ORCL
$78.68
Oracle
$.69
.88%
Earnings Details
Quarter May 2021
Tuesday, June 15, 2021 4:05:00 PM
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Summary

Oracle Beats

Oracle (ORCL) reported Quarter May 2021 earnings of $1.53 per share on revenue of $11.2 billion. The consensus earnings estimate was $1.32 per share on revenue of $11.1 billion. The Earnings Whisper number was $1.33 per share. Revenue grew 7.5% on a year-over-year basis.

The company said during its conference call it expects first quarter non-GAAP earnings of $0.94 to $0.98 per share on revenue of $9.65 billion to $9.84 billion. The current consensus earnings estimate is $1.05 per share on revenue of $9.70 billion for the quarter ending August 31, 2021. The company said it expects fiscal 2022 revenue of approximately $42.5 billion. The current consensus revenue estimate is $41.4 billion for the year ending May 31, 2022.

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
$1.53
Earnings Whisper
$1.33
Consensus Estimate
$1.32
Reported Revenue
$11.23 Bil
Revenue Estimate
$11.07 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Oracle Announces Fiscal 2021 Fourth Quarter and Fiscal Full Year Financial Results

AUSTIN, Texas, June 15, 2021 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2021 Q4 results. Total quarterly revenues were up 8% year-over-year to $11.2 billion. Cloud services and license support revenues were up 8% to $7.4 billion. Cloud license and on-premise license revenues were up 9% to $2.1 billion.

Q4 GAAP operating income was up 5% to $4.5 billion, and GAAP operating margin was 40%. Non-GAAP operating income was up 6% to $5.4 billion and non-GAAP operating margin was 49%. GAAP net income was up 29% to $4.0 billion, and GAAP earnings per share was up 39% to $1.37. Non-GAAP net income was up 20% to $4.5 billion, and non-GAAP earnings per share was up 29% to $1.54.

Short-term deferred revenues were up 10% from last year to $8.8 billion. Operating cash flow was up 21% to a record $15.9 billion during the trailing twelve months.

Fiscal year 2021 total revenues were up 4% year-over-year to $40.5 billion. Cloud services and license support revenues were up 5% to $28.7 billion. Cloud license and on-premise license revenues were up 5% to $5.4 billion.

Fiscal year 2021 GAAP operating income was up 9% to $15.2 billion, and GAAP operating margin was 38%. Non-GAAP operating income was up 9% to $19.0 billion, and non-GAAP operating margin was 47%. GAAP net income was up 36% to $13.7 billion, while non-GAAP net income was up 11% to $14.1 billion. GAAP earnings per share increased 48% to $4.55, while non-GAAP earnings per share was up 21% to $4.67.

"Our Q4 performance was absolutely outstanding with total revenue beating guidance by nearly $200 million, and non-GAAP earnings per share beating guidance by $0.24," said Oracle CEO, Safra Catz. "Our multi-billion dollar Fusion and NetSuite cloud applications businesses saw dramatic increases in their already rapid revenue growth rates: Fusion ERP was up 30% in Q3 and up 46% in Q4, Fusion HCM was up 23% in Q3 and up 35% in Q4, NetSuite was up 24% in Q3 and up 26% in Q4. Oracle Fusion is the world's biggest cloud ERP business; Oracle NetSuite is the world's second biggest cloud ERP business. Revenue from our Gen2 Cloud Infrastructure business including Autonomous Database grew over 100% in Q4. The accelerating growth rates of both our applications and infrastructure cloud businesses this year drove earnings per share growth up to 21% in FY21.  That is the fourth consecutive year of double-digit earnings per share growth at Oracle Corporation."

"The world's two most popular databases are the Oracle Autonomous Database and Oracle MySQL," said Oracle Chairman and CTO, Larry Ellison. "The Oracle Database once again delivered solid revenue growth in FY21.  And while our Oracle Database business as measured by revenue currently dwarfs our MySQL database business—that is about to change because the latest version of Oracle MySQL has been upgraded to include a revolutionary new ultra-high-performance parallel processing query engine called HeatWave. Independent analysts have tested and confirmed that Oracle MySQL with HeatWave runs 10 to 100 times faster than Amazon's version of MySQL called Aurora. This technological breakthrough is causing several of Amazon's customers to start moving their Aurora workloads to Oracle MySQL. And industry analysts are telling us they are seeing a 10x increase in Oracle Cloud Infrastructure customer inquiries. Both the Oracle Autonomous Database and Oracle MySQL with HeatWave technology have captured the technology high-ground in the cloud database business—and that bodes well for the future of the Oracle Cloud."

The board of directors declared a quarterly cash dividend of $0.32 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 15, 2021, with a payment date of July 29, 2021.

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

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

Trademarks
Oracle, Java and MySQL are registered trademarks of Oracle.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding future growth in our Oracle Database and Oracle Cloud businesses are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) The COVID-19 pandemic has affected how we and our customers are operating our respective businesses, and the duration and extent to which this will impact our future results of operations and our overall financial performance remains uncertain. (2) Our success depends upon our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services. (3) Our cloud strategy, including our Oracle Cloud Software-as-a-Service and Infrastructure-as-a-Service offerings, may adversely affect our revenues and profitability. (4) We might experience significant coding, manufacturing or configuration errors in our cloud, license and hardware offerings. (5) If the security measures for our products and services are compromised and as a result, our data, our customers' data or our IT systems are accessed improperly, made unavailable, or improperly modified, our products and services may be perceived as vulnerable, our brand and reputation could be damaged, the IT services we provide to our customers could be disrupted, and customers may stop using our products and services, all of which could reduce our revenue and earnings, increase our expenses and expose us to legal claims and regulatory actions. (6) Our business practices with respect to data could give rise to operational interruption, liabilities or reputational harm as a result of governmental regulation, legal requirements or industry standards relating to privacy and data protection. (7) Economic, political and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (8) If we are unable to compete effectively, the results of operations and prospects for our business could be harmed. (9) Our international sales and operations subject us to additional risks that can adversely affect our operating results. (10) Acquisitions present many risks, and we may not achieve the financial and strategic goals that were contemplated at the time of a transaction. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle's Investor Relations website at http://www.oracle.com/investor. All information set forth in this press release is current as of June 15, 2021. Oracle undertakes no duty to update any statement in light of new information or future events.  

 





ORACLE CORPORATION








Q4 FISCAL 2021 FINANCIAL RESULTS




CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




($ in millions, except per share data)









Three Months Ended May 31,


% Increase






% Increase

(Decrease)







% of 


% of 

(Decrease)

in Constant






2021

Revenues

2020

Revenues

in US $

Currency (1)




REVENUES











Cloud services and license support 

$           7,389

66%

$           6,845

66%

8%

4%





Cloud license and on-premise license

2,144

19%

1,959

19%

9%

5%





Hardware

882

8%

901

8%

(2%)

(6%)





Services

812

7%

735

7%

11%

6%





      Total revenues

11,227

100%

10,440

100%

8%

4%




OPERATING EXPENSES











Cloud services and license support 

1,214

11%

1,012

10%

20%

17%





Hardware

253

2%

288

3%

(12%)

(15%)





Services

655

6%

669

6%

(2%)

(7%)





Sales and marketing

2,077

19%

1,959

19%

6%

2%





Research and development 

1,715

15%

1,479

14%

16%

14%





General and administrative

306

3%

278

3%

10%

6%





Amortization of intangible assets

342

3%

366

3%

(7%)

(7%)





Acquisition related and other

30

0%

11

0%

158%

146%





Restructuring

94

1%

69

1%

37%

25%





      Total operating expenses 

6,686

60%

6,131

59%

9%

6%




OPERATING INCOME 

4,541

40%

4,309

41%

5%

0%





Interest expense

(697)

(6%)

(580)

(6%)

20%

20%





Non-operating income (expenses), net

313

3%

(33)

0%

*

*




INCOME BEFORE PROVISION FOR INCOME TAXES

4,157

37%

3,696

35%

12%

6%





Provision for income taxes

(124)

(1%)

(580)

(5%)

(79%)

(80%)




NET INCOME 

$           4,033

36%

$           3,116

30%

29%

22%















EARNINGS PER SHARE:











Basic

$              1.42


$              1.01








Diluted

$              1.37


$              0.99







WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:











Basic

2,847


3,091








Diluted

2,943


3,162






























































(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2020, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended May 31, 2021 compared with the corresponding prior year period increased our revenues by 4 percentage points, operating expenses by 3 percentage points and operating income by 5 percentage points.




*

Not meaningful































 

 

























ORACLE  CORPORATION


























Q4 FISCAL 2021 FINANCIAL RESULTS



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



($ in millions, except per share data)





























Three Months Ended May 31,


% Increase
(Decrease)
in US $

% Increase (Decrease) in
Constant Currency (2) 






2021




2021



2020




2020


GAAP

Non-GAAP

GAAP

Non-GAAP







GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP




























TOTAL REVENUES


$   11,227


$           -


$   11,227



$   10,440


$            1


$   10,441


8%

8%

4%

4%





     Cloud services and license support


7,389


-


7,389



6,845


1


6,846


8%

8%

4%

4%



























TOTAL OPERATING EXPENSES


$     6,686


$       (908)


$     5,778



$     6,131


$       (832)


$     5,299


9%

9%

6%

6%





     Stock-based compensation (3)


442


(442)


-



386


(386)


-


15%

*

15%

*





     Amortization of intangible assets (4)


342


(342)


-



366


(366)


-


(7%)

*

(7%)

*





     Acquisition related and other


30


(30)


-



11


(11)


-


158%

*

146%

*





     Restructuring


94


(94)


-



69


(69)


-


37%

*

25%

*




OPERATING INCOME


$     4,541


$        908


$     5,449



$     4,309


$        833


$     5,142


5%

6%

0%

1%




OPERATING MARGIN %


40%




49%



41%




49%


(82) bp.

(71) bp.

(140) bp.

(109) bp.




INCOME TAX EFFECTS (5)


$       (124)


$       (417)


$       (541)



$       (580)


$       (170)


$       (750)


(79%)

(28%)

(80%)

(31%)




NET INCOME 


$     4,033


$        491


$     4,524



$     3,116


$        663


$     3,779


29%

20%

22%

14%




DILUTED EARNINGS PER SHARE


$       1.37




$       1.54



$       0.99




$       1.20


39%

29%

31%

22%




DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 


2,943


-


2,943



3,162


-


3,162


(7%)

(7%)

(7%)

(7%)


















































(1)

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



























(2)

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



























(3)

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


































Three Months Ended



Three Months Ended












May 31, 2021



May 31, 2020












GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP










     Cloud services and license support


$          35


$         (35)


$           -



$          27


$         (27)


$           -










     Hardware


3


(3)


-



3


(3)


-










     Services


14


(14)


-



12


(12)


-










     Sales and marketing


80


(80)


-



69


(69)


-










     Research and development


291


(291)


-



254


(254)


-










     General and administrative


19


(19)


-



21


(21)


-










           Total stock-based compensation


$        442


$       (442)


$           -



$        386


$       (386)


$           -
































(4)

Estimated future annual amortization expense related to intangible assets as of May 31, 2021 was as follows:





     Fiscal 2022


$     1,122





















     Fiscal 2023


698





















     Fiscal 2024


453





















     Fiscal 2025


123





















     Fiscal 2026


24





















     Thereafter


10





















           Total intangible assets, net


$     2,430











































(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 3.0% and 15.7% in the fourth quarter of fiscal 2021 and 2020, respectively, and an effective non-GAAP tax rate of 10.7% and 16.6% in the fourth quarter of fiscal 2021 and 2020, respectively. The difference in our GAAP and non-GAAP tax rates in each of the fourth quarter of fiscal 2021 and 2020 was primarily due to the net tax effects on stock-based compensation expense and acquisition related items, including the tax effects of amortization of intangible assets.




*   

Not meaningful


























 

 





ORACLE  CORPORATION






FISCAL 2021 YEAR TO DATE FINANCIAL RESULTS



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



($ in millions, except per share data)
















Year Ended May 31,


% Increase






% Increase

(Decrease)







% of 


% of 

(Decrease)

in Constant






2021

Revenues

2020

Revenues

in US $

Currency (1)




REVENUES











Cloud services and license support 

$         28,700

71%

$         27,392

70%

5%

3%





Cloud license and on-premise license

5,399

13%

5,127

13%

5%

2%





Hardware 

3,359

8%

3,443

9%

(2%)

(4%)





Services

3,021

8%

3,106

8%

(3%)

(5%)





      Total revenues

40,479

100%

39,068

100%

4%

2%




OPERATING EXPENSES











Cloud services and license support 

4,353

11%

4,006

10%

9%

7%





Hardware

972

2%

1,116

3%

(13%)

(14%)





Services

2,530

6%

2,816

7%

(10%)

(12%)





Sales and marketing

7,682

19%

8,094

21%

(5%)

(7%)





Research and development 

6,527

16%

6,067

15%

8%

7%





General and administrative

1,254

3%

1,181

3%

6%

6%





Amortization of intangible assets

1,379

4%

1,586

4%

(13%)

(14%)





Acquisition related and other

138

0%

56

0%

147%

145%





Restructuring

431

1%

250

1%

73%

66%





      Total operating expenses 

25,266

62%

25,172

64%

0%

(1%)




OPERATING INCOME 

15,213

38%

13,896

36%

9%

6%





Interest expense

(2,496)

(6%)

(1,995)

(5%)

25%

25%





Non-operating income, net

282

0%

162

0%

74%

95%




INCOME BEFORE BENEFIT FROM (PROVISION FOR) INCOME TAXES

12,999

32%

12,063

31%

8%

4%





Benefit from (provision for) income taxes

747

2%

(1,928)

(5%)

*

*




NET INCOME 

$         13,746

34%

$         10,135

26%

36%

30%















EARNINGS PER SHARE:











Basic

$              4.67


$              3.16








Diluted

$              4.55


$              3.08







WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:











Basic

2,945


3,211








Diluted

3,022


3,294






























































(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2020, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the year ended May 31, 2021 compared with the corresponding prior year period increased our revenues by 2 percentage points, operating expenses by 1 percentage point and operating income by 3 percentage points. 




*

Not meaningful































 

 

























ORACLE  CORPORATION


























FISCAL 2021 YEAR TO DATE FINANCIAL RESULTS



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



($ in millions, except per share data)





























Year Ended May 31,


% Increase
(Decrease)
in US $

% Increase (Decrease) in
Constant Currency (2) 






2021




2021



2020




2020


GAAP

Non-GAAP

GAAP

Non-GAAP







GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP




























TOTAL REVENUES


$   40,479


$            2


$   40,481



$   39,068


$            4


$   39,072


4%

4%

2%

2%





Cloud services and license support


28,700


2


28,702



27,392


4


27,396


5%

5%

3%

3%



























TOTAL OPERATING EXPENSES


$   25,266


$   (3,785)


$   21,481



$   25,172


$   (3,482)


$   21,690


0%

(1%)

(1%)

(2%)





Stock-based compensation (3)


1,837


(1,837)


-



1,590


(1,590)


-


16%

*

16%

*





Amortization of intangible assets (4)


1,379


(1,379)


-



1,586


(1,586)


-


(13%)

*

(14%)

*





Acquisition related and other


138


(138)


-



56


(56)


-


147%

*

145%

*





Restructuring


431


(431)


-



250


(250)


-


73%

*

66%

*




OPERATING INCOME


$   15,213


$     3,787


$   19,000



$   13,896


$     3,486


$   17,382


9%

9%

6%

6%




OPERATING MARGIN %


38%




47%



36%




44%


201 bp.

245 bp.

151 bp.

206 bp.




INCOME TAX EFFECTS (5)


$        747


$   (3,408)


$   (2,661)



$   (1,928)


$       (939)


$   (2,867)


*

(7%)

*

(10%)




NET INCOME 


$   13,746


$        379


$   14,125



$   10,135


$     2,547


$   12,682


36%

11%

30%

8%




DILUTED EARNINGS PER SHARE


$       4.55




$       4.67



$       3.08




$       3.85


48%

21%

43%

18%




DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING


3,022


-


3,022



3,294


-


3,294


(8%)

(8%)

(8%)

(8%)


















































(1)

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



























(2)

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



























(3)

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


































Year Ended



Year Ended












May 31, 2021



May 31, 2020












GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP










     Cloud services and license support


$        134


$       (134)


$           -



$        110


$       (110)


$           -










     Hardware


11


(11)


-



11


(11)


-










     Services


55


(55)


-



54


(54)


-










     Sales and marketing


313


(313)


-



261


(261)


-










     Research and development


1,188


(1,188)


-



1,035


(1,035)


-










     General and administrative


136


(136)


-



119


(119)


-










           Total stock-based compensation


$     1,837


$   (1,837)


$           -



$     1,590


$   (1,590)


$           -
































(4)

Estimated future annual amortization expense related to intangible assets as of May 31, 2021 was as follows:





     Fiscal 2022


$     1,122





















     Fiscal 2023


698





















     Fiscal 2024


453





















     Fiscal 2025


123





















     Fiscal 2026


24





















     Thereafter


10





















           Total intangible assets, net


$     2,430











































(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of (5.7%) and 16.0% in fiscal 2021 and 2020, respectively, and an effective non-GAAP tax rate of 15.9% and 18.4% in fiscal 2021 and 2020, respectively. The difference in our GAAP and non-GAAP tax rates for fiscal 2021 was primarily due to a net tax benefit of $2.3 billion related to the partial realignment of our legal entity structure (refer to Appendix A for additional information), the net tax effects on stock-based compensation expense, and the net tax effects related to acquisition related items, including the net tax effects on amortization of intangible assets. The difference between our GAAP and non-GAAP tax rates in fiscal 2020 was primarily due to the net tax effects on stock-based compensation expense and acquisition related items, including the tax effects of amortization of intangible assets.




*   

Not meaningful

















































 

 











ORACLE  CORPORATION












FISCAL 2021 FINANCIAL RESULTS



CONDENSED CONSOLIDATED BALANCE SHEETS



($ in millions)















May 31,

May 31,






2021

2020



ASSETS







Current Assets:








Cash and cash equivalents

$               30,098


$               37,239





Marketable securities

16,456


5,818





Trade receivables, net

5,409


5,551





Prepaid expenses and other current assets

3,604


3,532






Total Current Assets

55,567


52,140




Non-Current Assets:








   Property, plant and equipment, net

7,049


6,244





   Intangible assets, net

2,430


3,738





   Goodwill, net

43,935


43,769





   Deferred tax assets

13,636


3,252





   Other non-current assets

8,490


6,295






Total Non-Current Assets

75,540


63,298




TOTAL ASSETS

$            131,107


$            115,438




LIABILITIES AND EQUITY







Current Liabilities:








Notes payable, current 

$                 8,250


$                 2,371





Accounts payable

745


637





Accrued compensation and related benefits

2,017


1,453





Deferred revenues

8,775


8,002





Other current liabilities

4,377


4,737






Total Current Liabilities

24,164


17,200




Non-Current Liabilities:








Notes payable and other borrowings, non-current

75,995


69,226





Income taxes payable

12,345


12,463





Deferred tax liabilities

7,864


41





Other non-current liabilities

4,787


3,791






Total Non-Current Liabilities

100,991


85,521




Equity

5,952


12,717




TOTAL LIABILITIES AND EQUITY

$            131,107


$            115,438





















 

 










     ORACLE  CORPORATION 











FISCAL 2021 FINANCIAL RESULTS



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



($ in millions)













Year Ended May 31,





2021

2020



Cash Flows From Operating Activities:







Net income 

$           13,746


$            10,135




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







Depreciation

1,537


1,382




Amortization of intangible assets

1,379


1,586




Deferred income taxes

(2,425)


(851)




Stock-based compensation

1,837


1,590




Other, net

(39)


239




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







Decrease (increase) in trade receivables, net

333


(445)




Decrease in prepaid expenses and other assets

622


665




Decrease in accounts payable and other liabilities

(23)


(496)




Decrease in income taxes payable

(1,485)


(444)




Increase (decrease) in deferred revenues

405


(222)




Net cash provided by operating activities

15,887


13,139




Cash Flows From Investing Activities:







Purchases of marketable securities and other investments

(37,982)


(5,731)




Proceeds from maturities of marketable securities 

26,024


4,687




Proceeds from sales of marketable securities and other investments

1,036


12,575




Acquisitions, net of cash acquired

(41)


(124)




Capital expenditures

(2,135)


(1,564)




Net cash (used for) provided by investing activities

(13,098)


9,843




Cash Flows From Financing Activities:







Payments for repurchases of common stock

(20,934)


(19,240)




Proceeds from issuances of common stock

1,786


1,588




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

(666)


(665)




Payments of dividends to stockholders

(3,063)


(3,070)




Proceeds from borrowings, net of issuance costs

14,934


19,888




Repayments of borrowings

(2,631)


(4,500)




Other, net

196


(133)




Net cash used for financing activities

(10,378)


(6,132)




Effect of exchange rate changes on cash and cash equivalents

448


(125)




Net (decrease) increase in cash and cash equivalents

(7,141)


16,725




Cash and cash equivalents at beginning of period

37,239


20,514




Cash and cash equivalents at end of period

$           30,098


$            37,239



















 

 














 ORACLE  CORPORATION 



 FISCAL 2021 FINANCIAL RESULTS 



 FREE CASH FLOW - TRAILING 4-QUARTERS (1) 



 ($ in millions) 
















 Fiscal 2020 

 Fiscal 2021 





 Q1 

 Q2 

 Q3 

 Q4 

 Q1 

 Q2 

 Q3 

 Q4 















GAAP Operating Cash Flow

$            13,829

$            13,796

$            13,947

$            13,139

$            13,092

$            13,967

$            14,659

$            15,887
















Capital Expenditures

(1,663)

(1,591)

(1,544)

(1,564)

(1,614)

(1,833)

(1,851)

(2,135)

















Free Cash Flow

$            12,166

$            12,205

$            12,403

$            11,575

$            11,478

$            12,134

$            12,808

$            13,752

















% Growth over prior year

(12%)

(11%)

(6%)

(10%)

(6%)

(1%)

3%

19%






























GAAP Net Income

$            10,955

$            10,933

$            10,759

$            10,135

$            10,249

$            10,380

$            12,830

$            13,746

















Free Cash Flow as a % of Net Income

111%

112%

115%

114%

112%

117%

100%

100%






























(1)

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




















 

 




































 ORACLE  CORPORATION 




 FISCAL 2021 FINANCIAL RESULTS 




 SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1) 




 ($ in millions) 
























 Fiscal 2020 






 Fiscal 2021 






 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 


 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 





REVENUES BY OFFERINGS
















 Cloud services and license support 

$    6,805

$    6,811

$    6,930

$    6,845

$   27,392


$    6,947

$    7,112

$    7,252

$    7,389

$   28,700





 Cloud license and on-premise license 

812

1,126

1,231

1,959

5,127


886

1,092

1,276

2,144

5,399





 Hardware 

815

871

857

901

3,443


814

844

820

882

3,359





 Services  

786

806

778

735

3,106


720

752

737

812

3,021





      Total revenues 

$    9,218

$    9,614

$    9,796

$  10,440

$   39,068


$    9,367

$    9,800

$  10,085

$  11,227

$   40,479






















AS REPORTED REVENUE GROWTH RATES 
















 Cloud services and license support 

3%

3%

4%

1%

3%


2%

4%

5%

8%

5%





 Cloud license and on-premise license 

(6%)

(7%)

(2%)

(22%)

(12%)


9%

(3%)

4%

9%

5%





 Hardware  

(10%)

(2%)

(6%)

(9%)

(7%)


0%

(3%)

(4%)

(2%)

(2%)





 Services  

(3%)

(1%)

(1%)

(11%)

(4%)


(8%)

(7%)

(5%)

11%

(3%)





      Total revenues 

0%

1%

2%

(6%)

(1%)


2%

2%

3%

8%

4%






















CONSTANT CURRENCY REVENUE GROWTH RATES (2)
















 Cloud services and license support  

4%

4%

5%

3%

4%


2%

4%

2%

4%

3%





 Cloud license and on-premise license 

(6%)

(7%)

0%

(21%)

(11%)


8%

(5%)

0%

5%

2%





 Hardware  

(9%)

(1%)

(5%)

(7%)

(6%)


0%

(3%)

(6%)

(6%)

(4%)





 Services  

(2%)

0%

0%

(8%)

(3%)


(8%)

(8%)

(8%)

6%

(5%)





      Total revenues 

2%

1%

3%

(4%)

0%


2%

1%

0%

4%

2%






















CLOUD SERVICES AND LICENSE SUPPORT REVENUES

















BY ECOSYSTEM
















 Applications cloud services and license support 

$    2,704

$    2,753

$    2,809

$    2,749

$   11,015


$    2,816

$    2,901

$    2,952

$    3,043

$   11,712





 Infrastructure cloud services and license support 

4,101

4,058

4,121

4,096

16,377


4,131

4,211

4,300

4,346

16,988





      Total cloud services and license support revenues 

$    6,805

$    6,811

$    6,930

$    6,845

$   27,392


$    6,947

$    7,112

$    7,252

$    7,389

$   28,700






















AS REPORTED REVENUE GROWTH RATES 
















 Applications cloud services and license support 

5%

5%

6%

1%

4%


4%

5%

5%

11%

6%





 Infrastructure cloud services and license support 

2%

1%

2%

0%

1%


1%

4%

4%

6%

4%





      Total cloud services and license support revenues 

3%

3%

4%

1%

3%


2%

4%

5%

8%

5%






















CONSTANT CURRENCY REVENUE GROWTH RATES (2)
















 Applications cloud services and license support 

6%

6%

7%

3%

5%


4%

5%

3%

7%

5%





 Infrastructure cloud services and license support 

3%

2%

4%

3%

3%


1%

3%

2%

2%

2%





      Total cloud services and license support revenues 

4%

4%

5%

3%

4%


2%

4%

2%

4%

3%






















GEOGRAPHIC REVENUES
















 Americas 


$    5,150

$    5,304

$    5,363

$    5,746

$   21,563


$    5,068

$    5,259

$    5,424

$    6,076

$   21,828





 Europe/Middle East/Africa 


2,553

2,695

2,835

2,952

11,035


2,738

2,852

2,981

3,324

11,894





 Asia Pacific 


1,515

1,615

1,598

1,742

6,470


1,561

1,689

1,680

1,827

6,757





      Total revenues 

$    9,218

$    9,614

$    9,796

$  10,440

$   39,068


$    9,367

$    9,800

$  10,085

$  11,227

$   40,479






































(1)

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









(2)

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











































 

 

APPENDIX A

ORACLE CORPORATION
Q4 FISCAL 2021 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES


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


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

                                           

                                               

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SOURCE Oracle