- Q4 GAAP Earnings per Share $1.16, Non-GAAP Earnings per Share $1.54
- Total Q4 Revenue $11.8
billion, up 5% in USD, up 10% in constant currency
- Total Q4 Cloud Revenue (IaaS plus SaaS) $2.9 billion, up 19% in USD, up 22% in constant
currency
- Infrastructure Cloud Revenue (IaaS) up 36% in USD, up 39% in
constant currency
- Fusion ERP Cloud Revenue (SaaS) up 20% in USD, up 23% in
constant currency
- NetSuite ERP Cloud Revenue (SaaS) up 27% in USD, up 30% in
constant currency
AUSTIN,
Texas, June 13, 2022 /PRNewswire/ -- Oracle
Corporation (NYSE: ORCL) today announced fiscal 2022 Q4 results.
Total quarterly revenues were up 5% year-over-year in USD and up
10% in constant currency to $11.8
billion. Cloud services and license support revenues were up
3% in USD and up 7% in constant currency to $7.6 billion. Cloud license and on-premise
license revenues were up 18% in USD and up 25% in constant currency
to $2.5 billion.
Q4 GAAP operating income was $4.5
billion, down 1% in USD and up 6% in constant currency.
Non-GAAP operating income was $5.6
billion, up 3% in USD and up 8% in constant currency. GAAP
operating margin was 38%, and non-GAAP operating margin was 47%.
GAAP net income was $3.2 billion, and
non-GAAP net income was $4.2 billion.
Q4 GAAP earnings per share was $1.16
while non-GAAP earnings per share was $1.54.
Short-term deferred revenues were $8.4
billion. Operating cash flow was $9.5
billion during the trailing twelve months.
Fiscal year 2022 total revenues were up 5% in USD and up 7% in
constant currency to $42.4 billion.
Cloud services and license support revenues were up 5% in USD and
6% in constant currency to $30.2
billion. Cloud license and on-premise license revenues were
up 9% in USD and 12% in constant currency to $5.9 billion.
Fiscal year 2022 GAAP operating income was $10.9 billion, and GAAP operating margin was 26%.
Non-GAAP operating income was $19.6
billion, and non-GAAP operating margin was 46%. GAAP net
income was $6.7 billion, while
non-GAAP net income was $13.7
billion. GAAP earnings per share was $2.41, while non-GAAP earnings per share was
$4.90.
"We continued to improve our top line results again this quarter
with total revenue growing 10% in constant currency," said Oracle
CEO, Safra Catz. "These consistent
increases in our quarterly revenue growth rate typically have been
driven by our market leading Fusion and NetSuite cloud
applications. But this Q4, we also experienced a major increase in
demand in our infrastructure cloud business—which grew 39% in
constant currency. We believe that this revenue growth spike
indicates that our infrastructure business has now entered a
hyper-growth phase. Couple a high growth rate in our cloud
infrastructure business with the newly acquired Cerner applications
business—and Oracle finds itself in position to deliver stellar
revenue growth over the next several quarters."
"Cerner and Oracle together have all the technologies required
to provide healthcare professionals with better information—and
better information will fundamentally transform healthcare," said
Oracle Chairman and CTO, Larry
Ellison. "Better information will lead to better patient
outcomes, better public health policy, lower overall healthcare
costs, and a better quality of life—not just in rich countries—but
throughout the world. During the pandemic, an award-winning Oracle
cloud system called v-safeSM collected over 150 million
patient records in the United
States. An Oracle cloud system also managed vaccine programs
in Ghana, Tasmania and dozens of other states and
countries. We partnered with the University of
Oxford to develop and deploy the Global Pathogen Analysis
System (GPAS) that identified variants of the COVID-19 virus
wherever and whenever they first appeared. A few weeks ago, we
turned on a system to help researchers study a promising new HIV
vaccine. There are so many opportunities to use information
technology to improve healthcare and save lives. We made a good
beginning during the pandemic—and we fully comprehend the
importance of what remains to be done."
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 12,
2022, with a payment date of July 26,
2022.
- 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 and 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
Oracle offers integrated suites of
applications plus secure, autonomous infrastructure in the Oracle
Cloud. For more information about Oracle (NYSE: ORCL), please visit
us at www.oracle.com.
Trademarks
Oracle, Java, and MySQL are registered trademarks of Oracle
Corporation.
"Safe Harbor" Statement: Statements in this press
release relating to Oracle's future plans, expectations, beliefs,
intentions and prospects, including statements regarding future
revenue growth, the impact of the Cerner acquisition and our plans
to manage a promising new HIV vaccine, are "forward-looking
statements" and are subject to material risks and uncertainties.
Many factors could affect our current expectations and our actual
results, and could cause actual results to differ materially. We
presently consider the following to be among the important factors
that could cause actual results to differ materially from
expectations: (1) Our success depends upon our ability to develop
new products and services, integrate acquired products and services
and enhance our existing products and services. (2) Our cloud
strategy, including our Oracle Cloud Software-as-a-Service and
Oracle Cloud Infrastructure offerings, may adversely affect our
revenues and profitability. (3) We might experience significant
coding, manufacturing or configuration errors in our cloud, license
and hardware offerings. (4) Acquisitions present many risks and we
may not achieve the financial and strategic goals that were
contemplated at the time of the transaction. (5) 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 remains uncertain. (6)
If our 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, any of which could reduce our
revenue and earnings, increase our expenses and expose us to legal
claims and regulatory actions. (7) 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. (8) 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. (9) If we are unable to compete effectively, the results of
operations and prospects for our business could be harmed. (10) Our
international sales and operations subject us to additional risks
that can adversely affect our operating results. (11) We are
susceptible to third-party manufacturing and logistics delays,
which could result in the loss of sales and customers. 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's Investor Relations Department at
(650) 506-4073 or by clicking on SEC Filings on the Oracle Investor
Relations website at www.oracle.com/investor/. All information set
forth in this press release is current as of June 13, 2022. Oracle undertakes no duty to
update any statement in light of new information or future
events.
ORACLE
CORPORATION
|
|
Q4 FISCAL 2022
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
|
|
|
2022
|
Revenues
|
2021
|
Revenues
|
in US
$
|
Currency
(1)
|
REVENUES
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
7,612
|
64 %
|
$
7,389
|
66 %
|
3 %
|
7 %
|
|
Cloud license and
on-premise license
|
2,539
|
22 %
|
2,144
|
19 %
|
18 %
|
25 %
|
|
Hardware
|
856
|
7 %
|
882
|
8 %
|
(3 %)
|
2 %
|
|
Services
|
833
|
7 %
|
812
|
7 %
|
3 %
|
7 %
|
|
Total
revenues
|
11,840
|
100 %
|
11,227
|
100 %
|
5 %
|
10 %
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Cloud services and
license support
|
1,435
|
12 %
|
1,214
|
11 %
|
18 %
|
21 %
|
|
Hardware
|
254
|
2 %
|
253
|
2 %
|
1 %
|
6 %
|
|
Services
|
707
|
6 %
|
655
|
6 %
|
8 %
|
13 %
|
|
Sales and
marketing
|
2,238
|
19 %
|
2,077
|
19 %
|
8 %
|
11 %
|
|
Research and
development
|
1,965
|
17 %
|
1,715
|
15 %
|
15 %
|
16 %
|
|
General and
administrative
|
364
|
3 %
|
306
|
3 %
|
19 %
|
21 %
|
|
Amortization of
intangible assets
|
268
|
2 %
|
342
|
3 %
|
(22 %)
|
(21 %)
|
|
Acquisition related and
other
|
6
|
0 %
|
30
|
0 %
|
(82 %)
|
(82 %)
|
|
Restructuring
|
100
|
1 %
|
94
|
1 %
|
7 %
|
7 %
|
|
Total operating
expenses
|
7,337
|
62 %
|
6,686
|
60 %
|
10 %
|
12 %
|
OPERATING
INCOME
|
4,503
|
38 %
|
4,541
|
40 %
|
(1 %)
|
6 %
|
|
Interest
expense
|
(704)
|
(6 %)
|
(697)
|
(6 %)
|
1 %
|
1 %
|
|
Non-operating
(expenses) income, net
|
(175)
|
(1 %)
|
313
|
3 %
|
*
|
*
|
INCOME BEFORE INCOME
TAXES
|
3,624
|
31 %
|
4,157
|
37 %
|
(13 %)
|
(6 %)
|
|
Provision for income
taxes
|
(435)
|
(4 %)
|
(124)
|
(1 %)
|
251 %
|
280 %
|
NET
INCOME
|
$
3,189
|
27 %
|
$
4,033
|
36 %
|
(21 %)
|
(14 %)
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
Basic
|
$
1.20
|
|
$
1.42
|
|
|
|
|
Diluted
|
$
1.16
|
|
$
1.37
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
2,667
|
|
2,847
|
|
|
|
|
Diluted
|
2,742
|
|
2,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2021, 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,
2022 compared with the corresponding prior year period decreased
our total revenues by 5 percentage points, total operating expenses
by 2 percentage
points and operating income by 7 percentage points.
|
|
* Not
meaningful
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 FISCAL 2022
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)
|
|
|
2022
|
|
|
|
2022
|
|
|
2021
|
|
|
|
2021
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
$
11,840
|
|
$
-
|
|
$
11,840
|
|
|
$
11,227
|
|
$
-
|
|
$
11,227
|
|
5 %
|
5 %
|
10 %
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
$ 7,337
|
|
$
(1,087)
|
|
$ 6,250
|
|
|
$ 6,686
|
|
$
(908)
|
|
$ 5,778
|
|
10 %
|
8 %
|
12 %
|
11 %
|
|
Stock-based compensation
(3)
|
713
|
|
(713)
|
|
-
|
|
|
442
|
|
(442)
|
|
-
|
|
61 %
|
*
|
61 %
|
*
|
|
Amortization of intangible
assets (4)
|
268
|
|
(268)
|
|
-
|
|
|
342
|
|
(342)
|
|
-
|
|
(22 %)
|
*
|
(21 %)
|
*
|
|
Acquisition related and
other
|
6
|
|
(6)
|
|
-
|
|
|
30
|
|
(30)
|
|
-
|
|
(82 %)
|
*
|
(82 %)
|
*
|
|
Restructuring
|
100
|
|
(100)
|
|
-
|
|
|
94
|
|
(94)
|
|
-
|
|
7 %
|
*
|
7 %
|
*
|
OPERATING
INCOME
|
$ 4,503
|
|
$ 1,087
|
|
$ 5,590
|
|
|
$ 4,541
|
|
$
908
|
|
$ 5,449
|
|
(1 %)
|
3 %
|
6 %
|
8 %
|
OPERATING MARGIN
%
|
38 %
|
|
|
|
47 %
|
|
|
40 %
|
|
|
|
49 %
|
|
(242) bp.
|
(132) bp.
|
(150) bp.
|
(73) bp.
|
INCOME TAX EFFECTS
(5)
|
$
(435)
|
|
$
(41)
|
|
$
(476)
|
|
|
$
(124)
|
|
$
(417)
|
|
$
(541)
|
|
251 %
|
(12 %)
|
280 %
|
(6 %)
|
NET
INCOME
|
$ 3,189
|
|
$ 1,046
|
|
$ 4,235
|
|
|
$ 4,033
|
|
$
491
|
|
$ 4,524
|
|
(21 %)
|
(6 %)
|
(14 %)
|
0 %
|
DILUTED EARNINGS PER
SHARE
|
$ 1.16
|
|
|
|
$ 1.54
|
|
|
$ 1.37
|
|
|
|
$ 1.54
|
|
(15 %)
|
0 %
|
(8 %)
|
7 %
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
2,742
|
|
-
|
|
2,742
|
|
|
2,943
|
|
-
|
|
2,943
|
|
(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, 2021, 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,
2022
|
|
|
May 31,
2021
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
Cloud services and license
support
|
$
60
|
|
$
(60)
|
|
$
-
|
|
|
$
35
|
|
$
(35)
|
|
$
-
|
|
|
|
|
|
|
Hardware
|
4
|
|
(4)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
Services
|
18
|
|
(18)
|
|
-
|
|
|
14
|
|
(14)
|
|
-
|
|
|
|
|
|
|
Sales and
marketing
|
120
|
|
(120)
|
|
-
|
|
|
80
|
|
(80)
|
|
-
|
|
|
|
|
|
|
Research and
development
|
445
|
|
(445)
|
|
-
|
|
|
291
|
|
(291)
|
|
-
|
|
|
|
|
|
|
General and
administrative
|
66
|
|
(66)
|
|
-
|
|
|
19
|
|
(19)
|
|
-
|
|
|
|
|
|
|
Total stock-based compensation
|
$
713
|
|
$
(713)
|
|
$
-
|
|
|
$
442
|
|
$
(442)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Estimated future
annual amortization expense related to intangible assets as of May
31, 2022 was as follows:
|
|
Fiscal 2023
|
$
750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2027
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
$ 1,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Income tax effects
were calculated reflecting an effective GAAP tax rate of 12.0% and
3.0% in the fourth quarter of fiscal 2022 and 2021, respectively,
and an effective non-GAAP tax rate of 10.1% and 10.7% in the
fourth quarter of fiscal 2022 and 2021, respectively. The
difference in our GAAP and non-GAAP tax rates in each of the fourth
quarter of fiscal 2022 and 2021 was primarily due to the net tax
effects related to stock-
based compensation expense and acquisition related and other items,
including the tax effects on amortization of intangible assets,
partially offset by the net deferred tax effects related to an
income tax
benefit that was previously recorded due to the partial realignment
of our legal entity structure.
|
|
* Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
FISCAL 2022 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
|
|
|
2022
|
Revenues
|
2021
|
Revenues
|
in US
$
|
Currency
(1)
|
REVENUES
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
30,174
|
71 %
|
$
28,700
|
71 %
|
5 %
|
6 %
|
|
Cloud license and
on-premise license
|
5,878
|
14 %
|
5,399
|
13 %
|
9 %
|
12 %
|
|
Hardware
|
3,183
|
7 %
|
3,359
|
8 %
|
(5 %)
|
(3 %)
|
|
Services
|
3,205
|
8 %
|
3,021
|
8 %
|
6 %
|
8 %
|
|
Total
revenues
|
42,440
|
100 %
|
40,479
|
100 %
|
5 %
|
7 %
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Cloud services and
license support
|
5,213
|
12 %
|
4,353
|
11 %
|
20 %
|
21 %
|
|
Hardware
|
972
|
2 %
|
972
|
2 %
|
0 %
|
2 %
|
|
Services
|
2,692
|
6 %
|
2,530
|
6 %
|
6 %
|
8 %
|
|
Sales and
marketing
|
8,047
|
19 %
|
7,682
|
19 %
|
5 %
|
6 %
|
|
Research and
development
|
7,219
|
17 %
|
6,527
|
16 %
|
11 %
|
11 %
|
|
General and
administrative
|
1,317
|
3 %
|
1,254
|
3 %
|
5 %
|
6 %
|
|
Amortization of
intangible assets
|
1,150
|
3 %
|
1,379
|
4 %
|
(17 %)
|
(17 %)
|
|
Acquisition related and
other (2)
|
4,713
|
11 %
|
138
|
0 %
|
*
|
*
|
|
Restructuring
|
191
|
1 %
|
431
|
1 %
|
(56 %)
|
(56 %)
|
|
Total operating
expenses
|
31,514
|
74 %
|
25,266
|
62 %
|
25 %
|
26 %
|
OPERATING
INCOME
|
10,926
|
26 %
|
15,213
|
38 %
|
(28 %)
|
(25 %)
|
|
Interest
expense
|
(2,755)
|
(7 %)
|
(2,496)
|
(6 %)
|
10 %
|
10 %
|
|
Non-operating
(expenses) income, net
|
(522)
|
(1 %)
|
282
|
0 %
|
*
|
*
|
INCOME BEFORE INCOME
TAXES
|
7,649
|
18 %
|
12,999
|
32 %
|
(41 %)
|
(37 %)
|
|
(Provision for) benefit
from income taxes
|
(932)
|
(2 %)
|
747
|
2 %
|
*
|
*
|
NET
INCOME
|
$
6,717
|
16 %
|
$
13,746
|
34 %
|
(51 %)
|
(48 %)
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
Basic
|
$
2.49
|
|
$
4.67
|
|
|
|
|
Diluted
|
$
2.41
|
|
$
4.55
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
2,700
|
|
2,945
|
|
|
|
|
Diluted
|
2,786
|
|
3,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2021, 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, 2022 compared
with the corresponding prior year period decreased our total
revenues by 2 percentage points, total operating expenses by 1
percentage point and operating
income by 3 percentage points.
|
|
(2) Acquisition related
and other for fiscal 2022 included the impact of litigation related
charges totaling $4.7 billion.
|
|
* Not
meaningful
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL 2022 YEAR TO
DATE FINANCIAL RESULTS
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(1)
|
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended May
31,
|
|
% Increase
(Decrease)
in US $
|
% Increase
(Decrease)
in Constant Currency (2)
|
|
|
2022
|
|
|
|
2022
|
|
|
2021
|
|
|
|
2021
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
$
42,440
|
|
$
-
|
|
$
42,440
|
|
|
$
40,479
|
|
$
2
|
|
$
40,481
|
|
5 %
|
5 %
|
7 %
|
7 %
|
|
Cloud services and license
support
|
30,174
|
|
-
|
|
30,174
|
|
|
28,700
|
|
2
|
|
28,702
|
|
5 %
|
5 %
|
6 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
$
31,514
|
|
$
(8,667)
|
|
$
22,847
|
|
|
$
25,266
|
|
$
(3,785)
|
|
$
21,481
|
|
25 %
|
6 %
|
26 %
|
8 %
|
|
Stock-based compensation
(3)
|
2,613
|
|
(2,613)
|
|
-
|
|
|
1,837
|
|
(1,837)
|
|
-
|
|
42 %
|
*
|
42 %
|
*
|
|
Amortization of intangible
assets (4)
|
1,150
|
|
(1,150)
|
|
-
|
|
|
1,379
|
|
(1,379)
|
|
-
|
|
(17 %)
|
*
|
(17 %)
|
*
|
|
Acquisition related and
other
|
4,713
|
|
(4,713)
|
|
-
|
|
|
138
|
|
(138)
|
|
-
|
|
*
|
*
|
*
|
*
|
|
Restructuring
|
191
|
|
(191)
|
|
-
|
|
|
431
|
|
(431)
|
|
-
|
|
(56 %)
|
*
|
(56 %)
|
*
|
OPERATING
INCOME
|
$
10,926
|
|
$ 8,667
|
|
$
19,593
|
|
|
$
15,213
|
|
$
3,787
|
|
$
19,000
|
|
(28 %)
|
3 %
|
(25 %)
|
5 %
|
OPERATING MARGIN
%
|
26 %
|
|
|
|
46 %
|
|
|
38 %
|
|
|
|
47 %
|
|
*
|
(77) bp.
|
*
|
(51) bp.
|
INCOME TAX EFFECTS
(5)
|
$
(932)
|
|
$
(1,723)
|
|
$
(2,655)
|
|
|
$
747
|
|
$
(3,408)
|
|
$
(2,661)
|
|
*
|
0 %
|
*
|
2 %
|
NET
INCOME
|
$ 6,717
|
|
$ 6,944
|
|
$
13,661
|
|
|
$
13,746
|
|
$
379
|
|
$
14,125
|
|
(51 %)
|
(3 %)
|
(48 %)
|
(1 %)
|
DILUTED EARNINGS PER
SHARE
|
$ 2.41
|
|
|
|
$ 4.90
|
|
|
$
4.55
|
|
|
|
$ 4.67
|
|
(47 %)
|
5 %
|
(43 %)
|
8 %
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
2,786
|
|
-
|
|
2,786
|
|
|
3,022
|
|
-
|
|
3,022
|
|
(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, 2021, 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,
2022
|
|
|
May 31,
2021
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
Cloud services and license
support
|
$
205
|
|
$
(205)
|
|
$
-
|
|
|
$
134
|
|
$
(134)
|
|
$
-
|
|
|
|
|
|
|
Hardware
|
15
|
|
(15)
|
|
-
|
|
|
11
|
|
(11)
|
|
-
|
|
|
|
|
|
|
Services
|
67
|
|
(67)
|
|
-
|
|
|
55
|
|
(55)
|
|
-
|
|
|
|
|
|
|
Sales and
marketing
|
448
|
|
(448)
|
|
-
|
|
|
313
|
|
(313)
|
|
-
|
|
|
|
|
|
|
Research and
development
|
1,633
|
|
(1,633)
|
|
-
|
|
|
1,188
|
|
(1,188)
|
|
-
|
|
|
|
|
|
|
General and
administrative
|
245
|
|
(245)
|
|
-
|
|
|
136
|
|
(136)
|
|
-
|
|
|
|
|
|
|
Total stock-based compensation
|
$ 2,613
|
|
$
(2,613)
|
|
$
-
|
|
|
$ 1,837
|
|
$
(1,837)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Estimated future
annual amortization expense related to intangible assets as of May
31, 2022 was as follows:
|
|
Fiscal 2023
|
$
750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2027
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
$ 1,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Income tax effects
were calculated reflecting an effective GAAP tax rate of 12.2% and
(5.7%) in fiscal 2022 and 2021, respectively, and an effective
non-GAAP tax rate of 16.3% and 15.9% in fiscal 2022 and
2021, respectively. The difference in our GAAP and non-GAAP tax
rates for fiscal 2022 was primarily due to the net tax effects
related to stock-based compensation expense, acquisition related
and other
items, including the net tax effects for litigation related charges
(refer to Appendix A for additional information), and the tax
effects on amortization of intangible assets, partially offset by
the net deferred
tax effects related to an income tax benefit that was recorded in
fiscal 2021 due to the partial realignment of our legal entity
structure. The difference in our GAAP and non-GAAP tax rates for
fiscal 2021 was
primarily due to a net tax benefit of $2.3 billion related to the
partial realignment of our legal entity structure (refer to
Appendix A for additional information), the net tax effects on
stock-based
compensation expense, and the net tax effects related to
acquisition related and other items, including the net tax effects
on amortization of intangible assets.
|
|
* Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
FISCAL 2022
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
May
31,
|
May
31,
|
|
|
|
2022
|
2021
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
21,383
|
|
$
30,098
|
|
Marketable
securities
|
519
|
|
16,456
|
|
Trade receivables,
net
|
5,953
|
|
5,409
|
|
Prepaid expenses and
other current assets
|
3,778
|
|
3,604
|
|
|
Total Current
Assets
|
31,633
|
|
55,567
|
Non-Current
Assets:
|
|
|
|
|
Property,
plant and equipment, net
|
9,716
|
|
7,049
|
|
Intangible
assets, net
|
1,440
|
|
2,430
|
|
Goodwill,
net
|
43,811
|
|
43,935
|
|
Deferred
tax assets
|
12,782
|
|
13,636
|
|
Other
non-current assets
|
9,915
|
|
8,490
|
|
|
Total Non-Current
Assets
|
77,664
|
|
75,540
|
TOTAL
ASSETS
|
$
109,297
|
|
$
131,107
|
LIABILITIES AND
STOCKHOLDERS' (DEFICIT) EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Notes payable,
current
|
$
3,749
|
|
$
8,250
|
|
Accounts
payable
|
1,317
|
|
745
|
|
Accrued compensation
and related benefits
|
1,944
|
|
2,017
|
|
Deferred
revenues
|
8,357
|
|
8,775
|
|
Other current
liabilities
|
4,144
|
|
4,377
|
|
|
Total Current
Liabilities
|
19,511
|
|
24,164
|
Non-Current
Liabilities:
|
|
|
|
|
Notes payable and other
borrowings, non-current
|
72,110
|
|
75,995
|
|
Income taxes
payable
|
12,210
|
|
12,345
|
|
Deferred tax
liabilities
|
6,031
|
|
7,864
|
|
Other non-current
liabilities
|
5,203
|
|
4,787
|
|
|
Total Non-Current
Liabilities
|
95,554
|
|
100,991
|
Stockholders'
(Deficit) Equity
|
(5,768)
|
|
5,952
|
TOTAL LIABILITIES
AND STOCKHOLDERS' (DEFICIT) EQUITY
|
$
109,297
|
|
$
131,107
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
FISCAL 2022
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
($ in
millions)
|
|
|
|
|
|
|
|
Year Ended May
31,
|
|
|
2022
|
2021
|
Cash Flows From
Operating Activities:
|
|
|
|
Net
income
|
$
6,717
|
|
$ 13,746
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
1,972
|
|
1,537
|
Amortization of
intangible assets
|
1,150
|
|
1,379
|
Deferred income
taxes
|
(1,146)
|
|
(2,425)
|
Stock-based
compensation
|
2,613
|
|
1,837
|
Other, net
|
220
|
|
(39)
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
(Increase) decrease in
trade receivables, net
|
(874)
|
|
333
|
Decrease in prepaid
expenses and other assets
|
11
|
|
622
|
Decrease in accounts
payable and other liabilities
|
(733)
|
|
(23)
|
Decrease in income
taxes payable
|
(398)
|
|
(1,485)
|
Increase in deferred
revenues
|
7
|
|
405
|
Net cash provided by
operating activities
|
9,539
|
|
15,887
|
Cash Flows From
Investing Activities:
|
|
|
|
Purchases of marketable
securities and other investments
|
(10,272)
|
|
(37,982)
|
Proceeds from
maturities of marketable securities
|
19,788
|
|
26,024
|
Proceeds from sales of
marketable securities and other investments
|
6,363
|
|
1,036
|
Acquisitions, net of
cash acquired
|
(148)
|
|
(41)
|
Capital
expenditures
|
(4,511)
|
|
(2,135)
|
Net cash provided by
(used for) investing activities
|
11,220
|
|
(13,098)
|
Cash Flows From
Financing Activities:
|
|
|
|
Payments for
repurchases of common stock
|
(16,248)
|
|
(20,934)
|
Proceeds from issuances
of common stock
|
482
|
|
1,786
|
Shares repurchased for
tax withholdings upon vesting of restricted stock-based
awards
|
(1,093)
|
|
(666)
|
Payments of dividends
to stockholders
|
(3,457)
|
|
(3,063)
|
Proceeds from
borrowings, net of issuance costs
|
-
|
|
14,934
|
Repayments of
borrowings
|
(8,250)
|
|
(2,631)
|
Other, net
|
(560)
|
|
196
|
Net cash used for
financing activities
|
(29,126)
|
|
(10,378)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(348)
|
|
448
|
Net decrease in cash
and cash equivalents
|
(8,715)
|
|
(7,141)
|
Cash and cash
equivalents at beginning of period
|
30,098
|
|
37,239
|
Cash and cash
equivalents at end of period
|
$ 21,383
|
|
$ 30,098
|
|
|
|
|
|
ORACLE
CORPORATION
|
FISCAL 2022
FINANCIAL RESULTS
|
FREE CASH FLOW
- TRAILING 4-QUARTERS (1)
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2021
|
Fiscal
2022
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Cash
Flow
|
$
13,092
|
$
13,967
|
$
14,659
|
$
15,887
|
$
15,325
|
$
10,255
|
$
10,396
|
$
9,539
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(1,614)
|
(1,833)
|
(1,851)
|
(2,135)
|
(2,761)
|
(3,118)
|
(3,805)
|
(4,511)
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
11,478
|
$
12,134
|
$
12,808
|
$
13,752
|
$
12,564
|
$
7,137
|
$
6,591
|
$
5,028
|
|
|
|
|
|
|
|
|
|
|
% Growth over prior
year
|
(6 %)
|
(1 %)
|
3 %
|
19 %
|
9 %
|
(41 %)
|
(49 %)
|
(63 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
10,249
|
$
10,380
|
$
12,830
|
$
13,746
|
$
13,952
|
$
10,262
|
$
7,560
|
$
6,717
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as a
% of Net Income
|
112 %
|
117 %
|
100 %
|
100 %
|
90 %
|
70 %
|
87 %
|
75 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2022
FINANCIAL RESULTS
|
SUPPLEMENTAL
ANALYSIS OF GAAP REVENUES (1)
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2021
|
|
|
|
|
|
Fiscal
2022
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
REVENUES BY
OFFERINGS
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$ 6,947
|
$ 7,112
|
$ 7,252
|
$ 7,389
|
$ 28,700
|
|
$ 7,371
|
$ 7,554
|
$ 7,637
|
$ 7,612
|
$ 30,174
|
Cloud license and
on-premise license
|
886
|
1,092
|
1,276
|
2,144
|
5,399
|
|
813
|
1,237
|
1,289
|
2,539
|
5,878
|
Hardware
|
814
|
844
|
820
|
882
|
3,359
|
|
763
|
767
|
798
|
856
|
3,183
|
Services
|
720
|
752
|
737
|
812
|
3,021
|
|
781
|
802
|
789
|
833
|
3,205
|
|
Total revenues
|
$ 9,367
|
$ 9,800
|
$
10,085
|
$
11,227
|
$ 40,479
|
|
$ 9,728
|
$
10,360
|
$
10,513
|
$
11,840
|
$ 42,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED REVENUE
GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
2 %
|
4 %
|
5 %
|
8 %
|
5 %
|
|
6 %
|
6 %
|
5 %
|
3 %
|
5 %
|
Cloud license and
on-premise license
|
9 %
|
(3 %)
|
4 %
|
9 %
|
5 %
|
|
(8 %)
|
13 %
|
1 %
|
18 %
|
9 %
|
Hardware
|
0 %
|
(3 %)
|
(4 %)
|
(2 %)
|
(2 %)
|
|
(6 %)
|
(9 %)
|
(3 %)
|
(3 %)
|
(5 %)
|
Services
|
(8 %)
|
(7 %)
|
(5 %)
|
11 %
|
(3 %)
|
|
8 %
|
7 %
|
7 %
|
3 %
|
6 %
|
|
Total revenues
|
2 %
|
2 %
|
3 %
|
8 %
|
4 %
|
|
4 %
|
6 %
|
4 %
|
5 %
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
2 %
|
4 %
|
2 %
|
4 %
|
3 %
|
|
5 %
|
6 %
|
8 %
|
7 %
|
6 %
|
Cloud license and
on-premise license
|
8 %
|
(5 %)
|
0 %
|
5 %
|
2 %
|
|
(9 %)
|
16 %
|
4 %
|
25 %
|
12 %
|
Hardware
|
0 %
|
(3 %)
|
(6 %)
|
(6 %)
|
(4 %)
|
|
(7 %)
|
(8 %)
|
1 %
|
2 %
|
(3 %)
|
Services
|
(8 %)
|
(8 %)
|
(8 %)
|
6 %
|
(5 %)
|
|
7 %
|
7 %
|
11 %
|
7 %
|
8 %
|
|
Total revenues
|
2 %
|
1 %
|
0 %
|
4 %
|
2 %
|
|
2 %
|
6 %
|
7 %
|
10 %
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD SERVICES AND
LICENSE SUPPORT REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
BY
ECOSYSTEM
|
|
|
|
|
|
|
|
|
|
|
|
Applications cloud
services and license support
|
$ 2,816
|
$ 2,901
|
$ 2,952
|
$ 3,043
|
$ 11,712
|
|
$ 3,041
|
$ 3,149
|
$ 3,187
|
$ 3,235
|
$ 12,612
|
Infrastructure cloud
services and license support
|
4,131
|
4,211
|
4,300
|
4,346
|
16,988
|
|
4,330
|
4,405
|
4,450
|
4,377
|
17,562
|
|
Total cloud services
and license support revenues
|
$ 6,947
|
$ 7,112
|
$ 7,252
|
$ 7,389
|
$ 28,700
|
|
$ 7,371
|
$ 7,554
|
$ 7,637
|
$ 7,612
|
$ 30,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED REVENUE
GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
Applications cloud
services and license support
|
4 %
|
5 %
|
5 %
|
11 %
|
6 %
|
|
8 %
|
9 %
|
8 %
|
6 %
|
8 %
|
Infrastructure cloud
services and license support
|
1 %
|
4 %
|
4 %
|
6 %
|
4 %
|
|
5 %
|
5 %
|
3 %
|
1 %
|
3 %
|
|
Total cloud services
and license support revenues
|
2 %
|
4 %
|
5 %
|
8 %
|
5 %
|
|
6 %
|
6 %
|
5 %
|
3 %
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
REVENUE GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
Applications cloud
services and license support
|
4 %
|
5 %
|
3 %
|
7 %
|
5 %
|
|
7 %
|
8 %
|
10 %
|
9 %
|
8 %
|
Infrastructure cloud
services and license support
|
1 %
|
3 %
|
2 %
|
2 %
|
2 %
|
|
3 %
|
5 %
|
7 %
|
5 %
|
5 %
|
|
Total cloud services
and license support revenues
|
2 %
|
4 %
|
2 %
|
4 %
|
3 %
|
|
5 %
|
6 %
|
8 %
|
7 %
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHIC
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$ 5,068
|
$ 5,259
|
$ 5,424
|
$ 6,076
|
$ 21,828
|
|
$ 5,321
|
$ 5,736
|
$ 5,849
|
$ 6,774
|
$ 23,679
|
Europe/Middle
East/Africa
|
2,738
|
2,852
|
2,981
|
3,324
|
11,894
|
|
2,784
|
2,953
|
3,014
|
3,260
|
12,011
|
Asia
Pacific
|
1,561
|
1,689
|
1,680
|
1,827
|
6,757
|
|
1,623
|
1,671
|
1,650
|
1,806
|
6,750
|
|
Total revenues
|
$ 9,367
|
$ 9,800
|
$
10,085
|
$
11,227
|
$ 40,479
|
|
$ 9,728
|
$
10,360
|
$
10,513
|
$
11,840
|
$ 42,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2021 and 2020 for the
fiscal 2022 and fiscal 2021 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 2022
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 as applicable to acquisitions closed
prior to fiscal 2022 required 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, income tax effects and net
income measures for the fiscal 2021 periods presented 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, income tax effects 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, income tax effects 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, income tax effects 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. For all periods
presented, acquisition related and other expenses consisted of
personnel related costs for transitional and certain other
employees, certain business combination adjustments including
certain adjustments after the measurement period has ended, and
certain other operating items, net. For fiscal 2022, acquisition
related and other expenses substantially consisted of litigation
related charges totaling $4.7 billion
that we generally do not expect to recur and we consider the
$4.7 billion of litigation related
charges to be outside our ordinary course of business based on the
following considerations: (i) the unprecedented nature of the
litigation related charges including the nature and size of the
damages awarded; (ii) the dissimilarity of this litigation and
related charges to recurring litigation of which we are a party in
the normal course of business, for which any and all such charges
are included in our GAAP operating results and non-GAAP measures;
(iii) the complexity of the case; (iv) the counterparty involved;
and (v) our expectation that litigation related charges of this
nature will not recur in future periods; among other factors.
Restructuring expenses consisted 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
may diminish over time with respect to past acquisitions and/or
strategic initiatives, we generally will incur certain of 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
taxes paid and give rise to a net deferred tax expense. We have
excluded the net deferred tax effects related to this net income
tax benefit from our non-GAAP income tax effects and net income
measures for fiscal 2022 and 2021. We believe these adjustments to
the fiscal 2022 and 2021 provides insight to our operating
performance and comparability to past operating results.
View original
content:https://www.prnewswire.com/news-releases/oracle-announces-fiscal-2022-fourth-quarter-and-fiscal-full-year-financial-results-301566863.html
SOURCE Oracle