Oracle (Ticker: ORCL)
Introduction:
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support. Its hardware business consists of two segments, including hardware products and hardware support. The Company’s services business includes the remainder of the Company’s segments. Its services business includes activities, such as consulting services, enhanced support services and education services, among others
Number of employees : 132 000.
Q1 2022 as total revenue was $100 million, with outperformance coming from all parts of business. EPS was $0.08 above the midpoint
So total cloud services and license support revenues for the quarter were $7.4 billion, up 6% in USD, and accounted for 76% of total company revenue. Total cloud revenues are at an annualized revenue of $10 billion with an accelerating growth rate that they expect to exit the fiscal year in the mid-20s. GAAP application subscription revenues were $3 billion, up 7%, with Fusion apps up 26% in USD.
Strategic back-office applications grew 25%, including Fusion ERP, up 30%, and NetSuite ERP up 26%. GAAP infrastructure subscription revenues were $4.3 billion, up 3%. And excluding legacy hosting services, infrastructure cloud services grew around 30%,
Oracle Fusion is building a very strong position in the world’s largest financial services companies: HSBC, Bank New York Mellon, JPMorgan Chase. They are all live on Oracle’s Fusion applications. They have started working with their strategic partners in banking to develop a new generation of cloud B2B financing and payment systems.
OCI consumption revenue, was up 80% , and cloud customer revenue was up 44%. Database subscription revenues, including database support and database cloud services, were up 6% in USD and up 4% from last quarter . License revenues were $813 million, down 8% after a tough compare from last year’s Q1. Total revenues for the quarter were $9.7 billion, up 4% in USD.
Operating expenses were up 3% this quarter. The gross margin for cloud services and license support was 84%. Operating income was $4.3 billion, up 2% YoY, and the operating margin was 45%.
Operating cash flow for the last four quarters was $15.3 billion, up 17% in USD, and FCF YoY was $12.6 billion, up 9% in USD with capital expenditures of $2.8 billion, over the same period
CapEx for Q1 2022 was $1.1 billion. Oracle have $39 billion in cash and marketable securities
This quarter, they repurchased 94 million shares for a total of $8 billion. And over the last 10 years, they have reduced the shares outstanding by 46% and an average price that’s about half the current share price.
Outlook
Larry Ellison — Chairman and Chief Technology Officer
« Banking and healthcare will be Oracle’s two biggest verticals going forward. »
Target : Amazon
The open-source system MySQL, is now on a new generation. And it now includes an ultra-high performance in-memory query processor called HeatWave . 10 times faster for queries than the adaptation of old MySQL of Amazon called Aurora.
Total revenue for Q2 are expected to grow between 3% to 5% in USD. Cloud service and license support revenue for Q2 are expected to grow more than 5% in USD and and then climb higher through the second half of the fiscal year. GAAP EPS for Q2 is expected to grow between 2% and 6% in USD and be between $1.09 and $1.13.
SHARE PRICE – In 2021, the stock up by 54,4%. The share price (14/10/2021) closed at $95.28 per share.
