Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Oracle Corporation    ORCL

ORACLE CORPORATION

(ORCL)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Oracle : CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

share with twitter share with LinkedIn share with facebook
share via e-mail
03/12/2020 | 05:08pm EDT

ORACLE CORPORATION

Q3 FISCAL 2020 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

% Increase

Three Months Ended

% Increase

(Decrease)

February 29,

% of

February 28,

% of

(Decrease)

in Constant

2020

Revenues

2019

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support

$

6,930

71%

$

6,662

69%

4%

5%

Cloud license and on‐premise license

1,231

12%

1,251

13%

(2%)

0%

Hardware

857

9%

915

10%

(6%)

(5%)

Services

778

8%

786

8%

(1%)

0%

Total revenues

9,796

100%

9,614

100%

2%

3%

OPERATING EXPENSES

Cloud services and license support

991

10%

937

10%

6%

7%

Hardware

271

3%

339

4%

(20%)

(19%)

Services

702

7%

700

7%

0%

2%

Sales and marketing

2,049

21%

2,051

21%

0%

1%

Research and development

1,500

15%

1,426

15%

5%

5%

General and administrative

288

3%

316

3%

(9%)

(8%)

Amortization of intangible assets

400

4%

407

4%

(2%)

(2%)

Acquisition related and other

7

0%

(4)

0%

297%

295%

Restructuring

60

1%

43

1%

42%

47%

Total operating expenses

6,268

64%

6,215

65%

1%

2%

OPERATING INCOME

3,528

36%

3,399

35%

4%

5%

Interest expense

(456)

(5%)

(509)

(5%)

(10%)

(10%)

Non‐operating income, net

4

0%

198

2%

(98%)

(99%)

INCOME BEFORE PROVISION FOR INCOME TAXES

3,076

31%

3,088

32%

0%

1%

Provision for income taxes

505

5%

343

4%

47%

47%

NET INCOME

$

2,571

26%

$

2,745

28%

(6%)

(5%)

EARNINGS PER SHARE:

Basic

$

0.81

$

0.78

Diluted

$

0.79

$

0.76

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

3,190

3,526

Diluted

3,271

3,617

  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, 2019, 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 29, 2020 compared with the corresponding prior year period decreased our revenues by 1 percentage point, operating expenses by 1 percentage point and operating income by 1 percentage point.

1

ORACLE CORPORATION

Q3 FISCAL 2020 FINANCIAL RESULTS

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

($ in millions, except per share data)

% Increase (Decrease)

% Increase (Decrease) in

Three Months Ended

in US $

Constant Currency (2)

February 29,

February 29,

February 28,

February 28,

2020

2020

2019

2019

GAAP

Non‐GAAP

GAAP

Non‐GAAP

GAAP

Adj.

Non‐GAAP

GAAP

Adj.

Non‐GAAP

TOTAL REVENUES

$

9,796

$

1

$

9,797

$

9,614

$

4

$

9,618

2%

2%

3%

3%

Cloud services and license support

6,930

1

6,931

6,662

4

6,666

4%

4%

5%

5%

TOTAL OPERATING EXPENSES

$

6,268

$

(828)

$

5,440

$

6,215

$

(873)

$

5,342

1%

2%

2%

3%

Stock‐based compensation (3)

361

(361)

427

(427)

(15%)

*

(15%)

*

Amortization of intangible assets (4)

400

(400)

407

(407)

(2%)

*

(2%)

*

Acquisition related and other

7

(7)

(4)

4

297%

*

295%

*

Restructuring

60

(60)

43

(43)

42%

*

47%

*

OPERATING INCOME

$

3,528

$

829

$

4,357

$

3,399

$

877

$

4,276

4%

2%

5%

3%

OPERATING MARGIN %

36%

44%

35%

44%

65 bp.

1 bp.

78 bp.

6 bp.

INCOME TAX EFFECTS (5)

$

505

$

240

$

745

$

343

$

466

$

809

47%

(8%)

47%

(7%)

NET INCOME

$

2,571

$

589

$

3,160

$

2,745

$

411

$

3,156

(6%)

0%

(5%)

1%

DILUTED EARNINGS PER SHARE

$

0.79

$

0.97

$

0.76

$

0.87

4%

11%

5%

12%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

3,271

3,271

3,617

3,617

(10%)

(10%)

(10%)

(10%)

(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, 2019, 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 29, 2020

February 28, 2019

GAAP

Adj.

Non‐GAAP

GAAP

Adj.

Non‐GAAP

Cloud services and license support

$

22

$

(22)

$

$

26

$

(26)

$

Hardware

3

(3)

2

(2)

Services

14

(14)

12

(12)

Sales and marketing

67

(67)

89

(89)

Research and development

238

(238)

254

(254)

General and administrative

17

(17)

44

(44)

Total stock‐based compensation

$

361

$

(361)

$

$

427

$

(427)

$

(4) Estimated future annual amortization expense related to intangible assets as of February 29, 2020 was as follows:

Remainder of fiscal 2020

$

366

Fiscal 2021

1,345

Fiscal 2022

1,097

Fiscal 2023

674

Fiscal 2024

445

Fiscal 2025

126

Thereafter

35

Total intangible assets, net

$

4,088

(5) Income tax effects were calculated reflecting an effective GAAP tax rate of 16.4% and 11.1% in the third quarter of fiscal 2020 and 2019, respectively, and an effective non‐GAAP tax rate of 19.1% and 20.4% in the third quarter of fiscal 2020 and 2019, respectively. 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 acquisition related items, including the tax effects of amortization of intangible assets. The difference between our GAAP and non‐GAAP tax rates in the third quarter of fiscal 2019 was primarily due to adjustments in our estimates for the one‐time effects of the U.S. Tax Cuts and Jobs Act of 2017 (refer to Appendix A for additional information), the net tax effects on stock‐based compensation expense, and acquisition related items, including the tax effects of amortization of intangible assets.

* Not meaningful

2

ORACLE CORPORATION

Q3 FISCAL 2020 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

% Increase

Nine Months Ended

% Increase

(Decrease)

February 29,

% of

February 28,

% of

(Decrease)

in Constant

2020

Revenues

2019

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support

$

20,546

72%

$

19,908

70%

3%

4%

Cloud license and on‐premise license

3,169

11%

3,334

12%

(5%)

(4%)

Hardware

2,542

9%

2,711

10%

(6%)

(5%)

Services

2,372

8%

2,416

8%

(2%)

(1%)

Total revenues

28,629

100%

28,369

100%

1%

2%

OPERATING EXPENSES

Cloud services and license support

2,994

11%

2,807

10%

7%

8%

Hardware

828

3%

998

4%

(17%)

(16%)

Services

2,147

8%

2,127

7%

1%

2%

Sales and marketing

6,135

21%

6,191

22%

(1%)

0%

Research and development

4,588

16%

4,464

16%

3%

3%

General and administrative

903

3%

935

3%

(3%)

(3%)

Amortization of intangible assets

1,221

4%

1,265

4%

(3%)

(3%)

Acquisition related and other

44

0%

29

0%

54%

55%

Restructuring

181

1%

275

1%

(34%)

(33%)

Total operating expenses

19,041

67%

19,091

67%

0%

1%

OPERATING INCOME

9,588

33%

9,278

33%

3%

5%

Interest expense

(1,416)

(5%)

(1,557)

(5%)

(9%)

(9%)

Non‐operating income, net

195

1%

681

2%

(71%)

(72%)

INCOME BEFORE PROVISION FOR INCOME TAXES

8,367

29%

8,402

30%

0%

1%

Provision for income taxes

1,348

4%

1,059

4%

27%

27%

NET INCOME

$

7,019

25%

$

7,343

26%

(4%)

(3%)

EARNINGS PER SHARE:

Basic

$

2.16

$

1.98

Diluted

$

2.10

$

1.93

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

3,251

3,716

Diluted

3,337

3,811

  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, 2019, 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 29, 2020 compared with the corresponding prior year period decreased our revenues by 1 percentage point, operating expenses by 1 percentage point and operating income by 2 percentage points.

3

ORACLE CORPORATION

Q3 FISCAL 2020 YEAR TO DATE FINANCIAL RESULTS

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

($ in millions, except per share data)

% Increase (Decrease)

% Increase (Decrease) in

Nine Months Ended

in US $

Constant Currency (2)

February 29,

February 29,

February 28,

February 28,

2020

2020

2019

2019

GAAP

Adj.

Non‐GAAP

GAAP

Adj.

Non‐GAAP

GAAP

Non‐GAAP

GAAP

Non‐GAAP

TOTAL REVENUES

$

28,629

$

3

$

28,632

$

28,369

$

17

$

28,386

1%

1%

2%

2%

Cloud services and license support

20,546

3

20,549

19,908

17

19,925

3%

3%

4%

4%

TOTAL OPERATING EXPENSES

$

19,041

$

(2,650)

$

16,391

$

19,091

$

(2,828)

$

16,263

0%

1%

1%

2%

Stock‐based compensation (3)

1,204

(1,204)

1,259

(1,259)

(4%)

*

(4%)

*

Amortization of intangible assets (4)

1,221

(1,221)

1,265

(1,265)

(3%)

*

(3%)

*

Acquisition related and other

44

(44)

29

(29)

54%

*

55%

*

Restructuring

181

(181)

275

(275)

(34%)

*

(33%)

*

OPERATING INCOME

$

9,588

$

2,653

$

12,241

$

9,278

$

2,845

$

12,123

3%

1%

5%

2%

OPERATING MARGIN %

33%

43%

33%

43%

79 bp.

5 bp.

92 bp.

10 bp.

INCOME TAX EFFECTS (5)

$

1,348

$

769

$

2,117

$

1,059

$

1,122

$

2,181

27%

(3%)

27%

(2%)

NET INCOME

$

7,019

$

1,884

$

8,903

$

7,343

$

1,723

$

9,066

(4%)

(2%)

(3%)

(1%)

DILUTED EARNINGS PER SHARE

$

2.10

$

2.67

$

1.93

$

2.38

9%

12%

11%

14%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

3,337

3,337

3,811

3,811

(12%)

(12%)

(12%)

(12%)

(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, 2019, 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 29, 2020

February 28, 2019

GAAP

Adj.

Non‐GAAP

GAAP

Adj.

Non‐GAAP

Cloud services and license support

$

83

$

(83)

$

$

74

$

(74)

$

Hardware

8

(8)

7

(7)

Services

42

(42)

37

(37)

Sales and marketing

192

(192)

278

(278)

Research and development

781

(781)

732

(732)

General and administrative

98

(98)

131

(131)

Total stock‐based compensation

$

1,204

$

(1,204)

$

$

1,259

$

(1,259)

$

(4) Estimated future annual amortization expense related to intangible assets as of February 29, 2020 was as follows:

Remainder of fiscal 2020

$

366

Fiscal 2021

1,345

Fiscal 2022

1,097

Fiscal 2023

674

Fiscal 2024

445

Fiscal 2025

126

Thereafter

35

Total intangible assets, net

$

4,088

(5) Income tax effects were calculated reflecting an effective GAAP tax rate of 16.1% and 12.6% in the first nine months of fiscal 2020 and 2019, respectively, and an effective non‐GAAP tax rate of 19.2% and 19.4% in the first nine months of fiscal 2020 and 2019, respectively. The difference between 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 acquisition related items, including the tax effects of amortization of intangible assets. The difference between our GAAP and non‐GAAP tax rates in the first nine months of fiscal 2019 was primarily due to adjustments in our estimates for the one‐time effects of the U.S. Tax Cuts and Jobs Act of 2017 (refer to Appendix A for additional information), the net tax effects on stock‐based compensation expense, and acquisition related items, including the tax effects of amortization of intangible assets.

* Not meaningful

4

ORACLE CORPORATION

Q3 FISCAL 2020 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

February 29,

May 31,

2020

2019

ASSETS

Current Assets:

$

20,514

Cash and cash equivalents

$

23,829

Marketable securities

2,029

17,313

Trade receivables, net

4,162

5,134

Prepaid expenses and other current assets

3,422

3,425

Total Current Assets

33,442

46,386

Non‐Current Assets:

Property, plant and equipment, net

6,248

6,252

Intangible assets, net

4,088

5,279

Goodwill, net

43,781

43,779

Deferred tax assets

2,883

2,696

Other non‐current assets

6,262

4,317

Total Non‐Current Assets

63,262

62,323

TOTAL ASSETS

$

96,704

$

108,709

LIABILITIES AND EQUITY

Current Liabilities:

Notes payable, current

$

2,355

$

4,494

Accounts payable

533

580

Accrued compensation and related benefits

1,317

1,628

Deferred revenues

7,814

8,374

Other current liabilities

3,721

3,554

Total Current Liabilities

15,740

18,630

Non‐Current Liabilities:

Notes payable and other borrowings, non‐current

49,320

51,673

Income taxes payable

13,168

13,295

Other non‐current liabilities

3,595

2,748

Total Non‐Current Liabilities

66,083

67,716

Equity

14,881

22,363

TOTAL LIABILITIES AND EQUITY

$

96,704

$

108,709

5

ORACLE CORPORATION

Q3 FISCAL 2020 FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

Nine Months Ended

February 29,

February 28,

2020

2019

Cash Flows From Operating Activities:

Net income

$

7,019

$

7,343

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

Depreciation

1,025

900

Amortization of intangible assets

1,221

1,265

Deferred income taxes

(398)

(741)

Stock‐based compensation

1,204

1,259

Other, net

167

144

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

Decrease in trade receivables, net

946

1,106

Decrease in prepaid expenses and other assets

718

168

Decrease in accounts payable and other liabilities

(1,035)

(647)

Decrease in income taxes payable

(789)

(410)

Decrease in deferred revenues

(553)

(258)

Net cash provided by operating activities

9,525

10,129

Cash Flows From Investing Activities:

Purchases of marketable securities and other investments

(399)

(1,310)

Proceeds from maturities of marketable securities and other investments

3,165

10,210

Proceeds from sales of marketable securities

12,575

11,328

Acquisitions, net of cash acquired

(111)

(330)

Capital expenditures

(1,131)

(1,247)

Net cash provided by investing activities

14,099

18,651

Cash Flows From Financing Activities:

Payments for repurchases of common stock

(13,935)

(29,887)

Proceeds from issuances of common stock

1,232

1,468

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

(624)

(455)

Payments of dividends to stockholders

(2,330)

(2,126)

Repayments of borrowings

(4,500)

(4,500)

Other, net

(108)

(95)

Net cash used for financing activities

(20,265)

(35,595)

Effect of exchange rate changes on cash and cash equivalents

(44)

(85)

Net increase (decrease) in cash and cash equivalents

3,315

(6,900)

Cash and cash equivalents at beginning of period

20,514

21,620

Cash and cash equivalents at end of period

$

23,829

$

14,720

6

ORACLE CORPORATION

Q3 FISCAL 2020 FINANCIAL RESULTS

FREE CASH FLOW ‐ TRAILING 4‐QUARTERS (1)

($ in millions)

Fiscal 2019

Fiscal 2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

GAAP Operating Cash Flow

$

15,542

$

15,238

$

14,789

$

14,551

$

13,829

$

13,796

$

13,947

Capital Expenditures

(1,646)

(1,468)

(1,625)

(1,660)

(1,663)

(1,591)

(1,544)

Free Cash Flow

$

13,896

$

13,770

$

13,164

$

12,891

$

12,166

$

12,205

$

12,403

% Growth over prior year

10%

10%

(1%)

(6%)

(12%)

(11%)

(6%)

GAAP Net Income

$

3,708

$

3,827

$

10,619

$

11,083

$

10,955

$

10,933

$

10,759

Free Cash Flow as a % of Net Income

375%

360%

124%

116%

111%

112%

115%

(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.

7

ORACLE CORPORATION

Q3 FISCAL 2020 FINANCIAL RESULTS

SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)

($ in millions)

Fiscal 2019

Fiscal 2020

Q1

Q2

Q3

Q4

TOTAL

Q1

Q2

Q3

Q4

TOTAL

REVENUES BY OFFERINGS

Cloud services and license support

$

6,609

$

6,637

$

6,662

$

6,799

$

26,707

$

6,805

$

6,811

$

6,930

$

20,546

Cloud license and on‐premise license

867

1,217

1,251

2,520

5,855

812

1,126

1,231

3,169

Hardware

904

891

915

994

3,704

815

871

857

2,542

Services

813

817

786

823

3,240

786

806

778

2,372

Total revenues

$

9,193

$

9,562

$

9,614

$

11,136

$

39,506

$

9,218

$

9,614

$

9,796

$

28,629

AS REPORTED REVENUE GROWTH RATES

Cloud services and license support

3%

3%

1%

0%

2%

3%

3%

4%

3%

Cloud license and on‐premise license

(3%)

(9%)

(4%)

12%

1%

(6%)

(7%)

(2%)

(5%)

Hardware

(4%)

(5%)

(8%)

(11%)

(7%)

(10%)

(2%)

(6%)

(6%)

Services

(5%)

(5%)

(1%)

(7%)

(5%)

(3%)

(1%)

(1%)

(2%)

Total revenues

1%

0%

(1%)

1%

0%

0%

1%

2%

1%

CONSTANT CURRENCY GROWTH RATES (2)

Cloud services and license support

4%

5%

4%

3%

4%

4%

4%

5%

4%

Cloud license and on‐premise license

0%

(6%)

0%

15%

4%

(6%)

(7%)

0%

(4%)

Hardware

(3%)

(3%)

(4%)

(8%)

(5%)

(9%)

(1%)

(5%)

(5%)

Services

(4%)

(2%)

3%

(4%)

(2%)

(2%)

0%

0%

(1%)

Total revenues

2%

2%

3%

4%

3%

2%

1%

3%

2%

CLOUD SERVICES AND LICENSE SUPPORT REVENUES

BY ECOSYSTEM

Applications cloud services and license support

$

2,580

$

2,621

$

2,637

$

2,716

$

10,553

$

2,704

$

2,753

$

2,809

$

8,265

Infrastructure cloud services and license support

4,029

4,016

4,025

4,083

16,154

4,101

4,058

4,121

12,281

Total cloud services and license support

$

6,609

$

6,637

$

6,662

$

6,799

$

26,707

$

6,805

$

6,811

$

6,930

$

20,546

AS REPORTED REVENUE GROWTH RATES

Applications cloud services and license support

6%

6%

6%

3%

5%

5%

5%

6%

5%

Infrastructure cloud services and license support

1%

1%

(2%)

(1%)

0%

2%

1%

2%

2%

Total cloud services and license support

3%

3%

1%

0%

2%

3%

3%

4%

3%

CONSTANT CURRENCY GROWTH RATES (2)

Applications cloud services and license support

7%

7%

8%

5%

7%

6%

6%

7%

6%

Infrastructure cloud services and license support

3%

3%

2%

2%

2%

3%

2%

4%

3%

Total cloud services and license support

4%

5%

4%

3%

4%

4%

4%

5%

4%

GEOGRAPHIC REVENUES

Americas

$

5,161

$

5,243

$

5,266

$

6,184

$

21,856

$

5,150

$

5,304

$

5,363

$

15,817

Europe/Middle East/Africa

2,576

2,782

2,781

3,132

11,270

2,553

2,695

2,835

8,083

Asia Pacific

1,456

1,537

1,567

1,820

6,380

1,515

1,615

1,598

4,729

Total revenues

$

9,193

$

9,562

$

9,614

$

11,136

$

39,506

$

9,218

$

9,614

$

9,796

$

28,629

(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, 2019 and 2018 for the fiscal 2020 and fiscal 2019 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.

8

APPENDIX A

ORACLE CORPORATION

Q3 FISCAL 2020 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 except for the impact of the U.S. Tax Cuts and Jobs Act of 2017:

  • 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, integration related professional services, 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.
  • Impact of the U.S. Tax Cuts and Jobs Act of 2017: The U.S. Tax Cuts and Jobs Act of 2017 (the Tax Act) was signed into law on December 22, 2017. For the three and nine months ended February 28, 2019, we recorded benefits of $236 million and $389 million, respectively, related to adjustments in our estimates of the one‐time effects of the Tax Act, including the one‐time transition tax on certain foreign subsidiary earnings and the remeasurement of net deferred income tax balances affected by the Tax Act. We have excluded the impacts of these benefits from our non‐GAAP income taxes and net income measures for the third quarter and first nine months of fiscal 2019. We believe making these adjustments provides insight to our operating performance and comparability.

9

Disclaimer

Oracle Corporation published this content on 12 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2020 22:07:02 UTC

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ORACLE CORPORATION
05/28Salesforce cuts annual estimates on COVID-19 hit
RE
05/20ORACLE : Named a Leader in Email Marketing Service Providers by Independent Rese..
PR
05/15ORACLE CORP : Credit Suisse reiterates its Buy rating
MD
05/14NEW STUDY : IT Pros Are More Worried About Corporate Security than Home Security
PR
05/12ORACLE : Announces Oracle : Analytics for Cloud HCM to Enable HR Teams to Enhanc..
PR
05/04Big Tech's Big Spenders
DJ
04/29Zoom Adds Oracle to Its List of Cloud Providers
DJ
04/29ORACLE : Zoom Taps Oracle to Keep Schools Teaching, Businesses Running, Friends ..
AQ
04/28ZOOM VIDEO COMMUNICATIONS : Selects Oracle as Cloud Infrastructure Provider for ..
DJ
04/28ORACLE : Zoom Selects Oracle as a Cloud Infrastructure Provider for Its Core Onl..
PR
More news
Financials (USD)
Sales 2020 39 556 M - -
Net income 2020 10 256 M - -
Net Debt 2020 26 446 M - -
P/E ratio 2020 17,2x
Yield 2020 1,72%
Capitalization 170 B 170 B -
EV / Sales 2019
EV / Sales 2020 4,96x
Nbr of Employees 136 000
Free-Float 63,7%
Chart ORACLE CORPORATION
Duration : Period :
Oracle Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ORACLE CORPORATION
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 34
Average target price 51,68 $
Last Close Price 53,77 $
Spread / Highest target 11,6%
Spread / Average Target -3,89%
Spread / Lowest Target -44,2%
EPS Revisions
Managers
NameTitle
Safra Ada Catz Chief Executive Officer & Director
Lawrence Joseph Ellison Chairman & Chief Technology Officer
Mark E. Sunday Chief Information Officer & Senior Vice President
Michael J. Boskin Independent Director
Jeffrey O. Henley Vice Chairman
Sector and Competitors
1st jan.Capitalization (M$)
ORACLE CORPORATION1.21%169 568
SAP SE-5.67%150 260
INTUIT INC.10.84%75 707
SERVICENOW INC.37.41%73 980
DOCUSIGN, INC.88.69%25 590
RINGCENTRAL, INC.62.60%24 107