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

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

AUSTIN, Texas, Sept. 10, 2024 /PRNewswire/ -- Oracle (NYSE: ORCL) today announced that it will hold its Financial Analyst Meeting at Oracle CloudWorld, Thursday, September 12, 2024.  Oracle's Financial Analyst Meeting will be live at 12:00 p.m. Central Time via the Investor Relations homepage at www.oracle.com/investor. About Oracle Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at ww ...

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

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

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

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

maybefalse/iStock Editorial via Getty Images I assigned a ‘Sell' rating to Oracle (NYSE:ORCL) in my article published in January 2024, arguing that the company is losing strength in cloud and AI. Oracle released its Q1 FY25 result on September 9th after the bell, reporting 8% growth in revenue and 17% increase in EPS. While I think Oracle’s partnership with Amazon (AMZN) is quite positive for the growth of Oracle’s Autonomous database, I am still concerned about their legacy business including hardware, ...

Financial Data and Key Metrics - Total revenue for Q1 was $13.3 billion, up 8% YoY [10] - Cloud revenue (SaaS and IaaS) grew 22% to $5.6 billion, with SaaS revenue at $3.5 billion (up 10%) and IaaS revenue at $2.2 billion (up 46%) [9] - Non-GAAP EPS was $1.39, up 17% in USD and 18% in constant currency [11] - Operating cash flow for Q1 was $7.4 billion, with free cash flow at $5.1 billion [12] - Remaining Performance Obligations (RPO) grew 52% in constant currency to $99 billion, with cloud RPO representing nearly three-fourths of total RPO [13] Business Line Performance - Strategic back-office SaaS applications grew 18% with annualized revenues of $8.2 billion [9] - Infrastructure cloud services revenue grew 46%, with OCI consumption revenue up 56% [10] - Cloud database services grew 23%, with annualized revenues of $2.1 billion [10] - Software license revenues increased 8% to $870 million, including strong growth in Java [10] Market Performance - The company has 85 cloud regions live, with 77 more planned, including public, dedicated, national security, sovereign, and multi-cloud regions [14] - Multi-cloud agreements with AWS, Microsoft Azure, and Google Cloud are expected to accelerate database growth in public clouds [21][44] Strategic Direction and Industry Competition - The company is expanding OCI capacity to meet demand, with CapEx expected to double in FY2025 compared to FY2024 [14][16] - Oracle's multi-cloud strategy is expected to drive growth, particularly for the Oracle Database, which is now available on AWS, Azure, and Google Cloud [8][21] - The company is focusing on AI-driven applications, with autonomous databases and AI agents integrated into its products to enhance productivity and efficiency [7][27] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in double-digit revenue growth for FY2025, with cloud infrastructure revenue expected to grow faster than last year [16] - The company highlighted the importance of automation and security in its cloud services, with autonomous databases reducing human labor and improving margins [27][30] - Oracle is investing heavily in AI training and inferencing, with plans to build gigawatt-scale data centers to support large AI models [19][35] Other Key Information - The company repurchased 1.1 million shares for $150 million and paid out $4.4 billion in dividends over the last 12 months [15] - Oracle is eliminating passwords in favor of biometric authentication and introducing Zero Trust Packet Routing to enhance security [62][63] Q&A Session Summary Question: Margins and Profitability - Management emphasized that OCI gross margins are improving due to automation and the integration of high-margin database services [25][26] - Autonomous databases are expected to significantly reduce costs, with potential savings of 35-50% as Fusion moves to autonomous systems [32] Question: AI Training vs Inferencing - Oracle sees ongoing demand for both AI training and inferencing, with specialized models driving growth in areas like healthcare [35][36] - The company is building gigawatt-scale data centers to support large AI models, with plans for multi-gigawatt facilities in the future [38] Question: Database Migration to Public Cloud - The company expects database migration to accelerate due to multi-cloud agreements with AWS, Azure, and Google Cloud [41][44] - Private clouds are also expected to grow, with Oracle offering identical functionality in both public and private cloud environments [44] Question: Monetization of GenAI in Applications - Oracle is already monetizing AI in healthcare applications, with AI-driven diagnostics, electronic health records, and prescription systems [47][50] - AI is integrated into all Oracle applications, making it a core component rather than a separate revenue stream [50] Question: Supply Availability and Data Center Infrastructure - Demand continues to outstrip supply, but the company is rapidly expanding capacity through automation and strategic location planning [53][54] - Oracle's fully automated data centers allow for efficient scaling, with plans to manage thousands of data centers globally [56] Question: Security and Large OCI Deals - Oracle is enhancing security through biometric authentication, Zero Trust Packet Routing, and autonomous systems to reduce human error [62][65] - The company's focus on security is a key differentiator in winning large OCI deals, particularly with government and enterprise customers [61][66]

Monday, September 9th, 2024Market indexes spent the full trading session in the green to start a new week on Wall Street. All were off intra-day highs, but only the small-cap Russell 2000 trailed off in the final half-hour of trading or so. The Dow grew +484 points, +1.20%, while the S&P 500 and the Nasdaq were both up +1.16%. The Russell came in +0.31%.Inventories, Credit Move Opposite DirectionsTwo relatively minor economic reports came out during today’s regular trading session: Wholesale Inventories for ...