AUSTIN, Texas, June 15, 2021 /PRNewswire/ -- Oracle
Corporation (NYSE: ORCL) today announced fiscal 2021 Q4 results.
Total quarterly revenues were up 8% year-over-year to $11.2 billion. Cloud services and license support
revenues were up 8% to $7.4 billion.
Cloud license and on-premise license revenues were up 9% to
$2.1 billion.
Q4 GAAP operating income was up 5% to $4.5 billion, and GAAP operating margin was 40%.
Non-GAAP operating income was up 6% to $5.4
billion and non-GAAP operating margin was 49%. GAAP net
income was up 29% to $4.0 billion,
and GAAP earnings per share was up 39% to $1.37. Non-GAAP net income was up 20% to
$4.5 billion, and non-GAAP earnings
per share was up 29% to $1.54.
Short-term deferred revenues were up 10% from last year to
$8.8 billion. Operating cash flow was
up 21% to a record $15.9 billion
during the trailing twelve months.
Fiscal year 2021 total revenues were up 4% year-over-year to
$40.5 billion. Cloud services and
license support revenues were up 5% to $28.7
billion. Cloud license and on-premise license revenues were
up 5% to $5.4 billion.
Fiscal year 2021 GAAP operating income was up 9% to $15.2 billion, and GAAP operating margin was 38%.
Non-GAAP operating income was up 9% to $19.0
billion, and non-GAAP operating margin was 47%. GAAP net
income was up 36% to $13.7 billion,
while non-GAAP net income was up 11% to $14.1 billion. GAAP earnings per share increased
48% to $4.55, while non-GAAP earnings
per share was up 21% to $4.67.
"Our Q4 performance was absolutely outstanding with total
revenue beating guidance by nearly $200
million, and non-GAAP earnings per share beating guidance by
$0.24," said Oracle CEO, Safra Catz. "Our multi-billion dollar Fusion and
NetSuite cloud applications businesses saw dramatic increases in
their already rapid revenue growth rates: Fusion ERP was up 30% in
Q3 and up 46% in Q4, Fusion HCM was up 23% in Q3 and up 35% in Q4,
NetSuite was up 24% in Q3 and up 26% in Q4. Oracle Fusion is the
world's biggest cloud ERP business; Oracle NetSuite is the world's
second biggest cloud ERP business. Revenue from our Gen2 Cloud
Infrastructure business including Autonomous Database grew over
100% in Q4. The accelerating growth rates of both our applications
and infrastructure cloud businesses this year drove earnings per
share growth up to 21% in FY21. That is the fourth
consecutive year of double-digit earnings per share growth at
Oracle Corporation."
"The world's two most popular databases are the Oracle
Autonomous Database and Oracle MySQL," said Oracle Chairman and
CTO, Larry Ellison. "The Oracle
Database once again delivered solid revenue growth in FY21.
And while our Oracle Database business as measured by revenue
currently dwarfs our MySQL database business—that is about to
change because the latest version of Oracle MySQL has been upgraded
to include a revolutionary new ultra-high-performance parallel
processing query engine called HeatWave. Independent analysts have
tested and confirmed that Oracle MySQL with HeatWave runs 10 to 100
times faster than Amazon's version of MySQL called Aurora. This
technological breakthrough is causing several of Amazon's customers
to start moving their Aurora workloads to Oracle MySQL. And
industry analysts are telling us they are seeing a 10x increase in
Oracle Cloud Infrastructure customer inquiries. Both the Oracle
Autonomous Database and Oracle MySQL with HeatWave technology have
captured the technology high-ground in the cloud database
business—and that bodes well for the future of the Oracle
Cloud."
The board of directors declared a quarterly cash dividend of
$0.32 per share of outstanding common
stock. This dividend will be paid to stockholders of record as of
the close of business on July 15,
2021, with a payment date of July 29,
2021.
- A sample list of customers which purchased Oracle Cloud
services during the quarter will be available at
www.oracle.com/customers/earnings.
- A list of recent technical innovations and announcements is
available at www.oracle.com/news.
- To learn what industry analysts have been saying about Oracle's
products & services see
www.oracle.com/corporate/analyst-reports.html.
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, Java and MySQL 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 Oracle Database and Oracle Cloud businesses 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
June 15, 2021. Oracle undertakes no
duty to update any statement in light of new information or future
events.
|
|
|
|
ORACLE CORPORATION
|
|
|
|
|
|
|
|
Q4 FISCAL 2021
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
|
|
|
|
|
|
2021
|
Revenues
|
2020
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
7,389
|
66%
|
$
6,845
|
66%
|
8%
|
4%
|
|
|
|
|
Cloud license and
on-premise license
|
2,144
|
19%
|
1,959
|
19%
|
9%
|
5%
|
|
|
|
|
Hardware
|
882
|
8%
|
901
|
8%
|
(2%)
|
(6%)
|
|
|
|
|
Services
|
812
|
7%
|
735
|
7%
|
11%
|
6%
|
|
|
|
|
Total
revenues
|
11,227
|
100%
|
10,440
|
100%
|
8%
|
4%
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
1,214
|
11%
|
1,012
|
10%
|
20%
|
17%
|
|
|
|
|
Hardware
|
253
|
2%
|
288
|
3%
|
(12%)
|
(15%)
|
|
|
|
|
Services
|
655
|
6%
|
669
|
6%
|
(2%)
|
(7%)
|
|
|
|
|
Sales and
marketing
|
2,077
|
19%
|
1,959
|
19%
|
6%
|
2%
|
|
|
|
|
Research and
development
|
1,715
|
15%
|
1,479
|
14%
|
16%
|
14%
|
|
|
|
|
General and
administrative
|
306
|
3%
|
278
|
3%
|
10%
|
6%
|
|
|
|
|
Amortization of
intangible assets
|
342
|
3%
|
366
|
3%
|
(7%)
|
(7%)
|
|
|
|
|
Acquisition related
and other
|
30
|
0%
|
11
|
0%
|
158%
|
146%
|
|
|
|
|
Restructuring
|
94
|
1%
|
69
|
1%
|
37%
|
25%
|
|
|
|
|
Total operating
expenses
|
6,686
|
60%
|
6,131
|
59%
|
9%
|
6%
|
|
|
|
OPERATING
INCOME
|
4,541
|
40%
|
4,309
|
41%
|
5%
|
0%
|
|
|
|
|
Interest
expense
|
(697)
|
(6%)
|
(580)
|
(6%)
|
20%
|
20%
|
|
|
|
|
Non-operating income
(expenses), net
|
313
|
3%
|
(33)
|
0%
|
*
|
*
|
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
4,157
|
37%
|
3,696
|
35%
|
12%
|
6%
|
|
|
|
|
Provision for income
taxes
|
(124)
|
(1%)
|
(580)
|
(5%)
|
(79%)
|
(80%)
|
|
|
|
NET
INCOME
|
$
4,033
|
36%
|
$
3,116
|
30%
|
29%
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.42
|
|
$
1.01
|
|
|
|
|
|
|
|
Diluted
|
$
1.37
|
|
$
0.99
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2,847
|
|
3,091
|
|
|
|
|
|
|
|
Diluted
|
2,943
|
|
3,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 May 31, 2021 compared with the corresponding prior
year period increased our revenues by 4 percentage points,
operating expenses by 3 percentage points and operating income by 5
percentage points.
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FISCAL 2021
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)
|
|
|
|
|
|
2021
|
|
|
|
2021
|
|
|
2020
|
|
|
|
2020
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
11,227
|
|
$
-
|
|
$
11,227
|
|
|
$
10,440
|
|
$
1
|
|
$
10,441
|
|
8%
|
8%
|
4%
|
4%
|
|
|
|
|
Cloud services and license
support
|
|
7,389
|
|
-
|
|
7,389
|
|
|
6,845
|
|
1
|
|
6,846
|
|
8%
|
8%
|
4%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
6,686
|
|
$
(908)
|
|
$
5,778
|
|
|
$
6,131
|
|
$
(832)
|
|
$
5,299
|
|
9%
|
9%
|
6%
|
6%
|
|
|
|
|
Stock-based compensation
(3)
|
|
442
|
|
(442)
|
|
-
|
|
|
386
|
|
(386)
|
|
-
|
|
15%
|
*
|
15%
|
*
|
|
|
|
|
Amortization of intangible
assets (4)
|
|
342
|
|
(342)
|
|
-
|
|
|
366
|
|
(366)
|
|
-
|
|
(7%)
|
*
|
(7%)
|
*
|
|
|
|
|
Acquisition related and
other
|
|
30
|
|
(30)
|
|
-
|
|
|
11
|
|
(11)
|
|
-
|
|
158%
|
*
|
146%
|
*
|
|
|
|
|
Restructuring
|
|
94
|
|
(94)
|
|
-
|
|
|
69
|
|
(69)
|
|
-
|
|
37%
|
*
|
25%
|
*
|
|
|
|
OPERATING
INCOME
|
|
$
4,541
|
|
$
908
|
|
$
5,449
|
|
|
$
4,309
|
|
$
833
|
|
$
5,142
|
|
5%
|
6%
|
0%
|
1%
|
|
|
|
OPERATING MARGIN
%
|
|
40%
|
|
|
|
49%
|
|
|
41%
|
|
|
|
49%
|
|
(82) bp.
|
(71) bp.
|
(140) bp.
|
(109) bp.
|
|
|
|
INCOME TAX EFFECTS
(5)
|
|
$
(124)
|
|
$
(417)
|
|
$
(541)
|
|
|
$
(580)
|
|
$
(170)
|
|
$
(750)
|
|
(79%)
|
(28%)
|
(80%)
|
(31%)
|
|
|
|
NET
INCOME
|
|
$
4,033
|
|
$
491
|
|
$
4,524
|
|
|
$
3,116
|
|
$
663
|
|
$
3,779
|
|
29%
|
20%
|
22%
|
14%
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
1.37
|
|
|
|
$
1.54
|
|
|
$
0.99
|
|
|
|
$
1.20
|
|
39%
|
29%
|
31%
|
22%
|
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
|
2,943
|
|
-
|
|
2,943
|
|
|
3,162
|
|
-
|
|
3,162
|
|
(7%)
|
(7%)
|
(7%)
|
(7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
2021
|
|
|
May 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
35
|
|
$
(35)
|
|
$
-
|
|
|
$
27
|
|
$
(27)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
Hardware
|
|
3
|
|
(3)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
|
|
Services
|
|
14
|
|
(14)
|
|
-
|
|
|
12
|
|
(12)
|
|
-
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
80
|
|
(80)
|
|
-
|
|
|
69
|
|
(69)
|
|
-
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
291
|
|
(291)
|
|
-
|
|
|
254
|
|
(254)
|
|
-
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
19
|
|
(19)
|
|
-
|
|
|
21
|
|
(21)
|
|
-
|
|
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
442
|
|
$
(442)
|
|
$
-
|
|
|
$
386
|
|
$
(386)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of May
31, 2021 was as follows:
|
|
|
|
|
Fiscal 2022
|
|
$
1,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
2,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 3.0% and
15.7% in the fourth quarter of fiscal 2021 and 2020, respectively,
and an effective non-GAAP tax rate of 10.7% and 16.6% in the fourth
quarter of fiscal 2021 and 2020, respectively. The difference in
our GAAP and non-GAAP tax rates in each of the fourth quarter of
fiscal 2021 and 2020 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.
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
FISCAL 2021 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
|
|
|
|
|
|
2021
|
Revenues
|
2020
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
28,700
|
71%
|
$
27,392
|
70%
|
5%
|
3%
|
|
|
|
|
Cloud license and
on-premise license
|
5,399
|
13%
|
5,127
|
13%
|
5%
|
2%
|
|
|
|
|
Hardware
|
3,359
|
8%
|
3,443
|
9%
|
(2%)
|
(4%)
|
|
|
|
|
Services
|
3,021
|
8%
|
3,106
|
8%
|
(3%)
|
(5%)
|
|
|
|
|
Total
revenues
|
40,479
|
100%
|
39,068
|
100%
|
4%
|
2%
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
4,353
|
11%
|
4,006
|
10%
|
9%
|
7%
|
|
|
|
|
Hardware
|
972
|
2%
|
1,116
|
3%
|
(13%)
|
(14%)
|
|
|
|
|
Services
|
2,530
|
6%
|
2,816
|
7%
|
(10%)
|
(12%)
|
|
|
|
|
Sales and
marketing
|
7,682
|
19%
|
8,094
|
21%
|
(5%)
|
(7%)
|
|
|
|
|
Research and
development
|
6,527
|
16%
|
6,067
|
15%
|
8%
|
7%
|
|
|
|
|
General and
administrative
|
1,254
|
3%
|
1,181
|
3%
|
6%
|
6%
|
|
|
|
|
Amortization of
intangible assets
|
1,379
|
4%
|
1,586
|
4%
|
(13%)
|
(14%)
|
|
|
|
|
Acquisition related
and other
|
138
|
0%
|
56
|
0%
|
147%
|
145%
|
|
|
|
|
Restructuring
|
431
|
1%
|
250
|
1%
|
73%
|
66%
|
|
|
|
|
Total operating
expenses
|
25,266
|
62%
|
25,172
|
64%
|
0%
|
(1%)
|
|
|
|
OPERATING
INCOME
|
15,213
|
38%
|
13,896
|
36%
|
9%
|
6%
|
|
|
|
|
Interest
expense
|
(2,496)
|
(6%)
|
(1,995)
|
(5%)
|
25%
|
25%
|
|
|
|
|
Non-operating income,
net
|
282
|
0%
|
162
|
0%
|
74%
|
95%
|
|
|
|
INCOME BEFORE
BENEFIT FROM (PROVISION FOR) INCOME TAXES
|
12,999
|
32%
|
12,063
|
31%
|
8%
|
4%
|
|
|
|
|
Benefit from
(provision for) income taxes
|
747
|
2%
|
(1,928)
|
(5%)
|
*
|
*
|
|
|
|
NET
INCOME
|
$
13,746
|
34%
|
$
10,135
|
26%
|
36%
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
4.67
|
|
$
3.16
|
|
|
|
|
|
|
|
Diluted
|
$
4.55
|
|
$
3.08
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2,945
|
|
3,211
|
|
|
|
|
|
|
|
Diluted
|
3,022
|
|
3,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 year
ended May 31, 2021 compared with the corresponding prior year
period increased our revenues by 2 percentage points, operating
expenses by 1 percentage point and operating income by 3 percentage
points.
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL 2021 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)
|
|
|
|
|
|
2021
|
|
|
|
2021
|
|
|
2020
|
|
|
|
2020
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
40,479
|
|
$
2
|
|
$
40,481
|
|
|
$
39,068
|
|
$
4
|
|
$
39,072
|
|
4%
|
4%
|
2%
|
2%
|
|
|
|
|
Cloud services and
license support
|
|
28,700
|
|
2
|
|
28,702
|
|
|
27,392
|
|
4
|
|
27,396
|
|
5%
|
5%
|
3%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
25,266
|
|
$
(3,785)
|
|
$
21,481
|
|
|
$
25,172
|
|
$
(3,482)
|
|
$
21,690
|
|
0%
|
(1%)
|
(1%)
|
(2%)
|
|
|
|
|
Stock-based
compensation (3)
|
|
1,837
|
|
(1,837)
|
|
-
|
|
|
1,590
|
|
(1,590)
|
|
-
|
|
16%
|
*
|
16%
|
*
|
|
|
|
|
Amortization of
intangible assets (4)
|
|
1,379
|
|
(1,379)
|
|
-
|
|
|
1,586
|
|
(1,586)
|
|
-
|
|
(13%)
|
*
|
(14%)
|
*
|
|
|
|
|
Acquisition related
and other
|
|
138
|
|
(138)
|
|
-
|
|
|
56
|
|
(56)
|
|
-
|
|
147%
|
*
|
145%
|
*
|
|
|
|
|
Restructuring
|
|
431
|
|
(431)
|
|
-
|
|
|
250
|
|
(250)
|
|
-
|
|
73%
|
*
|
66%
|
*
|
|
|
|
OPERATING
INCOME
|
|
$
15,213
|
|
$
3,787
|
|
$
19,000
|
|
|
$
13,896
|
|
$
3,486
|
|
$
17,382
|
|
9%
|
9%
|
6%
|
6%
|
|
|
|
OPERATING MARGIN
%
|
|
38%
|
|
|
|
47%
|
|
|
36%
|
|
|
|
44%
|
|
201 bp.
|
245 bp.
|
151 bp.
|
206 bp.
|
|
|
|
INCOME TAX EFFECTS
(5)
|
|
$
747
|
|
$
(3,408)
|
|
$
(2,661)
|
|
|
$
(1,928)
|
|
$
(939)
|
|
$
(2,867)
|
|
*
|
(7%)
|
*
|
(10%)
|
|
|
|
NET
INCOME
|
|
$
13,746
|
|
$
379
|
|
$
14,125
|
|
|
$
10,135
|
|
$
2,547
|
|
$
12,682
|
|
36%
|
11%
|
30%
|
8%
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
4.55
|
|
|
|
$
4.67
|
|
|
$
3.08
|
|
|
|
$
3.85
|
|
48%
|
21%
|
43%
|
18%
|
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
|
3,022
|
|
-
|
|
3,022
|
|
|
3,294
|
|
-
|
|
3,294
|
|
(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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
2021
|
|
|
May 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
134
|
|
$
(134)
|
|
$
-
|
|
|
$
110
|
|
$
(110)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
Hardware
|
|
11
|
|
(11)
|
|
-
|
|
|
11
|
|
(11)
|
|
-
|
|
|
|
|
|
|
|
|
|
Services
|
|
55
|
|
(55)
|
|
-
|
|
|
54
|
|
(54)
|
|
-
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
313
|
|
(313)
|
|
-
|
|
|
261
|
|
(261)
|
|
-
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
1,188
|
|
(1,188)
|
|
-
|
|
|
1,035
|
|
(1,035)
|
|
-
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
136
|
|
(136)
|
|
-
|
|
|
119
|
|
(119)
|
|
-
|
|
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
1,837
|
|
$
(1,837)
|
|
$
-
|
|
|
$
1,590
|
|
$
(1,590)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of May
31, 2021 was as follows:
|
|
|
|
|
Fiscal 2022
|
|
$
1,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
2,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of (5.7%) and
16.0% in fiscal 2021 and 2020, respectively, and an effective
non-GAAP tax rate of 15.9% and 18.4% in fiscal 2021 and 2020,
respectively. The difference in our GAAP and non-GAAP tax rates for
fiscal 2021 was primarily due to a net tax benefit of $2.3 billion
related to the partial realignment of our legal entity structure
(refer to Appendix A for additional information), the net tax
effects on stock-based compensation expense, and the net tax
effects related to acquisition related items, including the net tax
effects on amortization of intangible assets. The difference
between our GAAP and non-GAAP tax rates in fiscal 2020 was
primarily due to the net tax effects on stock-based compensation
expense and acquisition related items, including the tax effects of
amortization of intangible assets.
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL 2021
FINANCIAL RESULTS
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May
31,
|
May
31,
|
|
|
|
|
|
2021
|
2020
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
30,098
|
|
$
37,239
|
|
|
|
|
Marketable
securities
|
16,456
|
|
5,818
|
|
|
|
|
Trade receivables,
net
|
5,409
|
|
5,551
|
|
|
|
|
Prepaid expenses and
other current assets
|
3,604
|
|
3,532
|
|
|
|
|
|
Total Current
Assets
|
55,567
|
|
52,140
|
|
|
|
Non-Current
Assets:
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
7,049
|
|
6,244
|
|
|
|
|
Intangible assets, net
|
2,430
|
|
3,738
|
|
|
|
|
Goodwill, net
|
43,935
|
|
43,769
|
|
|
|
|
Deferred
tax assets
|
13,636
|
|
3,252
|
|
|
|
|
Other
non-current assets
|
8,490
|
|
6,295
|
|
|
|
|
|
Total Non-Current
Assets
|
75,540
|
|
63,298
|
|
|
|
TOTAL
ASSETS
|
$
131,107
|
|
$
115,438
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Notes payable,
current
|
$
8,250
|
|
$
2,371
|
|
|
|
|
Accounts
payable
|
745
|
|
637
|
|
|
|
|
Accrued compensation
and related benefits
|
2,017
|
|
1,453
|
|
|
|
|
Deferred
revenues
|
8,775
|
|
8,002
|
|
|
|
|
Other current
liabilities
|
4,377
|
|
4,737
|
|
|
|
|
|
Total Current
Liabilities
|
24,164
|
|
17,200
|
|
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
|
|
Notes payable and
other borrowings, non-current
|
75,995
|
|
69,226
|
|
|
|
|
Income taxes
payable
|
12,345
|
|
12,463
|
|
|
|
|
Deferred tax
liabilities
|
7,864
|
|
41
|
|
|
|
|
Other non-current
liabilities
|
4,787
|
|
3,791
|
|
|
|
|
|
Total Non-Current
Liabilities
|
100,991
|
|
85,521
|
|
|
|
Equity
|
5,952
|
|
12,717
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
131,107
|
|
$
115,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
FISCAL 2021
FINANCIAL RESULTS
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May
31,
|
|
|
|
|
2021
|
2020
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net
income
|
$
13,746
|
|
$
10,135
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation
|
1,537
|
|
1,382
|
|
|
|
Amortization of
intangible assets
|
1,379
|
|
1,586
|
|
|
|
Deferred income
taxes
|
(2,425)
|
|
(851)
|
|
|
|
Stock-based
compensation
|
1,837
|
|
1,590
|
|
|
|
Other, net
|
(39)
|
|
239
|
|
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
|
Decrease (increase)
in trade receivables, net
|
333
|
|
(445)
|
|
|
|
Decrease in prepaid
expenses and other assets
|
622
|
|
665
|
|
|
|
Decrease in accounts
payable and other liabilities
|
(23)
|
|
(496)
|
|
|
|
Decrease in income
taxes payable
|
(1,485)
|
|
(444)
|
|
|
|
Increase (decrease)
in deferred revenues
|
405
|
|
(222)
|
|
|
|
Net cash provided
by operating activities
|
15,887
|
|
13,139
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(37,982)
|
|
(5,731)
|
|
|
|
Proceeds from
maturities of marketable securities
|
26,024
|
|
4,687
|
|
|
|
Proceeds from sales
of marketable securities and other investments
|
1,036
|
|
12,575
|
|
|
|
Acquisitions, net of
cash acquired
|
(41)
|
|
(124)
|
|
|
|
Capital
expenditures
|
(2,135)
|
|
(1,564)
|
|
|
|
Net cash (used
for) provided by investing activities
|
(13,098)
|
|
9,843
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
Payments for
repurchases of common stock
|
(20,934)
|
|
(19,240)
|
|
|
|
Proceeds from
issuances of common stock
|
1,786
|
|
1,588
|
|
|
|
Shares repurchased
for tax withholdings upon vesting of restricted stock-based
awards
|
(666)
|
|
(665)
|
|
|
|
Payments of dividends
to stockholders
|
(3,063)
|
|
(3,070)
|
|
|
|
Proceeds from
borrowings, net of issuance costs
|
14,934
|
|
19,888
|
|
|
|
Repayments of
borrowings
|
(2,631)
|
|
(4,500)
|
|
|
|
Other, net
|
196
|
|
(133)
|
|
|
|
Net cash used for
financing activities
|
(10,378)
|
|
(6,132)
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
448
|
|
(125)
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(7,141)
|
|
16,725
|
|
|
|
Cash and cash
equivalents at beginning of period
|
37,239
|
|
20,514
|
|
|
|
Cash and cash
equivalents at end of period
|
$
30,098
|
|
$
37,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
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
|
$
15,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(1,663)
|
(1,591)
|
(1,544)
|
(1,564)
|
(1,614)
|
(1,833)
|
(1,851)
|
(2,135)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
12,166
|
$
12,205
|
$
12,403
|
$
11,575
|
$
11,478
|
$
12,134
|
$
12,808
|
$
13,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth over
prior year
|
(12%)
|
(11%)
|
(6%)
|
(10%)
|
(6%)
|
(1%)
|
3%
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
10,955
|
$
10,933
|
$
10,759
|
$
10,135
|
$
10,249
|
$
10,380
|
$
12,830
|
$
13,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as
a % of Net Income
|
111%
|
112%
|
115%
|
114%
|
112%
|
117%
|
100%
|
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
|
|
|
|
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
|
$
7,389
|
$
28,700
|
|
|
|
|
Cloud license
and on-premise license
|
812
|
1,126
|
1,231
|
1,959
|
5,127
|
|
886
|
1,092
|
1,276
|
2,144
|
5,399
|
|
|
|
|
Hardware
|
815
|
871
|
857
|
901
|
3,443
|
|
814
|
844
|
820
|
882
|
3,359
|
|
|
|
|
Services
|
786
|
806
|
778
|
735
|
3,106
|
|
720
|
752
|
737
|
812
|
3,021
|
|
|
|
|
Total
revenues
|
$
9,218
|
$
9,614
|
$
9,796
|
$
10,440
|
$
39,068
|
|
$
9,367
|
$
9,800
|
$
10,085
|
$
11,227
|
$
40,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
3%
|
3%
|
4%
|
1%
|
3%
|
|
2%
|
4%
|
5%
|
8%
|
5%
|
|
|
|
|
Cloud license
and on-premise license
|
(6%)
|
(7%)
|
(2%)
|
(22%)
|
(12%)
|
|
9%
|
(3%)
|
4%
|
9%
|
5%
|
|
|
|
|
Hardware
|
(10%)
|
(2%)
|
(6%)
|
(9%)
|
(7%)
|
|
0%
|
(3%)
|
(4%)
|
(2%)
|
(2%)
|
|
|
|
|
Services
|
(3%)
|
(1%)
|
(1%)
|
(11%)
|
(4%)
|
|
(8%)
|
(7%)
|
(5%)
|
11%
|
(3%)
|
|
|
|
|
Total
revenues
|
0%
|
1%
|
2%
|
(6%)
|
(1%)
|
|
2%
|
2%
|
3%
|
8%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
4%
|
4%
|
5%
|
3%
|
4%
|
|
2%
|
4%
|
2%
|
4%
|
3%
|
|
|
|
|
Cloud license
and on-premise license
|
(6%)
|
(7%)
|
0%
|
(21%)
|
(11%)
|
|
8%
|
(5%)
|
0%
|
5%
|
2%
|
|
|
|
|
Hardware
|
(9%)
|
(1%)
|
(5%)
|
(7%)
|
(6%)
|
|
0%
|
(3%)
|
(6%)
|
(6%)
|
(4%)
|
|
|
|
|
Services
|
(2%)
|
0%
|
0%
|
(8%)
|
(3%)
|
|
(8%)
|
(8%)
|
(8%)
|
6%
|
(5%)
|
|
|
|
|
Total
revenues
|
2%
|
1%
|
3%
|
(4%)
|
0%
|
|
2%
|
1%
|
0%
|
4%
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
3,043
|
$
11,712
|
|
|
|
|
Infrastructure
cloud services and license support
|
4,101
|
4,058
|
4,121
|
4,096
|
16,377
|
|
4,131
|
4,211
|
4,300
|
4,346
|
16,988
|
|
|
|
|
Total cloud
services and license support revenues
|
$
6,805
|
$
6,811
|
$
6,930
|
$
6,845
|
$
27,392
|
|
$
6,947
|
$
7,112
|
$
7,252
|
$
7,389
|
$
28,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
5%
|
5%
|
6%
|
1%
|
4%
|
|
4%
|
5%
|
5%
|
11%
|
6%
|
|
|
|
|
Infrastructure
cloud services and license support
|
2%
|
1%
|
2%
|
0%
|
1%
|
|
1%
|
4%
|
4%
|
6%
|
4%
|
|
|
|
|
Total cloud
services and license support revenues
|
3%
|
3%
|
4%
|
1%
|
3%
|
|
2%
|
4%
|
5%
|
8%
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
6%
|
6%
|
7%
|
3%
|
5%
|
|
4%
|
5%
|
3%
|
7%
|
5%
|
|
|
|
|
Infrastructure
cloud services and license support
|
3%
|
2%
|
4%
|
3%
|
3%
|
|
1%
|
3%
|
2%
|
2%
|
2%
|
|
|
|
|
Total cloud
services and license support revenues
|
4%
|
4%
|
5%
|
3%
|
4%
|
|
2%
|
4%
|
2%
|
4%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHIC
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
5,150
|
$
5,304
|
$
5,363
|
$
5,746
|
$
21,563
|
|
$
5,068
|
$
5,259
|
$
5,424
|
$
6,076
|
$
21,828
|
|
|
|
|
Europe/Middle
East/Africa
|
|
2,553
|
2,695
|
2,835
|
2,952
|
11,035
|
|
2,738
|
2,852
|
2,981
|
3,324
|
11,894
|
|
|
|
|
Asia
Pacific
|
|
1,515
|
1,615
|
1,598
|
1,742
|
6,470
|
|
1,561
|
1,689
|
1,680
|
1,827
|
6,757
|
|
|
|
|
Total
revenues
|
$
9,218
|
$
9,614
|
$
9,796
|
$
10,440
|
$
39,068
|
|
$
9,367
|
$
9,800
|
$
10,085
|
$
11,227
|
$
40,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Q4 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 fiscal
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 fiscal 2021. We believe making these adjustments
provides insight to our operating performance and comparability to
past operating results.
|
View original
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SOURCE Oracle