ORCL
$78.29
Oracle
$1.47
1.91%
Earnings Details
3rd Quarter February 2021
Wednesday, March 10, 2021 4:05:00 PM
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Summary

Oracle Beats

Oracle (ORCL) reported 3rd Quarter February 2021 earnings of $1.15 per share on revenue of $10.1 billion. The consensus earnings estimate was $1.11 per share on revenue of $10.1 billion. The Earnings Whisper number was $1.13 per share. Revenue grew 3.0% on a year-over-year basis.

The company said during its conference call it expects fourth quarter non-GAAP earnings of $1.28 to $1.32 per share on revenue of $10.96 billion to $11.17 billion. The current consensus earnings estimate is $1.28 per share on revenue of $10.84 billion for the quarter ending May 31, 2021.

Oracle Corporation develops, manufactures, markets, hosts and supports database and middleware software, application software, cloud infrastructure, hardware system including computer server, storage and networking products and related services.

Results
Reported Earnings
$1.15
Earnings Whisper
$1.13
Consensus Estimate
$1.11
Reported Revenue
$10.09 Bil
Revenue Estimate
$10.07 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Oracle Announces Fiscal 2021 Third Quarter Financial Results

AUSTIN, Texas, March 10, 2021 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2021 Q3 results. Total quarterly revenues were up 3% year-over-year to $10.1 billion. Cloud services and license support revenues were up 5% to $7.3 billion. Cloud license and on-premise license revenues were up 4% to $1.3 billion.

Q3 GAAP operating income was up 10% to $3.9 billion and GAAP operating margin was 38%. Non-GAAP operating income was up 10% to $4.8 billion and non-GAAP operating margin was 47%. GAAP net income was up 95% to $5.0 billion, and GAAP earnings per share was up 113% to $1.68. The GAAP income statement was impacted by a one-time net tax benefit totaling $2.3 billion related to the transfer of certain assets between subsidiaries. Non-GAAP net income was up 10% to $3.5 billion, and non-GAAP earnings per share was up 20% to $1.16.

Short-term deferred revenues were $8.1 billion. Operating cash flow was $14.7 billion during the trailing twelve months.

"We continued to extend our huge lead in the cloud ERP market as Fusion ERP grew 30% and NetSuite ERP grew 24% in Q3," said Oracle CEO, Safra Catz.  "Oracle's rapidly growing highly-profitable, multi-billion dollar cloud ERP businesses helped drive subscription revenue up 5% and operating income up 10% in the quarter.  Subscription revenue now accounts for 72% of Oracle's total revenues, and this highly-predictable recurring revenue-stream along with expense discipline are enabling double-digit increases in non-GAAP earnings per share."

"Once again in Q3, Oracle's Gen2 Cloud Infrastructure business added customers, and grew revenue at a rate in excess of 100%," said Oracle Chairman and CTO, Larry Ellison. "We are opening new regions as fast as we can to support our rapidly growing multi-billion dollar infrastructure business.  On the applications front, analysts continue to rank Oracle the clear number one in cloud ERP, and this quarter Oracle signed contracts totaling hundreds of millions of dollars to migrate several more large companies from SAP ERP to Oracle Fusion ERP."

The Board of Directors increased the authorization for share repurchases by $20 billion. Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.32 per share of outstanding common stock, reflecting a 33% increase over the current quarterly dividend of $0.24. Larry Ellison, Oracle's Chairman of the Board of Directors, Chief Technology Officer and largest stockholder, did not participate in the deliberation, or the vote on this matter. This increased dividend will be paid to stockholders of record as of the close of business on April 8, 2021, with a payment date of April 22, 2021.

Technical Innovations

Customer Momentum

  • Australian Data Centres - To provide high security data center services to Australia's federal government, major telecommunication companies, and businesses, Australian Data Centres needs secure and scalable computing power, and they need it inside the country's borders. They chose Oracle Dedicated Region Cloud@Customer to provide that cloud computing power, since it provides all the services and advantages of Oracle Cloud but lets Australian Data Centres put that capacity in an in-country location of their choice.
  • Denver Public Schools - With the city's population growing nearly 20% since 2010, Denver Public Schools saw an unprecedented expansion of programs in serving more than 90,000 students in 207 schools. To replace an Infor Lawson system, the Denver Public Schools' leadership considered Infor, Oracle, and SAP systems. The District chose Oracle Fusion Cloud ERP, HCM and EPM to help them streamline and automate back-office business processes, model and plan across finance and HR, control costs, and drive better decisions.
  • Bed Bath & Beyond - A North American retailer that sells a wide assortment of home, baby, beauty, and wellness merchandise online and in stores. The company selected Oracle Retail solutions and Oracle Fusion Cloud ERP for the capability to provide decision-makers with an end-to-end view of financials through merchandising, resulting in better supply chain and store inventory management.
  • AxiomSL - A global leader in risk analytics, data management, and regulatory reporting solutions, leverages the Oracle Autonomous Database to handle critical workloads for its RegCloud® offering. Autonomous Database has facilitated significant performance gains for AxiomSL over its prior solution when testing more than 160 million rows. The power of Autonomous Database enables AxiomSL to move existing customers to the cloud and expand its client base.
  • A more complete list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings.

Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor.

About Oracle

The Oracle Cloud offers complete suites of integrated applications plus secure Generation 2 Infrastructure featuring the Oracle Autonomous Database. For more information about Oracle (NYSE:ORCL), visit us at www.oracle.com or contact Investor Relations at investor_us@oracle.com or (650) 506-4073.

Trademarks

Oracle and Java are registered trademarks of Oracle.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding future growth in our cloud ERP and infrastructure businesses, as well as growth in our subscription revenue, are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) The COVID-19 pandemic has affected how we and our customers are operating our respective businesses, and the duration and extent to which this will impact our future results of operations and our overall financial performance remains uncertain. (2) Our success depends upon our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services. (3) Our cloud strategy, including our Oracle Cloud Software-as-a-Service and Infrastructure-as-a-Service offerings, may adversely affect our revenues and profitability. (4) We might experience significant coding, manufacturing or configuration errors in our cloud, license and hardware offerings. (5) If the security measures for our products and services are compromised and as a result, our data, our customers' data or our IT systems are accessed improperly, made unavailable, or improperly modified, our products and services may be perceived as vulnerable, our brand and reputation could be damaged, the IT services we provide to our customers could be disrupted, and customers may stop using our products and services, all of which could reduce our revenue and earnings, increase our expenses and expose us to legal claims and regulatory actions. (6) Our business practices with respect to data could give rise to operational interruption, liabilities or reputational harm as a result of governmental regulation, legal requirements or industry standards relating to privacy and data protection. (7) Economic, political and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (8) If we are unable to compete effectively, the results of operations and prospects for our business could be harmed. (9) Our international sales and operations subject us to additional risks that can adversely affect our operating results. (10) Acquisitions present many risks and we may not achieve the financial and strategic goals that were contemplated at the time of a transaction. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle's Investor Relations website at http://www.oracle.com/investor. All information set forth in this press release is current as of March 10, 2021. Oracle undertakes no duty to update any statement in light of new information or future events.

 










ORACLE  CORPORATION


Q3 FISCAL 2021 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 












Three Months Ended


% Increase




% Increase

(Decrease)




February 28,

% of

February 29,

% of

(Decrease)

in Constant




2021

Revenues

2020

Revenues

in US $

Currency (1)


REVENUES









Cloud services and license support

$                  7,252

72%

$                  6,930

71%

5%

2%



Cloud license and on-premise license

1,276

13%

1,231

12%

4%

0%



Hardware

820

8%

857

9%

(4%)

(6%)



Services

737

7%

778

8%

(5%)

(8%)



      Total revenues

10,085

100%

9,796

100%

3%

0%


OPERATING EXPENSES









Cloud services and license support

1,064

11%

991

10%

7%

6%



Hardware

230

2%

271

3%

(15%)

(16%)



Services

621

6%

702

7%

(12%)

(14%)



Sales and marketing

1,915

19%

2,049

21%

(7%)

(8%)



Research and development

1,621

16%

1,500

15%

8%

8%



General and administrative

330

3%

288

3%

15%

14%



Amortization of intangible assets

347

4%

400

4%

(13%)

(14%)



Acquisition related and other

13

0%

7

0%

92%

91%



Restructuring

66

1%

60

1%

10%

1%



      Total operating expenses

6,207

62%

6,268

64%

(1%)

(2%)


OPERATING INCOME

3,878

38%

3,528

36%

10%

5%



Interest expense

(585)

(6%)

(456)

(5%)

28%

28%



Non-operating (expenses) income, net

(17)

0%

4

0%

*

*


INCOME BEFORE BENEFIT FROM (PROVISION FOR) INCOME TAXES

3,276

32%

3,076

31%

7%

2%



Benefit from (provision for) income taxes

1,745

18%

(505)

(5%)

*

*


NET INCOME

$                  5,021

50%

$                  2,571

26%

95%

87%











EARNINGS PER SHARE:









Basic

$                     1.72


$                    0.81






Diluted

$                     1.68


$                    0.79





WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:









Basic

2,913


3,190






Diluted

2,994


3,271























(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2020, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended February 28, 2021 compared with the corresponding prior year period increased our revenues by 3 percentage points, operating expenses by 1 percentage point and operating income by 5 percentage points.



*

Not meaningful


 






















ORACLE  CORPORATION






















Q3 FISCAL 2021 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

























Three Months Ended


% Increase (Decrease)
in US $

% Increase (Decrease) in
Constant Currency (2)




February 28,




February 28,



February 29,




February 29,










2021




2021



2020




2020


GAAP

Non-GAAP

GAAP

Non-GAAP





GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP
























TOTAL REVENUES


$     10,085


$               1


$     10,086



$       9,796


$               1


$       9,797


3%

3%

0%

0%



     Cloud services and license support


7,252


1


7,253



6,930


1


6,931


5%

5%

2%

2%























TOTAL OPERATING EXPENSES


$       6,207


$        (905)


$       5,302



$       6,268


$        (828)


$       5,440


(1%)

(3%)

(2%)

(4%)



     Stock-based compensation (3)


479


(479)


-



361


(361)


-


33%

*

33%

*



     Amortization of intangible assets (4)


347


(347)


-



400


(400)


-


(13%)

*

(14%)

*



     Acquisition related and other


13


(13)


-



7


(7)


-


92%

*

91%

*



     Restructuring


66


(66)


-



60


(60)


-


10%

*

1%

*


OPERATING INCOME


$       3,878


$          906


$       4,784



$       3,528


$          829


$       4,357


10%

10%

5%

6%


OPERATING MARGIN %


38%




47%



36%




44%


244 bp.

297 bp.

179 bp.

247 bp.


INCOME TAX EFFECTS (5)


$       1,745


$     (2,442)


$        (697)



$        (505)


$        (240)


$        (745)


*

(6%)

*

(10%)


NET INCOME


$       5,021


$     (1,536)


$       3,485



$       2,571


$          589


$       3,160


95%

10%

87%

6%


DILUTED EARNINGS PER SHARE


$         1.68




$         1.16



$         0.79




$         0.97


113%

20%

104%

16%


DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING


2,994


-


2,994



3,271


-


3,271


(8%)

(8%)

(8%)

(8%)
























(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures,
the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.


(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our
underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than
United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2020, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the
respective periods.


(3)

Stock-based compensation was included in the following GAAP operating expense categories:











Three Months Ended



Three Months Ended










February 28, 2021



February 29, 2020










GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP








     Cloud services and license support


$             33


$           (33)


$              -



$             22


$           (22)


$              -








     Hardware


2


(2)


-



3


(3)


-








     Services


15


(15)


-



14


(14)


-








     Sales and marketing


82


(82)


-



67


(67)


-








     Research and development


307


(307)


-



238


(238)


-








     General and administrative


40


(40)


-



17


(17)


-








           Total stock-based compensation


$          479


$        (479)


$              -



$          361


$        (361)


$              -




























(4)

Estimated future annual amortization expense related to intangible assets as of February 28, 2021 was as follows:



     Remainder of fiscal 2021


$          328



















     Fiscal 2022


1,120



















     Fiscal 2023


696



















     Fiscal 2024


450



















     Fiscal 2025


126



















     Fiscal 2026


24



















     Thereafter


10



















           Total intangible assets, net


$       2,754







































(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of (53.3%) and 16.4% in the third quarter of fiscal 2021 and 2020, respectively, and an effective non-GAAP tax rate of 16.7% and 19.1% in the
third quarter of fiscal 2021 and 2020, respectively. The difference in our GAAP and non-GAAP tax rates in the third quarter of fiscal 2021 was primarily due to a net tax benefit of $2.3 billion related to the partial
realignment of our legal entity structure (refer to Appendix A for additional information), the net tax effects on stock-based compensation expense, and the net tax effects related to acquisition related items, including
the net tax effects on amortization of intangible assets. The difference in our GAAP and non-GAAP tax rates in the third quarter of fiscal 2020 was primarily due to the net tax effects on stock-based compensation
expense and the net tax effects on acquisition related items, including the tax effects on amortization of intangible assets.





*

Not meaningful
























 











ORACLE  CORPORATION












Q3  FISCAL 2021 YEAR TO DATE FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
 














Nine Months Ended


% Increase





% Increase

(Decrease)





February 28,

% of

February 29,

% of

(Decrease)

in Constant





2021

Revenues

2020

Revenues

in US $

Currency (1)



REVENUES










Cloud services and license support

$                21,311

73%

$                20,546

72%

4%

3%




Cloud license and on-premise license

3,254

11%

3,169

11%

3%

1%




Hardware

2,478

8%

2,542

9%

(3%)

(3%)




Services

2,209

8%

2,372

8%

(7%)

(8%)




      Total revenues

29,252

100%

28,629

100%

2%

1%



OPERATING EXPENSES










Cloud services and license support

3,139

11%

2,994

11%

5%

4%




Hardware

719

2%

828

3%

(13%)

(13%)




Services

1,875

6%

2,147

8%

(13%)

(14%)




Sales and marketing

5,605

19%

6,135

21%

(9%)

(9%)




Research and development

4,812

17%

4,588

16%

5%

5%




General and administrative

949

3%

903

3%

5%

5%




Amortization of intangible assets

1,037

4%

1,221

4%

(15%)

(15%)




Acquisition related and other

107

1%

44

0%

144%

145%




Restructuring

337

1%

181

1%

87%

82%




      Total operating expenses

18,580

64%

19,041

67%

(2%)

(3%)



OPERATING INCOME

10,672

36%

9,588

33%

11%

9%




Interest expense

(1,799)

(6%)

(1,416)

(5%)

27%

27%




Non-operating (expenses) income, net

(30)

0%

195

1%

*

*



INCOME BEFORE BENEFIT FROM (PROVISION FOR) INCOME TAXES

8,843

30%

8,367

29%

6%

3%




Benefit from (provision for) income taxes

871

3%

(1,348)

(4%)

*

*



NET INCOME

$                  9,714

33%

$                  7,019

25%

38%

34%













EARNINGS PER SHARE:










Basic

$                    3.26


$                    2.16







Diluted

$                    3.19


$                    2.10






WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:










Basic

2,977


3,251







Diluted

3,049


3,337
























































(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2020, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the nine months ended February 28, 2021 compared with the corresponding prior year period increased our revenues by 1 percentage point, operating expenses by 1 percentage point and operating income by 2 percentage points.













*

Not meaningful





























 

 























ORACLE  CORPORATION
























Q3  FISCAL 2021 YEAR TO DATE FINANCIAL RESULTS


RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)


($ in millions, except per share data)



























Nine Months Ended


% Increase (Decrease)
in US $

% Increase (Decrease) in
Constant Currency (2)





February 28,




February 28,



February 29,




February 29,











2021




2021



2020




2020


GAAP

Non-GAAP

GAAP

Non-GAAP






GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP


























TOTAL REVENUES


$     29,252


$               2


$     29,254



$     28,629


$               3


$     28,632


2%

2%

1%

1%



             Cloud services and license support revenues



21,311


2


21,313



20,546


3


20,549


4%

4%

3%

3%

























TOTAL OPERATING EXPENSES


$     18,580


$     (2,876)


$     15,704



$     19,041


$     (2,650)


$     16,391


(2%)

(4%)

(3%)

(5%)



                    Stock-based compensation (3)



1,395


(1,395)


-



1,204


(1,204)


-


16%

*

16%

*



                    Amortization of intangible assets (4)



1,037


(1,037)


-



1,221


(1,221)


-


(15%)

*

(15%)

*



                    Acquisition related and other



107


(107)


-



44


(44)


-


144%

*

145%

*



                    Restructuring



337


(337)


-



181


(181)


-


87%

*

82%

*



OPERATING INCOME


$     10,672


$       2,878


$     13,550



$       9,588


$       2,653


$     12,241


11%

11%

9%

9%



OPERATING MARGIN %


36%




46%



33%




43%


299 bp.

357 bp.

257 bp.

322 bp.



INCOME TAX EFFECTS (5)


$          871


$     (2,990)


$     (2,119)



$     (1,348)


$        (769)


$     (2,117)


*

0%

*

(2%)



NET INCOME


$       9,714


$        (112)


$       9,602



$       7,019


$       1,884


$       8,903


38%

8%

34%

6%



DILUTED EARNINGS PER SHARE


$         3.19




$         3.15



$         2.10




$         2.67


51%

18%

48%

16%



DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING


3,049


-


3,049



3,337


-


3,337


(9%)

(9%)

(9%)

(9%)



































(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.

























(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2020, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

























(3)

Stock-based compensation was included in the following GAAP operating expense categories:
































Nine Months Ended



Nine Months Ended











February 28, 2021



February 29, 2020











GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP









     Cloud services and license support


$             99


$           (99)


$              -



$             83


$           (83)


$              -









     Hardware


8


(8)


-



8


(8)


-









     Services


41


(41)


-



42


(42)


-









     Sales and marketing


233


(233)


-



192


(192)


-









     Research and development


897


(897)


-



781


(781)


-









     General and administrative


117


(117)


-



98


(98)


-









           Total stock-based compensation


$       1,395


$     (1,395)


$              -



$       1,204


$     (1,204)


$              -






























(4)

Estimated future annual amortization expense related to intangible assets as of February 28, 2021 was as follows:




     Remainder of fiscal 2021


$          328




















     Fiscal 2022


1,120




















     Fiscal 2023


696




















     Fiscal 2024


450




















     Fiscal 2025


126




















     Fiscal 2026


24




















     Thereafter


10




















           Total intangible assets, net


$       2,754









































(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of (9.8%) and 16.1% in the first nine months of fiscal 2021 and 2020, respectively, and an effective non-GAAP tax rate of 18.1% and 19.2% in the first nine months of fiscal 2021 and 2020, respectively. The difference in our GAAP and non-GAAP tax rates for the first nine months of fiscal 2021 was primarily due to a net tax benefit of $2.3 billion related to the partial realignment of our legal entity structure (refer to Appendix A for additional information), the net tax effects on stock-based compensation expense, and the net tax effects related to acquisition related items, including the net tax effects on amortization of intangible assets. The difference in our GAAP and non-GAAP tax rates in the first nine months of fiscal 2020 was primarily due to the net tax effects on stock-based compensation expense and the net tax effects on acquisition related items, including the tax effects on amortization of intangible assets.

























*

Not meaningful















































 

 








ORACLE  CORPORATION








Q3 FISCAL 2021 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)











February 28,

May 31,




2021

2020

ASSETS





Current Assets:






Cash and cash equivalents

$               22,321


$               37,239



Marketable securities

13,543


5,818



Trade receivables, net

4,637


5,551



Prepaid expenses and other current assets

3,243


3,532




Total Current Assets

43,744


52,140


Non-Current Assets:






   Property, plant and equipment, net

6,816


6,244



   Intangible assets, net

2,754


3,738



   Goodwill, net

43,954


43,769



   Deferred tax assets

13,725


3,252



   Other non-current assets

7,116


6,295




Total Non-Current Assets

74,365


63,298


TOTAL ASSETS

$             118,109


$             115,438







LIABILITIES AND EQUITY





Current Liabilities:






Notes payable, current

$                 5,758


$                 2,371



Accounts payable

812


637



Accrued compensation and related benefits

1,684


1,453



Deferred revenues

8,088


8,002



Other current liabilities

3,908


4,737




Total Current Liabilities

20,250


17,200


Non-Current Liabilities:






Notes payable and other borrowings, non-current

63,541


69,226



Income taxes payable

12,316


12,463



Deferred tax liabilities

7,892


41



Other non-current liabilities

4,473


3,791




Total Non-Current Liabilities

88,222


85,521


Equity

9,637


12,717







TOTAL LIABILITIES AND EQUITY

$             118,109


$             115,438
















 

 







     ORACLE  CORPORATION







Q3 FISCAL 2021 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)









Nine Months Ended



February 28,

February 29,



2021

2020

Cash Flows From Operating Activities:





Net income

$              9,714


$               7,019


Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation

1,127


1,025


Amortization of intangible assets

1,037


1,221


Deferred income taxes

(2,475)


(398)


Stock-based compensation

1,395


1,204


Other, net

227


167


Changes in operating assets and liabilities, net of effects from acquisitions:





Decrease in trade receivables, net

1,089


946


Decrease in prepaid expenses and other assets

609


718


Decrease in accounts payable and other liabilities

(247)


(1,035)


Decrease in income taxes payable

(1,181)


(789)


Decrease in deferred revenues

(250)


(553)


Net cash provided by operating activities

11,045


9,525


Cash Flows From Investing Activities:





Purchases of marketable securities and other investments

(26,775)


(399)


Proceeds from maturities of marketable securities and other investments

18,182


3,165


Proceeds from sales of marketable securities

853


12,575


Acquisitions, net of cash acquired

(29)


(111)


Capital expenditures

(1,418)


(1,131)


Net cash (used for) provided by investing activities

(9,187)


14,099


Cash Flows From Financing Activities:





Payments for repurchases of common stock

(12,958)


(13,935)


Proceeds from issuances of common stock

915


1,232


Shares repurchased for tax withholdings upon vesting of restricted stock-based awards

(597)


(624)


Payments of dividends to stockholders

(2,146)


(2,330)


Repayments of borrowings

(2,631)


(4,500)


Other, net

241


(108)


Net cash used for financing activities

(17,176)


(20,265)


Effect of exchange rate changes on cash and cash equivalents

400


(44)


Net (decrease) increase in cash and cash equivalents

(14,918)


3,315


Cash and cash equivalents at beginning of period

37,239


20,514


Cash and cash equivalents at end of period

$            22,321


$             23,829














 












 ORACLE  CORPORATION

 Q3 FISCAL 2021 FINANCIAL RESULTS

 FREE CASH FLOW - TRAILING 4-QUARTERS (1)

 ($ in millions)














 Fiscal 2020

 Fiscal 2021




 Q1

 Q2

 Q3

 Q4

 Q1

 Q2

 Q3

 Q4












GAAP Operating Cash Flow

$             13,829

$             13,796

$             13,947

$             13,139

$             13,092

$             13,967

$             14,659














Capital Expenditures

(1,663)

(1,591)

(1,544)

(1,564)

(1,614)

(1,833)

(1,851)














Free Cash Flow

$             12,166

$             12,205

$             12,403

$             11,575

$             11,478

$             12,134

$             12,808














% Growth over prior year

(12%)

(11%)

(6%)

(10%)

(6%)

(1%)

3%

























GAAP Net Income

$             10,955

$             10,933

$             10,759

$             10,135

$             10,249

$             10,380

$             12,830














Free Cash Flow as a % of Net Income

111%

112%

115%

114%

112%

117%

100%

























(1)

To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity.















 

 

 
















 ORACLE  CORPORATION


 Q3 FISCAL 2021 FINANCIAL RESULTS


 SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)


 ($ in millions)




















 Fiscal 2020






 Fiscal 2021




 Q1

 Q2

 Q3

 Q4

 TOTAL


 Q1

 Q2

 Q3

 Q4

 TOTAL



REVENUES BY OFFERINGS














 Cloud services and license support

$       6,805

$       6,811

$       6,930

$       6,845

$    27,392


$       6,947

$       7,112

$       7,252


$    21,311



 Cloud license and on-premise license

812

1,126

1,231

1,959

5,127


886

1,092

1,276


3,254



 Hardware

815

871

857

901

3,443


814

844

820


2,478



 Services 

786

806

778

735

3,106


720

752

737


2,209



     Total revenues


$       9,218

$       9,614

$       9,796

$    10,440

$    39,068


$       9,367

$       9,800

$    10,085


$    29,252


















AS REPORTED REVENUE GROWTH RATES














 Cloud services and license support

3%

3%

4%

1%

3%


2%

4%

5%


4%



 Cloud license and on-premise license

(6%)

(7%)

(2%)

(22%)

(12%)


9%

(3%)

4%


3%



 Hardware 

(10%)

(2%)

(6%)

(9%)

(7%)


0%

(3%)

(4%)


(3%)



 Services 

(3%)

(1%)

(1%)

(11%)

(4%)


(8%)

(7%)

(5%)


(7%)



     Total revenues


0%

1%

2%

(6%)

(1%)


2%

2%

3%


2%


















CONSTANT CURRENCY REVENUE GROWTH RATES (2)














 Cloud services and license support 

4%

4%

5%

3%

4%


2%

4%

2%


3%



 Cloud license and on-premise license

(6%)

(7%)

0%

(21%)

(11%)


8%

(5%)

0%


1%



 Hardware 

(9%)

(1%)

(5%)

(7%)

(6%)


0%

(3%)

(6%)


(3%)



 Services 

(2%)

0%

0%

(8%)

(3%)


(8%)

(8%)

(8%)


(8%)



     Total revenues


2%

1%

3%

(4%)

0%


2%

1%

0%


1%


















CLOUD SERVICES AND LICENSE SUPPORT REVENUES















BY ECOSYSTEM














 Applications cloud services and license support

$       2,704

$       2,753

$       2,809

$       2,749

$    11,015


$       2,816

$       2,901

$       2,952


$       8,669



 Infrastructure cloud services and license support

4,101

4,058

4,121

4,096

16,377


4,131

4,211

4,300


12,642



     Total cloud services and license support revenues


$       6,805

$       6,811

$       6,930

$       6,845

$    27,392


$       6,947

$       7,112

$       7,252


$    21,311


















AS REPORTED REVENUE GROWTH RATES














 Applications cloud services and license support

5%

5%

6%

1%

4%


4%

5%

5%


5%



 Infrastructure cloud services and license support

2%

1%

2%

0%

1%


1%

4%

4%


3%



      Total cloud services and license support revenues


3%

3%

4%

1%

3%


2%

4%

5%


4%


















CONSTANT CURRENCY REVENUE GROWTH RATES (2)














 Applications cloud services and license support

6%

6%

7%

3%

5%


4%

5%

3%


4%



 Infrastructure cloud services and license support

3%

2%

4%

3%

3%


1%

3%

2%


2%



     Total cloud services and license support revenues


4%

4%

5%

3%

4%


2%

4%

2%


3%


















GEOGRAPHIC REVENUES














 Americas


$       5,150

$       5,304

$       5,363

$       5,746

$    21,563


$       5,068

$       5,259

$       5,424


$    15,751



 Europe/Middle East/Africa


2,553

2,695

2,835

2,952

11,035


2,738

2,852

2,981


8,571



 Asia Pacific


1,515

1,615

1,598

1,742

6,470


1,561

1,689

1,680


4,930



     Total revenues


$       9,218

$       9,614

$       9,796

$    10,440

$    39,068


$       9,367

$       9,800

$    10,085


$    29,252
































(1)

The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.


(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2020 and 2019 for the fiscal 2021 and fiscal 2020 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.


 

APPENDIX A


ORACLE CORPORATION
Q3 FISCAL 2021 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES


To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items, with the exception of the item described under income tax effects related to the partial realignment of our legal entity structure:


  • Cloud services and license support revenues: Business combination accounting rules require us to account for the fair values of cloud services and license support contracts assumed in connection with our acquisitions. The non-GAAP adjustments to our cloud services and license support revenues are intended to include, and thus reflect, the full amount of such revenues. We believe the adjustments to these revenues are useful to investors as a measure of the ongoing performance of our business as we generally expect to experience high renewal rates for these contracts at their stated values during the post combination periods. 
  • Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
  • Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
  • Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses primarily consist of personnel related costs for transitional and certain other employees, certain business combination adjustments including adjustments after the measurement period has ended and certain other operating items, net. Restructuring expenses consist of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses generally diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur these expenses in connection with any future acquisitions and/or strategic initiatives. 
  • Income tax effects related to the partial realignment of our legal entity structure: We recorded a net income tax benefit of $2.3 billion during the three and nine months ended February 28, 2021 which related to the partial realignment of our legal entity structure that resulted in the intra-group transfer of certain intellectual property rights. A portion of this net benefit will reduce cash tax paid and give rise to a net deferred tax expense. We have excluded the net benefit and related net deferred tax expense from our non-GAAP income tax effects and net income measures for the three and nine months ended February 28, 2021. We believe these adjustments to the fiscal 2021 periods presented provides insight to our operating performance and comparability to past operating results.

 

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SOURCE Oracle