Oracle Corp (ORCL, Financial), a global leader in database technology and enterprise resource planning (ERP) software, has announced its financial results for the fourth quarter and full fiscal year 2024. The company, which serves 430,000 customers in 175 countries, reported a mixed performance with notable achievements in its cloud services segment.
Quarterly Performance Overview
For the fourth quarter, Oracle Corp (ORCL, Financial) reported total revenues of $14.3 billion, marking a 3% year-over-year increase in USD and a 4% increase in constant currency. This figure fell short of the analyst estimate of $14.59 billion. However, the company's cloud revenue, which includes Infrastructure as a Service (IaaS) and Software as a Service (SaaS), grew by 20% in USD and constant currency to $5.3 billion.
GAAP earnings per share (EPS) for the quarter were $1.11, while non-GAAP EPS stood at $1.63, surpassing the analyst estimate of $1.15. This performance was driven by a 42% increase in Cloud Infrastructure (IaaS) revenue and a 10% rise in Cloud Application (SaaS) revenue.
Full-Year Financial Highlights
For the full fiscal year 2024, Oracle Corp (ORCL, Financial) reported total revenues of $53.0 billion, a 6% increase in both USD and constant currency. Cloud services and license support revenues were up 12% in USD and 11% in constant currency, totaling $39.4 billion. However, cloud license and on-premise license revenues declined by 12% in USD and constant currency to $5.1 billion.
GAAP operating income for the year was $15.4 billion, with a GAAP operating margin of 29%. Non-GAAP operating income was $23.1 billion, reflecting a non-GAAP operating margin of 44%. GAAP net income was $10.5 billion, while non-GAAP net income reached $15.7 billion. GAAP EPS for the year was $3.71, and non-GAAP EPS was $5.56, exceeding the annual estimate of $3.74.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | % Change |
|---|---|---|---|
| Total Revenue | $14.3 billion | $13.8 billion | 3% |
| Cloud Revenue | $5.3 billion | $4.4 billion | 20% |
| GAAP EPS | $1.11 | $1.19 | -7% |
| Non-GAAP EPS | $1.63 | $1.67 | -2% |
Commentary and Future Outlook
“In Q3 and Q4, Oracle signed the largest sales contracts in our history—driven by enormous demand for training AI large language models in the Oracle Cloud,” said Oracle CEO, Safra Catz. “These record level sales drove RPO up 44% to $98 billion. Throughout fiscal year 2025, I expect continued strong AI demand to push Oracle sales and RPO even higher—and result in double-digit revenue growth this fiscal year.”
“Our multicloud cooperation with Microsoft expanded significantly in Q4, as we agreed to work together to support Open AI and ChatGPT—and 11 of the 23 OCI datacenters we are building inside Azure went live,” said Oracle Chairman and CTO, Larry Ellison.
Dividend Declaration
The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on July 11, 2024, with a payment date of July 25, 2024.
Conclusion
Oracle Corp (ORCL, Financial) has demonstrated robust growth in its cloud services segment, which is crucial for its long-term strategy. Despite some challenges in other areas, the company's strong performance in cloud infrastructure and applications positions it well for future growth. Investors and stakeholders can find more detailed information in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Oracle Corp for further details.
