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Oracle(ORCL) - 2025 Q1 - Quarterly Results
ORCLOracle(ORCL)2024-09-09 20:17

Earnings and Profitability - Q1 GAAP Earnings per Share increased by 20% to 1.03,andNon−GAAPEarningsperShareincreasedby171.03, and Non-GAAP Earnings per Share increased by 17% to 1.39[1] - Net income grew by 21% to 2.929billion,withdilutedearningspershareincreasing202.929 billion, with diluted earnings per share increasing 20% to 1.03[15] - Net income for the three months ended August 31, 2024, was 2.929billion,comparedto2.929 billion, compared to 2.420 billion for the same period in 2023[23] - Q1 Non-GAAP operating income was 5.7billion,up135.7 billion, up 13% in USD and 14% in constant currency[2] - Operating income rose by 21% to 1.7 billion, with operating margin improving to 30% from 26% in the prior year[15] Revenue Growth - Q1 Total Revenue reached 13.3billion,up713.3 billion, up 7% in USD and 8% in constant currency[1] - Total revenues increased by 7% to 13.3 billion in Q1 fiscal 2025 compared to 12.453billioninthesameperiodlastyear[14]−RevenueforQ1fiscal2025was12.453 billion in the same period last year[14] - Revenue for Q1 fiscal 2025 was 19.12 billion, showing an increase from 18.60billioninQ4fiscal2024[26]−TotalrevenuesforQ12025reached18.60 billion in Q4 fiscal 2024[26] - Total revenues for Q1 2025 reached 13.3 billion, showing a 7% growth compared to the previous year[29][30] - Constant currency revenue growth for total revenues was 8% in Q1 2025, slightly higher than the reported growth rate[29] Cloud Revenue and Performance - Q1 Cloud Revenue (IaaS plus SaaS) grew by 21% in USD and 22% in constant currency to 5.6billion[1]−Q1CloudInfrastructure(IaaS)Revenuesurgedby455.6 billion[1] - Q1 Cloud Infrastructure (IaaS) Revenue surged by 45% in USD and 46% in constant currency to 2.2 billion[1] - Q1 Cloud Application (SaaS) Revenue increased by 10% in both USD and constant currency to 3.5billion[1]−Q1FusionCloudERP(SaaS)Revenueroseby163.5 billion[1] - Q1 Fusion Cloud ERP (SaaS) Revenue rose by 16% in USD and 17% in constant currency to 0.9 billion[1] - Q1 NetSuite Cloud ERP (SaaS) Revenue grew by 20% in both USD and constant currency to 0.9billion[1]−Cloudservicesrevenuegrewby210.9 billion[1] - Cloud services revenue grew by 21% in Q1 2025, contributing significantly to overall revenue growth[29] - Infrastructure cloud services and license support revenues increased by 13% in Q1 2025, reaching 5.75 billion[29] - Cloud services and license support revenue reached 141million,upfrom141 million, up from 111 million in the prior year[16] Remaining Performance Obligations and Contracts - Q1 Total Remaining Performance Obligations increased by 53% to 99billion[1]−Oraclesigned42additionalcloudGPUcontractsinQ1,totaling99 billion[1] - Oracle signed 42 additional cloud GPU contracts in Q1, totaling 3 billion[3] Operating Expenses and Compensation - Total operating expenses increased by 2% to 9.316billion,withresearchanddevelopmentexpensesrisingto9.316 billion, with research and development expenses rising to 569 million[15][16] - Stock-based compensation increased by 19% to 1.007billioncomparedto1.007 billion compared to 849 million in the prior year[15] - Stock-based compensation increased to 1.007billionin2024from1.007 billion in 2024 from 849 million in 2023[23] Cash Flow and Capital Expenditures - Net cash provided by operating activities increased to 7.427billionin2024from7.427 billion in 2024 from 6.974 billion in 2023[23] - Capital expenditures rose to 2.303billionin2024,upfrom2.303 billion in 2024, up from 1.314 billion in 2023[23] - Free cash flow for Q1 fiscal 2025 was 9.455billion,representinga689.455 billion, representing a 68% growth over the prior quarter[26] - Free cash flow as a percentage of net income was 189% in Q1 fiscal 2025, compared to 168% in the previous quarter[26] Assets and Liabilities - Total assets increased to 144.214 billion as of August 31, 2024, up from 140.976billionattheendofthepreviousquarter[20]−Cashandcashequivalentsgrewto140.976 billion at the end of the previous quarter[20] - Cash and cash equivalents grew to 10.616 billion, compared to 10.454billionattheendofthepreviousquarter[20]−Thecompany′scashandcashequivalentsattheendoftheperiodwere10.454 billion at the end of the previous quarter[20] - The company's cash and cash equivalents at the end of the period were 10.616 billion, down from 11.613billioninthepreviousyear[23]−Totalintangibleassets,netwere11.613 billion in the previous year[23] - Total intangible assets, net were 6.270 billion, with estimated future annual amortization expenses of 1.683billionfortheremainderoffiscal2025[16]−Deferredrevenuesincreasedto1.683 billion for the remainder of fiscal 2025[16] - Deferred revenues increased to 11.455 billion, up from 9.313billioninthepreviousquarter[20]−Deferredrevenuesgrewto9.313 billion in the previous quarter[20] - Deferred revenues grew to 2.305 billion in 2024, slightly up from 2.317billionin2023[23]−Thecompanyissued2.317 billion in 2023[23] - The company issued 5.627 billion in term loan credit agreements in 2024, compared to none in 2023[23] Regional Revenue Performance - Americas region generated 8.37billioninrevenueforQ12025,maintainingitspositionasthelargestrevenuecontributor[30]−Europe/MiddleEast/Africaregionreported8.37 billion in revenue for Q1 2025, maintaining its position as the largest revenue contributor[30] - Europe/Middle East/Africa region reported 3.23 billion in revenue for Q1 2025, showing steady growth[30] - Asia Pacific region contributed $1.71 billion in revenue for Q1 2025, reflecting a stable performance[30] Segment Performance - Cloud license and on-premise license revenue grew by 7% in Q1 2025, indicating a recovery in this segment[29] - Hardware revenue declined by 8% in Q1 2025, continuing a downward trend[29] - Services revenue decreased by 9% in Q1 2025, reflecting challenges in this segment[29]