On Tuesday, Oracle Corporation (NYSE: ORCL) reported its fiscal 2020 fourth quarter financial results. The Company’s shares declined in the session as the company’s revenue faced headwinds due to pandemic COVID-19.
Oracle shares fell as much as 5% in extended trading and revenue was down 6% from a year ago in the quarter. The Company’s fourth-quarter cloud services and license support revenue came to $6.8 billion, up 1% from a year ago. Cloud license and on-premises license revenue fell 22%, to a little under $2 billion.
Oracle also said that the company’s Cloud Infrastructure’s annualized consumption revenue grew by more than 140%. Catz said that shows that OCI is now “a serious part of the infrastructure discussion” among customers.
Oracle’s fiscal fourth-quarter performance is anticipated to have made the most from vigorous demand for its Cloud Infrastructure services. Moreover, the coronavirus crisis triggered increased utilization of cloud-based applications amid work-from-home and online learning wave might have reinforced adoption. This, in turn, is likely to have contributed to the to-be-reported quarter’s performance.
The company saw a drop-off in deals, especially in the industries most affected by the pandemic”, Chief Executive Officer Safra Catz said on a post-earnings call.
Here’s the highlight of Oracle’s Quarterly Revenue: (Source: News Details)
- Total quarterly revenues were $10.4 billion, down 6% YoY
- Short-term deferred revenues were $8.0 billion
- Operating cash flow was $13.1 billion during the twelve months.
- 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 were up 9% to $3.85.
- Fusion ERP cloud revenue, up 32% year-over-year (YoY)
- Fusion HCM cloud revenue, up 27% YoY
- EPS of $0.99 and non-GAAP EPS of $1.20, up 3% YoY and 5% in constant currency
- EPS of $3.08 and non-GAAP EPS of $3.85, up 9% YoY and 11% in constant currency
(Source: Business Quant)
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.
Catz said, The pandemic caused some companies to reconsider their cloud operations, including viewing Oracle as an alternative to Amazon and Microsoft’s clouds, which have more market share than Oracle’s cloud.
Oracle CEO Safra Catz told investors Tuesday the technology giant has reached the point where its growing businesses are larger than its declining ones. She said the company beat analysts’ profit targets thanks to strong cloud infrastructure and application sales. In a statement, she said Oracle’s Fusion Cloud Enterprise Resource Planning suite saw 35% growth in constant currency, while its Fusion Cloud Human Capital Management Suite grew by 29% in constant currency.
Oracle also pulled off a few notable customers wins in the quarter, including the communication software providers 8×8 Inc. and Zoom Video Communications Inc. Ellison said 8×8 began moving some of its key services to OCI in the quarter, and that it was “very surprised by the extent of its performance gains.” That compelled it to move some workloads from Amazon Web Services to Oracle, Ellison said.
Markedly, during the quarter under review, Zoom Video Communications ZM and 8×8 EGHT selected Oracle Cloud Infrastructure services to strengthen video meeting solutions in a secure manner amid volatile growth in user base.
Moreover, traction of its cloud services, which are being utilized by internet content providers – Phenix, Net Insight, and Mynet Inc. to support the surge in demand for streaming content, may get reflected in fiscal fourth-quarter revenues.
Oracle’s E-Business Suite (EBS):
Oracle EBS is currently used by thousands of organizations worldwide; it is an all in one business management solution. The company’s EBS includes applications for supply chain management customer relationship management, finances, contracts, procurement, planning, and human resources.
The company addressed two flaws in the E-Business Suite solution. It can be capitalized on by attackers to fiddle with the financial records of the organizations.
“The level of effort required by internal resources, external resources (specialists and/or external auditors, etc.) in terms of labor hours and fees will be significant. Despite an organization’s best efforts this still may not uncover additional useful information indicating that this change was made by exploiting General Ledger with these Oracle EBS vulnerabilities and not an actual business or accounting transaction,” the company added.
About Oracle Corporation:
Oracle Corporation is an American multinational computer technology corporation headquartered in Redwood Shores, California. The company sells database software and technology, cloud engineered systems, and enterprise software products—particularly its own brands of database management systems. In 2019, Oracle was the second-largest software company by revenue and market capitalization.
The company also develops and builds tools for database development and systems of middle-tier software, enterprise resource planning (ERP) software, Human Capital Management (HCM) software, customer relationship management (CRM) software, and supply chain management (SCM) software.
Oracle also sells a suite of business applications. The Oracle Retail Suite covers the retail-industry vertical, providing merchandise management, price management; invoice matching, allocations, store operations management, warehouse management, demand forecasting, merchandise financial planning, assortment planning, and category management. Users can access these facilities through a browser interface over the Internet or via a corporate intranet. (Source: Wikipedia)