Oracle Tops Forecasts

June 14, 2022

Oracle's 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.

The firm's $1.54 earnings per share topped the $1.37 EPS which was expected. Their revenue of $11.84 billion also topped the $11.66 billion which was expected.

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.