REDWOOD SHORES, Calif., Dec. 10,
2020 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today
announced fiscal 2021 Q2 results. Total quarterly revenues were up
2% year-over-year to $9.8 billion.
Cloud services and license support revenues were up 4% to
$7.1 billion. Cloud license and
on-premise license revenues were down 3% to $1.1 billion.
Q2 GAAP operating income was up 13% to $3.6 billion and GAAP operating margin was 37%.
Non-GAAP operating income was up 14% to $4.6
billion and non-GAAP operating margin was 47%. GAAP net
income was up 6% to $2.4 billion, and
non-GAAP net income was up 9% to $3.2
billion. GAAP earnings per share was up 16% to $0.80, while non-GAAP earnings per share was up
19% to $1.06.
Short-term deferred revenues were $8.1
billion. Operating cash flow was $14.0 billion during the trailing twelve
months.
"Our highly profitable multi-billion dollar Fusion and NetSuite
Cloud ERP applications businesses grew revenue 33% and 21%
respectively in Q2," said Oracle CEO, Safra
Catz. "These two strategic cloud applications businesses are
major contributors to Oracle's increased operating earnings and
consistent earnings per share growth. We expect this rapid market
share and revenue growth trend to continue as both Gartner and IDC
rank Oracle's ERP suite number one in the cloud."
"Oracle's Gen2 Cloud Infrastructure is adding customers and
growing revenue at a rate well in excess of 100% per year," said
Oracle Chairman and CTO, Larry
Ellison. "Demand for our Gen2 Cloud Infrastructure is
exceeding our plan and we are opening new datacenters as fast as we
can. Oracle opened 13 additional regional datacenters in 2020
to bring our total to 29 regional datacenters worldwide, more than
AWS."
The board of directors declared a quarterly cash dividend of
$0.24 per share of outstanding common
stock. This dividend will be paid to stockholders of record as of
the close of business on January 7,
2021, with a payment date of January
21, 2021.
Business Innovations
- Oracle increased its already aggressive expansion plan, and now
expects to have 38 Cloud regions live by mid-2021 with the recent
opening of three new commercial cloud regions, one in Dubai, one in the United Kingdom, and one in Chile. Oracle has opened 13 Cloud regions so
far in 2020 and currently operates 29 regions globally – the
fastest expansion by any major cloud provider.
- Oracle announced the next generation of Oracle Exadata Cloud
Service, which helps customers accelerate their most challenging
transaction processing and data analytics projects in 29 global
cloud regions and Dedicated Region Cloud@Customer.
- "Per IDC's latest SaaSPath survey, SaaS ERP customers ranked
Oracle highest in overall satisfaction among SAP, Microsoft, and
Workday." Source: IDC SaaSPath 2020: Vendor Ratings,
Aug 2020.
- An extended list of recent business innovations and
announcements is available at www.oracle.com/news.
Customer Momentum
- Equinix - As the world's digital infrastructure company,
Equinix operates more than 200 data centers serving over 10,000
customers. The company plans to implement Oracle Fusion Cloud ERP,
EPM, and CX to replace Oracle E-Business Suite applications.
Equinix expects to simplify and automate critical finance and
go-to-market processes, eliminating manual data entry and providing
new functionality for their finance teams.
- Howard Hughes Medical Institute (HHMI) - One of the largest
private biomedical research institutions in the US, HHMI is
leveraging Oracle Cloud Infrastructure to shift various
high-performance computing workloads from on-premise to the cloud.
This gives their scientific researchers superior performance and,
with significantly lower data egress charges, provides more
computing value for their investment.
- First Solar - Solar electricity is essential to the world's
energy mix, and First Solar, the leading American company among the
world's largest solar manufacturers, is helping drive the
transition to a sustainable energy future. As part of its efforts
to streamline and transform internal systems, the company is
replacing its multiple, disconnected platforms with Oracle Fusion
Cloud ERP, EPM, SCM, HCM, and CX.
- T-Mobile – As they quickly expand their subscriber base and 5G
network coverage, T-Mobile continues to make customer experience
their top priority. They're investing across all customer
touchpoints, including their roughly 10,000 retail locations in
North America. T-Mobile has chosen
Oracle Retail cloud applications for planning, distribution, and
optimization to help them improve customer satisfaction and their
Net Promoter Score. They also expect the system to help them
add more subscribers by, for example, using the platform's
analytics and embedded artificial intelligence to optimize in-store
product placement during new device launches.
- An extended list of customers which purchased Oracle Cloud
during the quarter will be available at
www.oracle.com/customers/earnings.
Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss
these results at 2:00 p.m. Pacific. A
live and replay webcast will be available on the Oracle Investor
Relations website at www.oracle.com/investor.
About Oracle
The Oracle Cloud offers a complete suite of integrated
applications for Sales, Service, Marketing, Human Resources,
Finance, Supply Chain and Manufacturing, plus Highly-Automated and
Secure Generation 2 Infrastructure featuring the Oracle Autonomous
Database. For more information about Oracle (NYSE:ORCL), visit us
at 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
market share and revenue acceleration, customer momentum, and plans
to open data centers and go live in various Cloud regions by
mid-2021, 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) The COVID-19 pandemic
has affected how we and our customers are operating our respective
businesses, and the duration and extent to which this will impact
our future results of operations and our overall financial
performance remains uncertain. (2) Our success depends upon our
ability to develop new products and services, integrate acquired
products and services and enhance our existing products and
services. (3) Our cloud strategy, including our Oracle Cloud
Software-as-a-Service and Infrastructure-as-a-Service offerings,
may adversely affect our revenues and profitability. (4) We might
experience significant coding, manufacturing or configuration
errors in our cloud, license and hardware offerings. (5) If the
security measures for our products and services are compromised and
as a result, our data, our customers' data or our IT systems are
accessed improperly, made unavailable, or improperly modified, our
products and services may be perceived as vulnerable, our brand and
reputation could be damaged, the IT services we provide to our
customers could be disrupted, and customers may stop using our
products and services, all of which could reduce our revenue and
earnings, increase our expenses and expose us to legal claims and
regulatory actions. (6) Our business practices with respect to data
could give rise to operational interruption, liabilities or
reputational harm as a result of governmental regulation, legal
requirements or industry standards relating to privacy and data
protection. (7) Economic, political 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. (8) If we are unable
to compete effectively, the results of operations and prospects for
our business could be harmed. (9) Our international sales and
operations subject us to additional risks that can adversely affect
our operating results. (10) Acquisitions present many risks and we
may not achieve the financial and strategic goals that were
contemplated at the time of a transaction. 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
December 10, 2020. Oracle undertakes
no duty to update any statement in light of new information or
future events.
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL 2021
FINANCIAL RESULTS
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
November 30,
|
%
Increase
|
%
Increase
(Decrease)
|
|
|
|
|
|
|
|
|
|
%
of
|
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
|
|
2020
|
Revenues
|
2019
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
7,112
|
72%
|
$
6,811
|
71%
|
4%
|
4%
|
|
|
|
|
Cloud license and
on-premise license
|
1,092
|
11%
|
1,126
|
12%
|
(3%)
|
(5%)
|
|
|
|
|
Hardware
|
844
|
9%
|
871
|
9%
|
(3%)
|
(3%)
|
|
|
|
|
Services
|
752
|
8%
|
806
|
8%
|
(7%)
|
(8%)
|
|
|
|
|
Total
revenues
|
9,800
|
100%
|
9,614
|
100%
|
2%
|
1%
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
1,064
|
11%
|
1,022
|
11%
|
4%
|
4%
|
|
|
|
|
Hardware
|
244
|
2%
|
285
|
3%
|
(15%)
|
(15%)
|
|
|
|
|
Services
|
631
|
6%
|
741
|
8%
|
(15%)
|
(16%)
|
|
|
|
|
Sales and
marketing
|
1,836
|
19%
|
2,068
|
22%
|
(11%)
|
(12%)
|
|
|
|
|
Research and
development
|
1,601
|
16%
|
1,531
|
16%
|
5%
|
5%
|
|
|
|
|
General and
administrative
|
324
|
3%
|
323
|
3%
|
0%
|
0%
|
|
|
|
|
Amortization of
intangible assets
|
345
|
4%
|
407
|
4%
|
(15%)
|
(16%)
|
|
|
|
|
Acquisition related
and other
|
76
|
1%
|
12
|
0%
|
514%
|
503%
|
|
|
|
|
Restructuring
|
96
|
1%
|
42
|
0%
|
130%
|
124%
|
|
|
|
|
Total operating
expenses
|
6,217
|
63%
|
6,431
|
67%
|
(3%)
|
(4%)
|
|
|
|
OPERATING
INCOME
|
3,583
|
37%
|
3,183
|
33%
|
13%
|
11%
|
|
|
|
|
Interest
expense
|
(600)
|
(7%)
|
(465)
|
(5%)
|
29%
|
29%
|
|
|
|
|
Non-operating
(expenses) income, net
|
(11)
|
0%
|
92
|
1%
|
*
|
*
|
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
2,972
|
30%
|
2,810
|
29%
|
6%
|
3%
|
|
|
|
|
Provision for income
taxes
|
530
|
5%
|
499
|
5%
|
6%
|
4%
|
|
|
|
NET
INCOME
|
$
2,442
|
25%
|
$
2,311
|
24%
|
6%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.82
|
|
$
0.71
|
|
|
|
|
|
|
|
Diluted
|
$
0.80
|
|
$
0.69
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2,977
|
|
3,245
|
|
|
|
|
|
|
|
Diluted
|
3,046
|
|
3,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2020, 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 November 30, 2020 compared with the corresponding
prior year period increased our revenues by 1 percentage point,
operating expenses by 1 percentage point and operating income by 2
percentage points.
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL 2021
FINANCIAL RESULTS
|
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(1)
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
November 30,
|
|
% Increase
(Decrease)
in US $
|
% Increase
(Decrease) in
Constant Currency (2)
|
|
|
|
|
|
2020
|
|
|
|
2020
|
|
|
2019
|
|
|
|
2019
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
9,800
|
|
$
-
|
|
$
9,800
|
|
|
$
9,614
|
|
$
1
|
|
$
9,615
|
|
2%
|
2%
|
1%
|
1%
|
|
|
|
|
Cloud services and license
support
|
|
7,112
|
|
-
|
|
7,112
|
|
|
6,811
|
|
1
|
|
6,812
|
|
4%
|
4%
|
4%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
6,217
|
|
$
(1,005)
|
|
$
5,212
|
|
|
$
6,431
|
|
$
(858)
|
|
$
5,573
|
|
(3%)
|
(6%)
|
(4%)
|
(7%)
|
|
|
|
|
Stock-based compensation
(3)
|
|
488
|
|
(488)
|
|
-
|
|
|
397
|
|
(397)
|
|
-
|
|
23%
|
*
|
23%
|
*
|
|
|
|
|
Amortization of intangible
assets (4)
|
|
345
|
|
(345)
|
|
-
|
|
|
407
|
|
(407)
|
|
-
|
|
(15%)
|
*
|
(16%)
|
*
|
|
|
|
|
Acquisition related and
other
|
|
76
|
|
(76)
|
|
-
|
|
|
12
|
|
(12)
|
|
-
|
|
514%
|
*
|
503%
|
*
|
|
|
|
|
Restructuring
|
|
96
|
|
(96)
|
|
-
|
|
|
42
|
|
(42)
|
|
-
|
|
130%
|
*
|
124%
|
*
|
|
|
|
OPERATING
INCOME
|
|
$
3,583
|
|
$
1,005
|
|
$
4,588
|
|
|
$
3,183
|
|
$
859
|
|
$
4,042
|
|
13%
|
14%
|
11%
|
12%
|
|
|
|
OPERATING MARGIN
%
|
|
37%
|
|
|
|
47%
|
|
|
33%
|
|
|
|
42%
|
|
346 bp.
|
478 bp.
|
314 bp.
|
452 bp.
|
|
|
|
INCOME TAX EFFECTS
(5)
|
|
$
530
|
|
$
212
|
|
$
742
|
|
|
$
499
|
|
$
189
|
|
$
688
|
|
6%
|
8%
|
4%
|
6%
|
|
|
|
NET
INCOME
|
|
$
2,442
|
|
$
793
|
|
$
3,235
|
|
|
$
2,311
|
|
$
670
|
|
$
2,981
|
|
6%
|
9%
|
3%
|
7%
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
0.80
|
|
|
|
$
1.06
|
|
|
$
0.69
|
|
|
|
$
0.90
|
|
16%
|
19%
|
13%
|
17%
|
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
|
3,046
|
|
-
|
|
3,046
|
|
|
3,331
|
|
-
|
|
3,331
|
|
(9%)
|
(9%)
|
(9%)
|
(9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2020, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
November 30,
2020
|
|
|
November 30,
2019
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
36
|
|
$
(36)
|
|
$
-
|
|
|
$
30
|
|
$
(30)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
Hardware
|
|
3
|
|
(3)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
|
|
Services
|
|
14
|
|
(14)
|
|
-
|
|
|
14
|
|
(14)
|
|
-
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
80
|
|
(80)
|
|
-
|
|
|
37
|
|
(37)
|
|
-
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
314
|
|
(314)
|
|
-
|
|
|
272
|
|
(272)
|
|
-
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
41
|
|
(41)
|
|
-
|
|
|
41
|
|
(41)
|
|
-
|
|
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
488
|
|
$
(488)
|
|
$
-
|
|
|
$
397
|
|
$
(397)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of
November 30, 2020 was as follows:
|
|
|
|
|
Remainder of fiscal
2021
|
|
$
668
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
|
1,106
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
682
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
3,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 17.8% and
17.7% in the second quarter of fiscal 2021 and 2020, respectively,
and an effective non-GAAP tax rate of 18.7% and 18.8% in the second
quarter of fiscal 2021 and 2020, respectively. The differences in
our GAAP and non-GAAP tax rates in the 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.
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL
2021 YEAR TO DATE FINANCIAL RESULTS
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
November 30,
|
%
Increase
|
%
Increase
(Decrease)
|
|
|
|
|
|
|
|
|
|
%
of
|
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
|
|
2020
|
Revenues
|
2019
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
14,059
|
73%
|
$
13,616
|
73%
|
3%
|
3%
|
|
|
|
|
Cloud license and
on-premise license
|
1,978
|
10%
|
1,937
|
10%
|
2%
|
1%
|
|
|
|
|
Hardware
|
1,658
|
9%
|
1,686
|
9%
|
(2%)
|
(2%)
|
|
|
|
|
Services
|
1,472
|
8%
|
1,593
|
8%
|
(8%)
|
(8%)
|
|
|
|
|
Total
revenues
|
19,167
|
100%
|
18,832
|
100%
|
2%
|
1%
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
2,075
|
11%
|
2,003
|
11%
|
4%
|
4%
|
|
|
|
|
Hardware
|
490
|
3%
|
557
|
3%
|
(12%)
|
(12%)
|
|
|
|
|
Services
|
1,254
|
7%
|
1,445
|
8%
|
(13%)
|
(14%)
|
|
|
|
|
Sales and
marketing
|
3,690
|
19%
|
4,086
|
22%
|
(10%)
|
(10%)
|
|
|
|
|
Research and
development
|
3,190
|
17%
|
3,088
|
16%
|
3%
|
4%
|
|
|
|
|
General and
administrative
|
619
|
3%
|
615
|
3%
|
1%
|
1%
|
|
|
|
|
Amortization of
intangible assets
|
690
|
4%
|
821
|
4%
|
(16%)
|
(16%)
|
|
|
|
|
Acquisition related
and other
|
95
|
0%
|
37
|
0%
|
154%
|
155%
|
|
|
|
|
Restructuring
|
270
|
1%
|
120
|
1%
|
125%
|
123%
|
|
|
|
|
Total operating
expenses
|
12,373
|
65%
|
12,772
|
68%
|
(3%)
|
(3%)
|
|
|
|
OPERATING
INCOME
|
6,794
|
35%
|
6,060
|
32%
|
12%
|
11%
|
|
|
|
|
Interest
expense
|
(1,214)
|
(6%)
|
(959)
|
(5%)
|
27%
|
27%
|
|
|
|
|
Non-operating
(expenses) income, net
|
(13)
|
0%
|
191
|
1%
|
*
|
*
|
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
5,567
|
29%
|
5,292
|
28%
|
5%
|
4%
|
|
|
|
|
Provision for income
taxes
|
874
|
5%
|
844
|
4%
|
4%
|
2%
|
|
|
|
NET
INCOME
|
$
4,693
|
24%
|
$
4,448
|
24%
|
6%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.56
|
|
$
1.36
|
|
|
|
|
|
|
|
Diluted
|
$
1.53
|
|
$
1.32
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
3,009
|
|
3,281
|
|
|
|
|
|
|
|
Diluted
|
3,076
|
|
3,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2020, 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 six
months ended November 30, 2020 compared with the corresponding
prior year period increased our revenues by 1 percentage point and
operating income by 1 percentage point.
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL
2021 YEAR TO DATE FINANCIAL RESULTS
|
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(1)
|
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
November 30,
|
|
% Increase
(Decrease)
in US $
|
% Increase
(Decrease) in
Constant Currency (2)
|
|
|
|
|
|
2020
|
|
|
|
2020
|
|
|
2019
|
|
|
|
2019
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
19,167
|
|
$
1
|
|
$
19,168
|
|
|
$
18,832
|
|
$
3
|
|
$
18,835
|
|
2%
|
2%
|
1%
|
1%
|
|
|
Cloud services and license support
|
|
14,059
|
|
1
|
|
14,060
|
|
|
13,616
|
|
3
|
|
13,619
|
|
3%
|
3%
|
3%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
12,373
|
|
$
(1,971)
|
|
$
10,402
|
|
|
$
12,772
|
|
$
(1,821)
|
|
$
10,951
|
|
(3%)
|
(5%)
|
(3%)
|
(5%)
|
|
|
Stock-based compensation (3)
|
|
916
|
|
(916)
|
|
-
|
|
|
843
|
|
(843)
|
|
-
|
|
9%
|
*
|
9%
|
*
|
|
|
Amortization of intangible assets (4)
|
|
690
|
|
(690)
|
|
-
|
|
|
821
|
|
(821)
|
|
-
|
|
(16%)
|
*
|
(16%)
|
*
|
|
|
Acquisition related and other
|
|
95
|
|
(95)
|
|
-
|
|
|
37
|
|
(37)
|
|
-
|
|
154%
|
*
|
155%
|
*
|
|
|
Restructuring
|
|
270
|
|
(270)
|
|
-
|
|
|
120
|
|
(120)
|
|
-
|
|
125%
|
*
|
123%
|
*
|
|
|
OPERATING
INCOME
|
|
$
6,794
|
|
$
1,972
|
|
$
8,766
|
|
|
$
6,060
|
|
$
1,824
|
|
$
7,884
|
|
12%
|
11%
|
11%
|
10%
|
|
|
OPERATING MARGIN
%
|
|
35%
|
|
|
|
46%
|
|
|
32%
|
|
|
|
42%
|
|
327 bp.
|
388 bp.
|
299 bp.
|
361 bp.
|
|
|
INCOME TAX EFFECTS
(5)
|
|
$
874
|
|
$
548
|
|
$
1,422
|
|
|
$
844
|
|
$
528
|
|
$
1,372
|
|
4%
|
4%
|
2%
|
2%
|
|
|
NET
INCOME
|
|
$
4,693
|
|
$
1,424
|
|
$
6,117
|
|
|
$
4,448
|
|
$
1,296
|
|
$
5,744
|
|
6%
|
7%
|
4%
|
5%
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
1.53
|
|
|
|
$
1.99
|
|
|
$
1.32
|
|
|
|
$
1.70
|
|
16%
|
17%
|
14%
|
15%
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
|
3,076
|
|
-
|
|
3,076
|
|
|
3,370
|
|
-
|
|
3,370
|
|
(9%)
|
(9%)
|
(9%)
|
(9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2020, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
November 30,
2020
|
|
|
November 30,
2019
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
66
|
|
$
(66)
|
|
$
-
|
|
|
$
61
|
|
$
(61)
|
|
$
-
|
|
|
|
|
|
|
|
|
Hardware
|
|
6
|
|
(6)
|
|
-
|
|
|
6
|
|
(6)
|
|
-
|
|
|
|
|
|
|
|
|
Services
|
|
26
|
|
(26)
|
|
-
|
|
|
28
|
|
(28)
|
|
-
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
151
|
|
(151)
|
|
-
|
|
|
125
|
|
(125)
|
|
-
|
|
|
|
|
|
|
|
|
Research and
development
|
|
590
|
|
(590)
|
|
-
|
|
|
543
|
|
(543)
|
|
-
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
77
|
|
(77)
|
|
-
|
|
|
80
|
|
(80)
|
|
-
|
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
916
|
|
$
(916)
|
|
$
-
|
|
|
$
843
|
|
$
(843)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of
November 30, 2020 was as follows:
|
|
|
|
Remainder of fiscal
2021
|
|
$
668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
|
1,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
3,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 15.7% and
16.0% in the first half of fiscal 2021 and 2020, respectively, and
an effective non-GAAP tax rate of 18.9% and 19.3% in the first half
of fiscal 2021 and 2020, respectively. The differences in our GAAP
and non-GAAP tax rates in the 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.
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL 2021
FINANCIAL RESULTS
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November
30,
|
May
31,
|
|
|
|
|
|
2020
|
2020
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
28,001
|
|
$
37,239
|
|
|
|
|
Marketable
securities
|
10,592
|
|
5,818
|
|
|
|
|
Trade receivables,
net
|
4,423
|
|
5,551
|
|
|
|
|
Prepaid expenses and
other current assets
|
3,235
|
|
3,532
|
|
|
|
|
|
Total Current
Assets
|
46,251
|
|
52,140
|
|
|
|
Non-Current
Assets:
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
6,627
|
|
6,244
|
|
|
|
|
Intangible assets, net
|
3,061
|
|
3,738
|
|
|
|
|
Goodwill, net
|
43,877
|
|
43,769
|
|
|
|
|
Deferred
tax assets
|
3,401
|
|
3,252
|
|
|
|
|
Other
non-current assets
|
6,797
|
|
6,295
|
|
|
|
|
|
Total Non-Current
Assets
|
63,763
|
|
63,298
|
|
|
|
TOTAL
ASSETS
|
$
110,014
|
|
$
115,438
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Notes payable,
current
|
$
7,251
|
|
$
2,371
|
|
|
|
|
Accounts
payable
|
724
|
|
637
|
|
|
|
|
Accrued compensation
and related benefits
|
1,420
|
|
1,453
|
|
|
|
|
Deferred
revenues
|
8,062
|
|
8,002
|
|
|
|
|
Other current
liabilities
|
3,890
|
|
4,737
|
|
|
|
|
|
Total Current
Liabilities
|
21,347
|
|
17,200
|
|
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
|
|
Notes payable and
other borrowings, non-current
|
63,531
|
|
69,226
|
|
|
|
|
Income taxes
payable
|
12,214
|
|
12,463
|
|
|
|
|
Other non-current
liabilities
|
4,306
|
|
3,832
|
|
|
|
|
|
Total Non-Current
Liabilities
|
80,051
|
|
85,521
|
|
|
|
Equity
|
8,616
|
|
12,717
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
110,014
|
|
$
115,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
Q2 FISCAL 2021
FINANCIAL RESULTS
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
November 30,
|
|
|
|
|
2020
|
2019
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net
income
|
$
4,693
|
|
$
4,448
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation
|
742
|
|
677
|
|
|
|
Amortization of
intangible assets
|
690
|
|
821
|
|
|
|
Deferred income
taxes
|
(43)
|
|
(263)
|
|
|
|
Stock-based
compensation
|
916
|
|
843
|
|
|
|
Other, net
|
184
|
|
117
|
|
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
|
Decrease in trade
receivables, net
|
1,263
|
|
1,079
|
|
|
|
Decrease in prepaid
expenses and other assets
|
545
|
|
638
|
|
|
|
Decrease in accounts
payable and other liabilities
|
(248)
|
|
(916)
|
|
|
|
Decrease in income
taxes payable
|
(1,243)
|
|
(613)
|
|
|
|
Decrease in deferred
revenues
|
(158)
|
|
(318)
|
|
|
|
Net cash provided
by operating activities
|
7,341
|
|
6,513
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(15,578)
|
|
(314)
|
|
|
|
Proceeds from
maturities of marketable securities and other
investments
|
10,776
|
|
2,204
|
|
|
|
Proceeds from sales
of marketable securities
|
3
|
|
12,575
|
|
|
|
Acquisitions, net of
cash acquired
|
-
|
|
(111)
|
|
|
|
Capital
expenditures
|
(1,004)
|
|
(735)
|
|
|
|
Net cash (used
for) provided by investing activities
|
(5,803)
|
|
13,619
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
Payments for
repurchases of common stock
|
(8,962)
|
|
(9,996)
|
|
|
|
Proceeds from
issuances of common stock
|
772
|
|
617
|
|
|
|
Shares repurchased
for tax withholdings upon vesting of restricted stock-based
awards
|
(520)
|
|
(559)
|
|
|
|
Payments of dividends
to stockholders
|
(1,447)
|
|
(1,562)
|
|
|
|
Repayments of
borrowings
|
(1,000)
|
|
(4,500)
|
|
|
|
Other, net
|
110
|
|
(96)
|
|
|
|
Net cash used for
financing activities
|
(11,047)
|
|
(16,096)
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
271
|
|
(10)
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(9,238)
|
|
4,026
|
|
|
|
Cash and cash
equivalents at beginning of period
|
37,239
|
|
20,514
|
|
|
|
Cash and cash
equivalents at end of period
|
$
28,001
|
|
$
24,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
Q2 FISCAL
2021 FINANCIAL RESULTS
|
|
|
FREE CASH
FLOW - TRAILING 4-QUARTERS (1)
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2020
|
Fiscal
2021
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Cash Flow
|
$
13,829
|
$
13,796
|
$
13,947
|
$
13,139
|
$
13,092
|
$
13,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(1,663)
|
(1,591)
|
(1,544)
|
(1,564)
|
(1,614)
|
(1,833)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
12,166
|
$
12,205
|
$
12,403
|
$
11,575
|
$
11,478
|
$
12,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth over
prior year
|
(12%)
|
(11%)
|
(6%)
|
(10%)
|
(6%)
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
10,955
|
$
10,933
|
$
10,759
|
$
10,135
|
$
10,249
|
$
10,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as
a % of Net Income
|
111%
|
112%
|
115%
|
114%
|
112%
|
117%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
Q2 FISCAL
2021 FINANCIAL RESULTS
|
|
|
|
SUPPLEMENTAL
ANALYSIS OF GAAP REVENUES (1)
|
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2020
|
|
|
|
|
|
Fiscal
2021
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
|
|
REVENUES BY
OFFERINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
$
6,805
|
$
6,811
|
$
6,930
|
$
6,845
|
$
27,392
|
|
$
6,947
|
$
7,112
|
|
|
$
14,059
|
|
|
|
|
Cloud license
and on-premise license
|
812
|
1,126
|
1,231
|
1,959
|
5,127
|
|
886
|
1,092
|
|
|
1,978
|
|
|
|
|
Hardware
|
815
|
871
|
857
|
901
|
3,443
|
|
814
|
844
|
|
|
1,658
|
|
|
|
|
Services
|
786
|
806
|
778
|
735
|
3,106
|
|
720
|
752
|
|
|
1,472
|
|
|
|
|
Total
revenues
|
$
9,218
|
$
9,614
|
$
9,796
|
$
10,440
|
$
39,068
|
|
$
9,367
|
$
9,800
|
|
|
$
19,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
3%
|
3%
|
4%
|
1%
|
3%
|
|
2%
|
4%
|
|
|
3%
|
|
|
|
|
Cloud license
and on-premise license
|
(6%)
|
(7%)
|
(2%)
|
(22%)
|
(12%)
|
|
9%
|
(3%)
|
|
|
2%
|
|
|
|
|
Hardware
|
(10%)
|
(2%)
|
(6%)
|
(9%)
|
(7%)
|
|
0%
|
(3%)
|
|
|
(2%)
|
|
|
|
|
Services
|
(3%)
|
(1%)
|
(1%)
|
(11%)
|
(4%)
|
|
(8%)
|
(7%)
|
|
|
(8%)
|
|
|
|
|
Total
revenues
|
0%
|
1%
|
2%
|
(6%)
|
(1%)
|
|
2%
|
2%
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
4%
|
4%
|
5%
|
3%
|
4%
|
|
2%
|
4%
|
|
|
3%
|
|
|
|
|
Cloud license
and on-premise license
|
(6%)
|
(7%)
|
0%
|
(21%)
|
(11%)
|
|
8%
|
(5%)
|
|
|
1%
|
|
|
|
|
Hardware
|
(9%)
|
(1%)
|
(5%)
|
(7%)
|
(6%)
|
|
0%
|
(3%)
|
|
|
(2%)
|
|
|
|
|
Services
|
(2%)
|
0%
|
0%
|
(8%)
|
(3%)
|
|
(8%)
|
(8%)
|
|
|
(8%)
|
|
|
|
|
Total revenues
|
2%
|
1%
|
3%
|
(4%)
|
0%
|
|
2%
|
1%
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD SERVICES AND
LICENSE SUPPORT REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BY
ECOSYSTEM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
$
2,704
|
$
2,753
|
$
2,809
|
$
2,749
|
$
11,015
|
|
$
2,816
|
$
2,901
|
|
|
$
5,717
|
|
|
|
|
Infrastructure
cloud services and license support
|
4,101
|
4,058
|
4,121
|
4,096
|
16,377
|
|
4,131
|
4,211
|
|
|
8,342
|
|
|
|
|
Total cloud services and license
support revenues
|
$
6,805
|
$
6,811
|
$
6,930
|
$
6,845
|
$
27,392
|
|
$
6,947
|
$
7,112
|
|
|
$
14,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
5%
|
5%
|
6%
|
1%
|
4%
|
|
4%
|
5%
|
|
|
5%
|
|
|
|
|
Infrastructure
cloud services and license support
|
2%
|
1%
|
2%
|
0%
|
1%
|
|
1%
|
4%
|
|
|
2%
|
|
|
|
|
Total cloud services and
license support revenues
|
3%
|
3%
|
4%
|
1%
|
3%
|
|
2%
|
4%
|
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
6%
|
6%
|
7%
|
3%
|
5%
|
|
4%
|
5%
|
|
|
4%
|
|
|
|
|
Infrastructure
cloud services and license support
|
3%
|
2%
|
4%
|
3%
|
3%
|
|
1%
|
3%
|
|
|
2%
|
|
|
|
|
Total cloud services and license support revenues
|
4%
|
4%
|
5%
|
3%
|
4%
|
|
2%
|
4%
|
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHIC
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
5,150
|
$
5,304
|
$
5,363
|
$
5,746
|
$
21,563
|
|
$
5,068
|
$
5,259
|
|
|
$
10,327
|
|
|
|
|
Europe/Middle
East/Africa
|
|
2,553
|
2,695
|
2,835
|
2,952
|
11,035
|
|
2,738
|
2,852
|
|
|
5,590
|
|
|
|
|
Asia
Pacific
|
|
1,515
|
1,615
|
1,598
|
1,742
|
6,470
|
|
1,561
|
1,689
|
|
|
3,250
|
|
|
|
|
Total revenues
|
$
9,218
|
$
9,614
|
$
9,796
|
$
10,440
|
$
39,068
|
|
$
9,367
|
$
9,800
|
|
|
$
19,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2020 and 2019 for the
fiscal 2021 and fiscal 2020 constant currency
growth rate calculations
presented, respectively, rather than the actual exchange rates in
effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX
A
|
|
ORACLE
CORPORATION
Q2 FISCAL 2021 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 services and license support revenues:
Business combination accounting rules require us to account for the
fair values of cloud services and license support contracts assumed
in connection with our acquisitions. The non-GAAP adjustments to
our cloud services and license support revenues are intended to
include, and thus reflect, the full amount of such revenues. We
believe the adjustments to these revenues are useful to investors
as a measure of the ongoing performance of our business as we
generally expect to experience high renewal rates for these
contracts at their stated values during the post combination
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 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 primarily consist of personnel related
costs for transitional and certain other employees, certain
business combination adjustments including adjustments after the
measurement period has ended and certain other operating items,
net. 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 and other expenses and restructuring expenses
generally diminish over time with respect to past acquisitions
and/or strategic initiatives, we generally will incur these
expenses in connection with any future acquisitions and/or
strategic initiatives.
|
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content:http://www.prnewswire.com/news-releases/oracle-announces-fiscal-2021-second-quarter-financial-results-301190819.html
SOURCE Oracle