OCI AI infrastructure provides the performance and scalability Evidium needs for its AI healthcare platform to help improve quality of careLAS VEGAS, Sept. 10, 2024 /PRNewswire/ -- Oracle CloudWorld -- Evidium, a healthcare AI startup that puts reliability, transparency, and safety first is using Oracle Cloud Infrastructure (OCI) AI infrastructure to support its mission of scaling medical knowledge and science and creating reliable AI. Evidium is training and developing a significant number of AI models, wh ...

AI innovator leverages Oracle Cloud Infrastructure to serve low-latency, real-time production AI workloads at scaleLAS VEGAS, Sept. 10, 2024 /PRNewswire/ -- Oracle CloudWorld -- Modal Labs, a serverless platform for AI, ML, and data developers, is using Oracle Cloud Infrastructure (OCI) AI infrastructure to deliver faster, more cost-effective inferencing, fine-tuning, and batch processing for its customers. OCI powers Modal's platform by providing it with access to a variety of OCI Compute bare metal instan ...

Fortune 500 mutual insurance company moves finance processes to Oracle Fusion Cloud ERP to increase productivity, reduce costs, expand insights, and enhance decision-makingLAS VEGAS, Sept. 10, 2024 /PRNewswire/ -- Oracle CloudWorld -- Oracle today announced that it has worked with Guardian Life Insurance Company of America (Guardian) to improve the efficiency and productivity of its finance operations. With Oracle Fusion Cloud Enterprise Resource Planning (ERP), Guardian has been able to take advantage of t ...

LAS VEGAS, Sept. 10, 2024 /PRNewswire/ -- Oracle CloudWorld -- Oracle and Anduril are partnering to bring Anduril's Lattice, an open and extensible software platform for command and control (C2), to Oracle Cloud Infrastructure (OCI) and OCI Roving Edge Infrastructure globally. Anduril will also pair its Menace hardware systems with OCI to enhance operations in connected and disconnected mobile command and control environments. Together, Oracle and Anduril will provide secure mission capabilities across the ...

Oracle and RAFAEL collaborate to secure combat solutions by enhancing rapid decision-making during mission-critical battle scenariosLAS VEGAS, Sept. 10, 2024 /PRNewswire/ -- Oracle CloudWorld -- To aid defense missions globally, RAFAEL's IMILITE and FIRE WEAVER systems are now available on Oracle Cloud Infrastructure (OCI). Extending an existing collaboration, RAFAEL's multi-domain, combat-proven solutions, coupled with OCI's secure core-to-edge cloud solutions, will provide warfighters with quick, actionab ...

AUSTIN, Texas, Sept. 10, 2024 /PRNewswire/ -- Oracle (NYSE: ORCL) today announced that it will hold its Financial Analyst Meeting at Oracle CloudWorld, Thursday, September 12, 2024.  Oracle's Financial Analyst Meeting will be live at 12:00 p.m. Central Time via the Investor Relations homepage 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 ww ...

Cristi Croitoru Investment Thesis Oracle (NYSE:ORCL) is back on the front foot, with fiscal Q1 2025 delivering eye-popping guidance. Arguably, its RPO figure being up 53% y/y stole the limelight for this quarterly report. But beyond that, there was a ''well-argued'' narrative that Oracle's cloud offering is now the biggest part of its overall business and growing rapidly. All in all, this makes paying 22x next year's non-GAAP EPS an attractive valuation and worthwhile considering. Let's jump to it. Orac ...

Cloud and License Business Performance - Cloud and license business represented 84% of total revenues on a trailing 4-quarter basis[78] - Cloud services revenues accounted for 42% and 37% of total revenues in the first three months of fiscal 2025 and 2024, respectively[79] - Oracle's cloud and license business' margin has historically trended upward over the course of the four quarters within a particular fiscal year[79] - Cloud and license revenues grew by 10% in reported currency and 11% in constant currency to $11,389 million, contributing 86% of total revenues[90] - Total cloud and license revenues increased by $1.0 billion to $11.389 billion, driven by a $988 million increase in cloud services revenues and a $61 million increase in cloud license and on-premise license revenues[97] - Cloud services revenues grew by 21% to $5.623 billion, with applications cloud services contributing 30% and infrastructure cloud services contributing 70% of the growth[97] - Total cloud and license margin increased to $7.196 billion, with a margin percentage of 63%, consistent with the previous year[97] - Applications cloud services and license support contributed 30% of cloud services revenue growth, while infrastructure cloud services and license support contributed 70%[91] Hardware Business Performance - Hardware business represented 6% of total revenues on a trailing 4-quarter basis[80] - Hardware revenues decreased by 8% in both reported and constant currency to $655 million, while services revenues declined by 9% in reported currency and 8% in constant currency to $1,263 million[90] - Total hardware revenues decreased by $59 million to $655 million, primarily due to reduced sales volumes of certain hardware product lines and hardware support contracts[99] - Hardware margin increased to $438 million, with a margin percentage of 67%, up from 61% in the previous year[99] - Hardware expenses decreased by $64 million to $217 million, primarily due to a $57 million decrease in hardware product and support costs[99] Services Business Performance - Services business represented 10% of total revenues on a trailing 4-quarter basis[82] - Services revenues decreased by $120 million to $1.263 billion, with a 14% decline in the Americas region partially offset by increases in EMEA and Asia Pacific[103] - Services expenses decreased by $79 million to $1.066 billion, mainly due to a $65 million decrease in external contractor expenses[103] Investments in Ampere Computing - Total carrying value of investments in Ampere Computing Holdings LLC was $1.5 billion as of August 31, 2024[85] - Oracle invested $75 million in convertible debt instruments issued by Ampere during the three months ended August 31, 2024[85] - Oracle's equity investments in Ampere represent an ownership interest of approximately 29% as of August 31, 2024[85] - Oracle expects Ampere to continue to generate net losses in future periods but remains confident in the long-term potential of Ampere's server chips[85] Operating Expenses and Margins - Total operating margin increased to 30% of revenues in Q1 2025, up from 26% in Q1 2024, driven by higher revenues[90] - Cloud services and license support expenses increased by $418 million due to higher infrastructure and employee-related costs, including stock-based compensation[91] - Research and development expenses rose by $90 million primarily due to higher employee-related expenses[91] - Stock-based compensation totaled $1,007 million in Q1 2025, up from $849 million in Q1 2024, with significant increases in R&D and sales and marketing segments[95] - Amortization of intangible assets decreased by $139 million to $624 million in Q1 2025 as certain assets were fully amortized[93] - Total cloud and license expenses increased by $369 million to $4.193 billion, driven by a $255 million increase in infrastructure expenses and a $75 million increase in employee-related expenses[97] - Research and development expenses remained flat at $1.737 billion, with stock-based compensation increasing by 18% to $569 million[104] - Total research and development expenses increased by $90 million in Q1 fiscal 2025 compared to Q1 fiscal 2024, primarily due to higher stock-based compensation expenses[105] - General and administrative expenses decreased by $35 million in Q1 fiscal 2025 compared to Q1 fiscal 2024, with a $14 million decrease in facilities and related expenses and a $6 million decrease in professional fees[106] - Amortization of intangible assets decreased by $139 million in Q1 fiscal 2025 compared to Q1 fiscal 2024, primarily due to certain intangible assets becoming fully amortized[107] - Acquisition related and other expenses increased by $2 million in Q1 fiscal 2025 compared to Q1 fiscal 2024, driven by a $12 million increase in other expenses partially offset by decreases in business combination adjustments and employee-related costs[108][109] - Restructuring expenses decreased by $65 million in Q1 fiscal 2025 compared to Q1 fiscal 2024, primarily related to the 2024 Restructuring Plan aimed at improving operational efficiencies[111] Financial Position and Cash Flow - Working capital increased slightly to $(8,973) million as of August 31, 2024, compared to $(8,990) million as of May 31, 2024, primarily due to net income during Q1 fiscal 2025[117] - Cash, cash equivalents, and marketable securities increased by $250 million to $10,911 million as of August 31, 2024, compared to $10,661 million as of May 31, 2024, driven by cash inflows from operations[117] - Net cash provided by operating activities increased by $453 million to $7,427 million, a 6% increase compared to the same period last year[118] - Net cash used for investing activities increased by $1.2 billion to $2,765 million, a 77% increase, primarily due to higher capital expenditures[118] - Net cash used for financing activities increased by $1.1 billion to $4,585 million, a 30% increase, driven by higher maturities of senior notes and repayments of commercial paper[118] - Free cash flow for the trailing 4-quarters increased by 19% to $11,271 million, with net cash provided by operating activities at $19,126 million, an 8% increase[119] - Net cash provided by operating activities as a percentage of net income was 174%, compared to 189% in the previous year[119] - Free cash flow as a percentage of net income increased to 103% from 101% in the previous year[119] - Capital expenditures decreased by 5% to $7,855 million for the trailing 4-quarters[119] Regional Revenue Contribution - The Americas contributed 63% of total revenue growth in constant currency, followed by EMEA at 23% and Asia Pacific at 14%[91] Interest and Non-Operating Income - Interest expense decreased by $30 million in Q1 fiscal 2025 compared to Q1 fiscal 2024, due to scheduled repayments of senior notes totaling $2.0 billion in Q1 fiscal 2025 and $3.5 billion in fiscal 2024[112] - Non-operating income increased by $69 million in Q1 fiscal 2025 compared to Q1 fiscal 2024, driven by a $32 million decrease in foreign currency losses and a $49 million decrease in losses from equity investments[113][114] Tax and Income Provisions - Provision for income taxes increased by $285 million in Q1 fiscal 2025 compared to Q1 fiscal 2024, primarily due to an unfavorable jurisdictional mix of earnings and a decrease in tax benefits related to stock-based compensation[115][116] Lease and Debt Commitments - The company's operating lease commitments increased to $36.2 billion as of August 31, 2024, primarily for data centers expected to commence between fiscal 2025 and 2027[121] - The company borrowed $5.6 billion under a new Term Loan Credit Agreement, with the principal balance due on August 16, 2027[121] Stock-Based Compensation and Dilution - The maximum potential dilution from all outstanding stock-based awards as of August 31, 2024, was 6.1%[122] Asset Useful Life Adjustment - Oracle increased the estimated useful lives of its servers from five years to six years, effective at the beginning of fiscal 2025[86]

In addition to these gains, Oracle’s financial health remains strong, with short-term deferred revenues at $11.5 billion, operating cash flow over the last twelve months at $19.1 billion, and free cash flow at $11.3 billion.Given these results, Oracle’s cloud strategy appears to be a significant driver of its overall success, positioning the company to maintain its momentum in the highly competitive tech industry. The sustained demand for cloud computing, particularly for AI applications, suggests that Orac ...

Key TakeawaysOracle shares surged nearly 9% in extended trading on Monday after the enterprise software company posted better-than-expected fiscal first-quarter results and announced a multicloud partnership with Amazon.Bulls defended a retest of a prior trading range in early August before driving a rally of more than 11% from last month’s low ahead of the company’s quarterly results.Investors should monitor shorter-term and longer-term price targets in Oracle shares at $154 and $180, respectively, while e ...