Oracle Earnings Beat - Revenue Light
September 14, 2021
reported fiscal 2022 Q1 results. Total quarterly revenues were up 4%
year-over-year to $9.7 billion. Cloud services and license support revenues were
up 6% to $7.4 billion. Cloud license and on-premise license revenues were down
8% to $813 million.
Q1 GAAP operating income was up 7% to $3.4 billion, and GAAP operating margin
was 35%. Non-GAAP operating income was up 4% to $4.3 billion, and Non-GAAP
operating margin was 45%. GAAP net income was up 9% to $2.5 billion, and GAAP
earnings per share was up 19% to $0.86. Non-GAAP net income was up 2% to $2.9
billion, and Non-GAAP earnings per share was up 11% to $1.03.
Wall Street was looking for earnings of 97
cents per share with revenue of $9.77 billion.
Short-term deferred revenues were $10
billion. Operating cash flow was up 17% to $15.3 billion during the trailing
“Q1 results were excellent as constant currency revenue beat guidance by $100
million with all revenue segments exceeding forecast, and Non-GAAP earnings per
share beating guidance by $0.08,” said Oracle CEO, Safra Catz. “Oracle’s two new
cloud businesses, IaaS and SaaS, are now over 25% of our total revenue with an
annual run rate of $10 billion. Taken together, IaaS and SaaS are Oracle’s
fastest growing and highest margin new businesses. As these two cloud businesses
continue to grow they will help expand our overall profit margins and push
earnings per share higher.”
week, Cloud Wars published an article entitled ‘Oracle Leapfrogs Google in Major
Cloud Ranking’ summarizing an upcoming Gartner Report that reviews the leading
cloud infrastructure companies,” said Oracle Chairman and CTO, Larry Ellison.
“Please read the article and the Gartner Report for all the essential details.
Oracle is delivering some truly innovative infrastructure services. Last
quarter, we released the next generation of the world’s most popular open source
database, MySQL, which now includes the HeatWave in-memory query accelerator,
and the AutoPilot management tools. Many customers measured our new MySQL cloud
service to be much much faster, less expensive, and easier to use than SnowFlake,
Aurora, RedShift and other commonly used cloud databases. In response to
requests from some of those customers, we decided to make MySQL HeatWave
available on other clouds in addition to 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 October 12, 2021, with a payment date of October