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Oracle Corp (ORCL) SEC Filing 8-K Material Event for the period ending Monday, September 12, 2022

Oracle Corp

CIK: 1341439 Ticker: ORCL

Exhibit 99.1

 

For Immediate Release

 

 

 

 

 

 

Contact:

  

Ken Bond

  

Deborah Hellinger

 

  

Oracle Investor Relations

  

Oracle Corporate Communications

 

  

1.650.607.0349

  

1.212.508.7935

 

  

ken.bond@oracle.com

  

deborah.hellinger@oracle.com

 

Oracle Announces Fiscal 2023 First Quarter Financial Results

 

Q1 GAAP Earnings per Share $0.56, Non-GAAP Earnings per Share $1.03

Q1 Total Revenue $11.4 billion, up 18% in USD, up 23% in constant currency

Q1 Cloud Revenue (IaaS plus SaaS) $3.6 billion, up 45% in USD, up 50% in constant currency

Q1 Cloud Infrastructure (IaaS) Revenue $0.9 billion, up 52% in USD, up 58% in constant currency

Q1 Cloud Application (SaaS) Revenue $2.7 billion, up 43% in USD, up 48% in constant currency

Fusion ERP Cloud (SaaS) Revenue, up 33% in USD, up 38% in constant currency

NetSuite ERP Cloud (SaaS) Revenue, up 27% in USD, up 30% in constant currency

AUSTIN, Texas, September 12, 2022 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2023 Q1 results. Total quarterly revenues were up 18% year-over-year in USD and up 23% in constant currency to $11.4 billion. Cloud services and license support revenues were up 14% in USD and up 20% in constant currency to $8.4 billion. Cloud license and on-premise license revenues were up 11% in USD and up 19% in constant currency to $0.9 billion. For the first quarter of fiscal 2023, Cerner contributed $1.4 billion to total revenues.

Q1 GAAP operating income was $2.6 billion, down 23% in USD and down 17% in constant currency. Non-GAAP operating income was $4.5 billion, up 3% in USD and up 10% in constant currency. GAAP operating margin was 23%, and non-GAAP operating margin was 39%. GAAP net income was $1.5 billion, and non-GAAP net income was $2.8 billion. Q1 GAAP earnings per share was $0.56 while non-GAAP earnings per share was $1.03.

Short-term deferred revenues were $10.5 billion. Operating cash flow was $10.5 billion during the trailing twelve months.

The strengthening of the U.S. dollar compared to foreign currencies had a significant impact on results in the quarter. Without the impact of the U.S. dollar strengthening compared to foreign currencies, Oracle’s reported Q1 GAAP and non-GAAP earnings per share would have been 8 cents higher.

“In Q1, total revenue grew 23% in constant currency beating guidance by $200 million,” said Oracle CEO, Safra Catz. “Even without Cerner, our total revenue grew 8% in constant currency driven by Oracle’s rapidly growing applications and infrastructure cloud businesses. These two cloud businesses now account for more than 30% of our total revenue. As our cloud businesses become a larger-and-larger percentage of our overall business, we expect our constant currency organic revenue growth rate to hit double-digits with a corresponding increase in earnings per share. Cerner will also positively impact revenue and earnings per share growth in the coming quarters as we fully integrate Cerner into Oracle and benefit from the resulting cost efficiencies. This is the first quarter we owned Cerner and they just delivered the best revenue quarter in their history. We expect Cerner to do even better in the coming quarters as we develop an all-new suite of healthcare cloud services.”

“Multi-Cloud access to the Oracle Database and Oracle’s MySQL HeatWave database will make the world’s two most popular databases even more popular,” said Oracle Chairman and CTO, Larry Ellison. “In Q1 we expanded our relationship with Microsoft by providing all versions of the Oracle database directly to Microsoft Azure customers. Now all Microsoft customers can directly access the Oracle Exadata Cloud Service, the Oracle Autonomous Database and every other Oracle Database version directly from the Azure Cloud. Today we are also announcing that Amazon Web Services customers can directly access Oracle’s MySQL HeatWave database running in the Amazon Cloud. This enables AWS users to run transaction processing, real-time analytics, and machine learning on the single unified MySQL service. MySQL HeatWave delivers 7X better price performance compared to Amazon Redshift and 10X better than Snowflake, 25X faster than Redshift ML, and up to 10X higher throughput than Aurora. See today’s MySQL HeatWave press release for customer performance benchmark verification.”

The board of directors declared a quarterly cash dividend of $0.32 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 12, 2022, with a payment date of October 25, 2022.

 

A sample list of customers which purchased Oracle Cloud services during the quarter will be available at www.oracle.com/customers/earnings/.

 

A list of recent technical innovations and announcements is available at www.oracle.com/news/.

 

To learn what industry analysts have been saying about Oracle’s products and services see www.oracle.com/corporate/analyst-reports.html.

Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website 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 www.oracle.com.

# # #

Trademarks

Oracle, Java, and MySQL are registered trademarks of Oracle Corporation.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding the size of our cloud businesses, our organic revenue and earnings per share growth rates, Cerner’s impact on our financial results, Cerner’s future performance and the development of new healthcare cloud services, the popularity of the Oracle Database and Oracle MySQL HeatWave, and the impact of access to the Oracle Database and Oracle’s MySQL HeatWave database by Microsoft Azure customers and Amazon Web Services customers, are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services; supply chain constraints and third-party manufacturing and logistics delays; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; the COVID-19 pandemic; economic, political and market conditions; information technology system failures, privacy concerns and cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. 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's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of September 12, 2022. Oracle undertakes no duty to update any statement in light of new information or future events.

 

 


 

ORACLE CORPORATION

Q1 FISCAL 2023 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

 

 

 

Three Months Ended August 31,

 

% Increase

 

% Increase

(Decrease)

 

 

2022

 

 

% of

Revenues

 

2021

 

 

% of

Revenues

 

(Decrease)

in US $

 

in Constant

Currency (1)

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

$

8,417

 

 

73%

 

$

7,371

 

 

76%

 

14%

 

20%

Cloud license and on-premise license

 

 

904

 

 

8%

 

 

813

 

 

8%

 

11%

 

19%

Hardware

 

 

763

 

 

7%

 

 

763

 

 

8%

 

0%

 

5%

Services

 

 

1,361

 

 

12%

 

 

781

 

 

8%

 

74%

 

84%

Total revenues

 

 

11,445

 

 

100%

 

 

9,728

 

 

100%

 

18%

 

23%

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services and license support

 

 

1,735

 

 

15%

 

 

1,214

 

 

13%

 

43%

 

48%

Hardware

 

 

249

 

 

2%

 

 

245

 

 

2%

 

2%

 

6%

Services

 

 

1,053

 

 

9%

 

 

644

 

 

7%

 

63%

 

72%

Sales and marketing

 

 

2,177

 

 

19%

 

 

1,854

 

 

19%

 

17%

 

23%

Research and development

 

 

2,093

 

 

19%

 

 

1,684

 

 

18%

 

24%

 

27%

General and administrative

 

 

411

 

 

4%

 

 

298

 

 

3%

 

38%

 

42%

Amortization of intangible assets

 

 

919

 

 

8%

 

 

303

 

 

3%

 

203%

 

204%

Acquisition related and other

 

 

41

 

 

0%

 

 

21

 

 

0%

 

106%

 

110%

Restructuring

 

 

144

 

 

1%

 

 

38

 

 

0%

 

276%

 

310%

Total operating expenses

 

 

8,822

 

 

77%

 

 

6,301

 

 

65%

 

40%

 

45%

OPERATING INCOME

 

 

2,623

 

 

23%

 

 

3,427

 

 

35%

 

(23%)

 

(17%)

Interest expense

 

 

(787

)

 

(7%)

 

 

(705

)

 

(7%)

 

12%

 

12%

Non-operating expenses, net

 

 

(180

)

 

(1%)

 

 

(41

)

 

(1%)

 

340%

 

346%

INCOME BEFORE INCOME TAXES

 

 

1,656

 

 

15%

 

 

2,681

 

 

27%

 

(38%)

 

(30%)

Provision for income taxes

 

 

108

 

 

1%

 

 

224

 

 

2%

 

(52%)

 

(46%)

NET INCOME

 

$

1,548

 

 

14%

 

$

2,457

 

 

25%

 

(37%)

 

(29%)

EARNINGS PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.58

 

 

 

 

$

0.89

 

 

 

 

 

 

 

Diluted

 

$

0.56

 

 

 

 

$

0.86

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,685

 

 

 

 

 

2,769

 

 

 

 

 

 

 

Diluted

 

 

2,747

 

 

 

 

 

2,861

 

 

 

 

 

 

 

 

(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, 2022, 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 August 31, 2022 compared with the corresponding prior year period decreased our total revenues and total operating expenses, each by 5 percentage points, and operating income by 6 percentage points.

1


ORACLE CORPORATION

Q1 FISCAL 2023 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

 

 

 

Three Months Ended August 31,

 

 

% Increase (Decrease)

in US $

 

% Increase (Decrease) in

Constant Currency (2)

 

 

2022

GAAP

 

 

Adj.

 

 

2022

Non-GAAP

 

 

2021

GAAP

 

 

Adj.

 

 

2021

Non-GAAP

 

 

GAAP

 

Non-GAAP

 

GAAP

 

Non-GAAP

TOTAL REVENUES

 

$

11,445

 

 

$

 

 

$

11,445

 

 

$

9,728

 

 

$

 

 

$

9,728

 

 

18%

 

18%

 

23%

 

23%

TOTAL OPERATING EXPENSES

 

$

8,822

 

 

$

(1,854

)

 

$

6,968

 

 

$

6,301

 

 

$

(907

)

 

$

5,394

 

 

40%

 

29%

 

45%

 

34%

Stock-based compensation (3)

 

 

750

 

 

 

(750

)

 

 

 

 

 

545

 

 

 

(545

)

 

 

 

 

38%

 

*

 

38%

 

*

Amortization of intangible assets (4)

 

 

919

 

 

 

(919

)

 

 

 

 

 

303

 

 

 

(303

)

 

 

 

 

203%

 

*

 

204%

 

*

Acquisition related and other

 

 

41

 

 

 

(41

)

 

 

 

 

 

21

 

 

 

(21

)

 

 

 

 

106%

 

*

 

110%

 

*

Restructuring

 

 

144

 

 

 

(144

)

 

 

 

 

 

38

 

 

 

(38

)

 

 

 

 

276%

 

*

 

310%

 

*

OPERATING INCOME

 

$

2,623

 

 

$

1,854

 

 

$

4,477

 

 

$

3,427

 

 

$

907

 

 

$

4,334

 

 

(23%)

 

3%

 

(17%)

 

10%

OPERATING MARGIN %

 

23%

 

 

 

 

 

 

39%

 

 

35%

 

 

 

 

 

 

45%

 

 

(1,231) bp.

 

(544) bp.

 

(1,123) bp.

 

(484) bp.

INCOME TAX EFFECTS (5)

 

$

108

 

 

$

574

 

 

$

682

 

 

$

224

 

 

$

420

 

 

$

644

 

 

(52%)

 

6%

 

(46%)

 

14%

NET INCOME

 

$

1,548

 

 

$

1,280

 

 

$

2,828

 

 

$

2,457

 

 

$

487

 

 

$

2,944

 

 

(37%)

 

(4%)

 

(29%)

 

4%

DILUTED EARNINGS PER SHARE

 

$

0.56

 

 

 

 

 

 

$

1.03

 

 

$

0.86

 

 

 

 

 

 

$

1.03

 

 

(34%)

 

0%

 

(26%)

 

8%

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

2,747

 

 

 

 

 

 

2,747

 

 

 

2,861

 

 

 

 

 

 

2,861

 

 

(4%)

 

(4%)

 

(4%)

 

(4%)

 

 

(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, 2022, 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

August 31, 2022

 

 

Three Months Ended

August 31, 2021

 

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

 

GAAP

 

 

Adj.

 

 

Non-GAAP

 

Cloud services and license support

 

$

91

 

 

$

(91

)

 

$

 

 

$

40

 

 

$

(40

)

 

$

 

Hardware

 

 

4

 

 

 

(4

)

 

 

 

 

 

3

 

 

 

(3

)

 

 

 

Services

 

 

25

 

 

 

(25

)

 

 

 

 

 

14

 

 

 

(14

)

 

 

 

Sales and marketing

 

 

124

 

 

 

(124

)

 

 

 

 

 

95

 

 

 

(95

)

 

 

 

Research and development

 

 

422

 

 

 

(422

)

 

 

 

 

 

344

 

 

 

(344

)

 

 

 

General and administrative

 

 

84

 

 

 

(84

)

 

 

 

 

 

49

 

 

 

(49

)

 

 

 

Total stock-based compensation

 

$

750

 

 

$

(750

)

 

$

 

 

$

545

 

 

$

(545

)

 

$

 

 

(4)

Estimated future annual amortization expense related to intangible assets as of August 31, 2022 was as follows:

 

Remainder of fiscal 2023

 

$

2,753

 

Fiscal 2024

 

 

3,086

 

Fiscal 2025

 

 

2,105

 

Fiscal 2026

 

 

1,615

 

Fiscal 2027

 

 

664

 

Fiscal 2028

 

 

635

 

Thereafter

 

 

1,641

 

Total intangible assets, net

 

$

12,499

 

 

(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 6.5% and 8.4% in the first quarter of fiscal 2023 and 2022, respectively, and an effective non-GAAP tax rate of 19.4% and 18.0% in the first quarter of fiscal 2023 and 2022, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first quarter of fiscal 2023 and 2022 was primarily due to the net tax effects related to stock-based compensation expense and acquisition related and other items, including the tax effects on amortization of intangible assets, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment of our legal entity structure.

*

Not meaningful

2


ORACLE CORPORATION

Q1 FISCAL 2023 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

 

 

 

August 31,

2022

 

 

May 31,

2022

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,448

 

 

$

21,383

 

Marketable securities

 

 

772

 

 

 

519

 

Trade receivables, net

 

 

5,937

 

 

 

5,953

 

Prepaid expenses and other current assets

 

 

3,847

 

 

 

3,778

 

Total Current Assets

 

 

21,004

 

 

 

31,633

 

Non-Current Assets:

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

12,280

 

 

 

9,716

 

Intangible assets, net

 

 

12,499

 

 

 

1,440

 

Goodwill, net

 

 

61,629

 

 

 

43,811

 

Deferred tax assets

 

 

12,065

 

 

 

12,782

 

Other non-current assets

 

 

10,832

 

 

 

9,915

 

Total Non-Current Assets

 

 

109,305

 

 

 

77,664

 

TOTAL ASSETS

 

$

130,309

 

 

$

109,297

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Notes payable and other borrowings, current

 

$

16,097

 

 

$

3,749

 

Accounts payable

 

 

1,461

 

 

 

1,317

 

Accrued compensation and related benefits

 

 

1,958

 

 

 

1,944

 

Deferred revenues

 

 

10,473

 

 

 

8,357

 

Other current liabilities

 

 

4,830

 

 

 

4,144

 

Total Current Liabilities

 

 

34,819

 

 

 

19,511

 

Non-Current Liabilities:

 

 

 

 

 

 

 

 

Notes payable and other borrowings, non-current

 

 

75,480

 

 

 

72,110

 

Income taxes payable

 

 

12,128

 

 

 

12,210

 

Deferred tax liabilities

 

 

7,693

 

 

 

6,031

 

Other non-current liabilities

 

 

5,638

 

 

 

5,203

 

Total Non-Current Liabilities

 

 

100,939

 

 

 

95,554

 

Stockholders’ Deficit

 

 

(5,449

)

 

 

(5,768

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

130,309

 

 

$

109,297

 

 

 

 

 

 

 

3


 

ORACLE CORPORATION

Q1 FISCAL 2023 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

 

 

Three Months Ended August 31,

 

 

2022

 

 

2021

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

Net income

$

1,548

 

 

$

2,457

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation

 

547

 

 

 

454

 

Amortization of intangible assets

 

919

 

 

 

303

 

Deferred income taxes

 

(344

)

 

 

(15

)

Stock-based compensation

 

750

 

 

 

545

 

Other, net

 

156

 

 

 

(27

)

Changes in operating assets and liabilities, net of effects from acquisitions:

 

 

 

 

 

 

 

Decrease in trade receivables, net

 

761

 

 

 

852

 

Decrease in prepaid expenses and other assets

 

44

 

 

 

270

 

Decrease in accounts payable and other liabilities

 

(166

)

 

 

(713

)

Increase (decrease) in income taxes payable

 

145

 

 

 

(221

)

Increase in deferred revenues

 

2,034

 

 

 

1,486

 

Net cash provided by operating activities

 

6,394

 

 

 

5,391

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

Purchases of marketable securities and other investments

 

(57

)

 

 

(7,671

)

Proceeds from sales and maturities of marketable securities and other investments

 

138

 

 

 

8,002

 

Acquisitions, net of cash acquired

 

(27,798

)

 

 

(50

)

Capital expenditures

 

(1,719

)

 

 

(1,062

)

Net cash used for investing activities

 

(29,436

)

 

 

(781

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

Payments for repurchases of common stock

 

(552

)

 

 

(7,995

)

Proceeds from issuances of common stock

 

515

 

 

 

148

 

Shares repurchased for tax withholdings upon vesting of restricted stock-based awards

 

(829

)

 

 

(820

)

Payments of dividends to stockholders

 

(860

)

 

 

(887

)

Proceeds from borrowings, net of issuance costs

 

20,046

 

 

 

 

Repayments of borrowings

 

(5,883

)

 

 

(1,500

)

Other, net

 

(127

)

 

 

(414

)

Net cash provided by (used for) financing activities

 

12,310

 

 

 

(11,468

)

Effect of exchange rate changes on cash and cash equivalents

 

(203

)

 

 

(181

)

Net decrease in cash and cash equivalents

 

(10,935

)

 

 

(7,039

)

Cash and cash equivalents at beginning of period

 

21,383

 

 

 

30,098

 

Cash and cash equivalents at end of period

$

10,448

 

 

$

23,059

 

 

 

4


 

ORACLE CORPORATION

Q1 FISCAL 2023 FINANCIAL RESULTS

FREE CASH FLOW - TRAILING 4-QUARTERS (1)

($ in millions)

 

 

 

Fiscal 2022

 

 

Fiscal 2023

 

 

Q1

 

Q2

 

Q3

 

Q4

 

 

Q1

 

Q2

Q3

Q4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Cash Flow

 

$

15,325

 

$

10,255

 

$

10,396

 

$

9,539

 

 

$

10,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

(2,761

)

 

(3,118

)

 

(3,805

)

 

(4,511

)

 

 

(5,168

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

$

12,564

 

$

7,137

 

$

6,591

 

$

5,028

 

 

$

5,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Growth over prior year

 

9%

 

(41%)

 

(49%)

 

(63%)

 

 

(57%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net Income

 

$

13,952

 

$

10,262

 

$

7,560

 

$

6,717

 

 

$

5,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow as a % of Net Income

 

90%

 

70%

 

87%

 

75%

 

 

93%

 

 

 

 

 

(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.

5


ORACLE CORPORATION

Q1 FISCAL 2023 FINANCIAL RESULTS

SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)

($ in millions)

 

 

 

Fiscal 2022

 

 

Fiscal 2023

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

TOTAL

 

 

Q1

 

Q2

Q3

Q4

TOTAL

 

REVENUES BY OFFERINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services

 

$

2,461

 

$

2,667

 

$

2,791

 

$

2,890

 

$

10,809

 

 

$

3,579

 

 

 

 

$

3,579

 

License support

 

 

4,910

 

 

4,887

 

 

4,846

 

 

4,722

 

 

19,365

 

 

 

4,838

 

 

 

 

 

4,838

 

Cloud services and license support

 

 

7,371

 

 

7,554

 

 

7,637

 

 

7,612

 

 

30,174

 

 

 

8,417

 

 

 

 

 

8,417

 

Cloud license and on-premise license

 

 

813

 

 

1,237

 

 

1,289

 

 

2,539

 

 

5,878

 

 

 

904

 

 

 

 

 

904

 

Hardware

 

 

763

 

 

767

 

 

798

 

 

856

 

 

3,183

 

 

 

763

 

 

 

 

 

763

 

Services

 

 

781

 

 

802

 

 

789

 

 

833

 

 

3,205

 

 

 

1,361

 

 

 

 

 

1,361

 

Total revenues

 

$

9,728

 

$

10,360

 

$

10,513

 

$

11,840

 

$

42,440

 

 

$

11,445

 

 

 

 

$

11,445

 

AS REPORTED REVENUE GROWTH RATES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services

 

19%

 

22%

 

24%

 

19%

 

21%

 

 

45%

 

 

 

 

45%

 

License support

 

1%

 

(1%)

 

(3%)

 

(5%)

 

(2%)

 

 

(1%)

 

 

 

 

(1%)

 

Cloud services and license support

 

6%

 

6%

 

5%

 

3%

 

5%