)
|
|
|
Proceeds from
maturities and sales of marketable securities and other
investments
|
17,615
|
|
21,247
|
|
|
Acquisitions, net of
cash acquired
|
(11,221)
|
|
(650)
|
|
|
Capital
expenditures
|
(2,021)
|
|
(1,189)
|
|
|
Net cash used for
investing activities
|
(21,494)
|
|
(5,154)
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
Payments for
repurchases of common stock
|
(3,561)
|
|
(10,440)
|
|
|
Proceeds from
issuances of common stock
|
2,181
|
|
1,425
|
|
|
Shares repurchased
for tax withholdings upon vesting of restricted stock-based
awards
|
(283)
|
|
(89)
|
|
|
Payments of dividends
to stockholders
|
(2,631)
|
|
(2,541)
|
|
|
Proceeds from
borrowings, net of issuance costs
|
17,732
|
|
3,750
|
|
|
Repayments of
borrowings
|
(4,094)
|
|
(2,000)
|
|
|
Distributions to
noncontrolling interests
|
(258)
|
|
(85)
|
|
|
Net cash provided
by (used for) financing activities
|
9,086
|
|
(9,980)
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(86)
|
|
(115)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
1,632
|
|
(1,564)
|
|
|
Cash and cash
equivalents at beginning of period
|
20,152
|
|
21,716
|
|
|
Cash and cash
equivalents at end of period
|
$21,784
|
|
$20,152
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017
FINANCIAL RESULTS
|
|
FREE CASH
FLOW - TRAILING 4-QUARTERS (1)
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2016
|
Fiscal
2017
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Cash Flow
|
$13,682
|
$13,113
|
$14,252
|
$13,685
|
$13,679
|
$14,249
|
$13,453
|
$14,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(1,636)
|
(1,606)
|
(1,606)
|
(1,189)
|
(1,042)
|
(1,604)
|
(1,676)
|
(2,021)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$12,046
|
$11,507
|
$12,646
|
$12,496
|
$12,637
|
$12,645
|
$11,777
|
$12,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth over
prior year
|
(20%)
|
(22%)
|
(8%)
|
(5%)
|
5%
|
10%
|
(7%)
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
9,501
|
$
9,198
|
$
8,844
|
$
8,901
|
$
8,986
|
$
8,820
|
$
8,917
|
$
9,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as
a % of Net Income
|
127%
|
125%
|
143%
|
140%
|
141%
|
143%
|
132%
|
130%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
To supplement our
statements of cash flows presented on a GAAP basis, we use non-GAAP
measures of cash flows on a trailing 4-quarter basis to analyze
cash flow generated from operations. We believe free cash flow is
also useful as one of the bases for comparing our performance with
our competitors. The presentation of non-GAAP free cash flow is not
meant to be considered in isolation or as an alternative to net
income as an indicator of our performance, or as an alternative to
cash flows from operating activities as a measure of
liquidity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017
FINANCIAL RESULTS
|
|
SUPPLEMENTAL
ANALYSIS OF GAAP REVENUES (1)
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2016
|
|
|
|
|
Fiscal
2017
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud software
as a service
|
$
438
|
$
462
|
$
526
|
$
576
|
$
2,001
|
$
657
|
$
725
|
$
865
|
$
964
|
$
3,211
|
|
|
Cloud platform
as a service and infrastrucure as a service
|
173
|
187
|
209
|
283
|
852
|
312
|
328
|
324
|
397
|
1,360
|
|
|
|
Total cloud
revenues
|
611
|
649
|
735
|
859
|
2,853
|
969
|
1,053
|
1,189
|
1,361
|
4,571
|
|
|
New software
licenses
|
1,151
|
1,677
|
1,680
|
2,766
|
7,276
|
1,030
|
1,347
|
1,414
|
2,626
|
6,418
|
|
|
Software
license updates and product support
|
4,696
|
4,683
|
4,669
|
4,814
|
18,861
|
4,792
|
4,777
|
4,762
|
4,897
|
19,229
|
|
|
|
Total on-premise
software revenues
|
5,847
|
6,360
|
6,349
|
7,580
|
26,137
|
5,822
|
6,124
|
6,176
|
7,523
|
25,647
|
|
|
|
Total cloud and
on-premise software revenues
|
6,458
|
7,009
|
7,084
|
8,439
|
28,990
|
6,791
|
7,177
|
7,365
|
8,884
|
30,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total hardware
revenues
|
1,128
|
1,123
|
1,135
|
1,283
|
4,668
|
996
|
1,014
|
1,028
|
1,114
|
4,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total services
revenues
|
862
|
861
|
793
|
872
|
3,389
|
808
|
844
|
812
|
894
|
3,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$8,448
|
$8,993
|
$
9,012
|
$10,594
|
$37,047
|
$8,595
|
$9,035
|
$
9,205
|
$10,892
|
$37,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud software
as a service
|
30%
|
28%
|
42%
|
40%
|
36%
|
50%
|
57%
|
64%
|
67%
|
61%
|
|
|
Cloud platform
as a service and infrastrucure as a service
|
25%
|
20%
|
33%
|
71%
|
38%
|
80%
|
75%
|
55%
|
40%
|
60%
|
|
|
|
Total cloud
revenues
|
29%
|
26%
|
40%
|
49%
|
36%
|
59%
|
62%
|
62%
|
58%
|
60%
|
|
|
New software
licenses
|
(16%)
|
(18%)
|
(15%)
|
(12%)
|
(15%)
|
(11%)
|
(20%)
|
(16%)
|
(5%)
|
(12%)
|
|
|
Software
license updates and product support
|
(1%)
|
(2%)
|
0%
|
3%
|
0%
|
2%
|
2%
|
2%
|
2%
|
2%
|
|
|
|
Total on-premise
software revenues
|
(4%)
|
(7%)
|
(4%)
|
(3%)
|
(5%)
|
0%
|
(4%)
|
(3%)
|
(1%)
|
(2%)
|
|
|
|
Total cloud and
on-premise software revenues
|
(2%)
|
(4%)
|
(1%)
|
0%
|
(2%)
|
5%
|
2%
|
4%
|
5%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total hardware
revenues
|
(3%)
|
(16%)
|
(13%)
|
(9%)
|
(10%)
|
(12%)
|
(10%)
|
(9%)
|
(13%)
|
(11%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total services
revenues
|
1%
|
(8%)
|
(7%)
|
(3%)
|
(4%)
|
(6%)
|
(2%)
|
2%
|
3%
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
(2%)
|
(6%)
|
(3%)
|
(1%)
|
(3%)
|
2%
|
0%
|
2%
|
3%
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud software
as a service
|
34%
|
32%
|
45%
|
41%
|
38%
|
52%
|
59%
|
65%
|
69%
|
62%
|
|
|
Cloud platform
as a service and infrastrucure as a service
|
32%
|
26%
|
38%
|
74%
|
44%
|
84%
|
78%
|
57%
|
42%
|
62%
|
|
|
|
Total cloud
revenues
|
34%
|
31%
|
44%
|
51%
|
40%
|
61%
|
64%
|
63%
|
60%
|
62%
|
|
|
New software
licenses
|
(9%)
|
(12%)
|
(11%)
|
(10%)
|
(11%)
|
(10%)
|
(19%)
|
(15%)
|
(4%)
|
(11%)
|
|
|
Software
license updates and product support
|
8%
|
5%
|
5%
|
4%
|
5%
|
3%
|
3%
|
3%
|
3%
|
3%
|
|
|
|
Total on-premise
software revenues
|
4%
|
0%
|
0%
|
(2%)
|
0%
|
1%
|
(3%)
|
(2%)
|
0%
|
(1%)
|
|
|
|
Total cloud and
on-premise software revenues
|
6%
|
2%
|
3%
|
2%
|
3%
|
6%
|
3%
|
5%
|
6%
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total hardware
revenues
|
6%
|
(10%)
|
(8%)
|
(7%)
|
(5%)
|
(11%)
|
(9%)
|
(9%)
|
(12%)
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total services
revenues
|
10%
|
0%
|
(2%)
|
(1%)
|
2%
|
(5%)
|
0%
|
3%
|
4%
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
7%
|
0%
|
1%
|
0%
|
2%
|
3%
|
1%
|
3%
|
4%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The sum of the
quarterly information presented may vary from the year-to-date
information presented due to rounding.
|
|
|
|
|
|
|
(2)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016 and 2015 for the
fiscal 2017 and fiscal 2016 constant currency growth rate
calculations presented, respectively, rather than the actual
exchange rates in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017
FINANCIAL RESULTS
|
|
SUPPLEMENTAL
GEOGRAPHIC REVENUES ANALYSIS (1)
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2016
|
Fiscal
2017
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAS
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
$3,684
|
$3,927
|
$3,964
|
$4,771
|
$16,346
|
$3,876
|
$4,000
|
$ 4,280
|
$5,076
|
$17,231
|
|
|
Total hardware
revenues
|
$
589
|
$
595
|
$
571
|
$
650
|
$
2,404
|
$
526
|
$
510
|
$
511
|
$
542
|
$
2,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
2%
|
(3%)
|
(1%)
|
(3%)
|
(2%)
|
5%
|
2%
|
8%
|
6%
|
5%
|
|
|
Total hardware
revenues
|
1%
|
(17%)
|
(17%)
|
(14%)
|
(12%)
|
(11%)
|
(14%)
|
(11%)
|
(17%)
|
(13%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
6%
|
0%
|
1%
|
(2%)
|
1%
|
6%
|
2%
|
7%
|
6%
|
5%
|
|
|
Total hardware
revenues
|
6%
|
(14%)
|
(13%)
|
(11%)
|
(9%)
|
(10%)
|
(14%)
|
(11%)
|
(17%)
|
(13%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUROPE / MIDDLE
EAST / AFRICA
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
$1,873
|
$2,066
|
$2,069
|
$2,462
|
$
8,471
|
$1,903
|
$2,008
|
$ 2,019
|
$2,489
|
$
8,419
|
|
|
Total hardware
revenues
|
$
330
|
$
316
|
$
349
|
$
382
|
$
1,377
|
$
275
|
$
294
|
$
300
|
$
352
|
$
1,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
(6%)
|
(8%)
|
(5%)
|
4%
|
(3%)
|
2%
|
(3%)
|
(2%)
|
1%
|
(1%)
|
|
|
Total hardware
revenues
|
(2%)
|
(17%)
|
(8%)
|
(10%)
|
(9%)
|
(17%)
|
(7%)
|
(14%)
|
(8%)
|
(11%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
7%
|
3%
|
2%
|
5%
|
4%
|
7%
|
2%
|
2%
|
5%
|
4%
|
|
|
Total hardware
revenues
|
14%
|
(6%)
|
(1%)
|
(8%)
|
(1%)
|
(13%)
|
(2%)
|
(10%)
|
(4%)
|
(7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIA
PACIFIC
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
$
901
|
$1,016
|
$1,051
|
$1,206
|
$
4,173
|
$1,012
|
$1,169
|
$ 1,066
|
$1,319
|
$
4,568
|
|
|
Total hardware
revenues
|
$
209
|
$
212
|
$
215
|
$
251
|
$
887
|
$
195
|
$
210
|
$
217
|
$
220
|
$
842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
(7%)
|
(3%)
|
7%
|
9%
|
2%
|
12%
|
15%
|
2%
|
9%
|
9%
|
|
|
Total hardware
revenues
|
(14%)
|
(11%)
|
(8%)
|
8%
|
(7%)
|
(7%)
|
(1%)
|
1%
|
(12%)
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
7%
|
6%
|
13%
|
11%
|
9%
|
8%
|
11%
|
0%
|
9%
|
7%
|
|
|
Total hardware
revenues
|
(3%)
|
(3%)
|
(3%)
|
9%
|
0%
|
(9%)
|
(3%)
|
0%
|
(12%)
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
$6,458
|
$7,009
|
$7,084
|
$8,439
|
$28,990
|
$6,791
|
$7,177
|
$ 7,365
|
$8,884
|
$30,218
|
|
|
Total hardware
revenues
|
$1,128
|
$1,123
|
$1,135
|
$1,283
|
$
4,668
|
$
996
|
$1,014
|
$ 1,028
|
$1,114
|
$
4,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
(2%)
|
(4%)
|
(1%)
|
0%
|
(2%)
|
5%
|
2%
|
4%
|
5%
|
4%
|
|
|
Total hardware
revenues
|
(3%)
|
(16%)
|
(13%)
|
(9%)
|
(10%)
|
(12%)
|
(10%)
|
(9%)
|
(13%)
|
(11%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cloud and
on-premise software revenues
|
6%
|
2%
|
3%
|
2%
|
3%
|
6%
|
3%
|
5%
|
6%
|
5%
|
|
|
Total hardware
revenues
|
6%
|
(10%)
|
(8%)
|
(7%)
|
(5%)
|
(11%)
|
(9%)
|
(9%)
|
(12%)
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The sum of the
quarterly information presented may vary from the year-to-date
information presented due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016 and 2015 for the
fiscal 2017 and fiscal 2016 constant currency growth rate
calculations presented, respectively, rather than the actual
exchange rates in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017
FINANCIAL RESULTS
|
|
SUPPLEMENTAL
TOTAL CLOUD AND ON-PREMISE SOFTWARE REVENUES ANALYSIS
(1)
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2016
|
Fiscal
2017
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPLICATIONS
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud software
as a service
|
$
438
|
$
462
|
$
526
|
$
576
|
$
2,001
|
$
657
|
$
725
|
$
865
|
$
964
|
$
3,211
|
|
|
On-premise
software revenues
|
1,668
|
1,799
|
1,775
|
2,102
|
7,345
|
1,584
|
1,610
|
1,632
|
1,898
|
6,724
|
|
|
Total cloud and on-premise software revenues
|
$2,106
|
$2,261
|
$
2,301
|
$2,678
|
$
9,346
|
$2,241
|
$2,335
|
$
2,497
|
$2,862
|
$
9,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud software
as a service
|
30%
|
28%
|
42%
|
40%
|
36%
|
50%
|
57%
|
64%
|
67%
|
61%
|
|
|
On-premise
software revenues
|
(2%)
|
(6%)
|
(7%)
|
(7%)
|
(5%)
|
(5%)
|
(11%)
|
(8%)
|
(10%)
|
(8%)
|
|
|
Total cloud and on-premise software revenues
|
4%
|
(1%)
|
1%
|
1%
|
1%
|
6%
|
3%
|
9%
|
7%
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud software
as a service
|
34%
|
32%
|
45%
|
41%
|
38%
|
52%
|
59%
|
65%
|
69%
|
62%
|
|
|
On-premise
software revenues
|
4%
|
(1%)
|
(3%)
|
(5%)
|
(2%)
|
(4%)
|
(9%)
|
(7%)
|
(9%)
|
(7%)
|
|
|
Total cloud and on-premise software revenues
|
9%
|
5%
|
5%
|
2%
|
5%
|
8%
|
5%
|
9%
|
8%
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLATFORM AND
INFRASTRUCTURE REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud platform
as a service and infrastructure as a service
|
$
173
|
$
187
|
$
209
|
$
283
|
$
852
|
$
312
|
$
328
|
$
324
|
$
397
|
$
1,360
|
|
|
On-premise
software revenues
|
4,179
|
4,561
|
4,574
|
5,478
|
18,792
|
4,238
|
4,514
|
4,544
|
5,625
|
18,923
|
|
|
Total cloud and on-premise software revenues
|
$4,352
|
$4,748
|
$
4,783
|
$5,761
|
$19,644
|
$4,550
|
$4,842
|
$
4,868
|
$6,022
|
$20,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud platform
as a service and infrastructure as a service
|
25%
|
20%
|
33%
|
71%
|
38%
|
80%
|
75%
|
55%
|
40%
|
60%
|
|
|
On-premise
software revenues
|
(5%)
|
(7%)
|
(3%)
|
(2%)
|
(4%)
|
1%
|
(1%)
|
(1%)
|
3%
|
1%
|
|
|
Total cloud and on-premise software revenues
|
(4%)
|
(6%)
|
(2%)
|
0%
|
(3%)
|
5%
|
2%
|
2%
|
5%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud platform
as a service and infrastructure as a service
|
32%
|
26%
|
38%
|
74%
|
44%
|
84%
|
78%
|
57%
|
42%
|
62%
|
|
|
On-premise
software revenues
|
3%
|
0%
|
1%
|
(1%)
|
1%
|
2%
|
(1%)
|
0%
|
4%
|
1%
|
|
|
Total cloud and on-premise software revenues
|
4%
|
1%
|
3%
|
2%
|
2%
|
5%
|
2%
|
2%
|
6%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The sum of the
quarterly information presented may vary from the year-to-date
information presented due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016 and 2015 for the
fiscal 2017 and fiscal 2016 constant currency growth rate
calculations presented, respectively, rather than the actual
exchange rates in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX A
ORACLE
CORPORATION
Q4 FISCAL 2017 FINANCIAL
RESULTS
EXPLANATION OF NON-GAAP
MEASURES
To supplement our financial results presented on a GAAP
basis, we use the non-GAAP measures indicated in the tables, which
exclude certain business combination accounting entries and
expenses related to acquisitions, as well as other significant
expenses including stock-based compensation, that we believe are
helpful in understanding our past financial performance and our
future results. Our non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
measures and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP.
Our management regularly uses our supplemental non-GAAP financial
measures internally to understand, manage and evaluate our business
and make operating decisions. These non-GAAP measures are among the
primary factors management uses in planning for and forecasting
future periods. Compensation of our executives is based in part on
the performance of our business based on these non-GAAP measures.
Our non-GAAP financial measures reflect adjustments based on the
following items, as well as the related income tax
effects:
• Cloud software as a service, cloud platform
as a service and infrastructure as a service, software license
updates and product support and hardware deferred
revenues: Business combination accounting rules
require us to account for the fair values of cloud-based service
contracts, software license updates and product support contracts
and hardware support contracts assumed in connection with our
acquisitions. Because these contracts are generally one year in
duration, our GAAP revenues generally for the one year period
subsequent to our acquisition of a business do not reflect the full
amount of revenues on these assumed cloud and support contracts
that would have otherwise been recorded by the acquired entity. The
non-GAAP adjustment to our cloud software as a service revenues,
cloud platform as a service and infrastructure as a service
revenues, software license updates and product support revenues and
hardware support revenues is intended to include, and thus reflect,
the full amount of such revenues. We believe the
adjustment to these revenues is useful to investors as a measure of
the ongoing performance of our business. We have historically
experienced high renewal rates on our software license updates and
product support contracts and our objective is to increase the
renewal rates on acquired and new cloud-based service
contracts and hardware support contracts; however, we cannot
be certain that our customers will renew our cloud-based
contracts, software license updates and product support
contracts or our hardware support
contracts.
• Deferred sales commissions
amortization: Certain acquired companies capitalized
sales commissions associated with subscription agreements and
amortized these amounts over the related contractual terms.
Business combination accounting rules generally require us to
eliminate these capitalized sales commissions balances as of the
acquisition date and our post-combination GAAP sales and marketing
expenses generally do not reflect the amortization of these
deferred sales commissions balances. The non-GAAP adjustment to
increase our sales and marketing expenses is intended to include,
and thus reflect, the full amount of amortization related to such
balances as though the acquired companies operated independently in
the periods presented. We believe this adjustment to
sales and marketing expenses is useful to investors as a measure of
the ongoing performance of our business. The presentation of
this non-GAAP adjustment commenced in the second fiscal quarter of
fiscal 2017 as a result of our acquisition of NetSuite.
Such adjustment was not material in prior
periods.
• Stock-based compensation
expenses: We have excluded the effect of stock-based
compensation expenses from our non-GAAP operating expenses and net
income measures. Although stock-based compensation is a key
incentive offered to our employees, and we believe such
compensation contributed to the revenues earned during the periods
presented and also believe it will contribute to the generation of
future period revenues, we continue to evaluate our
business performance excluding stock-based compensation
expenses. Stock-based compensation expenses will recur
in future periods.
• Amortization of intangible
assets: We have excluded the effect of amortization of
intangible assets from our non-GAAP operating expenses and net
income measures. Amortization of intangible assets is inconsistent
in amount and frequency and is significantly affected by the timing
and size of our acquisitions. Investors should note that the use of
intangible assets contributed to our revenues earned during the
periods presented and will contribute to our future period revenues
as well. Amortization of intangible assets will recur in future
periods.
• Acquisition related and other expenses; and
restructuring expenses: We have excluded the effect of
acquisition related and other expenses and the effect of
restructuring expenses from our non-GAAP operating expenses and net
income measures. We incurred significant expenses in connection
with our acquisitions and also incurred certain other operating
expenses or income, which we generally would not have otherwise
incurred in the periods presented as a part of our continuing
operations. Acquisition related and other expenses consist of
personnel related costs for transitional employees, other acquired
employee related costs, stock-based compensation expenses (in
addition to the stock-based compensation expenses described above),
integration related professional services, certain business
combination adjustments including adjustments after the measurement
period has ended and certain other operating items, net.
Substantially all of the stock-based compensation expenses included
in acquisition related and other expenses resulted from unvested
stock awards assumed in acquisitions whose vesting was fully
accelerated upon termination of the employees pursuant to the
original terms of those stock awards. Restructuring expenses
consist of employee severance and other exit costs. We believe it
is useful for investors to understand the effects of these items on
our total operating expenses. Although acquisition related expenses
and restructuring expenses generally diminish over time with
respect to past acquisitions, we generally will incur these
expenses in connection with any future acquisitions.
|
Appendix
B
|
|
|
|
ORACLE
CORPORATION
|
|
|
Q4 FISCAL 2017
FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
May 31,
|
|
%
Increase
|
|
|
|
%
Increase
|
(Decrease)
|
|
|
|
|
%
of
|
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
2017
|
Revenues
|
2016
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud software as a
service and platform as a service
|
$ 1,153
|
11%
|
$
690
|
6%
|
67%
|
69%
|
|
|
Cloud infrastructure
as a service
|
208
|
2%
|
169
|
2%
|
23%
|
26%
|
|
|
Total cloud
revenues
|
1,361
|
13%
|
859
|
8%
|
58%
|
60%
|
|
|
New software
licenses
|
2,626
|
24%
|
2,766
|
26%
|
(5%)
|
(4%)
|
|
|
Software license
updates and product support
|
4,897
|
45%
|
4,814
|
46%
|
2%
|
3%
|
|
|
Total on-premise
software revenues
|
7,523
|
69%
|
7,580
|
72%
|
(1%)
|
0%
|
|
|
Total cloud and
on-premise software revenues
|
8,884
|
82%
|
8,439
|
80%
|
5%
|
6%
|
|
|
Hardware
products
|
597
|
5%
|
725
|
7%
|
(18%)
|
(16%)
|
|
|
Hardware
support
|
517
|
5%
|
558
|
5%
|
(7%)
|
(6%)
|
|
|
Total hardware
revenues
|
1,114
|
10%
|
1,283
|
12%
|
(13%)
|
(12%)
|
|
|
Total services
revenues
|
894
|
8%
|
872
|
8%
|
3%
|
4%
|
|
|
Total
revenues
|
10,892
|
100%
|
10,594
|
100%
|
3%
|
4%
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud software as a
service and platform as a service
|
412
|
4%
|
304
|
3%
|
35%
|
36%
|
|
|
Cloud infrastructure
as a service
|
157
|
1%
|
99
|
1%
|
60%
|
59%
|
|
|
Software license
updates and product support
|
266
|
3%
|
268
|
2%
|
(1%)
|
0%
|
|
|
Hardware
products
|
294
|
3%
|
405
|
4%
|
(27%)
|
(26%)
|
|
|
Hardware
support
|
146
|
1%
|
168
|
2%
|
(13%)
|
(12%)
|
|
|
Services
|
728
|
7%
|
692
|
7%
|
5%
|
6%
|
|
|
Sales and
marketing
|
2,313
|
21%
|
2,306
|
22%
|
0%
|
1%
|
|
|
Research and
development
|
1,609
|
15%
|
1,534
|
14%
|
5%
|
5%
|
|
|
General and
administrative
|
317
|
3%
|
323
|
3%
|
(2%)
|
(1%)
|
|
|
Amortization of
intangible assets
|
441
|
4%
|
355
|
3%
|
24%
|
24%
|
|
|
Acquisition related
and other
|
18
|
0%
|
7
|
0%
|
165%
|
165%
|
|
|
Restructuring
|
118
|
1%
|
165
|
2%
|
(29%)
|
(26%)
|
|
|
Total operating
expenses
|
6,819
|
63%
|
6,626
|
63%
|
3%
|
4%
|
|
|
OPERATING
INCOME
|
4,073
|
37%
|
3,968
|
37%
|
3%
|
4%
|
|
|
Interest
expense
|
(481)
|
(4%)
|
(362)
|
(3%)
|
33%
|
33%
|
|
|
Non-operating income,
net
|
168
|
2%
|
126
|
1%
|
34%
|
32%
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
3,760
|
35%
|
3,732
|
35%
|
1%
|
3%
|
|
|
Provision for income
taxes
|
529
|
5%
|
918
|
8%
|
(42%)
|
(43%)
|
|
|
NET
INCOME
|
$ 3,231
|
30%
|
$ 2,814
|
27%
|
15%
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.78
|
|
$
0.68
|
|
|
|
|
|
Diluted
|
$
0.76
|
|
$
0.66
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
4,132
|
|
4,147
|
|
|
|
|
|
Diluted
|
4,248
|
|
4,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods. Movements in international
currencies relative to the United States dollar during the three
months ended May 31, 2017 compared with the corresponding prior
year period decreased our revenues by 1 percentage point, operating
expenses by 1 percentage point and operating income by 1 percentage
point.
|
|
|
|
|
|
Appendix
B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017 YEAR
TO DATE FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May
31,
|
|
%
Increase
|
|
|
|
%
Increase
|
(Decrease)
|
|
|
|
|
%
of
|
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
2017
|
Revenues
|
2016
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud software as a
service and platform as a service
|
$ 3,838
|
10%
|
$ 2,207
|
6%
|
74%
|
75%
|
|
|
Cloud infrastructure
as a service
|
733
|
2%
|
646
|
2%
|
13%
|
16%
|
|
|
Total cloud
revenues
|
4,571
|
12%
|
2,853
|
8%
|
60%
|
62%
|
|
|
New software
licenses
|
6,418
|
17%
|
7,276
|
19%
|
(12%)
|
(11%)
|
|
|
Software license
updates and product support
|
19,229
|
51%
|
18,861
|
51%
|
2%
|
3%
|
|
|
Total on-premise
software revenues
|
25,647
|
68%
|
26,137
|
70%
|
(2%)
|
(1%)
|
|
|
Total cloud and
on-premise software revenues
|
30,218
|
80%
|
28,990
|
78%
|
4%
|
5%
|
|
|
Hardware
products
|
2,075
|
5%
|
2,471
|
7%
|
(16%)
|
(15%)
|
|
|
Hardware
support
|
2,077
|
6%
|
2,197
|
6%
|
(5%)
|
(4%)
|
|
|
Total hardware
revenues
|
4,152
|
11%
|
4,668
|
13%
|
(11%)
|
(10%)
|
|
|
Total services
revenues
|
3,358
|
9%
|
3,389
|
9%
|
(1%)
|
1%
|
|
|
Total
revenues
|
37,728
|
100%
|
37,047
|
100%
|
2%
|
3%
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud software as a
service and platform as a service
|
1,472
|
4%
|
1,152
|
3%
|
28%
|
28%
|
|
|
Cloud infrastructure
as a service
|
491
|
1%
|
366
|
1%
|
34%
|
34%
|
|
|
Software license
updates and product support
|
1,052
|
3%
|
1,146
|
3%
|
(8%)
|
(7%)
|
|
|
Hardware
products
|
1,069
|
3%
|
1,371
|
4%
|
(22%)
|
(21%)
|
|
|
Hardware
support
|
584
|
1%
|
693
|
2%
|
(16%)
|
(15%)
|
|
|
Services
|
2,801
|
7%
|
2,751
|
8%
|
2%
|
3%
|
|
|
Sales and
marketing
|
8,197
|
22%
|
7,884
|
21%
|
4%
|
5%
|
|
|
Research and
development
|
6,159
|
16%
|
5,787
|
16%
|
6%
|
7%
|
|
|
General and
administrative
|
1,176
|
3%
|
1,155
|
3%
|
2%
|
3%
|
|
|
Amortization of
intangible assets
|
1,451
|
4%
|
1,638
|
4%
|
(11%)
|
(11%)
|
|
|
Acquisition related
and other
|
103
|
0%
|
42
|
0%
|
145%
|
147%
|
|
|
Restructuring
|
463
|
1%
|
458
|
1%
|
1%
|
4%
|
|
|
Total operating
expenses
|
25,018
|
66%
|
24,443
|
66%
|
2%
|
3%
|
|
|
OPERATING
INCOME
|
12,710
|
34%
|
12,604
|
34%
|
1%
|
2%
|
|
|
Interest
expense
|
(1,798)
|
(5%)
|
(1,467)
|
(4%)
|
23%
|
23%
|
|
|
Non-operating income,
net
|
605
|
2%
|
305
|
1%
|
98%
|
96%
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
11,517
|
31%
|
11,442
|
31%
|
1%
|
2%
|
|
|
Provision for income
taxes
|
2,182
|
6%
|
2,541
|
7%
|
(14%)
|
(15%)
|
|
|
NET
INCOME
|
$ 9,335
|
25%
|
$ 8,901
|
24%
|
5%
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
2.27
|
|
$
2.11
|
|
|
|
|
|
Diluted
|
$
2.21
|
|
$
2.07
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
4,115
|
|
4,221
|
|
|
|
|
|
Diluted
|
4,217
|
|
4,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We compare the
percent change in the results from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
businesses performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rates in effect on May 31, 2016, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods. Movements in international
currencies relative to the United States dollar during the year
ended May 31, 2017 compared with the corresponding prior year
period decreased our revenues by 1 percentage point, operating
expenses by 1 percentage point and operating income by 1 percentage
point.
|
|
|
|
|
|
Appendix
C
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017
FINANCIAL RESULTS
|
|
SUPPLEMENTAL
QUARTERLY GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(1)
|
|
($ in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2017
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud software as a
service
|
$
657
|
$
725
|
$
865
|
$
964
|
$
3,211
|
|
|
|
Cloud platform as a
service and infrastrucure as a service
|
312
|
328
|
324
|
397
|
1,360
|
|
|
|
Total cloud
revenues
|
969
|
1,053
|
1,189
|
1,361
|
4,571
|
|
|
|
New software
licenses
|
1,030
|
1,347
|
1,414
|
2,626
|
6,418
|
|
|
|
Software license
updates and product support revenues
|
4,792
|
4,777
|
4,762
|
4,897
|
19,229
|
|
|
|
Total on-premise
software revenues
|
5,822
|
6,124
|
6,176
|
7,523
|
25,647
|
|
|
|
Total cloud and
on-premise software revenues
|
6,791
|
7,177
|
7,365
|
8,884
|
30,218
|
|
|
|
Hardware
revenues
|
996
|
1,014
|
1,028
|
1,114
|
4,152
|
|
|
|
Services
revenues
|
808
|
844
|
812
|
894
|
3,358
|
|
|
|
Total
revenues
|
8,595
|
9,035
|
9,205
|
10,892
|
37,728
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud software as a
service
|
283
|
316
|
330
|
355
|
1,285
|
|
|
|
Cloud platform as a
service and infrastrucure as a service
|
132
|
156
|
175
|
214
|
678
|
|
|
|
Software license
updates and product support
|
275
|
242
|
270
|
266
|
1,052
|
|
|
|
Hardware
|
391
|
386
|
437
|
440
|
1,653
|
|
|
|
Services
|
695
|
697
|
680
|
728
|
2,801
|
|
|
|
Sales and
marketing
|
1,919
|
1,960
|
2,004
|
2,313
|
8,197
|
|
|
|
Research and
development
|
1,520
|
1,510
|
1,521
|
1,609
|
6,159
|
|
|
|
General and
administrative
|
315
|
303
|
241
|
317
|
1,176
|
|
|
|
Amortization of
intangible assets
|
311
|
302
|
397
|
441
|
1,451
|
|
|
|
Acquisition related
and other
|
14
|
40
|
30
|
18
|
103
|
|
|
|
Restructuring
|
99
|
86
|
161
|
118
|
463
|
|
|
|
Total operating
expenses
|
5,954
|
5,998
|
6,246
|
6,819
|
25,018
|
|
|
OPERATING
INCOME
|
2,641
|
3,037
|
2,959
|
4,073
|
12,710
|
|
|
|
Interest
expense
|
(416)
|
(451)
|
(450)
|
(481)
|
(1,798)
|
|
|
|
Non-operating income,
net
|
148
|
99
|
189
|
168
|
605
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
2,373
|
2,685
|
2,698
|
3,760
|
11,517
|
|
|
|
Provision for income
taxes
|
541
|
653
|
459
|
529
|
2,182
|
|
|
NET
INCOME
|
$
1,832
|
$
2,032
|
$
2,239
|
$
3,231
|
$
9,335
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.44
|
$
0.50
|
$
0.55
|
$
0.78
|
$
2.27
|
|
|
|
Diluted
|
$
0.43
|
$
0.48
|
$
0.53
|
$
0.76
|
$
2.21
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
4,119
|
4,104
|
4,107
|
4,132
|
4,115
|
|
|
|
Diluted
|
4,221
|
4,195
|
4,204
|
4,248
|
4,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The sum of the
quarterly information presented may vary from the year-to-date
information presented due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
Appendix
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
FISCAL 2017
FINANCIAL RESULTS
|
|
SUPPLEMENTAL
QUARTERLY RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP
MEASURES (1)
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
August 31,
2016
|
|
|
|
August 31,
2016
|
|
|
November 30,
2016
|
|
|
|
November 30,
2016
|
|
|
February 28,
2017
|
|
|
|
February 28,
2017
|
|
|
May 31,
2017
|
|
|
|
May 31,
2017
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
8,595
|
|
$
18
|
|
$
8,613
|
|
|
$
9,035
|
|
$
35
|
|
$
9,070
|
|
|
$
9,205
|
|
$
69
|
|
$
9,274
|
|
|
$10,892
|
|
$
50
|
|
$
10,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CLOUD AND
ON-PREMISE SOFTWARE REVENUES
|
|
$
6,791
|
|
$
18
|
|
$
6,809
|
|
|
$
7,177
|
|
$
35
|
|
$
7,212
|
|
|
$
7,365
|
|
$
69
|
|
$
7,434
|
|
|
$
8,884
|
|
$
50
|
|
$
8,934
|
|
|
Cloud software as a
service
|
|
657
|
|
17
|
|
674
|
|
|
725
|
|
34
|
|
759
|
|
|
865
|
|
69
|
|
934
|
|
|
964
|
|
44
|
|
1,008
|
|
|
Cloud platform as a
service and infrastructure as a service
|
|
312
|
|
-
|
|
312
|
|
|
328
|
|
-
|
|
328
|
|
|
324
|
|
-
|
|
324
|
|
|
397
|
|
6
|
|
403
|
|
|
New software
licenses
|
|
1,030
|
|
-
|
|
1,030
|
|
|
1,347
|
|
-
|
|
1,347
|
|
|
1,414
|
|
-
|
|
1,414
|
|
|
2,626
|
|
-
|
|
2,626
|
|
|
Software license
updates and product support
|
|
4,792
|
|
1
|
|
4,793
|
|
|
4,777
|
|
1
|
|
4,778
|
|
|
4,762
|
|
-
|
|
4,762
|
|
|
4,897
|
|
-
|
|
4,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
5,954
|
|
$
(743)
|
|
$
5,211
|
|
|
$
5,998
|
|
$(735)
|
|
$
5,263
|
|
|
$
6,246
|
|
$(916)
|
|
$
5,330
|
|
|
$
6,819
|
|
$(893)
|
|
$
5,926
|
|
|
Cloud software as a
service (2)
|
|
283
|
|
(5)
|
|
278
|
|
|
316
|
|
(6)
|
|
310
|
|
|
330
|
|
(6)
|
|
324
|
|
|
355
|
|
(6)
|
|
349
|
|
|
Cloud platform as a
service and infrastructure as a service (2)
|
|
132
|
|
(1)
|
|
131
|
|
|
156
|
|
(1)
|
|
155
|
|
|
175
|
|
(1)
|
|
174
|
|
|
214
|
|
(2)
|
|
212
|
|
|
Sales and marketing
(3)
|
|
1,919
|
|
(63)
|
|
1,856
|
|
|
1,960
|
|
(59)
|
|
1,901
|
|
|
2,004
|
|
(75)
|
|
1,929
|
|
|
2,313
|
|
(62)
|
|
2,251
|
|
|
Stock-based
compensation (2)
|
|
250
|
|
(250)
|
|
-
|
|
|
241
|
|
(241)
|
|
-
|
|
|
246
|
|
(246)
|
|
-
|
|
|
246
|
|
(246)
|
|
-
|
|
|
Amortization of
intangible assets
|
|
311
|
|
(311)
|
|
-
|
|
|
302
|
|
(302)
|
|
-
|
|
|
397
|
|
(397)
|
|
-
|
|
|
441
|
|
(441)
|
|
-
|
|
|
Acquisition related
and other
|
|
14
|
|
(14)
|
|
-
|
|
|
40
|
|
(40)
|
|
-
|
|
|
30
|
|
(30)
|
|
-
|
|
|
18
|
|
(18)
|
|
-
|
|
|
Restructuring
|
|
99
|
|
(99)
|
|
-
|
|
|
86
|
|
(86)
|
|
-
|
|
|
161
|
|
(161)
|
|
-
|
|
|
118
|
|
(118)
|
|
-
|
|
|
CLOUD SOFTWARE AS
A SERVICE MARGIN %
|
|
57%
|
|
|
|
59%
|
|
|
56%
|
|
|
|
59%
|
|
|
62%
|
|
|
|
65%
|
|
|
63%
|
|
|
|
65%
|
|
|
CLOUD PLATFORM AS
A SERVICE AND INFRASTRUCTURE AS A SERVICE MARGIN %
|
|
58%
|
|
|
|
58%
|
|
|
52%
|
|
|
|
53%
|
|
|
46%
|
|
|
|
46%
|
|
|
46%
|
|
|
|
47%
|
|
|
OPERATING
INCOME
|
|
$
2,641
|
|
$
761
|
|
$
3,402
|
|
|
$
3,037
|
|
$
770
|
|
$
3,807
|
|
|
$
2,959
|
|
$
985
|
|
$
3,944
|
|
|
$
4,073
|
|
$
943
|
|
$
5,016
|
|
|
OPERATING MARGIN
%
|
|
31%
|
|
|
|
39%
|
|
|
34%
|
|
|
|
42%
|
|
|
32%
|
|
|
|
43%
|
|
|
37%
|
|
|
|
46%
|
|
|
INCOME TAX EFFECTS
(4)
|
|
$
541
|
|
$
258
|
|
$
799
|
|
|
$
653
|
|
$
228
|
|
$
881
|
|
|
$
459
|
|
$
336
|
|
$
795
|
|
|
$
529
|
|
$
412
|
|
$
941
|
|
|
NET
INCOME
|
|
$
1,832
|
|
$
503
|
|
$
2,335
|
|
|
$
2,032
|
|
$
542
|
|
$
2,574
|
|
|
$
2,239
|
|
$
649
|
|
$
2,888
|
|
|
$
3,231
|
|
$
531
|
|
$
3,762
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
0.43
|
|
|
|
$
0.55
|
|
|
$
0.48
|
|
|
|
$
0.61
|
|
|
$
0.53
|
|
|
|
$
0.69
|
|
|
$
0.76
|
|
|
|
$
0.89
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
|
4,221
|
|
-
|
|
4,221
|
|
|
4,195
|
|
-
|
|
4,195
|
|
|
4,204
|
|
-
|
|
4,204
|
|
|
4,248
|
|
-
|
|
4,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This presentation
includes non-GAAP measures. The information is presented for
the quarters of fiscal 2017 in a format that is consistent with the
presentation adopted during Oracle's fourth quarter of fiscal 2017.
Our non-GAAP measures are not meant to be considered in isolation
or as a substitute for comparable GAAP measures, and should be read
only in conjunction with our consolidated financial statements
prepared in accordance with GAAP. For a detailed explanation
of the adjustments made to comparable GAAP measures, the reasons
why management uses these measures, the usefulness of these
measures and the material limitations on the usefulness of
these measures, please see Appendix A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
|
August 31,
2016
|
|
|
November 30,
2016
|
|
|
February 28,
2017
|
|
|
May 31,
2017
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
Software license
updates and product support
|
|
$
6
|
|
$
(6)
|
|
$
-
|
|
|
$
6
|
|
$
(6)
|
|
$
-
|
|
|
$
6
|
|
$
(6)
|
|
$
-
|
|
|
$
6
|
|
$
(6)
|
|
$
-
|
|
|
Hardware
|
|
3
|
|
(3)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
Services
|
|
8
|
|
(8)
|
|
-
|
|
|
9
|
|
(9)
|
|
-
|
|
|
14
|
|
(14)
|
|
-
|
|
|
14
|
|
(14)
|
|
-
|
|
|
Research and
development
|
|
195
|
|
(195)
|
|
-
|
|
|
188
|
|
(188)
|
|
-
|
|
|
191
|
|
(191)
|
|
-
|
|
|
197
|
|
(197)
|
|
-
|
|
|
General and
administrative
|
|
38
|
|
(38)
|
|
-
|
|
|
35
|
|
(35)
|
|
-
|
|
|
32
|
|
(32)
|
|
-
|
|
|
26
|
|
(26)
|
|
-
|
|
|
Subtotal
|
|
250
|
|
(250)
|
|
-
|
|
|
241
|
|
(241)
|
|
-
|
|
|
246
|
|
(246)
|
|
-
|
|
|
246
|
|
(246)
|
|
-
|
|
|
Cloud software as a
service
|
|
5
|
|
(5)
|
|
-
|
|
|
6
|
|
(6)
|
|
-
|
|
|
6
|
|
(6)
|
|
-
|
|
|
6
|
|
(6)
|
|
-
|
|
|
Cloud platform as a
service and infrastructure as a service
|
|
1
|
|
(1)
|
|
-
|
|
|
1
|
|
(1)
|
|
-
|
|
|
1
|
|
(1)
|
|
-
|
|
|
2
|
|
(2)
|
|
-
|
|
|
Sales and
marketing
|
|
63
|
|
(63)
|
|
-
|
|
|
68
|
|
(68)
|
|
-
|
|
|
96
|
|
(96)
|
|
-
|
|
|
78
|
|
(78)
|
|
-
|
|
|
Acquisition related
and other
|
|
-
|
|
-
|
|
-
|
|
|
11
|
|
(11)
|
|
-
|
|
|
22
|
|
(22)
|
|
-
|
|
|
2
|
|
(2)
|
|
-
|
|
|
Total stock-based
compensation
|
|
$
319
|
|
$
(319)
|
|
$
-
|
|
|
$
327
|
|
$
(327)
|
|
$
-
|
|
|
$
371
|
|
$
(371)
|
|
$
-
|
|
|
$
334
|
|
$
(334)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Non-GAAP adjustments
to sales and marketing expenses were as follows:
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
November
30,
|
|
February
28,
|
|
|
May
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2017
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation (2)
|
|
$
(63)
|
|
$
(68)
|
|
$
(96)
|
|
|
$
(78)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired deferred
sales commissions amortization
|
|
-
|
|
9
|
|
21
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP sales
and marketing adjustments
|
|
$
(63)
|
|
$
(59)
|
|
$
(75)
|
|
|
$
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
The differences
between our GAAP and non-GAAP income tax effects in the fiscal 2017
quarterly periods presented were primarily due to the net tax
effects on stock-based compensation expense and acquisition related
items, including the tax effects of amortization of intangible
assets.
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/q4-fy17-gaap-eps-up-15-to-076-and-non-gaap-eps-up-10-to-089-300477808.html
SOURCE Oracle Corporation