REDWOOD SHORES, Calif., June 19,
2019 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today
announced fiscal 2019 Q4 results and fiscal 2019 full year results.
Total Quarterly Revenues were $11.1
billion, up 1% in USD and up 4% in constant currency
compared to Q4 last year. Cloud Services and License Support
revenues were $6.8 billion, while
Cloud License and On-Premise License revenues were $2.5 billion. Total Cloud Services and License
Support plus Cloud License and On-Premise License revenues were
$9.3 billion, up 3% in USD and 6% in
constant currency.
Q4 GAAP Operating Income was up 2% to $4.3 billion and GAAP operating margin was 38%.
Non-GAAP Operating Income was up 4% to $5.3
billion and non-GAAP operating margin was 47%. GAAP Net
Income was up 14% to $3.7 billion and
non-GAAP Net Income was up 3% to $4.1
billion. GAAP Earnings Per Share was $1.07, while non-GAAP Earnings Per Share was
$1.16.
Short-term deferred revenues were $8.4
billion. Operating cash flow for fiscal 2019 was
$14.6 billion.
For fiscal 2019, Total Revenues were $39.5 billion, slightly higher in USD and up 3%
in constant currency. Cloud Services and License Support revenues
were $26.7 billion, while Cloud
License and On-Premise License revenues were $5.9 billion. Total Cloud Services and License
Support plus Cloud License and On-Premise revenues were
$32.6 billion, up 2% in USD and 4% in
constant currency.
Fiscal 2019 GAAP Operating Income was $13.5 billion, and GAAP operating margin was 34%.
Non-GAAP Operating Income was $17.4
billion, and non-GAAP operating margin was 44%. GAAP Net
Income was $11.1 billion, while
non-GAAP Net Income was $13.1
billion. GAAP Earnings Per Share increased 251% to
$2.97, while non-GAAP Earnings Per
Share was up 16% to $3.52.
"In Q4, our non-GAAP operating income grew 7% in constant
currency—which drove EPS well above the high end of my guidance,"
said Oracle CEO, Safra Catz. "Our
high-margin Fusion and NetSuite cloud applications businesses are
growing rapidly, while we downsize our low-margin legacy hardware
business. The net result of this shift away from commodity hardware
to cloud applications was a Q4 non-GAAP operating margin of 47%,
the highest we've seen in five years."
"Our Fusion ERP and HCM cloud applications suite revenues grew
32% in FY19," said Oracle CEO, Mark
Hurd. "Our NetSuite ERP cloud applications revenues also
grew 32% this year. These strong results extend Oracle's already
commanding lead in worldwide Cloud ERP. Our cloud applications
businesses are growing faster than our competitors. That said, let
me call your attention to the following approved statement from
industry analyst IDC."
Per IDC's latest annual market share results, Oracle gained
the most market share globally out of all Enterprise Applications
SaaS vendors three years running -- in CY16, CY17 and CY18.
"We added over five thousand new Autonomous Database trials in
Q4," said Oracle Chairman and CTO, Larry
Ellison. "Our new Gen2 Cloud Infrastructure offers those
customers a compelling array of advance technology features
including our self-driving database that automatically encrypts all
your data, backs itself up, tunes itself, upgrades itself, and
patches itself when a security threat is detected. It does all of
this autonomously—while running—without the need for any human
intervention, and without the need for any downtime. No other cloud
infrastructure provides anything close to these autonomous
features."
The Board of Directors also declared a quarterly cash dividend
of $0.24 per share of outstanding
common stock. This dividend will be paid to stockholders of record
as of the close of business on July 17,
2019, with a payment date of July 31,
2019.
Q4 Fiscal 2019 Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss
these results at 2:00 p.m. Pacific.
You may listen to the call by dialing (816) 287-5563, Passcode:
425392. To access the live webcast, please visit the Oracle
Investor Relations website at http://www.oracle.com/investor. In
addition, Oracle's Q4 results and fiscal 2019 financial tables are
available on the Oracle Investor Relations website.
A replay of the conference call will also be available by
dialing (855) 859-2056 or (404) 537-3406, Passcode: 9955119.
About Oracle
The Oracle Cloud offers a complete suite of integrated
applications for Sales, Service, Marketing, Human Resources,
Finance, Supply Chain and Manufacturing, plus Highly-Automated and
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 and/or its
affiliates. Other names may be trademarks of their respective
owners.
"Safe Harbor" Statement: Statements in this press release
relating to Oracle's future plans, expectations, beliefs,
intentions and prospects, including statements regarding the growth
of our high-margin cloud applications 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) Our cloud strategy, including our
Oracle Software as a Service and Infrastructure as a Service
offerings, may not be successful. (2) If we are unable to develop
new or sufficiently differentiated products and services, integrate
acquired products and services, or enhance and improve our existing
products and support services in a timely manner, or price our
products and services to meet market demand, customers may not
purchase or subscribe to our software, hardware or cloud offerings
or renew software support, hardware support or cloud subscriptions
contracts. (3) Enterprise customers rely on our cloud, license and
hardware offerings and related services to run their businesses and
significant coding, manufacturing or configuration errors in our
cloud, license and hardware offerings and related services could
expose us to product liability, performance and warranty claims, as
well as cause significant harm to our brand and reputation, which
could impact our future sales. (4) If the security measures for our
products and services are compromised and as a result, 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 and we may experience legal claims and reduced sales. (5)
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 consumer privacy and data protection. (6)
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. (7) Our international sales and operations
subject us to additional risks that can adversely affect our
operating results. (8) We have a selective and active acquisition
program and our acquisitions may not be successful, may involve
unanticipated costs or other integration issues or may disrupt our
existing operations. 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 19, 2019. Oracle undertakes no
duty to update any statement in light of new information or future
events.
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
Q4 FISCAL 2019
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
|
|
|
|
2019
|
Revenues
|
2018
|
Revenues
|
in US
$
|
Currency
(1)
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
6,799
|
61%
|
$ 6,768
|
62%
|
0%
|
3%
|
|
|
Cloud license and
on-premise license
|
2,520
|
23%
|
2,247
|
20%
|
12%
|
15%
|
|
|
Hardware
|
994
|
9%
|
1,116
|
10%
|
(11%)
|
(8%)
|
|
|
Services
|
823
|
7%
|
883
|
8%
|
(7%)
|
(4%)
|
|
|
Total
revenues
|
11,136
|
100%
|
11,014
|
100%
|
1%
|
4%
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
975
|
9%
|
961
|
9%
|
1%
|
3%
|
|
|
Hardware
|
362
|
3%
|
461
|
4%
|
(21%)
|
(19%)
|
|
|
Services
|
726
|
7%
|
752
|
7%
|
(3%)
|
0%
|
|
|
Sales and
marketing
|
2,318
|
21%
|
2,315
|
21%
|
0%
|
3%
|
|
|
Research and
development
|
1,562
|
14%
|
1,542
|
14%
|
1%
|
3%
|
|
|
General and
administrative
|
329
|
3%
|
306
|
3%
|
8%
|
11%
|
|
|
Amortization of
intangible assets
|
424
|
4%
|
415
|
4%
|
2%
|
2%
|
|
|
Acquisition related
and other
|
15
|
0%
|
20
|
0%
|
(23%)
|
(21%)
|
|
|
Restructuring
|
168
|
1%
|
81
|
0%
|
108%
|
118%
|
|
|
Total operating
expenses
|
6,879
|
62%
|
6,853
|
62%
|
0%
|
3%
|
|
OPERATING
INCOME
|
4,257
|
38%
|
4,161
|
38%
|
2%
|
6%
|
|
|
Interest
expense
|
(525)
|
(4%)
|
(548)
|
(5%)
|
(4%)
|
(4%)
|
|
|
Non-operating income,
net
|
134
|
1%
|
294
|
3%
|
(54%)
|
(54%)
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
3,866
|
35%
|
3,907
|
36%
|
(1%)
|
3%
|
|
|
Provision for income
taxes
|
126
|
1%
|
631
|
6%
|
(80%)
|
(79%)
|
|
NET
INCOME
|
$
3,740
|
34%
|
$ 3,276
|
30%
|
14%
|
19%
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.10
|
|
$
0.81
|
|
|
|
|
|
Diluted
|
$
1.07
|
|
$
0.79
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
3,389
|
|
4,046
|
|
|
|
|
|
Diluted
|
3,495
|
|
4,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2018, 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, 2019 compared with the corresponding prior
year period decreased our revenues by 3 percentage points,
operating expenses by 3 percentage points and operating income by 4
percentage points.
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
Q4 FISCAL 2019
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)
|
|
|
2019
|
|
|
|
2019
|
|
2018
|
|
|
|
2018
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
$ 11,136
|
|
$
3
|
|
$
11,139
|
|
$ 11,014
|
|
$
9
|
|
$
11,023
|
|
1%
|
1%
|
4%
|
4%
|
|
|
Cloud services and license
support
|
6,799
|
|
3
|
|
6,802
|
|
6,768
|
|
9
|
|
6,777
|
|
0%
|
0%
|
3%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
$
6,879
|
|
$
(1,001)
|
|
$
5,878
|
|
$
6,853
|
|
$
(909)
|
|
$
5,944
|
|
0%
|
(1%)
|
3%
|
1%
|
|
|
Sales and marketing
(3)
|
2,318
|
|
(82)
|
|
2,236
|
|
2,315
|
|
(84)
|
|
2,231
|
|
0%
|
0%
|
3%
|
3%
|
|
|
Stock-based compensation
(4)
|
312
|
|
(312)
|
|
-
|
|
309
|
|
(309)
|
|
-
|
|
1%
|
*
|
1%
|
*
|
|
|
Amortization of
intangible assets (5)
|
424
|
|
(424)
|
|
-
|
|
415
|
|
(415)
|
|
-
|
|
2%
|
*
|
2%
|
*
|
|
|
Acquisition related and
other
|
15
|
|
(15)
|
|
-
|
|
20
|
|
(20)
|
|
-
|
|
(23%)
|
*
|
(21%)
|
*
|
|
|
Restructuring
|
168
|
|
(168)
|
|
-
|
|
81
|
|
(81)
|
|
-
|
|
108%
|
*
|
118%
|
*
|
|
OPERATING
INCOME
|
$
4,257
|
|
$
1,004
|
|
$
5,261
|
|
$
4,161
|
|
$
918
|
|
$
5,079
|
|
2%
|
4%
|
6%
|
7%
|
|
OPERATING MARGIN
%
|
38%
|
|
|
|
47%
|
|
38%
|
|
|
|
46%
|
|
45 bp.
|
115 bp.
|
79 bp.
|
132 bp.
|
|
INCOME TAX EFFECTS
(6)
|
$
126
|
|
$
673
|
|
$
799
|
|
$
631
|
|
$
249
|
|
$
880
|
|
(80%)
|
(9%)
|
(79%)
|
(6%)
|
|
NET
INCOME
|
$
3,740
|
|
$
331
|
|
$
4,071
|
|
$
3,276
|
|
$
669
|
|
$
3,945
|
|
14%
|
3%
|
19%
|
7%
|
|
DILUTED EARNINGS
PER SHARE
|
$
1.07
|
|
|
|
$
1.16
|
|
$
0.79
|
|
|
|
$
0.95
|
|
36%
|
23%
|
41%
|
27%
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
3,495
|
|
-
|
|
3,495
|
|
4,149
|
|
-
|
|
4,149
|
|
(16%)
|
(16%)
|
(16%)
|
(16%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2018, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Non-GAAP adjustments
to sales and marketing expenses were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation (4)
|
$
(82)
|
|
$
(88)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired deferred
sales commissions amortization
|
-
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-GAAP sales and marketing adjustments
|
$
(82)
|
|
$
(84)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
May
31, 2019
|
|
May
31, 2018
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
$
25
|
|
$
(25)
|
|
$
-
|
|
$
21
|
|
$
(21)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
3
|
|
(3)
|
|
-
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
Services
|
12
|
|
(12)
|
|
-
|
|
11
|
|
(11)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
231
|
|
(231)
|
|
-
|
|
228
|
|
(228)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
41
|
|
(41)
|
|
-
|
|
46
|
|
(46)
|
|
-
|
|
|
|
|
|
|
|
Subtotal
|
312
|
|
(312)
|
|
-
|
|
309
|
|
(309)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
82
|
|
(82)
|
|
-
|
|
88
|
|
(88)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
$
394
|
|
$
(394)
|
|
$
-
|
|
$
397
|
|
$
(397)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Estimated future
annual amortization expense related to intangible assets as of May
31, 2019 was as follows:
|
|
|
Fiscal 2020
|
$
1,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2021
|
1,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
1,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
$
5,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 3.3% and
16.1% in the fourth quarter of fiscal 2019 and 2018, respectively,
and an effective non-GAAP tax rate of 16.4% and 18.2% in the fourth
quarter of fiscal 2019 and 2018, respectively. The difference in
our GAAP and non-GAAP tax rates in the fourth quarter of fiscal
2019 was primarily due to a tax benefit arising from the increase
of a deferred tax asset associated with a partial realignment of
our legal structure; the net tax effects on stock-based
compensation expense; and acquisition related items, including the
tax effects of amortization of intangible assets. The difference in
our GAAP and non-GAAP tax rates in the fourth quarter of fiscal
2018 was primarily due to adjustments in our estimates for the
one-time effects of the U.S. Tax Cuts and Jobs Act (refer to
Appendix A for additional information), the net tax effects on
stock-based compensation expense, and acquisition related items,
including the tax effects o f
amortization of intangible assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
|
|
FISCAL 2019
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
|
|
|
|
2019
|
Revenues
|
2018
|
Revenues
|
in US
$
|
Currency
(1)
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$ 26,707
|
68%
|
$ 26,222
|
66%
|
2%
|
4%
|
|
|
Cloud license and
on-premise license
|
5,855
|
15%
|
5,772
|
15%
|
1%
|
4%
|
|
|
Hardware
|
3,704
|
9%
|
3,994
|
10%
|
(7%)
|
(5%)
|
|
|
Services
|
3,240
|
8%
|
3,395
|
9%
|
(5%)
|
(2%)
|
|
|
Total
revenues
|
39,506
|
100%
|
39,383
|
100%
|
0%
|
3%
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
3,782
|
10%
|
3,606
|
9%
|
5%
|
7%
|
|
|
Hardware
|
1,360
|
4%
|
1,576
|
4%
|
(14%)
|
(11%)
|
|
|
Services
|
2,853
|
7%
|
2,878
|
7%
|
(1%)
|
2%
|
|
|
Sales and
marketing
|
8,509
|
22%
|
8,433
|
22%
|
1%
|
3%
|
|
|
Research and
development
|
6,026
|
15%
|
6,084
|
15%
|
(1%)
|
0%
|
|
|
General and
administrative
|
1,265
|
3%
|
1,282
|
3%
|
(1%)
|
1%
|
|
|
Amortization of
intangible assets
|
1,689
|
4%
|
1,620
|
4%
|
4%
|
4%
|
|
|
Acquisition related
and other
|
44
|
0%
|
52
|
0%
|
(15%)
|
(13%)
|
|
|
Restructuring
|
443
|
1%
|
588
|
2%
|
(25%)
|
(22%)
|
|
|
Total operating
expenses
|
25,971
|
66%
|
26,119
|
66%
|
(1%)
|
2%
|
|
OPERATING
INCOME
|
13,535
|
34%
|
13,264
|
34%
|
2%
|
5%
|
|
|
Interest
expense
|
(2,082)
|
(5%)
|
(2,025)
|
(5%)
|
3%
|
3%
|
|
|
Non-operating income,
net
|
815
|
2%
|
1,185
|
3%
|
(31%)
|
(31%)
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
12,268
|
31%
|
12,424
|
32%
|
(1%)
|
2%
|
|
|
Provision for income
taxes (2)
|
1,185
|
3%
|
8,837
|
23%
|
(87%)
|
(86%)
|
|
NET
INCOME
|
$ 11,083
|
28%
|
$
3,587
|
9%
|
209%
|
230%
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
3.05
|
|
$
0.87
|
|
|
|
|
|
Diluted
|
$
2.97
|
|
$
0.85
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
3,634
|
|
4,121
|
|
|
|
|
|
Diluted
|
3,732
|
|
4,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2018, 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, 2019 compared with the corresponding prior year
period decreased our revenues by 3 percentage points, operating
expenses by 3 percentage points and operating income by 3
percentage points.
|
|
|
|
|
(2)
|
Provision for income
taxes for the periods presented included the impacts of the U.S.
2017 Tax Cuts and Jobs Act, which was signed into law during our
third quarter of fiscal 2018, and for which additional discussion
is included in Appendix A.
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
FISCAL 2019 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)
|
|
|
|
2019
|
|
|
|
2019
|
|
2018
|
|
|
|
2018
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
$
39,506
|
|
$
20
|
|
$
39,526
|
|
$
39,383
|
|
$
47
|
|
$
39,430
|
|
0%
|
0%
|
3%
|
3%
|
|
|
Cloud services and license
support
|
26,707
|
|
20
|
|
26,727
|
|
26,222
|
|
47
|
|
26,269
|
|
2%
|
2%
|
4%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
$
25,971
|
|
$
(3,829)
|
|
$
22,142
|
|
$
26,119
|
|
$
(3,844)
|
|
$
22,275
|
|
(1%)
|
(1%)
|
2%
|
2%
|
|
|
Sales and marketing
(3)
|
8,509
|
|
(360)
|
|
8,149
|
|
8,433
|
|
(339)
|
|
8,094
|
|
1%
|
1%
|
3%
|
3%
|
|
|
Stock-based compensation
(4)
|
1,293
|
|
(1,293)
|
|
-
|
|
1,245
|
|
(1,245)
|
|
-
|
|
4%
|
*
|
4%
|
*
|
|
|
Amortization of intangible
assets (5)
|
1,689
|
|
(1,689)
|
|
-
|
|
1,620
|
|
(1,620)
|
|
-
|
|
4%
|
*
|
4%
|
*
|
|
|
Acquisition related and
other
|
44
|
|
(44)
|
|
-
|
|
52
|
|
(52)
|
|
-
|
|
(15%)
|
*
|
(13%)
|
*
|
|
|
Restructuring
|
443
|
|
(443)
|
|
-
|
|
588
|
|
(588)
|
|
-
|
|
(25%)
|
*
|
(22%)
|
*
|
|
OPERATING
INCOME
|
$
13,535
|
|
$
3,849
|
|
$
17,384
|
|
$
13,264
|
|
$
3,891
|
|
$
17,155
|
|
2%
|
1%
|
5%
|
4%
|
|
OPERATING MARGIN
%
|
34%
|
|
|
|
44%
|
|
34%
|
|
|
|
44%
|
|
58 bp.
|
47 bp.
|
82 bp.
|
53 bp.
|
|
INCOME TAX EFFECTS
(6)
|
$
1,185
|
|
$
1,795
|
|
$
2,980
|
|
$
8,837
|
|
$
(5,439)
|
|
$
3,398
|
|
(87%)
|
(12%)
|
(86%)
|
(10%)
|
|
NET
INCOME
|
$
11,083
|
|
$
2,054
|
|
$
13,137
|
|
$
3,587
|
|
$
9,330
|
|
$
12,917
|
|
209%
|
2%
|
230%
|
5%
|
|
DILUTED EARNINGS
PER SHARE
|
$
2.97
|
|
|
|
$
3.52
|
|
$
0.85
|
|
|
|
$
3.05
|
|
251%
|
16%
|
274%
|
19%
|
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
3,732
|
|
-
|
|
3,732
|
|
4,238
|
|
-
|
|
4,238
|
|
(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, 2018, which was the last
day of our prior fiscal year, rather than the actual exchange rates
in effect during the respective periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Non-GAAP adjustments
to sales and marketing expenses were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
(4)
|
$
(360)
|
|
$
(361)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired deferred sales
commissions amortization
|
-
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP sales and marketing adjustments
|
$
(360)
|
|
$
(339)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Stock-based
compensation was included in the following GAAP operating expense
categories:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
|
|
|
|
|
|
|
May
31, 2019
|
|
May
31, 2018
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
$
99
|
|
$
(99)
|
|
$
-
|
|
$
82
|
|
$
(82)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
10
|
|
(10)
|
|
-
|
|
10
|
|
(10)
|
|
-
|
|
|
|
|
|
|
|
Services
|
49
|
|
(49)
|
|
-
|
|
52
|
|
(52)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
963
|
|
(963)
|
|
-
|
|
921
|
|
(921)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
172
|
|
(172)
|
|
-
|
|
180
|
|
(180)
|
|
-
|
|
|
|
|
|
|
|
Subtotal
|
1,293
|
|
(1,293)
|
|
-
|
|
1,245
|
|
(1,245)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
360
|
|
(360)
|
|
-
|
|
361
|
|
(361)
|
|
-
|
|
|
|
|
|
|
|
Acquisition related and
other
|
-
|
|
-
|
|
-
|
|
1
|
|
(1)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
$
1,653
|
|
$
(1,653)
|
|
$
-
|
|
$
1,607
|
|
$
(1,607)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Estimated future
annual amortization expense related to intangible assets as of May
31, 2019 was as follows:
|
|
|
Fiscal 2020
|
$
1,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2021
|
1,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
1,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
$
5,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 9.7% and
71.1% in fiscal 2019 and 2018, respectively, and an effective
non-GAAP tax rate of 18.5% and 20.8% in fiscal 2019 and 2018,
respectively. The difference in our GAAP and non-GAAP tax rates in
fiscal 2019 was primarily due to the impacts of the U.S. Tax Cuts
and Jobs Act of 2017 (refer to Appendix A for additional
information); a tax benefit arising from the increase of a deferred
tax asset associated with a partial realignment of our legal
structure; the net tax effects on stock-based compensation expense;
and acquisition related items, including the tax effects of
amortization of intangible assets. The difference in our GAAP and
non-GAAP tax rates in fiscal 2018 was primarily due to adjustments
in our estimates for the one-time effects of the U.S. Tax Cuts and
Jobs Act.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
|
FISCAL 2019
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
May
31,
|
May
31,
|
|
|
|
2019
|
2018
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
20,514
|
|
$
21,620
|
|
|
Marketable
securities
|
17,313
|
|
45,641
|
|
|
Trade receivables,
net
|
5,134
|
|
5,136
|
|
|
Prepaid expenses and
other current assets
|
3,425
|
|
3,762
|
|
|
|
Total Current
Assets
|
46,386
|
|
76,159
|
|
Non-Current
Assets:
|
|
|
|
|
|
Property, plant and equipment, net
|
6,252
|
|
5,897
|
|
|
Intangible assets, net
|
5,279
|
|
6,670
|
|
|
Goodwill, net
|
43,779
|
|
43,755
|
|
|
Deferred
tax assets
|
2,696
|
|
1,395
|
|
|
Other
non-current assets
|
4,317
|
|
3,975
|
|
|
|
Total Non-Current
Assets
|
62,323
|
|
61,692
|
|
TOTAL
ASSETS
|
$ 108,709
|
|
$ 137,851
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, current
|
$
4,494
|
|
$
4,491
|
|
|
Accounts
payable
|
580
|
|
529
|
|
|
Accrued compensation
and related benefits
|
1,628
|
|
1,806
|
|
|
Deferred
revenues
|
8,374
|
|
8,341
|
|
|
Other current
liabilities
|
3,554
|
|
3,957
|
|
|
|
Total Current
Liabilities
|
18,630
|
|
19,124
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, non-current
|
51,673
|
|
56,128
|
|
|
Income taxes
payable
|
13,295
|
|
13,429
|
|
|
Other non-current
liabilities
|
2,748
|
|
2,297
|
|
|
|
Total Non-Current
Liabilities
|
67,716
|
|
71,854
|
|
Equity
|
22,363
|
|
46,873
|
|
TOTAL LIABILITIES
AND EQUITY
|
$ 108,709
|
|
$ 137,851
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
|
|
|
|
FISCAL 2019
FINANCIAL RESULTS
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Year
Ended May 31,
|
|
|
2019
|
2018
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net
income
|
$
11,083
|
|
$
3,587
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
1,230
|
|
1,165
|
|
Amortization of
intangible assets
|
1,689
|
|
1,620
|
|
Deferred income
taxes
|
(1,191)
|
|
(847)
|
|
Stock-based
compensation
|
1,653
|
|
1,607
|
|
Other, net
|
157
|
|
(27)
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
(Increase) decrease
in trade receivables, net
|
(82)
|
|
413
|
|
Decrease (increase)
in prepaid expenses and other assets
|
261
|
|
(258)
|
|
Decrease in accounts
payable and other liabilities
|
(102)
|
|
(260)
|
|
(Decrease) increase
in income taxes payable
|
(453)
|
|
8,150
|
|
Increase in deferred
revenues
|
306
|
|
236
|
|
Net cash provided
by operating activities
|
14,551
|
|
15,386
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(1,400)
|
|
(25,282)
|
|
Proceeds from
maturities of marketable securities and other
investments
|
12,681
|
|
20,372
|
|
Proceeds from sales
of marketable securities
|
17,299
|
|
2,745
|
|
Acquisitions, net of
cash acquired
|
(363)
|
|
(1,724)
|
|
Capital
expenditures
|
(1,660)
|
|
(1,736)
|
|
Net cash provided
by (used for) investing activities
|
26,557
|
|
(5,625)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
Payments for
repurchases of common stock
|
(36,140)
|
|
(11,347)
|
|
Proceeds from
issuances of common stock
|
2,155
|
|
2,402
|
|
Shares repurchased
for tax withholdings upon vesting of restricted stock-based
awards
|
(503)
|
|
(506)
|
|
Payments of dividends
to stockholders
|
(2,932)
|
|
(3,140)
|
|
Proceeds from
borrowings, net of issuance costs
|
-
|
|
12,443
|
|
Repayments of
borrowings
|
(4,500)
|
|
(9,800)
|
|
Other, net
|
(136)
|
|
(34)
|
|
Net cash used for
financing activities
|
(42,056)
|
|
(9,982)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(158)
|
|
57
|
|
Net decrease in
cash and cash equivalents
|
(1,106)
|
|
(164)
|
|
Cash and cash
equivalents at beginning of period
|
21,620
|
|
21,784
|
|
Cash and cash
equivalents at end of period
|
$
20,514
|
|
$
21,620
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
FISCAL 2019
FINANCIAL RESULTS
|
FREE CASH
FLOW - TRAILING 4-QUARTERS (1)
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2018
|
Fiscal
2019
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Cash Flow
|
$
14,817
|
$
14,581
|
$
15,192
|
$
15,386
|
$
15,542
|
$
15,238
|
$
14,789
|
$
14,551
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(2,195)
|
(2,037)
|
(1,883)
|
(1,736)
|
(1,646)
|
(1,468)
|
(1,625)
|
(1,660)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
12,622
|
$
12,544
|
$
13,309
|
$
13,650
|
$
13,896
|
$
13,770
|
$
13,164
|
$
12,891
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth over
prior year
|
0%
|
(1%)
|
13%
|
13%
|
10%
|
10%
|
(1%)
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
9,745
|
$
9,932
|
$
3,643
|
$
3,587
|
$
3,708
|
$
3,827
|
$
10,619
|
$
11,083
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as
a % of Net Income
|
130%
|
126%
|
365%
|
381%
|
375%
|
360%
|
124%
|
116%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2019
FINANCIAL RESULTS
|
SUPPLEMENTAL
ANALYSIS OF GAAP REVENUES (1)
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2018
|
Fiscal
2019
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|
|
REVENUES BY
OFFERINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
$
6,407
|
$
6,461
|
$
6,587
|
$
6,768
|
$
26,222
|
|
$
6,609
|
$
6,637
|
$
6,662
|
$
6,799
|
$
26,707
|
|
|
Cloud license
and on-premise license
|
894
|
1,331
|
1,299
|
2,247
|
5,772
|
|
867
|
1,217
|
1,251
|
2,520
|
5,855
|
|
|
Hardware
|
943
|
941
|
994
|
1,116
|
3,994
|
|
904
|
891
|
915
|
994
|
3,704
|
|
|
Services
|
860
|
856
|
796
|
883
|
3,395
|
|
813
|
817
|
786
|
823
|
3,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
9,104
|
$
9,589
|
$
9,676
|
$ 11,014
|
$
39,383
|
|
$
9,193
|
$
9,562
|
$
9,614
|
$ 11,136
|
$
39,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
11%
|
11%
|
11%
|
8%
|
10%
|
|
3%
|
3%
|
1%
|
0%
|
2%
|
|
|
Cloud license
and on-premise license
|
(13%)
|
(1%)
|
(9%)
|
(18%)
|
(12%)
|
|
(3%)
|
(9%)
|
(4%)
|
12%
|
1%
|
|
|
Hardware
|
(5%)
|
(7%)
|
(3%)
|
0%
|
(4%)
|
|
(4%)
|
(5%)
|
(8%)
|
(11%)
|
(7%)
|
|
|
Services
|
6%
|
1%
|
(2%)
|
(1%)
|
1%
|
|
(5%)
|
(5%)
|
(1%)
|
(7%)
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
6%
|
6%
|
5%
|
0%
|
4%
|
|
1%
|
0%
|
(1%)
|
1%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
10%
|
9%
|
7%
|
6%
|
8%
|
|
4%
|
5%
|
4%
|
3%
|
4%
|
|
|
Cloud license
and on-premise license
|
(14%)
|
(3%)
|
(13%)
|
(18%)
|
(13%)
|
|
0%
|
(6%)
|
0%
|
15%
|
4%
|
|
|
Hardware
|
(6%)
|
(9%)
|
(7%)
|
(2%)
|
(6%)
|
|
(3%)
|
(3%)
|
(4%)
|
(8%)
|
(5%)
|
|
|
Services
|
6%
|
0%
|
(6%)
|
(3%)
|
(1%)
|
|
(4%)
|
(2%)
|
3%
|
(4%)
|
(2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
5%
|
5%
|
1%
|
(1%)
|
2%
|
|
2%
|
2%
|
3%
|
4%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLOUD AND LICENSE
REVENUES BY ECOSYSTEM (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
revenues
|
$
2,616
|
$
2,668
|
$
2,717
|
$
3,022
|
$
11,023
|
|
$
2,761
|
$
2,808
|
$
2,841
|
$
3,081
|
$
11,491
|
|
|
Infrastructure
revenues
|
4,685
|
5,124
|
5,169
|
5,993
|
20,971
|
|
4,715
|
5,046
|
5,072
|
6,238
|
21,071
|
|
|
Total cloud and license
revenues
|
$
7,301
|
$
7,792
|
$
7,886
|
$
9,015
|
$
31,994
|
|
$
7,476
|
$
7,854
|
$
7,913
|
$
9,319
|
$
32,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
revenues
|
17%
|
15%
|
9%
|
5%
|
11%
|
|
6%
|
5%
|
5%
|
2%
|
4%
|
|
|
Infrastructure
revenues
|
3%
|
6%
|
6%
|
(2%)
|
3%
|
|
1%
|
(2%)
|
(2%)
|
4%
|
0%
|
|
|
Total cloud and license
revenues
|
7%
|
9%
|
7%
|
1%
|
6%
|
|
2%
|
1%
|
0%
|
3%
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
revenues
|
17%
|
13%
|
7%
|
4%
|
10%
|
|
7%
|
7%
|
7%
|
4%
|
6%
|
|
|
Infrastructure
revenues
|
1%
|
4%
|
1%
|
(3%)
|
1%
|
|
2%
|
1%
|
2%
|
7%
|
3%
|
|
|
Total cloud and license
revenues
|
7%
|
7%
|
3%
|
(1%)
|
4%
|
|
4%
|
3%
|
3%
|
6%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHIC
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
5,098
|
$
5,281
|
$
5,253
|
$
6,016
|
$
21,648
|
|
$
5,161
|
$
5,243
|
$
5,266
|
$
6,184
|
$
21,856
|
|
|
Europe/Middle
East/Africa
|
2,535
|
2,796
|
2,881
|
3,197
|
11,409
|
|
2,576
|
2,782
|
2,781
|
3,132
|
11,270
|
|
|
Asia
Pacific
|
1,471
|
1,512
|
1,542
|
1,801
|
6,326
|
|
1,456
|
1,537
|
1,567
|
1,820
|
6,380
|
|
|
Total
revenues
|
$
9,104
|
$
9,589
|
$
9,676
|
$ 11,014
|
$
39,383
|
|
$
9,193
|
$
9,562
|
$
9,614
|
$ 11,136
|
$
39,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2018 and 2017 for the
fiscal 2019 and fiscal 2018 constant currency growth rate
calculations presented, respectively, rather than the actual
exchange rates in effect during the respective periods.
|
|
|
|
|
|
|
(3)
|
Applications
ecosystem revenues represent the sum of applications related cloud
services and license support revenues; and applications related
license revenues. Infrastructure ecosystem revenues represent the
sum of infrastructure related cloud services and license support
revenues; and infrastructure related license
revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX A
ORACLE
CORPORATION
Q4 FISCAL 2019 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.
- Deferred sales commissions amortization: Certain acquired
companies capitalized sales commissions associated with
subscription agreements and amortized these amounts over the
related contractual terms. Business combination accounting
rules generally require us to eliminate these capitalized sales
commissions balances as of the acquisition date and our
post-combination GAAP sales and marketing expenses generally do not
reflect the amortization of these deferred sales commissions
balances. The non-GAAP adjustment to increase our sales and
marketing expenses is intended to include, and thus reflect, the
full amount of amortization related to such balances as though the
acquired companies operated independently in the periods presented.
We believe this adjustment to sales and marketing expenses is
useful to investors as a measure of the ongoing performance of our
business.
- 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
significant 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 and stock-based compensation expenses 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 fiscal 2019, we recorded a net benefit of
$389 million 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 recorded a provisional net charge of
$6.9 billion during fiscal 2018
related to our preliminary assessment 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 items from our non-GAAP income taxes and net
income measures for fiscal 2019 and 2018. We believe making these
adjustments provides insight to our operating performance and
comparability to past operating results.
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SOURCE Oracle