Oracle(US:ORCL)2023-06-19 16:00Cloud Services and Revenues - Cloud services revenues represented 32%, 25%, and 22% of total revenues in fiscal 2023, 2022, and 2021, respectively[13] - Applications cloud services and license support revenues accounted for 47%, 42%, and 41% of total cloud services and license support revenues in fiscal 2023, 2022, and 2021, respectively[14] - Infrastructure cloud services and license support revenues represented 53%, 58%, and 59% of total cloud services and license support revenues in fiscal 2023, 2022, and 2021, respectively[23] - Oracle's license support contracts are typically priced as a percentage of the net fees paid for the license and are generally one year in duration[21] Oracle Cloud Infrastructure (OCI) and Offerings - Oracle Cloud Infrastructure (OCI) offers compute, storage, and networking services, designed for high performance, scalability, and cost-effectiveness[24] - Oracle Cloud Infrastructure (OCI) continues to expand its geographic footprint and capacity to deliver cloud services globally[26] - OCI AI services are embedded into customer applications for predictive use cases such as credit fraud detection and financial modeling[26] - Oracle Cloud Operations leverage automated software tools to deliver the latest cloud technology capabilities to customers on a quarterly cadence[44] Oracle Cloud SaaS and Applications - Oracle Cloud SaaS offerings include Oracle Fusion Cloud ERP, EPM, SCM, HCM, and NetSuite Applications Suite, targeting various industries and business functions[15][17] - Oracle's applications technologies are designed to reduce risk, cost, and complexity of IT infrastructures while supporting flexible deployment models[14] Oracle Database and Technologies - Oracle Autonomous Database leverages machine learning to automate traditionally manual functions, enhancing infrastructure as an OCI offering[9] - Oracle's infrastructure technologies include Oracle Database, MySQL Database, Java, and middleware, available through OCI subscriptions or licenses[22] - Oracle Autonomous Database is designed to automate database operations and lower labor costs through machine learning-driven diagnostics[30] - Oracle Database is the world's most popular enterprise database, licensed globally for use in cloud, on-premise, and hybrid IT environments[27] - MySQL, the world's most popular open source database, is offered as a cloud service with MySQL HeatWave[29] Oracle Engineered Systems and Hardware - Oracle Engineered Systems, including Oracle Exadata Database Machine, deliver improved performance and scalability for cloud and on-premise environments[36] - Oracle offers a wide range of server products, including those based on Oracle SPARC and x86 microprocessors, for mission-critical enterprise environments[37] - Oracle storage products integrate with Oracle Cloud Services for backup and archiving, providing greater performance and efficiency[38] Oracle's Workforce and Employee Engagement - Oracle employs approximately 164,000 full-time employees globally, with 62,000 in the U.S. and 102,000 internationally[51] - The company's workforce includes 35,000 in sales and marketing, 47,000 in research and development, and 27,000 in cloud services and license support operations[52] - 29% of Oracle's open non-entry level positions were filled internally in fiscal 2023, promoting internal growth and talent retention[57] - Oracle employees received over 3 million hours of training in fiscal 2023, with online learning content accessed at an average rate of over 2 million views per month[57] - 81% of Oracle employees participated in the annual engagement survey in fiscal 2023, with feedback shared with leadership and the Board of Directors[58] Corporate Social Responsibility and Community Support - Oracle and its employees raised over $1 million for disaster relief in fiscal 2023, including contributions for earthquakes in Turkey and hurricanes in the U.S.[59] - The company contributes tens of millions of dollars annually to initiatives focused on education, the environment, and community support[59] Financial Performance and Seasonal Factors - Oracle's quarterly revenues are typically highest in the fourth fiscal quarter and lowest in the first fiscal quarter due to seasonal factors[61] Competitive Landscape - The company faces intense competition from major tech firms like Amazon, Microsoft, IBM, and Salesforce, as well as emerging competitors in various market segments[62] - Oracle's competitive factors include total cost of ownership, performance, scalability, reliability, and ease of use in its product offerings[62] Investments and Marketable Securities - Marketable and non-marketable equity securities investments totaled $972 million as of May 31, 2023, compared to $1.1 billion in 2022[201] - A 25% decrease in market price and fair values of marketable and non-marketable equity investments would result in a hypothetical loss of $243 million for the year ended May 31, 2023[205] Foreign Exchange and Currency Risks - A 10% decrease in foreign exchange rates would lead to a hypothetical loss of $2,037 million in total revenues for the year ended May 31, 2023[205] - A 10% decrease in foreign exchange rates would result in a hypothetical loss of $1,407 million in fair values of cash, cash equivalents, and trade receivables, net for the year ended May 31, 2023[205] - The company's principal currency exposures include the Australian Dollar, Brazilian Real, Euro, Japanese Yen, and Saudi Riyal[203] - The company utilizes foreign currency forward contracts to mitigate risks and volatility associated with foreign currency transactions[203] - The company's foreign currency forward contracts are generally short-term in duration and not used for trading purposes[203] - The strengthening of the U.S. Dollar generally reduces the reported amount of foreign-denominated cash, cash equivalents, trade receivables, total revenues, and total expenses[202] Strategic Acquisitions and Innovation - Oracle's acquisition of Cerner Corporation in June 2022 is part of its strategy to enhance products, expand the customer base, and accelerate innovation[9] Marketing and Partner Network - Oracle markets its product offerings globally through the Oracle Partner Network, extending its market reach through indirect channels[47]