REDWOOD SHORES, Calif., June 16, 2020 /PRNewswire/ -- Oracle
Corporation (NYSE: ORCL) today announced fiscal 2020 Q4 and fiscal
2020 full year results. Total quarterly revenues were $10.4 billion, down 6% YoY and down 4% in
constant currency compared to Q4 last year. Cloud services and
license support revenues were $6.8
billion, up 1% YoY and 3% in constant currency. Cloud
license and on-premise license revenues were $2.0 billion.
Q4 GAAP operating income was up 1% YoY to $4.3 billion, and GAAP operating margin was 41%.
Non-GAAP operating income was down 2% YoY to $5.1 billion, and non-GAAP operating margin was
49%. GAAP net income was $3.1
billion, and non-GAAP net income was $3.8 billion. GAAP earnings per share was
$0.99, while non-GAAP earnings per
share was up 3% YoY to $1.20.
Short-term deferred revenues were $8.0 billion. Operating cash flow was
$13.1 billion during the trailing
twelve months.
For fiscal 2020, total revenues were $39.1 billion, down 1% YoY and flat in constant
currency. Cloud services and license support revenues were
$27.4 billion, up 3% YoY and 4% in
constant currency. Cloud license and on-premise license revenues
were $5.1 billion.
Fiscal 2020 GAAP operating income was $13.9 billion, and GAAP operating margin was 36%.
Non-GAAP operating income was $17.4
billion, and non-GAAP operating margin was 44%. GAAP net
income was $10.1 billion, while
non-GAAP net income was $12.7
billion. GAAP earnings per share increased 4% to
$3.08, while non-GAAP earnings per
share was up 9% to $3.85.
"In Q4, non-GAAP earnings per share grew 5% in constant
currency driven by strong performances in both our cloud
infrastructure and cloud applications businesses," said Oracle CEO,
Safra Catz. "Leading the way was our
Fusion Cloud ERP Suite that grew 35% in constant currency, and our
Fusion Cloud HCM Suite grew 29% in constant currency. Our overall
business did remarkably well considering the pandemic, but our
results would have been even better except for customers in the
hardest-hit industries that we serve such as hospitality, retail,
and transportation postponing some of their purchases. Still, for
the third year in a row, we delivered double-digit constant
currency earnings per share growth in FY20."
"In Q4, we launched a vastly improved version of our
Exadata Cloud@Customer service," said Oracle Chairman and CTO,
Larry Ellison. "Exadata
Cloud@Customer now enables our existing on-premise database
customers to run the Oracle Autonomous Database in their own
datacenter; previously, the Oracle Autonomous Database was only
available in Oracle's Gen2 Public Cloud. Enabling all our
on-premise database customers to upgrade and run Oracle's latest
and best database technology in their own data center should
dramatically accelerate the rate of adoption of the Oracle
Autonomous Database…especially by our largest customers including
banks and governments that are not currently planning to move their
largest and most critical systems to a public cloud."
The board of directors 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 15,
2020, with a payment date of July 28,
2020.
Q4 Fiscal 2020 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 2020 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:
1424537.
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 rate
of adoption of our Autonomous Database, are "forward-looking
statements" and are subject to material risks and uncertainties.
Many factors could affect our current expectations and our actual
results, and could cause actual results to differ materially. We
presently consider the following to be among the important factors
that could cause actual results to differ materially from
expectations: (1) The COVID-19 pandemic has affected how we and our
customers are operating our respective businesses, and the duration
and extent to which this will impact our future results of
operations and our overall financial performance remains uncertain.
(2) Our success depends upon our ability to develop new products
and services, integrate acquired products and services and enhance
our existing products and services. (3) Our cloud strategy,
including our Oracle Software-as-a-Service and
Infrastructure-as-a-Service offerings, may adversely affect our
revenues and profitability. (4) We might experience significant
coding, manufacturing or configuration errors in our cloud, license
and hardware offerings. (5) If the security measures for our
products and services are compromised and as a result, our
customers' data or our IT systems are accessed improperly, made
unavailable, or improperly modified, our products and services may
be perceived as vulnerable, our brand and reputation could be
damaged, the IT services we provide to our customers could be
disrupted, and customers may stop using our products and services,
all of which could reduce our revenue and earnings, increase our
expenses and expose us to legal claims and regulatory actions. (6)
Our business practices with respect to data could give rise to
operational interruption, liabilities or reputational harm as a
result of governmental regulation, legal requirements or industry
standards relating to consumer privacy and data protection. (7)
Economic, political and market conditions can adversely affect our
business, results of operations and financial condition, including
our revenue growth and profitability, which in turn could adversely
affect our stock price. (8) Our international sales and operations
subject us to additional risks that can adversely affect our
operating results. (9) Acquisitions present many risks and we may
not achieve the financial and strategic goals that were
contemplated at the time of a transaction. A detailed discussion of
these factors and other risks that affect our business is contained
in our SEC filings, including our most recent reports on Form 10-K
and Form 10-Q, particularly under the heading "Risk Factors."
Copies of these filings are available online from the SEC or by
contacting Oracle Corporation's Investor Relations Department at
(650) 506-4073 or by clicking on SEC Filings on Oracle's Investor
Relations website at http://www.oracle.com/investor. All
information set forth in this press release is current as of
June 16, 2020. Oracle undertakes no
duty to update any statement in light of new information or future
events.
|
ORACLE
CORPORATION
Q4 FISCAL 2020 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
|
|
|
|
2020
|
Revenues
|
2019
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
6,845
|
66%
|
$
6,799
|
61%
|
1%
|
3%
|
|
|
Cloud license and
on-premise license
|
1,959
|
19%
|
2,520
|
23%
|
(22%)
|
(21%)
|
|
|
Hardware
|
901
|
8%
|
994
|
9%
|
(9%)
|
(7%)
|
|
|
Services
|
735
|
7%
|
823
|
7%
|
(11%)
|
(8%)
|
|
|
Total
revenues
|
10,440
|
100%
|
11,136
|
100%
|
(6%)
|
(4%)
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
1,012
|
10%
|
975
|
9%
|
4%
|
6%
|
|
|
Hardware
|
288
|
3%
|
362
|
3%
|
(20%)
|
(19%)
|
|
|
Services
|
669
|
6%
|
726
|
7%
|
(8%)
|
(5%)
|
|
|
Sales and
marketing
|
1,959
|
19%
|
2,318
|
21%
|
(15%)
|
(13%)
|
|
|
Research and
development
|
1,479
|
14%
|
1,562
|
14%
|
(5%)
|
(4%)
|
|
|
General and
administrative
|
278
|
3%
|
329
|
3%
|
(16%)
|
(13%)
|
|
|
Amortization of
intangible assets
|
366
|
3%
|
424
|
4%
|
(14%)
|
(13%)
|
|
|
Acquisition related
and other
|
11
|
0%
|
15
|
0%
|
(23%)
|
(18%)
|
|
|
Restructuring
|
69
|
1%
|
168
|
1%
|
(59%)
|
(58%)
|
|
|
Total operating
expenses
|
6,131
|
59%
|
6,879
|
62%
|
(11%)
|
(9%)
|
|
|
OPERATING
INCOME
|
4,309
|
41%
|
4,257
|
38%
|
1%
|
3%
|
|
|
Interest
expense
|
(580)
|
(6%)
|
(525)
|
(4%)
|
10%
|
10%
|
|
|
Non-operating income,
net
|
(33)
|
0%
|
134
|
1%
|
(125%)
|
(123%)
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
3,696
|
35%
|
3,866
|
35%
|
(4%)
|
(2%)
|
|
|
Provision for income
taxes
|
580
|
5%
|
126
|
1%
|
361%
|
374%
|
|
|
NET
INCOME
|
$
3,116
|
30%
|
$
3,740
|
34%
|
(17%)
|
(14%)
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.01
|
|
$
1.10
|
|
|
|
|
|
Diluted
|
$
0.99
|
|
$
1.07
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
3,091
|
|
3,389
|
|
|
|
|
|
Diluted
|
3,162
|
|
3,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 May 31, 2020 compared with the corresponding prior
year period decreased our revenues by 2 percentage points,
operating expenses by 2 percentage points and operating income by 2
percentage points.
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
|
Q4 FISCAL 2020
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)
|
|
|
|
|
2020
|
|
|
|
2020
|
|
|
2019
|
|
|
|
2019
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
10,440
|
|
$
1
|
|
$
10,441
|
|
|
$
11,136
|
|
$
3
|
|
$
11,139
|
|
(6%)
|
(6%)
|
(4%)
|
(4%)
|
|
|
Cloud services and license
support
|
|
6,845
|
|
1
|
|
6,846
|
|
|
6,799
|
|
3
|
|
6,802
|
|
1%
|
1%
|
3%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
6,131
|
|
$
(832)
|
|
$
5,299
|
|
|
$
6,879
|
|
$
(1,001)
|
|
$
5,878
|
|
(11%)
|
(10%)
|
(9%)
|
(8%)
|
|
|
Stock-based compensation
(3)
|
|
386
|
|
(386)
|
|
-
|
|
|
394
|
|
(394)
|
|
-
|
|
(2%)
|
*
|
(2%)
|
*
|
|
|
Amortization of intangible
assets (4)
|
|
366
|
|
(366)
|
|
-
|
|
|
424
|
|
(424)
|
|
-
|
|
(14%)
|
*
|
(13%)
|
*
|
|
|
Acquisition related and
other
|
|
11
|
|
(11)
|
|
-
|
|
|
15
|
|
(15)
|
|
-
|
|
(23%)
|
*
|
(18%)
|
*
|
|
|
Restructuring
|
|
69
|
|
(69)
|
|
-
|
|
|
168
|
|
(168)
|
|
-
|
|
(59%)
|
*
|
(58%)
|
*
|
|
|
OPERATING
INCOME
|
|
$
4,309
|
|
$
833
|
|
$
5,142
|
|
|
$
4,257
|
|
$
1,004
|
|
$
5,261
|
|
1%
|
(2%)
|
3%
|
0%
|
|
|
OPERATING MARGIN
%
|
|
41%
|
|
|
|
49%
|
|
|
38%
|
|
|
|
47%
|
|
305 bp.
|
202 bp.
|
307 bp.
|
192 bp.
|
|
|
INCOME TAX EFFECTS
(5)
|
|
$
580
|
|
$
170
|
|
$
750
|
|
|
$
126
|
|
$
673
|
|
$
799
|
|
361%
|
(6%)
|
374%
|
(4%)
|
|
|
NET
INCOME
|
|
$
3,116
|
|
$
663
|
|
$
3,779
|
|
|
$
3,740
|
|
$
331
|
|
$
4,071
|
|
(17%)
|
(7%)
|
(14%)
|
(5%)
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
0.99
|
|
|
|
$
1.20
|
|
|
$
1.07
|
|
|
|
$
1.16
|
|
(8%)
|
3%
|
(5%)
|
5%
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
|
3,162
|
|
-
|
|
3,162
|
|
|
3,495
|
|
-
|
|
3,495
|
|
(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
|
|
|
|
|
|
|
|
|
|
May 31,
2020
|
|
|
May 31,
2019
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
27
|
|
$
(27)
|
|
$
-
|
|
|
$
25
|
|
$
(25)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
3
|
|
(3)
|
|
-
|
|
|
3
|
|
(3)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
12
|
|
(12)
|
|
-
|
|
|
12
|
|
(12)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
69
|
|
(69)
|
|
-
|
|
|
82
|
|
(82)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
254
|
|
(254)
|
|
-
|
|
|
231
|
|
(231)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
21
|
|
(21)
|
|
-
|
|
|
41
|
|
(41)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
386
|
|
$
(386)
|
|
$
-
|
|
|
$
394
|
|
$
(394)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of May
31, 2020 was as follows:
|
|
|
Fiscal 2021
|
|
$
1,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
|
1,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
3,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 15.7% and
3.3% in the fourth quarter of fiscal 2020 and 2019, respectively,
and an effective non-GAAP tax rate of 16.6% and 16.4% in the fourth
quarter of fiscal 2020 and 2019, respectively.The difference in our
GAAP and non-GAAP tax rates in the fourth 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 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.
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
FISCAL 2020 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
|
|
|
|
2020
|
Revenues
|
2019
|
Revenues
|
in US
$
|
Currency
(1)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
$
27,392
|
70%
|
$
26,707
|
68%
|
3%
|
4%
|
|
|
Cloud license and
on-premise license
|
5,127
|
13%
|
5,855
|
15%
|
(12%)
|
(11%)
|
|
|
Hardware
|
3,443
|
9%
|
3,704
|
9%
|
(7%)
|
(6%)
|
|
|
Services
|
3,106
|
8%
|
3,240
|
8%
|
(4%)
|
(3%)
|
|
|
Total
revenues
|
39,068
|
100%
|
39,506
|
100%
|
(1%)
|
0%
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Cloud services and
license support
|
4,006
|
10%
|
3,782
|
10%
|
6%
|
7%
|
|
|
Hardware
|
1,116
|
3%
|
1,360
|
4%
|
(18%)
|
(17%)
|
|
|
Services
|
2,816
|
7%
|
2,853
|
7%
|
(1%)
|
0%
|
|
|
Sales and
marketing
|
8,094
|
21%
|
8,509
|
22%
|
(5%)
|
(3%)
|
|
|
Research and
development
|
6,067
|
15%
|
6,026
|
15%
|
1%
|
1%
|
|
|
General and
administrative
|
1,181
|
3%
|
1,265
|
3%
|
(7%)
|
(6%)
|
|
|
Amortization of
intangible assets
|
1,586
|
4%
|
1,689
|
4%
|
(6%)
|
(6%)
|
|
|
Acquisition related
and other
|
56
|
0%
|
44
|
0%
|
27%
|
29%
|
|
|
Restructuring
|
250
|
1%
|
443
|
1%
|
(44%)
|
(42%)
|
|
|
Total operating
expenses
|
25,172
|
64%
|
25,971
|
66%
|
(3%)
|
(2%)
|
|
|
OPERATING
INCOME
|
13,896
|
36%
|
13,535
|
34%
|
3%
|
4%
|
|
|
Interest
expense
|
(1,995)
|
(5%)
|
(2,082)
|
(5%)
|
(4%)
|
(4%)
|
|
|
Non-operating income,
net
|
162
|
0%
|
815
|
2%
|
(80%)
|
(80%)
|
|
|
INCOME BEFORE
PROVISION FOR INCOME TAXES
|
12,063
|
31%
|
12,268
|
31%
|
(2%)
|
0%
|
|
|
Provision for income
taxes
|
1,928
|
5%
|
1,185
|
3%
|
63%
|
66%
|
|
|
NET
INCOME
|
$
10,135
|
26%
|
$
11,083
|
28%
|
(9%)
|
(7%)
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
3.16
|
|
$
3.05
|
|
|
|
|
|
Diluted
|
$
3.08
|
|
$
2.97
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
3,211
|
|
3,634
|
|
|
|
|
|
Diluted
|
3,294
|
|
3,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 year
ended May 31, 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.
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
FISCAL 2020
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)
|
|
|
|
2020
|
|
|
|
2020
|
|
|
2019
|
|
|
|
2019
|
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
$
39,068
|
|
$
4
|
|
$
39,072
|
|
|
$
39,506
|
|
$
20
|
|
$
39,526
|
|
(1%)
|
(1%)
|
0%
|
0%
|
|
|
Cloud services and license
support
|
|
27,392
|
|
4
|
|
27,396
|
|
|
26,707
|
|
20
|
|
26,727
|
|
3%
|
3%
|
4%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
EXPENSES
|
|
$
25,172
|
|
$
(3,482)
|
|
$
21,690
|
|
|
$
25,971
|
|
$
(3,829)
|
|
$
22,142
|
|
(3%)
|
(2%)
|
(2%)
|
(1%)
|
|
|
Stock-based compensation
(3)
|
|
1,590
|
|
(1,590)
|
|
-
|
|
|
1,653
|
|
(1,653)
|
|
-
|
|
(4%)
|
*
|
(4%)
|
*
|
|
|
Amortization of intangible
assets (4)
|
|
1,586
|
|
(1,586)
|
|
-
|
|
|
1,689
|
|
(1,689)
|
|
-
|
|
(6%)
|
*
|
(6%)
|
*
|
|
|
Acquisition related and
other
|
|
56
|
|
(56)
|
|
-
|
|
|
44
|
|
(44)
|
|
-
|
|
27%
|
*
|
29%
|
*
|
|
|
Restructuring
|
|
250
|
|
(250)
|
|
-
|
|
|
443
|
|
(443)
|
|
-
|
|
(44%)
|
*
|
(42%)
|
*
|
|
|
OPERATING
INCOME
|
|
$
13,896
|
|
$
3,486
|
|
$
17,382
|
|
|
$
13,535
|
|
$
3,849
|
|
$
17,384
|
|
3%
|
0%
|
4%
|
1%
|
|
|
OPERATING MARGIN
%
|
|
36%
|
|
|
|
44%
|
|
|
34%
|
|
|
|
44%
|
|
131 bp.
|
51 bp.
|
143 bp.
|
54 bp.
|
|
|
INCOME TAX EFFECTS
(5)
|
|
$
1,928
|
|
$
939
|
|
$
2,867
|
|
|
$
1,185
|
|
$
1,795
|
|
$
2,980
|
|
63%
|
(4%)
|
66%
|
(2%)
|
|
|
NET
INCOME
|
|
$
10,135
|
|
$
2,547
|
|
$
12,682
|
|
|
$
11,083
|
|
$
2,054
|
|
$
13,137
|
|
(9%)
|
(3%)
|
(7%)
|
(2%)
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
$
3.08
|
|
|
|
$
3.85
|
|
|
$
2.97
|
|
|
|
$
3.52
|
|
4%
|
9%
|
6%
|
11%
|
|
|
DILUTED WEIGHTED
AVERAGE COMMON
SHARES OUTSTANDING
|
|
3,294
|
|
-
|
|
3,294
|
|
|
3,732
|
|
-
|
|
3,732
|
|
(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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
May 31,
2020
|
|
|
May 31,
2019
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
GAAP
|
|
Adj.
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Cloud services and license
support
|
|
$
110
|
|
$
(110)
|
|
$
-
|
|
|
$
99
|
|
$
(99)
|
|
$
-
|
|
|
|
|
|
|
|
Hardware
|
|
11
|
|
(11)
|
|
-
|
|
|
10
|
|
(10)
|
|
-
|
|
|
|
|
|
|
|
Services
|
|
54
|
|
(54)
|
|
-
|
|
|
49
|
|
(49)
|
|
-
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
261
|
|
(261)
|
|
-
|
|
|
360
|
|
(360)
|
|
-
|
|
|
|
|
|
|
|
Research and
development
|
|
1,035
|
|
(1,035)
|
|
-
|
|
|
963
|
|
(963)
|
|
-
|
|
|
|
|
|
|
|
General and
administrative
|
|
119
|
|
(119)
|
|
-
|
|
|
172
|
|
(172)
|
|
-
|
|
|
|
|
|
|
|
Total stock-based compensation
|
|
$
1,590
|
|
$
(1,590)
|
|
$
-
|
|
|
$
1,653
|
|
$
(1,653)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Estimated future
annual amortization expense related to intangible assets as of May
31, 2020 was as follows:
|
|
|
Fiscal 2021
|
|
$
1,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2022
|
|
1,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2023
|
|
679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2024
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thereafter
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total intangible assets, net
|
|
$
3,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Income tax effects
were calculated reflecting an effective GAAP tax rate of 16.0% and
9.7% in fiscal 2020 and 2019, respectively, and an effective
non-GAAP tax rate of 18.4% and 18.5% in fiscal 2020 and 2019,
respectively. The difference between our GAAP and non-GAAP tax
rates in fiscal 2020 was primarily due to the net tax effects on
stock-based compensation expense and acquisition related items,
including the tax effects of amortization of intangible assets. The
difference in our GAAP and non-GAAP tax rates in 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); 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.
|
|
|
*
|
Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
FISCAL 2020
FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
May
31,
|
May
31,
|
|
|
|
2020
|
2019
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
37,239
|
|
$
20,514
|
|
|
Marketable
securities
|
5,818
|
|
17,313
|
|
|
Trade receivables,
net
|
5,551
|
|
5,134
|
|
|
Prepaid expenses and
other current assets
|
3,532
|
|
3,425
|
|
|
|
Total Current
Assets
|
52,140
|
|
46,386
|
|
|
Non-Current
Assets:
|
|
|
|
|
|
Property, plant and equipment, net
|
6,244
|
|
6,252
|
|
|
Intangible assets, net
|
3,738
|
|
5,279
|
|
|
Goodwill, net
|
43,769
|
|
43,779
|
|
|
Deferred
tax assets
|
3,252
|
|
2,696
|
|
|
Other
non-current assets
|
6,295
|
|
4,317
|
|
|
|
Total Non-Current
Assets
|
63,298
|
|
62,323
|
|
|
TOTAL
ASSETS
|
$
115,438
|
|
$
108,709
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Notes payable,
current
|
$
2,371
|
|
$
4,494
|
|
|
Accounts
payable
|
637
|
|
580
|
|
|
Accrued compensation
and related benefits
|
1,453
|
|
1,628
|
|
|
Deferred
revenues
|
8,002
|
|
8,374
|
|
|
Other current
liabilities
|
4,737
|
|
3,554
|
|
|
|
Total Current
Liabilities
|
17,200
|
|
18,630
|
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
Notes payable and
other borrowings, non-current
|
69,226
|
|
51,673
|
|
|
Income taxes
payable
|
12,463
|
|
13,295
|
|
|
Other non-current
liabilities
|
3,832
|
|
2,748
|
|
|
|
Total Non-Current
Liabilities
|
85,521
|
|
67,716
|
|
|
Equity
|
12,717
|
|
22,363
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
115,438
|
|
$
108,709
|
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
FISCAL 2020
FINANCIAL RESULTS
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
Year Ended May
31,
|
|
|
2020
|
2019
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
Net
income
|
$
10,135
|
|
$
11,083
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
1,382
|
|
1,230
|
|
|
Amortization of
intangible assets
|
1,586
|
|
1,689
|
|
|
Deferred income
taxes
|
(851)
|
|
(1,191)
|
|
|
Stock-based
compensation
|
1,590
|
|
1,653
|
|
|
Other, net
|
239
|
|
157
|
|
|
Changes in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
Increase in trade
receivables, net
|
(445)
|
|
(82)
|
|
|
Decrease in prepaid
expenses and other assets
|
665
|
|
261
|
|
|
Decrease in accounts
payable and other liabilities
|
(496)
|
|
(102)
|
|
|
Decrease in income
taxes payable
|
(444)
|
|
(453)
|
|
|
(Decrease) increase
in deferred revenues
|
(222)
|
|
306
|
|
|
Net cash provided
by operating activities
|
13,139
|
|
14,551
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(5,731)
|
|
(1,400)
|
|
|
Proceeds from
maturities of marketable securities and other
investments
|
4,687
|
|
12,681
|
|
|
Proceeds from sales
of marketable securities
|
12,575
|
|
17,299
|
|
|
Acquisitions, net of
cash acquired
|
(124)
|
|
(363)
|
|
|
Capital
expenditures
|
(1,564)
|
|
(1,660)
|
|
|
Net cash provided
by investing activities
|
9,843
|
|
26,557
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
Payments for
repurchases of common stock
|
(19,240)
|
|
(36,140)
|
|
|
Proceeds from
issuances of common stock
|
1,588
|
|
2,155
|
|
|
Shares repurchased
for tax withholdings upon vesting of restricted stock-based
awards
|
(665)
|
|
(503)
|
|
|
Payments of dividends
to stockholders
|
(3,070)
|
|
(2,932)
|
|
|
Proceeds from
borrowings, net of issuance costs
|
19,888
|
|
-
|
|
|
Repayments of
borrowings
|
(4,500)
|
|
(4,500)
|
|
|
Other, net
|
(133)
|
|
(136)
|
|
|
Net cash used for
financing activities
|
(6,132)
|
|
(42,056)
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(125)
|
|
(158)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
16,725
|
|
(1,106)
|
|
|
Cash and cash
equivalents at beginning of period
|
20,514
|
|
21,620
|
|
|
Cash and cash
equivalents at end of period
|
$
37,239
|
|
$
20,514
|
|
|
|
|
|
|
|
|
ORACLE
CORPORATION
|
|
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
|
$
13,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
(1,646)
|
(1,468)
|
(1,625)
|
(1,660)
|
(1,663)
|
(1,591)
|
(1,544)
|
(1,564)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
$
13,896
|
$
13,770
|
$
13,164
|
$
12,891
|
$
12,166
|
$
12,205
|
$
12,403
|
$
11,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth over
prior year
|
10%
|
10%
|
(1%)
|
(6%)
|
(12%)
|
(11%)
|
(6%)
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
$
3,708
|
$
3,827
|
$
10,619
|
$
11,083
|
$
10,955
|
$
10,933
|
$
10,759
|
$
10,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow as
a % of Net Income
|
375%
|
360%
|
124%
|
116%
|
111%
|
112%
|
115%
|
114%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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
|
$
6,845
|
$
27,392
|
|
|
Cloud license
and on-premise license
|
867
|
1,217
|
1,251
|
2,520
|
5,855
|
|
812
|
1,126
|
1,231
|
1,959
|
5,127
|
|
|
Hardware
|
904
|
891
|
915
|
994
|
3,704
|
|
815
|
871
|
857
|
901
|
3,443
|
|
|
Services
|
813
|
817
|
786
|
823
|
3,240
|
|
786
|
806
|
778
|
735
|
3,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
9,193
|
$
9,562
|
$
9,614
|
$
11,136
|
$
39,506
|
|
$
9,218
|
$
9,614
|
$
9,796
|
$
10,440
|
$
39,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
3%
|
3%
|
1%
|
0%
|
2%
|
|
3%
|
3%
|
4%
|
1%
|
3%
|
|
|
Cloud license
and on-premise license
|
(3%)
|
(9%)
|
(4%)
|
12%
|
1%
|
|
(6%)
|
(7%)
|
(2%)
|
(22%)
|
(12%)
|
|
|
Hardware
|
(4%)
|
(5%)
|
(8%)
|
(11%)
|
(7%)
|
|
(10%)
|
(2%)
|
(6%)
|
(9%)
|
(7%)
|
|
|
Services
|
(5%)
|
(5%)
|
(1%)
|
(7%)
|
(5%)
|
|
(3%)
|
(1%)
|
(1%)
|
(11%)
|
(4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
1%
|
0%
|
(1%)
|
1%
|
0%
|
|
0%
|
1%
|
2%
|
(6%)
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud services
and license support
|
4%
|
5%
|
4%
|
3%
|
4%
|
|
4%
|
4%
|
5%
|
3%
|
4%
|
|
|
Cloud license
and on-premise license
|
0%
|
(6%)
|
0%
|
15%
|
4%
|
|
(6%)
|
(7%)
|
0%
|
(21%)
|
(11%)
|
|
|
Hardware
|
(3%)
|
(3%)
|
(4%)
|
(8%)
|
(5%)
|
|
(9%)
|
(1%)
|
(5%)
|
(7%)
|
(6%)
|
|
|
Services
|
(4%)
|
(2%)
|
3%
|
(4%)
|
(2%)
|
|
(2%)
|
0%
|
0%
|
(8%)
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
2%
|
2%
|
3%
|
4%
|
3%
|
|
2%
|
1%
|
3%
|
(4%)
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
2,749
|
$
11,015
|
|
|
Infrastructure
cloud services and license support
|
4,029
|
4,016
|
4,025
|
4,083
|
16,154
|
|
4,101
|
4,058
|
4,121
|
4,096
|
16,377
|
|
|
|
Total cloud
services and license support
|
$
6,609
|
$
6,637
|
$
6,662
|
$
6,799
|
$
26,707
|
|
$
6,805
|
$
6,811
|
$
6,930
|
$
6,845
|
$
27,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED
REVENUE GROWTH RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
6%
|
6%
|
6%
|
3%
|
5%
|
|
5%
|
5%
|
6%
|
1%
|
4%
|
|
|
Infrastructure
cloud services and license support
|
1%
|
1%
|
(2%)
|
(1%)
|
0%
|
|
2%
|
1%
|
2%
|
0%
|
1%
|
|
|
|
Total cloud
services and license support
|
3%
|
3%
|
1%
|
0%
|
2%
|
|
3%
|
3%
|
4%
|
1%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCY
GROWTH RATES (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applications
cloud services and license support
|
7%
|
7%
|
8%
|
5%
|
7%
|
|
6%
|
6%
|
7%
|
3%
|
5%
|
|
|
Infrastructure
cloud services and license support
|
3%
|
3%
|
2%
|
2%
|
2%
|
|
3%
|
2%
|
4%
|
3%
|
3%
|
|
|
|
Total cloud
services and license support
|
4%
|
5%
|
4%
|
3%
|
4%
|
|
4%
|
4%
|
5%
|
3%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHIC
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
5,161
|
$
5,243
|
$
5,266
|
$
6,184
|
$
21,856
|
|
$
5,150
|
$
5,304
|
$
5,363
|
$
5,746
|
$
21,563
|
|
|
Europe/Middle
East/Africa
|
|
2,576
|
2,782
|
2,781
|
3,132
|
11,270
|
|
2,553
|
2,695
|
2,835
|
2,952
|
11,035
|
|
|
Asia
Pacific
|
|
1,456
|
1,537
|
1,567
|
1,820
|
6,380
|
|
1,515
|
1,615
|
1,598
|
1,742
|
6,470
|
|
|
|
Total
revenues
|
$
9,193
|
$
9,562
|
$
9,614
|
$
11,136
|
$
39,506
|
|
$
9,218
|
$
9,614
|
$
9,796
|
$
10,440
|
$
39,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPENDIX A
ORACLE CORPORATION
Q4 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, 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 have excluded the impacts of these benefits from
our non-GAAP income taxes and net income measures for fiscal 2019.
We believe making these adjustments provides insight to our
operating performance and comparability.
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SOURCE Oracle