Oracle(ORCL)2024-12-09 21:13Earnings and Profitability - Q2 GAAP Earnings per Share increased 24% to $1.10, Non-GAAP Earnings per Share increased 10% to $1.47[2] - Q2 GAAP operating income was $4.2 billion, with a GAAP operating margin of 30%[3] - Q2 Non-GAAP operating income was $6.1 billion, up 10% in both USD and constant currency[3] - Operating income for Q2 fiscal 2025 rose to $4,220 million, up from $3,620 million in Q2 fiscal 2024, a 17% increase[14] - Net income for Q2 fiscal 2025 grew by 26% to $3,151 million from $2,503 million in Q2 fiscal 2024[14] - Operating income for the six months ended November 30, 2024 rose by 19% to $8,211 million[17] - Net income for the six months ended November 30, 2024 increased by 24% to $6,080 million[17] - Diluted earnings per share for Q2 fiscal 2025 increased by 24% to $1.10 from $0.89 in Q2 fiscal 2024[14] - Operating income rose by 19% to $8.211 billion in 2024 from $6.918 billion in 2023[20] - Net income increased to $6.08 billion in 2024 from $4.92 billion in 2023[20] - Diluted earnings per share grew by 24% to $2.13 in 2024 from $1.75 in 2023[20] - Net income for the six months ended November 30, 2024, was $6,080 million, compared to $4,923 million in the same period in 2023[26] Revenue Growth - Q2 Total Revenue reached $14.1 billion, up 9% in both USD and constant currency[2] - Q2 Cloud Revenue (IaaS plus SaaS) grew 24% to $5.9 billion[2] - Q2 Cloud Infrastructure (IaaS) Revenue surged 52% to $2.4 billion[2] - Q2 Cloud Application (SaaS) Revenue increased 10% to $3.5 billion[2] - Total revenues for Q2 fiscal 2025 increased by 9% to $14,059 million compared to $12,941 million in Q2 fiscal 2024[14] - Cloud services and license support revenues increased by 11% to $21,324 million for the six months ended November 30, 2024[17] - Total revenues increased by 8% to $27.366 billion in 2024 compared to $25.394 billion in 2023[20] - Cloud services revenue for Q2 Fiscal 2025 reached $5.93 billion, showing a 25% year-over-year growth[32] - Total revenues for Q2 Fiscal 2025 were $14.059 billion, an 8% increase compared to the previous year[32] - Cloud services and license support revenues grew by 12% in Q2 Fiscal 2025, reaching $10.806 billion[32] - Constant currency revenue growth for cloud services was 24% in Q2 Fiscal 2025[32] - Applications cloud services and license support revenues grew by 7% in Q2 Fiscal 2025, reaching $4.784 billion[32] - Infrastructure cloud services and license support revenues increased by 12% in Q2 Fiscal 2025, totaling $6.022 billion[32] Cloud Services - Q2 Cloud Revenue (IaaS plus SaaS) grew 24% to $5.9 billion[2] - Q2 Cloud Infrastructure (IaaS) Revenue surged 52% to $2.4 billion[2] - Q2 Cloud Application (SaaS) Revenue increased 10% to $3.5 billion[2] - Oracle Cloud Infrastructure signed an agreement with Meta for AI Cloud Infrastructure collaboration[5] - Cloud services revenue for Q2 Fiscal 2025 reached $5.93 billion, showing a 25% year-over-year growth[32] - Cloud services and license support revenues grew by 12% in Q2 Fiscal 2025, reaching $10.806 billion[32] - Applications cloud services and license support revenues grew by 7% in Q2 Fiscal 2025, reaching $4.784 billion[32] - Infrastructure cloud services and license support revenues increased by 12% in Q2 Fiscal 2025, totaling $6.022 billion[32] Operating Expenses and Margins - Q2 GAAP operating income was $4.2 billion, with a GAAP operating margin of 30%[3] - Q2 Non-GAAP operating income was $6.1 billion, up 10% in both USD and constant currency[3] - Total operating expenses for the six months ended November 30, 2024 increased by 4% to $19,155 million[17] - Operating margin improved to 30% in 2024, up from 27% in 2023[20] - Stock-based compensation for Q2 fiscal 2025 was $1,170 million, a 14% increase from $1,029 million in Q2 fiscal 2024[14] - Amortization of intangible assets for Q2 fiscal 2025 decreased by 22% to $591 million from $755 million in Q2 fiscal 2024[14] Cash Flow and Capital Expenditures - Free cash flow for Q2 fiscal 2025 was $9,542 million, a decrease of 6% compared to the prior year[29] - GAAP operating cash flow for Q2 fiscal 2025 was $20,287 million, representing a 19% growth over the prior year[29] - Operating cash flow as a percentage of net income for Q2 fiscal 2025 was 175%[29] - Free cash flow as a percentage of net income for Q2 fiscal 2025 was 82%[29] - Net cash provided by operating activities increased to $8,731 million in the six months ended November 30, 2024, from $7,117 million in the same period in 2023[26] - Capital expenditures for the six months ended November 30, 2024, were $6,273 million, up from $2,394 million in the same period in 2023[26] - Proceeds from issuances of senior notes and term loan credit agreements, net of issuance costs, were $11,837 million in the six months ended November 30, 2024[26] - Repayments of senior notes and term loan credit agreements were $9,700 million in the six months ended November 30, 2024[26] - Cash and cash equivalents at the end of the period were $10,941 million, up from $8,244 million in the same period in 2023[26] Regional Performance - Americas region contributed $8.933 billion to total revenues in Q2 Fiscal 2025, a 7% increase[33] - Europe/Middle East/Africa region revenues grew by 6% in Q2 Fiscal 2025, reaching $3.381 billion[33] - Asia Pacific region revenues increased by 3% in Q2 Fiscal 2025, totaling $1.745 billion[33] Assets and Liabilities - Total current assets increased to $23.503 billion in 2024 from $22.554 billion in 2023[23] - Property, plant, and equipment, net rose to $26.432 billion in 2024 from $21.536 billion in 2023[23] - Total liabilities decreased to $134.247 billion in 2024 from $131.737 billion in 2023[23] - Stockholders' equity increased to $14.236 billion in 2024 from $9.239 billion in 2023[23] Remaining Performance Obligations - Q2 Total Remaining Performance Obligations rose 49% to $97 billion[2] AI and GPU Consumption - Q2 GPU consumption increased 336%, driven by record AI demand[5] - Oracle Cloud Infrastructure signed an agreement with Meta for AI Cloud Infrastructure collaboration[5] Hardware Revenues - Hardware revenues declined by 6% in Q2 Fiscal 2025, totaling $728 million[32]