Oracle financials

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2022: Cloud business helps Oracle boost annual revenue by 5%

The fiscal year 2022 Oracle ended with revenue of $42.44 billion, which is 5% more than a year earlier. American The manufacturer of the business ON published such data in mid-June 2022.

According to Oracle, for the 12-month reporting period closed on May 31, 2022 of the calendar year, sales of cloud services and support services for license users turned out to be $28.7 billion, which is 5% more than a year ago. On licenses distributed according to traditional local and cloud schemes, the IT corporation earned $5.88 billion (+ 9% year on year).

Cloud business helps Oracle increase annual revenue by 5%

Revenues from the supply of IT equipment, such as servers, decreased by 5% over the year, to $3.18 billion. Service revenue increased by 6% and reached $3.21 billion.

Most of Oracle's revenue still comes from the Americas. In 2022, the company's revenue in this region amounted to $23.68 billion against $21.83 billion a year earlier. Sales in EMEA increased from $11.89 billion to $12.01 billion, and in the Asia-Tikhoekan region the turnover for the year remained practically unchanged and amounted to $6.75 billion.

Oracle's net profit in fiscal 2022 amounted to $6.72 billion, having almost halved relative to 2021's profit.

In June 2022, Oracle closed a deal to acquire healthcare software maker Cerner for $28.3 billion. According to Oracle CEO Safra Catz, the purchase of Cerner and the high growth rate of the cloud business will help the IT corporation increase revenue in the coming quarters.

On the day of the publication of the financial statements (June 13, 2022), Oracle shares rose by more than 13% due to the fact that the company's revenues were higher than analysts' expectations.^[1]

2021

Sixth in the world among ICT developers by revenue

According to Synergy Research Group, the total revenue of the 13 largest manufacturers of software and ICT services for business, including telecom operators, reached $613 billion in this market in 2021, which is 10% more than a year earlier. Oracle was ranked sixth on that list.

The world's largest manufacturers of ICT solutions for business

Revenue growth by 4%, to $40.48 billion, profit - $13.75 billion

Oracle completed fiscal 2021 with revenue of $40.48 billion received at the end of this period, which is 4% more than a year earlier.

Most of the $28.7 billion in revenue came from sales of cloud and software support services sold under licenses. Compared to 2020, this revenue rose by 5%. Software license sales increased by the same amount, including in the cloud infrastructure segment, to $5.54 billion.

The production of IT equipment, including servers, continues to generate less and less revenue for the American corporation. In fiscal 2021, they amounted to $3.36 billion, which is 2% less than a year ago. Even more - by 3% - sales of all kinds of services decreased, to $3.02 billion.

Oracle ends fiscal 2021 with growing revenue thanks to cloud business

Oracle continued to shift business focus toward cloud products. Along with the publication of financial results, the company announced plans to double capital spending on cloud computing to $4 billion in fiscal 2022. Through this investment, the company hopes to benefit from the companies' shift to a hybrid work model.

From the Oracle report, it also follows that the company's annual revenue in the Americas increased on an annualized basis from $21.56 billion to $21.83 billion. In EMEA countries, the manufacturer's turnover grew from $11.04 billion to $11.89 billion, and in the Asia-Pacific region, revenue increased from $6.47 billion to $6.76 billion.

Oracle's net profit at the end of 2021 of the reporting year reached $13.75 billion, which significantly exceeds the profit in 2020 ($10.14 billion).

Operating expenses at the company for the year practically did not change and amounted to $25.27 billion. The amount of cash (including its equivalents) accumulated in Oracle accounts decreased from $37.24 billion to $30.1 billion.^[2]

2020:1% decline in revenue to $39.07 billion

In fiscal 2020, which ended at the end of May 2020 for Oracle, the company earned $39.07 billion in revenue, which is 1% less than a year earlier. The decline was due to the COVID-19 coronavirus pandemic. If you do not take into account fluctuations in exchange rates, then the company's sales remained at the level of a year ago.

Revenues from renewing subscriptions to cloud services, renewing licenses software and product support reached $27.4 billion, an annual increase of 3%. Revenues from new sales of licenses for deployment ON locally in enterprises and cloud licenses amounted to $5.1 billion.

Oracle financials

Revenues from the sale of IT equipment such as servers, storage systems and networking equipment decreased by 7% over the year, to $3.44 billion. Services brought the company $3.11 billion in quarterly revenue (a decline of 4% year-on-year).

Oracle's annual net profit fell from $11.1 billion to $10.1 billion.

Despite the drop in revenue, the American corporation noted strong performance in the cloud business related to infrastructure and applications.

The leaders here were the cloud directions of Fusion Cloud ERP Suite with growth of 35% when calculating in constant currency and Fusion Cloud HCM Suite with growth of 29% when calculating in constant currency, says Oracle CEO Safra Katz. - Our business as a whole has shown very good results given the pandemic. But our results would have been even better had customers from the hardest-hit industries such as hospitality, retail and transportation not delayed some of their purchases. However, for the third year in a row in fiscal 2020, we generated double-digit earnings.

After the publication of the annual statements, Oracle shares fell in price by 3% due to the fact that the company's revenue did not reach market expectations.^[3]

2019

Oracle buys up its shares, getting into debt

In early December 2019, it became known that Oracle was buying up its shares, going into debt. For three years since 2016, the company spent $75 billion on this, which was partially obtained through the issuance of bonds.

About $41 billion was spent on stock buybacks over five quarters by early December 2019, far exceeding free cash flow of $19 billion. Although, according to FactSet Research, Oracle is still among the top ten richest corporations in the United States, the company's real funds (minus short-term and long-term debt) are only $17 billion.

Oracle is buying up its shares, going into debt. For three years since 2016, the company spent $75 billion on this, which was partially obtained through the issuance of bonds

In the short term, Oracle's financial strategy has already led to a number of problems, primarily spoiling the company's rating. The S&P Agency warns that if the Oracle does not slow down the pace of buybacks of its own shares, then by the end of 2020 the net debt of the enterprise software manufacturer could reach twice the amount of annual profit before taxes and depreciation. Other tech companies have also followed similar policies before tax reform to get more profit, but in addition to the much larger Apple, they did not buy their own shares as aggressively as Oracle, CNBC reports.

The company's long-term problem is that Oracle is too slow to respond to the growing importance of cloud computing. Cloud applications are rapidly taking away the market share Oracle previously held. The advantage goes to companies that make software in the form of services, such as Salesforce and Workday, as well as leading cloud service providers, Amazon and Microsoft. Oracle's short-sighted policies have allowed other startups to gain a foothold in the market and become serious competitors that could soon turn out to be Oracle out of touch, analysts say.^[4]

Revenue - $39.51 billion; net profit - $11.08 billion

In fiscal 2019, which ended on May 31, 2019, Oracle's revenue amounted to $39.51 billion, which is approximately the same as a year ago.

Oracle's annual sales of cloud and license user support services reached $26.71 billion, up 2% from the 2018 fiscal year. On licenses distributed according to traditional local and cloud schemes, the company earned $5.86 billion - 1% more than a year earlier.

Oracle financials

IT hardware, including servers, storage, and networked devices, brought Oracle annual revenues of $3.7 billion. Compared to the 2018 reporting year, this revenue decreased by 7%. The volume of the service business decreased by 5% on an annualized basis and amounted to $3.24 billion.

In fiscal 2019, revenue from the implementation of cloud applications Fusion ERP and HCM rose by 32%. NetSuite ERP product revenues also rose 32%. The company claims that its cloud business is growing faster than its competitors.

The largest market for Oracle products remains North America, where annual revenue increased from $21.65 billion to $21.86 billion. In the EMEA region (Europe, Middle East, Africa), the company's revenues decreased from $11.41 billion to $11.27 billion. In the Asia-Pacific region, the turnover increased slightly and amounted to $6.38 billion.

Oracle ended fiscal 2019 with net income of $11.08 billion, 209% above the previous year's earnings.

Oracle also reported that restructuring costs in fiscal 2019 amounted to $443 million against $588 million a year earlier. The restructuring involves the dismissal of employees - in mid-June 2019, there was a reduction in jobs in the Israeli office of Oracle.^[5]

Oracle has more debts of its own funds for the first time in 10 years

In March 2019, it became known that Oracle had more debts of its own funds for the first time in more than 10 years.

The company is spending more and more money on share buybacks: in the 9-month period ended at the end of February 2019, investors sold $30.3 billion worth of securities to Oracle, which is almost five times more than a year ago, and also corresponds to total sales for the four previous years combined. This program contributed to the rise in quotations by 17% from the beginning of 2019 to March 21 - approximately the same dynamics was shown by the software segment of the S&P 500 index.

Oracle has a net debt for the first time since 2008

By the end of February 2019, Oracle had accumulated $40 billion in cash and short-term investments, which is the seventh indicator among non-financial companies in the index, according to data from S&P Global Market Intelligence. However, intensive buybacks are reflected in financial resources: Oracle has accumulated net debt, which has not existed since 2008.

The volume of share repurchases for the three financial quarters (by the end of February 2019) more than tripled the free cash flow and corresponds to only one third of the annual flow in the previous five years. At the same time, Oracle, within the framework of the current program, plans to redeem securities for another $11 billion.

Analyst Brad Reback of Stifel Nicolaus believes Oracle could "exhaust its financial flexibility" before the end of 2019.

We believe that the development of new financial instruments and methods at Oracle has reached the limit, "said Nomura Instinet analyst Christopher Eberle, who reduced the rating of IT company shares from Buy to Reduce.

By the close of the exchange on March 25, 2019, Oracle shares stopped at $52.74, which is slightly less than the previous trading session. The market capitalization of the corporation amounted to $189.28 billion.^[6]

2018: Revenue growth 6% to $39.8 billion

In the 2018 fiscal year (ended May 31, 2018 calendar), Oracle's revenue amounted to $39.8 billion, which is 6% more than a year earlier. If you do not take into account fluctuations in exchange rates, then sales of the American company increased by 3%. Oracle's net profit decreased 59% to $3.8 billion in part due to the strengthening of the dollar.

Sales of cloud and support services brought Oracle about $26.3 billion in revenue, up 10% from the 12-month reporting period closed at the end of May 2017. On licenses distributed according to traditional local and cloud schemes, Oracle earned $6.2 billion - this is 4% less than a year ago.

Oracle financials

The implementation of Oracle IT equipment (servers, storage systems, network devices) in fiscal 2018 fell slightly short of $4 billion, down 4% year-on-year. The volume of the corporation's service business grew by 1% to $3.4 billion.

The largest market for Oracle remains North and South America, where the company's annual revenue reached $22.1 billion against $21 billion a year earlier. In countries, Europe the Middle East and Africa () EMEA revenues increased from 10.6 billion to 11.4 billion. In the Asia-Pacific region, dollars the financial figure climbed from $6.1 billion to $6.3 billion.

Immediately after the publication of the results of fiscal year 2018, Oracle shares rose by 3.7%. However, after the company released its profit forecast below market expectations, quotes fell by almost 5%, notes. Reuters In addition, according to analysts interviewed by the news agency, the company's securities were pressured by the cessation of publication of revenues for cloud segments SaaS(,,). PaaS IaaS

Oracle Chairman Larry Ellison noted that some large customers have begun moving their local Oracle databases to the Oracle Cloud. Such customers include AT&T, which migrates thousands of databases and tens of thousands of terabytes of data.^[7]

2017: Revenue growth thanks to cloud business

On June 21, 2017, Oracle released its fiscal 2017 performance report. The U.S. enterprise software maker's revenue has increased thanks to its fast-growing cloud business.

According to the results of the 12-month reporting period, the end of which fell on May 31, 2017, Oracle revenue amounted to $37.7 billion, which is 2% more than a year earlier. Net profit for this period rose 5%, reaching $9.3 billion.

In 2017, Oracle revenue rose by 2% due to strong sales of cloud services

The company's fastest growing business is cloud. Annual revenues from sales of PaaS and IaaS solutions jumped 60% to $1.36 billion, in the SaaS segment the rise was measured by 61%, and revenue - $3.2 billion. As a result, the total cloud revenues of the vendor increased by 60% and amounted to $4.57 billion, which corresponds to 12% in the total turnover of Oracle.

After several years of fighting for a place in the cloud market, Oracle apparently coped with the difficult task and began the 2018 fiscal year with significant momentum, said Oracle Jones analyst Josh Olson.

At a conference on the publication of financial statements, Oracle founder and chairman Larry Ellison said that the company has reached more than $2 billion in annually recurring revenue in the cloud market, and Oracle is ahead of Salesforce for the second year in a row.

In fiscal 2017, sales of new licenses for Oracle software installed on computers decreased by 12% to $6.4 billion. Revenues from product support services and local software updates increased by 2% to $19.2 billion.

The implementation of Oracle IT equipment (servers, storage systems, network devices) turned out to be $4.15 billion - 11% less than the previous year. Service revenue fell 1% to $3.36 billion.^[8]

2016: Revenue decline 3% to $37 billion, net profit 10% to $8.9 billion

On June 16, 2016, Oracle released its annual financial statement. The revenue of the American corporation decreased by 3%, which is to blame for the unfavorable exchange rate fluctuations.

At the end of fiscal year 2016, which ended May 31, 2016, Oracle sales amounted to $37 billion, which is 3% less than a year earlier. If you do not take into account the currency factor, then the company's revenue increased by 2%. Net profit fell 10% to $8.9 billion.

In addition to the high dollar exchange rate, the weakening demand for traditional software installed on client computers has a negative impact on Oracle's financial results. Sales of new licenses for such Oracle software in 2016 amounted to $7.3 billion, down 15% year-on-year.

Oracle year totals: Revenue falls 3% due to currency factor

In addition, Oracle is pulling down IT equipment, whose annual sales fell 13% to $2.47 billion. Support services for such equipment brought the company $2.2 billion in revenue, which is 8% less than a year ago.

The drop in sales of traditional Oracle software and equipment contrasts with the strong growth of the cloud business. Its volume in 2016 fiscal year rose by 36% compared to 2015 and exceeded $2.85 billion. This includes the implementation of SaaS, PaaS and IaaS products.

In March-May 2016, the number of Oracle customers using the company's Solutions SaaS increased by 1,600. The number of PaaS users has increased by more than 2000, said Oracle CEO Mark Hurd.

Oracle Chairman Larry Ellison said that the "hypergrowth" of the SaaS and PaaS business, which took place in fiscal year 2016, will last in the next years, which will allow the company to become the first cloud company with revenue of $10 billion in the SaaS and PaaS market.

On the day the financial results were published (June 16, 2016), Oracle shares rose by 3.8%. Since the beginning of the year, they have increased in price by 5.8%.^[9]

2015

Year-end profit drop of 9%

June 17, 2015 Oracle published the annual financial report. The profit of the American company decreased by 9% due to unfavorable fluctuations in exchange rates and weak sales of licenses for. software

For the reporting 12-month period ended May 31, 2015, Oracle received revenue of $38.2 billion, which corresponds to sales a year ago. Net profit fell from $10.1 billion in fiscal 2014 to $9.9 billion a year later.

Strong dollar and weak license sales hit Oracle profits

One of the reasons for Oracle's financial regression was the high dollar exchange rate, which, as you know, negatively affects the income of American software developers, whose revenue is more tied to foreign business. Against the backdrop of a strong US currency, Oracle is forced to put higher price tags on its products, making it less preferable for customers in countries with weak local currencies. Excluding currency fluctuations, Oracle's revenue in fiscal 2015 grew by 4%, the vendor said in a report.

In addition, the decline in Oracle's profits was reflected in the weakening demand for new software licenses. Their sales for the reporting year amounted to $8.5 billion, which is 9% less than a year earlier. Sales of the company's equipment fell by 5% (to $2.8 billion), and revenue from the provision of hardware support services decreased by 1% (to $2.4 billion).

In the face of falling sales of hardware and traditional software products, Oracle is paying more and more attention to the cloud model of software distribution. In fiscal 2015, the company earned about $1.5 billion on SaaS and PaaS solutions, which is almost a third more than in the previous year. In the IaaS segment, the manufacturer's revenue also grew by 33%, reaching $608 million.

According to Oracle founder Larry Ellison, in fiscal 2016, the company could achieve $1.5-2 billion in SaaS and PaaS business, which is more than the revenue expected by rival Salesforce in this market.^[10]

Q2 2015 FIN: 3% increase in turnover to $9.6 billion

The corporation Oracle announced in December 2014 that in the second quarter of fiscal 2015, its total revenues increased by 3% to 9.6 billion. dollars Total revenue from software license and subscription sales for environments cloud computing showed growth of 5% and reached $7.3 billion. Revenues from Software-As-A-Service software SaaS , Platform-As-A-Service PaaS , and Infrastructure-As-A-Service IaaS in the cloud increased 45% to $516 million. Hardware system revenues increased by 1% to $1.3 billion.

GAAP-calculated operating income rose 4% to $3.5 billion and GAAP operating profit margin was 37%. GAAP net income decreased 2% to $2.5 billion. Earnings per share, calculated in accordance with GAAP requirements, were 56 cents, unchanged from the same quarterly measure last fiscal year.

For the past twelve months, cash flow from operating activities calculated in accordance with GAAP requirements amounted to $15.3 billion.

2014

Financial year results: + 3% to $38.3 billion

At the end of the 2014 fiscal year as a whole, total revenues grew by 3% to reach $38.3 billion. GAAP-calculated revenues from software license sales and cloud software subscriptions increased 5%.

Revenue from the provision of "software as a service" (SaaS) and "platform as a service" (PaaS) in the cloud, calculated in accordance with GAAP requirements, showed growth of 23% and reached $1.1 billion, and revenues from the provision of "infrastructure as a service" (IaaS) in the cloud environment amounted to $456 million.

Revenues from the sale of new software licenses were unchanged from the previous fiscal year and remained at $9.4 billion, while revenues from the renewal of software licenses and product technical support increased by 6% to $18.2 billion. Total revenues from hardware systems remained at the level of the same final indicator of the last financial year - $5.4 billion.

GAAP operating income rose 1% to $14.8 billion and GAAP operating profit margin was 39%. Non-GAAP operating income GAAP increased 3% to $18.1 billion and non-GAAP operating profit margin was 47%. GAAP net annual income remained unchanged at $11.0 billion, while non-GAAP net income increased 2% to reach $13.2 billion. Annual earnings per share, calculated in accordance with GAAP requirements, were 2.38, dollar up 5% from the same final measure of the previous fiscal year. Excluding GAAP requirements, earnings per share rose 7% to $2.87.

Q4 Fin: turnover + 3% to $11.3 billion

The corporation Oracle announced that in the fourth quarter of fiscal year 2014, its total revenues increased by 3% to 11.3 billion. dollars Revenues from sales of new software licenses and software subscriptions for environments, cloud computing showed an increase of 4% and reached $8.9 billion. Revenues from the provision of "as software a service" (, SaaS Software-As-A-Service) and "Platform-As-A-Service" (, PaaS Platform-As-A-Service) in a cloud environment, calculated in accordance with GAAP requirements, increased by 25% to 322 million dollars. In addition, revenues from the provision of infrastructure as a service in the cloud environment (Infrastructure-As-A-Service) IaaS increased by 13% to $128 million. Revenues from sales of new software licenses were unchanged from the same quarter last fiscal year, remaining at $3.8 billion. Revenue from software license renewals and product technical support grew 7% to $4.7 billion. Total revenues from hardware systems increased by 2% to $1.5 billion; at the same time, revenues from sales of hardware systems amounted to $870 million, showing an increase of 2%, and revenues from technical support of hardware systems also increased by 2% to $596 million.

2013

Results of 2013 Fin: iron sales fall, clouds - grow

At the end of 2013, Oracle's revenue practically did not change compared to last year, amounting to $37.2 billion. Sales of software licenses and subscriptions to cloud services increased by 4% to $10.4 billion, while revenue from cloud solutions Oracle HCM Cloud, CRM Cloud and ERP Cloud showed an increase of 50%. Revenue growth from software updates and product support amounted to 6%, to $17.1 billion. Revenue from sales of Oracle hardware solutions for the year decreased by 21%, from $3.8 billion to $3 billion.

Q3 2013:1% decrease in revenue

Total Oracle revenue in the last reporting quarter decreased by 1% and net profit remained at about the same level, while revenues from the sale of new software licenses and cloud services decreased by 2%. In general, from December 2012 to February 2013, the corporation earned $9 billion, while net profit for this period amounted to $2.5 billion, according to the company's report. "We are not satisfied with our revenue this quarter," Safra Catz, chief financial officer of Oracle, said honestly in this regard.

The business of selling software licenses and subscriptions to cloud services, which, as already mentioned above, sank by 2%, for the specified quarter brought the corporation $2.3 billion. This indicator is important because it allows you to predict revenue growth in the future: from the sale of additional licenses and support services. So, in this quarter, revenue from software updates and its support doubled in terms of revenue from the sale of new licenses and amounted to $4.3 billion, which is 7% higher than the same period in fiscal 2012.

Oracle's hardware business was most affected, with revenue in this segment down 23% and hardware technical support revenue down 6%. According to Katz, this is due to deferred demand, as the company's customers expect the release of new products in the coming weeks. This is primarily about servers based on the new Sparc T5 processors .

With the release of these processors, the Sparc line update will be completed, which began immediately after the purchase of Sun Microsystems. Oracle expects that customers will need several months to test new products, however, by the fourth quarter of fiscal 2013, they will already make purchase decisions, which will positively affect the corporation's revenue. The greatest financial impact will be achieved in the first quarter of fiscal year 2014. "Next year will be a year of explosive growth in our server business," Oracle President Larry Ellison said.

Q2 2013: Net profit growth of 18% to $2.6 billion

Oracle's net profit rose 18% to $2.6 billion, while revenue increased 3% to $9.1 billion in the second quarter of the next financial year, with the equipment segment already showing very weak results for the first time in a row. Thus, revenue from equipment sales in the second quarter decreased by 23% to $734 million, and revenues from technical support for implemented hardware systems decreased by 6% to $578 million.

On the contrary, sales of new software licenses and subscriptions to cloud services in the second quarter rose 17% to almost $2.4 billion in the second quarter, which ended in November 2012. Recall that in 2012 Oracle launched several cloud services at once, including Oracle Fusion Applications, the PaaS (platform as a service) service and Oracle Social Network. Revenue from license upgrades and software support, the most profitable item for Oracle and other similar vendors, rose 7% to $4.26 billion.

Oracle's top executives are making significant efforts to smooth out the negative effect of low sales in the computer hardware sector, a business that went to Oracle for the most part after buying server giant Sun Microsystems. For example, the corporation tries to keep the focus mainly on specialized systems like Exadata, in which server and other components are combined with Oracle software, and not compete in the hardware market directly.

According to Oracle CFO Safra Catz, sales of such specialized solutions showed "excellent growth" during the second quarter. The company received about 700 new customers in this area, and also recorded a significant increase in demand for SPARC T-Series systems.

The company also notes a steady demand for Fusion Applications from foreign customers, and the corporation managed to win most of the transactions where its interests collided with the provider of the cloud HCM Workday solution. In addition, according to the head of the corporation Larry Ellison, the upcoming release of one of Oracle's flagship products, Oracle Database 12c, will be a driver of the company's growth "for the next few years" both in terms of license sales and increasing the attractiveness of cloud computing services.

It is also interesting that sales of Oracle's European division showed double-digit growth in the second quarter despite the economic difficulties of the region.

Q1 2013: Profit growth of 11% to $2 billion

In the first quarter of fiscal 2013, Oracle's net profit grew by 11% to $2 billion, while revenue decreased by 2% to $8.2 billion, mainly due to an increase in software sales while simultaneously decreasing in the equipment segment. Revenue from the sale of new software licenses and cloud solutions increased by 5% to $1.6 billion.

On the contrary, revenue from the sale of equipment fell by 24% to $779 million. However, this did not come as a surprise, since recently the corporation has concentrated its efforts on selling complex products, which include both servers and network components and storage systems.

Oracle President Mark Hurd said such solutions, Exadata, Exalogic, Exalytics, showed more than 100% growth in sales volumes for the first quarter of fiscal 2013. "In general, at the end of the new year, we hope to double sales of engineering systems, so that they will exceed $1 billion. Oracle's cloud business is also coming close to the $1 billion mark. These two areas will create conditions for the growth of Oracle's business for the coming years, "he said.

In October 2012, a couple of weeks after the announcement of the results of the first fiscal quarter, an annual corporation conference called OpenWorld is to be held in San Francisco, USA, where the company is to make a number of significant product announcements.

According to the CEO of Oracle, Larry Ellison more applications will be presented as a class service, and CRM ERP HCM more new, and DBMS Java social platform services. "Our new IaaS solution is available in Oracle Cloud, as well as through private clouds hosted in our customers' data centers. In addition, they are given the unique ability to move applications and services within these two models and even distribute between them, "he said.

2012: Finyear recap: 17% profit growth to $10bn

In general, for fiscal year 2012, Oracle's revenue grew by 4% to $37.1 billion, and net profit - by 17% to $10 billion. The decline in equipment sales indicates that the company's course to reduce low-margin sales of inexpensive equipment is working. So the main focus for the corporation at the moment is sales of hi-end systems such as Exadata and Exalytics.

In 2012, Oracle weakened its general-purpose hardware line to cater to specialized systems, such as Exadata, which combines Oracle software with servers and other components. The company believes this strategy will ultimately deliver big returns.

Sales of such systems have doubled over the past year, Oracle co-president Mark Hurd said. According to the head of the company Larry Ellison, this creates two excellent opportunities for the corporation. First, the opportunity to become the number one in the hi-end market. Secondly, since the systems are based on x86, Oracle expects at the expense of them to seriously move its competitors in the server market.

Ellison also kept silent that licensing such systems involves impressive annual deductions that generate a stable revenue stream for the corporation.

Interestingly, if Hewlett-Packard has been the No. 1 competitor for Oracle in recent years, now Ellison, during a discussion of financial results with Wall Street analysts, has named SAP as the main target. Oracle leads the DBMS market, and this is where SAP has been actively competing with Oracle for the past year, bringing its innovative in-memory DBMS SAP HANA to market.

The attempt of SAP on the original "patrimony" of Oracle, the DBMS market, Ellison commented in his characteristic harsh manner: "They must be under something"

An attempt by SAP on the original "patrimony" of Oracle, the DBMS market, Ellison commented in his characteristic harsh manner: "They must be under something," he told analysts (literally - "They must be on drugs." Ellison meant taking drugs - approx. TAdviser).

He went on: "They can never become serious competitors to Oracle's database management systems. The disadvantages of HANA are weak data protection and recovery features. " "They can never go far in that direction," Ellison concluded

The founder of SAP'Hasso Plattner' is Ellison's longtime sidekick. Often he and Ellison exchanged barbs in the past, and publicly. SAP and Oracle have competed quite seriously throughout their history. So, in the 1990s, they competed to replace mainframes with client-server systems. Today, one of the battlegrounds between them is not only the DBMS market, but also the cloud services market.

2011

Turnover $35.6 billion, net profit $8.5 billion

The company ended fiscal 2011 with a turnover of $35.622 billion and a net profit of $8.547 billion. The Americas accounts for more than half (51.5%) of revenue. 68 % of revenue was generated by sales of licenses and technical support contracts, software 19% came from hardware sales, 13% from services.

In the structure of operating costs, the most significant positions: sales and marketing costs - $6.597 billion; services - $3.818 billion; development and research - $4.519 billion.

The volume of borrowings at the end of fiscal year 2011 amounted to $15.9 billion. The market capitalization as of mid-2011 calendar year amounted to $173 billion.

Q3

Oracle Corporation announced in March 2011 the financial results for the third quarter of fiscal year 2011. The company's total GAAP revenue for the reporting period increased 37% to $8.8 billion, while the non-GAAP figure increased 36% to $8.8 billion. GAAP operating income reached $3.0 billion, 62% higher than in the third quarter of 2010, GAAP operating margin was 34%. In turn, non-GAAP operating profit reached $3.9 billion, 35% higher than in 2010, respectively, non-GAAP operating margin was 44%, Oracle said in a statement.

Net income for the reported quarter rose 78% to $2.1 billion GAAP and 42% to $2.8 billion non-GAAP. Net income per share was $0.41 GAAP (up 75% from a year earlier) and $0.54 non-GAAP (up 40% from a year earlier). Cash flow from operations over the past 12 months has reached $9.9 billion.

Both GAAP and non-GAAP software license revenue was $2.2 billion, an increase of 29% over the same period in 2010. Oracle's revenue from license renewal and technical support services was $3.7 billion GAAP (13% higher than in 2010) and $3.8 billion non-GAAP (also 13% higher than in 2010). Both GAAP and non-GAAP hardware sales revenue was $1.0 billion.

2010

Q2 2011 FIN: 47% revenue growth

Oracle Corporation announced in December 2010 that in the second quarter of fiscal 2011, its total revenues, both GAAP and non-GAAP, increased 47% to $8.6 billion. Revenue from sales of new software licenses rose 21% to $2.0 billion, both GAAP and GAAP-free. In turn, revenues from software license renewals and product technical support increased by 12% and reached $3.6 billion in GAAP calculations, and excluding GAAP requirements, increased by 12% to $3.7 billion. Hardware system sales revenues totaled $1.1 billion, both adjusted for and excluding GAAP requirements.

Operating income rose 27% to $2.8 billion GAAP, and the GAAP operating profit rate was 32%. Non-GAAP operating income increased 33% to $3.8 billion and the non-GAAP operating profit rate was 44%. GAAP net quarterly income rose 28% to $1.9 billion, while non-GAAP net income increased 34% to reach $2.6 billion. GAAP-calculated earnings per share were 37 cents, up 27% from the same measure in the second quarter of last fiscal year. Excluding GAAP requirements, first-quarter earnings per share rose 33% to 51 cents. For the past twelve months, cash flow from operating activities calculated in accordance with GAAP requirements amounted to $9.1 billion.

Oracle vs Competitors Financial Performance

Oracle vs Competitors Financial Performance

2007: Net income $4.2 billion

• Operating income - $5.974 billion (2007)
• Net income - $4.274 billion (2007)

2004: Revenue of $10.2 billion

Fiscal year 2004 was one of the most successful in Oracle history. Annual turnover grew by 7% and amounted to $10.2 billion, while revenues from software sales increased by 12% and reached $8.1 billion, and from the provision of services - decreased by 8%. The profit rate for the year was 38%, which was the highest figure for the entire existence of the corporation. Net profit itself grew by 16% and reached $2.7 billion - of which 990 million was received in the last quarter. Oracle CEO Larry Ellison noted that in the six months since the introduction of grid computing technology, sales of new DBMS licenses have grown by 15%.

According to the results of 2004, Oracle's office in Russia and the CIS was included in the top three Oracle representative offices in terms of growth rates in the EMEA region (Europe, the Middle East and Africa) and for the fifth year in a row - in the top five among 145 Oracle representative offices in the world. Sales of licenses in the CIS increased by more than 1.5 times compared to the previous year.

In fiscal year 2004, Oracle in Russia and the CIS strengthened its position in the DBMS market and took a leading position in the enterprise management systems market. In 2004, more than 950 companies acquired Oracle's core technologies. Among the largest clients of 2004 are Sberbank of the Russian Federation, Ingosstrakh, MTS, VimpelCom, Megafon, and the Moscow government.

See also

• Oracle History
• Microsoft financials

Notes