AUSTIN, Texas, March 10, 2021 /PRNewswire/ -- Oracle Corporation
(NYSE: ORCL) today announced fiscal 2021 Q3 results. Total
quarterly revenues were up 3% year-over-year to $10.1 billion. Cloud services and license support
revenues were up 5% to $7.3 billion.
Cloud license and on-premise license revenues were up 4% to
$1.3 billion.
Q3 GAAP operating income was up 10% to $3.9 billion and GAAP operating margin was 38%.
Non-GAAP operating income was up 10% to $4.8
billion and non-GAAP operating margin was 47%. GAAP net
income was up 95% to $5.0 billion,
and GAAP earnings per share was up 113% to $1.68. The GAAP income statement was impacted by
a one-time net tax benefit totaling $2.3
billion related to the transfer of certain assets between
subsidiaries. Non-GAAP net income was up 10% to $3.5 billion, and non-GAAP earnings per share was
up 20% to $1.16.
Short-term deferred revenues were $8.1
billion. Operating cash flow was $14.7 billion during the trailing twelve
months.
"We continued to extend our huge lead in the cloud ERP market as
Fusion ERP grew 30% and NetSuite ERP grew 24% in Q3," said Oracle
CEO, Safra Catz. "Oracle's
rapidly growing highly-profitable, multi-billion dollar cloud ERP
businesses helped drive subscription revenue up 5% and operating
income up 10% in the quarter. Subscription revenue now
accounts for 72% of Oracle's total revenues, and this
highly-predictable recurring revenue-stream along with expense
discipline are enabling double-digit increases in non-GAAP earnings
per share."
"Once again in Q3, Oracle's Gen2 Cloud Infrastructure business
added customers, and grew revenue at a rate in excess of 100%,"
said Oracle Chairman and CTO, Larry
Ellison. "We are opening new regions as fast as we can to
support our rapidly growing multi-billion dollar infrastructure
business. On the applications front, analysts continue to
rank Oracle the clear number one in cloud ERP, and this quarter
Oracle signed contracts totaling hundreds of millions of dollars to
migrate several more large companies from SAP ERP to Oracle Fusion
ERP."
The Board of Directors increased the authorization for share
repurchases by $20 billion. Oracle
also announced that its Board of Directors declared a quarterly
cash dividend of $0.32 per share of
outstanding common stock, reflecting a 33% increase over the
current quarterly dividend of $0.24.
Larry Ellison, Oracle's Chairman of
the Board of Directors, Chief Technology Officer and largest
stockholder, did not participate in the deliberation, or the vote
on this matter. This increased dividend will be paid to
stockholders of record as of the close of business on April 8, 2021, with a payment date of
April 22, 2021.
Technical Innovations
- Oracle expanded its Cloud portfolio with Oracle Roving Edge
Infrastructure to enable secure, scalable cloud services wherever
customers need them, even in the most remote areas of the
world.
- Oracle developed and delivered a cloud based National
Electronic Health Records (EHR) Database plus a suite of Public
Health Management Applications to help U.S. public health agencies
and healthcare providers collect and analyze data related to
COVID-19.
- Oracle launched Oracle Database 21c with more than 200 new
features that reinforce the strength of Oracle's converged database
strategy.
- Oracle Autonomous Database scored the highest in all four Use
Cases in the 2020 Gartner "Critical Capabilities for Cloud Database
Management Systems for Operational Use Cases" report.
- A more complete list of recent technical innovations and
announcements is available at www.oracle.com/news.
Customer Momentum
- Australian Data Centres - To provide high security data center
services to Australia's federal
government, major telecommunication companies, and businesses,
Australian Data Centres needs secure and scalable computing power,
and they need it inside the country's borders. They chose Oracle
Dedicated Region Cloud@Customer to provide that cloud computing
power, since it provides all the services and advantages of Oracle
Cloud but lets Australian Data Centres put that capacity in an
in-country location of their choice.
- Denver Public Schools - With
the city's population growing nearly 20% since 2010, Denver Public Schools saw an unprecedented
expansion of programs in serving more than 90,000 students in 207
schools. To replace an Infor Lawson system, the Denver Public Schools' leadership considered
Infor, Oracle, and SAP systems. The District chose Oracle Fusion
Cloud ERP, HCM and EPM to help them streamline and automate
back-office business processes, model and plan across finance and
HR, control costs, and drive better decisions.
- Bed Bath & Beyond - A North American retailer that sells a
wide assortment of home, baby, beauty, and wellness merchandise
online and in stores. The company selected Oracle Retail solutions
and Oracle Fusion Cloud ERP for the capability to provide
decision-makers with an end-to-end view of financials through
merchandising, resulting in better supply chain and store inventory
management.
- AxiomSL - A global leader in risk analytics, data management,
and regulatory reporting solutions, leverages the Oracle Autonomous
Database to handle critical workloads for its RegCloud® offering.
Autonomous Database has facilitated significant performance gains
for AxiomSL over its prior solution when testing more than 160
million rows. The power of Autonomous Database enables AxiomSL to
move existing customers to the cloud and expand its client
base.
- A more complete list of customers which purchased Oracle Cloud
services 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 4:00 p.m. Central. 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 complete suites of integrated
applications plus 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.
"Safe Harbor" Statement: Statements in this press
release relating to Oracle's future plans, expectations, beliefs,
intentions and prospects, including statements regarding future
growth in our cloud ERP and infrastructure businesses, as well as
growth in our subscription revenue, 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
March 10, 2021. Oracle undertakes no
duty to update any statement in light of new information or future
events.
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
Q3 FISCAL 2021
FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
%
Increase
|
|
|
|
%
Increase
|
(Decrease)
|
|
|
|
February
28,
|
%
of
|
February
29,
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
2021
|
Revenues
|
2020
|
Revenues
|
in US
$
|
Currency
(1)
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
7,252
|
72%
|
$
6,930
|
71%
|
5%
|
2%
|
|
|
Cloud license and
on-premise license
|
1,276
|
13%
|
1,231
|
12%
|
4%
|
0%
|
|
|
Hardware
|
820
|
8%
|
857
|
9%
|
(4%)
|
(6%)
|
|
|
Services
|
737
|
7%
|
778
|
8%
|
(5%)
|
(8%)
|
|
|
Total
revenues
|
10,085
|
100%
|
9,796
|
100%
|
3%
|
0%
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
1,064
|
11%
|
991
|
10%
|
7%
|
6%
|
|
|
Hardware
|
230
|
2%
|
271
|
3%
|
(15%)
|
(16%)
|
|
|
Services
|
621
|
6%
|
702
|
7%
|
(12%)
|
(14%)
|
|
|
Sales and
marketing
|
1,915
|
19%
|
2,049
|
21%
|
(7%)
|
(8%)
|
|
|
Research and
development
|
1,621
|
16%
|
1,500
|
15%
|
8%
|
8%
|
|
|
General and
administrative
|
330
|
3%
|
288
|
3%
|
15%
|
14%
|
|
|
Amortization of
intangible assets
|
347
|
4%
|
400
|
4%
|
(13%)
|
(14%)
|
|
|
Acquisition related
and other
|
13
|
0%
|
7
|
0%
|
92%
|
91%
|
|
|
Restructuring
|
66
|
1%
|
60
|
1%
|
10%
|
1%
|
|
|
Total operating
expenses
|
6,207
|
62%
|
6,268
|
64%
|
(1%)
|
(2%)
|
|
OPERATING
INCOME
|
3,878
|
38%
|
3,528
|
36%
|
10%
|
5%
|
|
|
Interest
expense
|
(585)
|
(6%)
|
(456)
|
(5%)
|
28%
|
28%
|
|
|
Non-operating
(expenses) income, net
|
(17)
|
0%
|
4
|
0%
|
*
|
*
|
|
INCOME BEFORE
BENEFIT FROM (PROVISION FOR) INCOME TAXES
|
3,276
|
32%
|
3,076
|
31%
|
7%
|
2%
|
|
|
Benefit from
(provision for) income taxes
|
1,745
|
18%
|
(505)
|
(5%)
|
*
|
*
|
|
NET
INCOME
|
$
5,021
|
50%
|
$
2,571
|
26%
|
95%
|
87%
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.72
|
|
$
0.81
|
|
|
|
|
|
Diluted
|
$
1.68
|
|
$
0.79
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
2,913
|
|
3,190
|
|
|
|
|
|
Diluted
|
2,994
|
|
3,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 February 28, 2021 compared with the corresponding
prior year period increased our revenues by 3 percentage points,
operating expenses by 1 percentage point and operating income by 5
percentage points.
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FISCAL 2021
FINANCIAL RESULTS
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
% Increase
(Decrease)
in US $
|
% Increase
(Decrease) in
Constant Currency (2)
|
|
|
|
February
28,
|
|
|
|
February
28,
|
|
|
February
29,
|
|
|
|
February
29,
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
2021
|
|
|
2020
|
|
|
|
2020
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
10,085
|
|
$
1
|
|
$
10,086
|
|
|
$
9,796
|
|
$
1
|
|
$
9,797
|
|
3%
|
3%
|
0%
|
0%
|
|
|
Cloud services and license support
|
|
7,252
|
|
1
|
|
7,253
|
|
|
6,930
|
|
1
|
|
6,931
|
|
5%
|
5%
|
2%
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
6,207
|
|
$
(905)
|
|
$
5,302
|
|
|
$
6,268
|
|
$
(828)
|
|
$
5,440
|
|
(1%)
|
(3%)
|
(2%)
|
(4%)
|
|
|
Stock-based compensation
(3)
|
|
479
|
|
(479)
|
|
-
|
|
|
361
|
|
(361)
|
|
-
|
|
33%
|
*
|
33%
|
*
|
|
|
Amortization of intangible
assets (4)
|
|
347
|
|
(347)
|
|
-
|
|
|
400
|
|
(400)
|
|
-
|
|
(13%)
|
*
|
(14%)
|
*
|
|
|
Acquisition related and
other
|
|
13
|
|
(13)
|
|
-
|
|
|
7
|
|
(7)
|
|
-
|
|
92%
|
*
|
91%
|
*
|
|
|
Restructuring
|
|
66
|
|
(66)
|
|
-
|
|
|
60
|
|
(60)
|
|
-
|
|
10%
|
*
|
1%
|
*
|
|
OPERATING
INCOME
|
|
$
3,878
|
|
$
906
|
|
$
4,784
|
|
|
$
3,528
|
|
$
829
|
|
$
4,357
|
|
10%
|
10%
|
5%
|
6%
|
|
OPERATING MARGIN
%
|
|
38%
|
|
|
|
47%
|
|
|
36%
|
|
|
|
44%
|
|
244 bp.
|
297 bp.
|
179 bp.
|
247 bp.
|
|
INCOME TAX EFFECTS
(5)
|
|
$
1,745
|
|
$
(2,442)
|
|
$
(697)
|
|
|
$
(505)
|
|
$
(240)
|
|
$
(745)
|
|
*
|
(6%)
|
*
|
(10%)
|
|
NET
INCOME
|
|
$
5,021
|
|
$
(1,536)
|
|
$
3,485
|
|
|
$
2,571
|
|
$
589
|
|
$
3,160
|
|
95%
|
10%
|
87%
|
6%
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
1.68
|
|
|
|
$
1.16
|
|
|
$
0.79
|
|
|
|
$
0.97
|
|
113%
|
20%
|
104%
|
16%
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
|
2,994
|
|
-
|
|
2,994
|
|
|
3,271
|
|
-
|
|
3,271
|
|
(8%)
|
(8%)
|
(8%)
|
(8%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
February 28,
2021
|
|
|
February 29,
2020
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
33
|
|
$
(33)
|
|
$
-
|
|
|
$
22
|
|
$
(22)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
2
|
|
(2)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
15
|
|
(15)
|
|
-
|
|
|
14
|
|
(14)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
82
|
|
(82)
|
|
-
|
|
|
67
|
|
(67)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
307
|
|
(307)
|
|
-
|
|
|
238
|
|
(238)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
40
|
|
(40)
|
|
-
|
|
|
17
|
|
(17)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
479
|
|
$
(479)
|
|
$
-
|
|
|
$
361
|
|
$
(361)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of
February 28, 2021 was as follows:
|
|
|
Remainder of fiscal
2021
|
|
$
328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
|
1,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
2,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of (53.3%)
and 16.4% in the third quarter of fiscal 2021 and 2020,
respectively, and an effective non-GAAP tax rate of 16.7% and 19.1%
in the
third quarter of fiscal 2021 and 2020, respectively. The difference
in our GAAP and non-GAAP tax rates in the third quarter of fiscal
2021 was primarily due to a net tax benefit of $2.3 billion related
to the partial
realignment of our legal entity structure (refer to Appendix A for
additional information), the net tax effects on stock-based
compensation expense, and the net tax effects related to
acquisition related items, including
the net tax effects on amortization of intangible assets. The
difference in our GAAP and non-GAAP tax rates in the third quarter
of fiscal 2020 was primarily due to the net tax effects on
stock-based compensation
expense and the net tax effects on acquisition related items,
including the tax effects on amortization of intangible
assets.
|
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FISCAL
2021 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
($ in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
%
Increase
|
|
|
|
|
%
Increase
|
(Decrease)
|
|
|
|
|
February
28,
|
%
of
|
February
29,
|
%
of
|
(Decrease)
|
in
Constant
|
|
|
|
|
2021
|
Revenues
|
2020
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
21,311
|
73%
|
$
20,546
|
72%
|
4%
|
3%
|
|
|
|
Cloud license and
on-premise license
|
3,254
|
11%
|
3,169
|
11%
|
3%
|
1%
|
|
|
|
Hardware
|
2,478
|
8%
|
2,542
|
9%
|
(3%)
|
(3%)
|
|
|
|
Services
|
2,209
|
8%
|
2,372
|
8%
|
(7%)
|
(8%)
|
|
|
|
Total
revenues
|
29,252
|
100%
|
28,629
|
100%
|
2%
|
1%
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
3,139
|
11%
|
2,994
|
11%
|
5%
|
4%
|
|
|
|
Hardware
|
719
|
2%
|
828
|
3%
|
(13%)
|
(13%)
|
|
|
|
Services
|
1,875
|
6%
|
2,147
|
8%
|
(13%)
|
(14%)
|
|
|
|
Sales and
marketing
|
5,605
|
19%
|
6,135
|
21%
|
(9%)
|
(9%)
|
|
|
|
Research and
development
|
4,812
|
17%
|
4,588
|
16%
|
5%
|
5%
|
|
|
|
General and
administrative
|
949
|
3%
|
903
|
3%
|
5%
|
5%
|
|
|
|
Amortization of
intangible assets
|
1,037
|
4%
|
1,221
|
4%
|
(15%)
|
(15%)
|
|
|
|
Acquisition related
and other
|
107
|
1%
|
44
|
0%
|
144%
|
145%
|
|
|
|
Restructuring
|
337
|
1%
|
181
|
1%
|
87%
|
82%
|
|
|
|
Total operating
expenses
|
18,580
|
64%
|
19,041
|
67%
|
(2%)
|
(3%)
|
|
|
OPERATING
INCOME
|
10,672
|
36%
|
9,588
|
33%
|
11%
|
9%
|
|
|
|
Interest
expense
|
(1,799)
|
(6%)
|
(1,416)
|
(5%)
|
27%
|
27%
|
|
|
|
Non-operating
(expenses) income, net
|
(30)
|
0%
|
195
|
1%
|
*
|
*
|
|
|
INCOME BEFORE
BENEFIT FROM (PROVISION FOR) INCOME TAXES
|
8,843
|
30%
|
8,367
|
29%
|
6%
|
3%
|
|
|
|
Benefit from
(provision for) income taxes
|
871
|
3%
|
(1,348)
|
(4%)
|
*
|
*
|
|
|
NET
INCOME
|
$
9,714
|
33%
|
$
7,019
|
25%
|
38%
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
3.26
|
|
$
2.16
|
|
|
|
|
|
|
Diluted
|
$
3.19
|
|
$
2.10
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
Basic
|
2,977
|
|
3,251
|
|
|
|
|
|
|
Diluted
|
3,049
|
|
3,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 nine
months ended February 28, 2021 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FISCAL
2021 YEAR TO DATE FINANCIAL RESULTS
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
|
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
% Increase
(Decrease)
in US $
|
% Increase
(Decrease) in
Constant Currency (2)
|
|
|
|
|
February
28,
|
|
|
|
February
28,
|
|
|
February
29,
|
|
|
|
February
29,
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
2021
|
|
|
2020
|
|
|
|
2020
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
29,252
|
|
$
2
|
|
$
29,254
|
|
|
$
28,629
|
|
$
3
|
|
$
28,632
|
|
2%
|
2%
|
1%
|
1%
|
|
|
Cloud services and license support revenues
|
|
|
21,311
|
|
2
|
|
21,313
|
|
|
20,546
|
|
3
|
|
20,549
|
|
4%
|
4%
|
3%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
18,580
|
|
$
(2,876)
|
|
$
15,704
|
|
|
$
19,041
|
|
$
(2,650)
|
|
$
16,391
|
|
(2%)
|
(4%)
|
(3%)
|
(5%)
|
|
|
Stock-based compensation (3)
|
|
|
1,395
|
|
(1,395)
|
|
-
|
|
|
1,204
|
|
(1,204)
|
|
-
|
|
16%
|
*
|
16%
|
*
|
|
|
Amortization of intangible assets (4)
|
|
|
1,037
|
|
(1,037)
|
|
-
|
|
|
1,221
|
|
(1,221)
|
|
-
|
|
(15%)
|
*
|
(15%)
|
*
|
|
|
Acquisition related and other
|
|
|
107
|
|
(107)
|
|
-
|
|
|
44
|
|
(44)
|
|
-
|
|
144%
|
*
|
145%
|
*
|
|
|
Restructuring
|
|
|
337
|
|
(337)
|
|
-
|
|
|
181
|
|
(181)
|
|
-
|
|
87%
|
*
|
82%
|
*
|
|
|
OPERATING
INCOME
|
|
$
10,672
|
|
$
2,878
|
|
$
13,550
|
|
|
$
9,588
|
|
$
2,653
|
|
$
12,241
|
|
11%
|
11%
|
9%
|
9%
|
|
|
OPERATING MARGIN
%
|
|
36%
|
|
|
|
46%
|
|
|
33%
|
|
|
|
43%
|
|
299 bp.
|
357 bp.
|
257 bp.
|
322 bp.
|
|
|
INCOME TAX EFFECTS
(5)
|
|
$
871
|
|
$
(2,990)
|
|
$
(2,119)
|
|
|
$
(1,348)
|
|
$
(769)
|
|
$
(2,117)
|
|
*
|
0%
|
*
|
(2%)
|
|
|
NET
INCOME
|
|
$
9,714
|
|
$
(112)
|
|
$
9,602
|
|
|
$
7,019
|
|
$
1,884
|
|
$
8,903
|
|
38%
|
8%
|
34%
|
6%
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
3.19
|
|
|
|
$
3.15
|
|
|
$
2.10
|
|
|
|
$
2.67
|
|
51%
|
18%
|
48%
|
16%
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
|
3,049
|
|
-
|
|
3,049
|
|
|
3,337
|
|
-
|
|
3,337
|
|
(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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
February 28,
2021
|
|
|
February 29,
2020
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
99
|
|
$
(99)
|
|
$
-
|
|
|
$
83
|
|
$
(83)
|
|
$
-
|
|
|
|
|
|
|
|
|
Hardware
|
|
8
|
|
(8)
|
|
-
|
|
|
8
|
|
(8)
|
|
-
|
|
|
|
|
|
|
|
|
Services
|
|
41
|
|
(41)
|
|
-
|
|
|
42
|
|
(42)
|
|
-
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
233
|
|
(233)
|
|
-
|
|
|
192
|
|
(192)
|
|
-
|
|
|
|
|
|
|
|
|
Research and
development
|
|
897
|
|
(897)
|
|
-
|
|
|
781
|
|
(781)
|
|
-
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
117
|
|
(117)
|
|
-
|
|
|
98
|
|
(98)
|
|
-
|
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
1,395
|
|
$
(1,395)
|
|
$
-
|
|
|
$
1,204
|
|
$
(1,204)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of
February 28, 2021 was as follows:
|
|
|
|
Remainder of fiscal
2021
|
|
$
328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
|
1,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
2,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of (9.8%) and
16.1% in the first nine months of fiscal 2021 and 2020,
respectively, and an effective non-GAAP tax rate of 18.1% and 19.2%
in the first nine months of fiscal 2021 and 2020, respectively. The
difference in our GAAP and non-GAAP tax rates for the first nine
months of fiscal 2021 was primarily due to a net tax benefit of
$2.3 billion related to the partial realignment of our legal entity
structure (refer to Appendix A for additional information), the net
tax effects on stock-based compensation expense, and the net tax
effects related to acquisition related items, including the net tax
effects on amortization of intangible assets. The difference in our
GAAP and non-GAAP tax rates in the first nine months of fiscal 2020
was primarily due to the net tax effects on stock-based
compensation expense and the net tax effects on acquisition related
items, including the tax effects on amortization of intangible
assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
Q3 FISCAL 2021
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
February
28,
|
May
31,
|
|
|
|
2021
|
2020
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
22,321
|
|
$
37,239
|
|
|
Marketable
securities
|
13,543
|
|
5,818
|
|
|
Trade receivables,
net
|
4,637
|
|
5,551
|
|
|
Prepaid expenses and
other current assets
|
3,243
|
|
3,532
|
|
|
|
Total Current
Assets
|
43,744
|
|
52,140
|
|
Non-Current
Assets:
|
|
|
|
|
|
Property,
plant and equipment, net
|
6,816
|
|
6,244
|
|
|
Intangible assets, net
|
2,754
|
|
3,738
|
|
|
Goodwill,
net
|
43,954
|
|
43,769
|
|
|
Deferred
tax assets
|
13,725
|
|
3,252
|
|
|
Other
non-current assets
|
7,116
|
|
6,295
|
|
|
|
Total Non-Current
Assets
|
74,365
|
|
63,298
|
|
TOTAL
ASSETS
|
$
118,109
|
|
$
115,438
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Notes payable,
current
|
$
5,758
|
|
$
2,371
|
|
|
Accounts
payable
|
812
|
|
637
|
|
|
Accrued compensation
and related benefits
|
1,684
|
|
1,453
|
|
|
Deferred
revenues
|
8,088
|
|
8,002
|
|
|
Other current
liabilities
|
3,908
|
|
4,737
|
|
|
|
Total Current
Liabilities
|
20,250
|
|
17,200
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, non-current
|
63,541
|
|
69,226
|
|
|
Income taxes
payable
|
12,316
|
|
12,463
|
|
|
Deferred tax
liabilities
|
7,892
|
|
41
|
|
|
Other non-current
liabilities
|
4,473
|
|
3,791
|
|
|
|
Total Non-Current
Liabilities
|
88,222
|
|
85,521
|
|
Equity
|
9,637
|
|
12,717
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
118,109
|
|
$
115,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
Q3 FISCAL 2021
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
February
28,
|
February
29,
|
|
|
2021
|
2020
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net income
|
$
9,714
|
|
$
7,019
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
1,127
|
|
1,025
|
|
Amortization of
intangible assets
|
1,037
|
|
1,221
|
|
Deferred income
taxes
|
(2,475)
|
|
(398)
|
|
Stock-based
compensation
|
1,395
|
|
1,204
|
|
Other, net
|
227
|
|
167
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
Decrease in trade
receivables, net
|
1,089
|
|
946
|
|
Decrease in prepaid
expenses and other assets
|
609
|
|
718
|
|
Decrease in accounts
payable and other liabilities
|
(247)
|
|
(1,035)
|
|
Decrease in income
taxes payable
|
(1,181)
|
|
(789)
|
|
Decrease in deferred
revenues
|
(250)
|
|
(553)
|
|
Net cash provided
by operating activities
|
11,045
|
|
9,525
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(26,775)
|
|
(399)
|
|
Proceeds from
maturities of marketable securities and other
investments
|
18,182
|
|
3,165
|
|
Proceeds from sales of
marketable securities
|
853
|
|
12,575
|
|
Acquisitions, net of
cash acquired
|
(29)
|
|
(111)
|
|
Capital
expenditures
|
(1,418)
|
|
(1,131)
|
|
Net cash (used for)
provided by investing activities
|
(9,187)
|
|
14,099
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
Payments for
repurchases of common stock
|
(12,958)
|
|
(13,935)
|
|
Proceeds from
issuances of common stock
|
915
|
|
1,232
|
|
Shares repurchased for
tax withholdings upon vesting of restricted stock-based
awards
|
(597)
|
|
(624)
|
|
Payments of dividends
to stockholders
|
(2,146)
|
|
(2,330)
|
|
Repayments of
borrowings
|
(2,631)
|
|
(4,500)
|
|
Other, net
|
241
|
|
(108)
|
|
Net cash used for
financing activities
|
(17,176)
|
|
(20,265)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
400
|
|
(44)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(14,918)
|
|
3,315
|
|
Cash and cash
equivalents at beginning of period
|
37,239
|
|
20,514
|
|
Cash and cash
equivalents at end of period
|
$
22,321
|
|
$
23,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
Q3 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
|
$
14,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(1,663)
|
(1,591)
|
(1,544)
|
(1,564)
|
(1,614)
|
(1,833)
|
(1,851)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
12,166
|
$
12,205
|
$
12,403
|
$
11,575
|
$
11,478
|
$
12,134
|
$
12,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth over prior
year
|
(12%)
|
(11%)
|
(6%)
|
(10%)
|
(6%)
|
(1%)
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
10,955
|
$
10,933
|
$
10,759
|
$
10,135
|
$
10,249
|
$
10,380
|
$
12,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a
% of Net Income
|
111%
|
112%
|
115%
|
114%
|
112%
|
117%
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Q3 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
|
$
7,252
|
|
$
21,311
|
|
|
Cloud license
and on-premise license
|
812
|
1,126
|
1,231
|
1,959
|
5,127
|
|
886
|
1,092
|
1,276
|
|
3,254
|
|
|
Hardware
|
815
|
871
|
857
|
901
|
3,443
|
|
814
|
844
|
820
|
|
2,478
|
|
|
Services
|
786
|
806
|
778
|
735
|
3,106
|
|
720
|
752
|
737
|
|
2,209
|
|
|
Total revenues
|
|
$
9,218
|
$
9,614
|
$
9,796
|
$
10,440
|
$
39,068
|
|
$
9,367
|
$
9,800
|
$
10,085
|
|
$
29,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
3%
|
3%
|
4%
|
1%
|
3%
|
|
2%
|
4%
|
5%
|
|
4%
|
|
|
Cloud license
and on-premise license
|
(6%)
|
(7%)
|
(2%)
|
(22%)
|
(12%)
|
|
9%
|
(3%)
|
4%
|
|
3%
|
|
|
Hardware
|
(10%)
|
(2%)
|
(6%)
|
(9%)
|
(7%)
|
|
0%
|
(3%)
|
(4%)
|
|
(3%)
|
|
|
Services
|
(3%)
|
(1%)
|
(1%)
|
(11%)
|
(4%)
|
|
(8%)
|
(7%)
|
(5%)
|
|
(7%)
|
|
|
Total revenues
|
|
0%
|
1%
|
2%
|
(6%)
|
(1%)
|
|
2%
|
2%
|
3%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
4%
|
4%
|
5%
|
3%
|
4%
|
|
2%
|
4%
|
2%
|
|
3%
|
|
|
Cloud license
and on-premise license
|
(6%)
|
(7%)
|
0%
|
(21%)
|
(11%)
|
|
8%
|
(5%)
|
0%
|
|
1%
|
|
|
Hardware
|
(9%)
|
(1%)
|
(5%)
|
(7%)
|
(6%)
|
|
0%
|
(3%)
|
(6%)
|
|
(3%)
|
|
|
Services
|
(2%)
|
0%
|
0%
|
(8%)
|
(3%)
|
|
(8%)
|
(8%)
|
(8%)
|
|
(8%)
|
|
|
Total revenues
|
|
2%
|
1%
|
3%
|
(4%)
|
0%
|
|
2%
|
1%
|
0%
|
|
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
|
$
2,952
|
|
$
8,669
|
|
|
Infrastructure
cloud services and license support
|
4,101
|
4,058
|
4,121
|
4,096
|
16,377
|
|
4,131
|
4,211
|
4,300
|
|
12,642
|
|
|
Total cloud services
and license support revenues
|
|
$
6,805
|
$
6,811
|
$
6,930
|
$
6,845
|
$
27,392
|
|
$
6,947
|
$
7,112
|
$
7,252
|
|
$
21,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
5%
|
5%
|
6%
|
1%
|
4%
|
|
4%
|
5%
|
5%
|
|
5%
|
|
|
Infrastructure
cloud services and license support
|
2%
|
1%
|
2%
|
0%
|
1%
|
|
1%
|
4%
|
4%
|
|
3%
|
|
|
Total cloud services
and license support revenues
|
|
3%
|
3%
|
4%
|
1%
|
3%
|
|
2%
|
4%
|
5%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
6%
|
6%
|
7%
|
3%
|
5%
|
|
4%
|
5%
|
3%
|
|
4%
|
|
|
Infrastructure
cloud services and license support
|
3%
|
2%
|
4%
|
3%
|
3%
|
|
1%
|
3%
|
2%
|
|
2%
|
|
|
Total cloud services
and license support revenues
|
|
4%
|
4%
|
5%
|
3%
|
4%
|
|
2%
|
4%
|
2%
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHIC
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
5,150
|
$
5,304
|
$
5,363
|
$
5,746
|
$
21,563
|
|
$
5,068
|
$
5,259
|
$
5,424
|
|
$
15,751
|
|
|
Europe/Middle
East/Africa
|
|
2,553
|
2,695
|
2,835
|
2,952
|
11,035
|
|
2,738
|
2,852
|
2,981
|
|
8,571
|
|
|
Asia
Pacific
|
|
1,515
|
1,615
|
1,598
|
1,742
|
6,470
|
|
1,561
|
1,689
|
1,680
|
|
4,930
|
|
|
Total revenues
|
|
$
9,218
|
$
9,614
|
$
9,796
|
$
10,440
|
$
39,068
|
|
$
9,367
|
$
9,800
|
$
10,085
|
|
$
29,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Q3 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 related
to each of the below items, with the exception of the item
described under income tax effects related to the partial
realignment of our legal entity structure:
|
|
- 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.
|
- Income tax effects related to the partial
realignment of our legal entity structure: We recorded a net income
tax benefit of $2.3 billion during the three and nine months ended
February 28, 2021 which related to the partial realignment of our
legal entity structure that resulted in the intra-group transfer of
certain intellectual property rights. A portion of this net benefit
will reduce cash tax paid and give rise to a net deferred tax
expense. We have excluded the net benefit and related net deferred
tax expense from our non-GAAP income tax effects and net income
measures for the three and nine months ended February 28, 2021. We
believe these adjustments to the fiscal 2021 periods presented
provides insight to our operating performance and comparability to
past operating results.
|
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SOURCE Oracle