Le Lézard
Classified in: Science and technology, Business
Subjects: ERN, CCA

Q4 FY19 GAAP EPS UP 36% TO $1.07 and NON-GAAP EPS UP 23% TO $1.16


REDWOOD SHORES, Calif., June 19, 2019 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2019 Q4 results and fiscal 2019 full year results. Total Quarterly Revenues were $11.1 billion, up 1% in USD and up 4% in constant currency compared to Q4 last year. Cloud Services and License Support revenues were $6.8 billion, while Cloud License and On-Premise License revenues were $2.5 billion. Total Cloud Services and License Support plus Cloud License and On-Premise License revenues were $9.3 billion, up 3% in USD and 6% in constant currency.

Q4 GAAP Operating Income was up 2% to $4.3 billion and GAAP operating margin was 38%. Non-GAAP Operating Income was up 4% to $5.3 billion and non-GAAP operating margin was 47%. GAAP Net Income was up 14% to $3.7 billion and non-GAAP Net Income was up 3% to $4.1 billion. GAAP Earnings Per Share was $1.07, while non-GAAP Earnings Per Share was $1.16.

Short-term deferred revenues were $8.4 billion. Operating cash flow for fiscal 2019 was $14.6 billion.

For fiscal 2019, Total Revenues were $39.5 billion, slightly higher in USD and up 3% in constant currency. Cloud Services and License Support revenues were $26.7 billion, while Cloud License and On-Premise License revenues were $5.9 billion. Total Cloud Services and License Support plus Cloud License and On-Premise revenues were $32.6 billion, up 2% in USD and 4% in constant currency.

Fiscal 2019 GAAP Operating Income was $13.5 billion, and GAAP operating margin was 34%. Non-GAAP Operating Income was $17.4 billion, and non-GAAP operating margin was 44%. GAAP Net Income was $11.1 billion, while non-GAAP Net Income was $13.1 billion. GAAP Earnings Per Share increased 251% to $2.97, while non-GAAP Earnings Per Share was up 16% to $3.52.

"In Q4, our non-GAAP operating income grew 7% in constant currency?which drove EPS well above the high end of my guidance," said Oracle CEO, Safra Catz. "Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly, while we downsize our low-margin legacy hardware business. The net result of this shift away from commodity hardware to cloud applications was a Q4 non-GAAP operating margin of 47%, the highest we've seen in five years."

"Our Fusion ERP and HCM cloud applications suite revenues grew 32% in FY19," said Oracle CEO, Mark Hurd. "Our NetSuite ERP cloud applications revenues also grew 32% this year. These strong results extend Oracle's already commanding lead in worldwide Cloud ERP. Our cloud applications businesses are growing faster than our competitors. That said, let me call your attention to the following approved statement from industry analyst IDC."

Per IDC's latest annual market share results, Oracle gained the most market share globally out of all Enterprise Applications SaaS vendors three years running -- in CY16, CY17 and CY18.

"We added over five thousand new Autonomous Database trials in Q4," said Oracle Chairman and CTO, Larry Ellison. "Our new Gen2 Cloud Infrastructure offers those customers a compelling array of advance technology features including our self-driving database that automatically encrypts all your data, backs itself up, tunes itself, upgrades itself, and patches itself when a security threat is detected. It does all of this autonomously?while running?without the need for any human intervention, and without the need for any downtime. No other cloud infrastructure provides anything close to these autonomous features."

The Board of Directors also 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 17, 2019, with a payment date of July 31, 2019.

Q4 Fiscal 2019 Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing (816) 287-5563, Passcode: 425392. To access the live webcast, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle's Q4 results and fiscal 2019 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing (855) 859-2056 or (404) 537-3406, Passcode: 9955119.

About Oracle

The Oracle Cloud offers a complete suite of integrated applications for Sales, Service,  Marketing, Human Resources, Finance, Supply Chain and Manufacturing, plus Highly-Automated and Secure Generation 2 Infrastructure featuring the Oracle Autonomous Database. For more information about Oracle (NYSE:ORCL), visit us at www.oracle.com or contact Investor Relations at [email protected] or (650) 506-4073.

Trademarks

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding the growth of our high-margin cloud applications businesses, are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Our cloud strategy, including our Oracle Software as a Service and Infrastructure as a Service offerings, may not be successful. (2) If we are unable to develop new or sufficiently differentiated products and services, integrate acquired products and services, or enhance and improve our existing products and support services in a timely manner, or price our products and services to meet market demand, customers may not purchase or subscribe to our software, hardware or cloud offerings or renew software support, hardware support or cloud subscriptions contracts. (3) Enterprise customers rely on our cloud, license and hardware offerings and related services to run their businesses and significant coding, manufacturing or configuration errors in our cloud, license and hardware offerings and related services could expose us to product liability, performance and warranty claims, as well as cause significant harm to our brand and reputation, which could impact our future sales. (4) If the security measures for our products and services are compromised and as a result, our customers' data or our IT systems are accessed improperly, made unavailable, or improperly modified, our products and services may be perceived as vulnerable, our brand and reputation could be damaged and we may experience legal claims and reduced sales. (5) Our business practices with respect to data could give rise to operational interruption, liabilities or reputational harm as a result of governmental regulation, legal requirements or industry standards relating to consumer privacy and data protection. (6) Economic, political and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (7) Our international sales and operations subject us to additional risks that can adversely affect our operating results. (8) We have a selective and active acquisition program and our acquisitions may not be successful, may involve unanticipated costs or other integration issues or may disrupt our existing operations. 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 Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle's Investor Relations website at http://www.oracle.com/investor. All information set forth in this press release is current as of June 19, 2019. Oracle undertakes no duty to update any statement in light of new information or future events.

 

ORACLE  CORPORATION










Q4 FISCAL 2019 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)




Three Months Ended May 31,

% Increase

% Increase

(Decrease)







% of 


% of 

(Decrease)

in Constant




2019

Revenues

2018

Revenues

in US $

Currency (1)


REVENUES









Cloud services and license support 

$  6,799

61%

$ 6,768

62%

0%

3%



Cloud license and on-premise license

2,520

23%

2,247

20%

12%

15%



Hardware

994

9%

1,116

10%

(11%)

(8%)



Services

823

7%

883

8%

(7%)

(4%)



      Total revenues

11,136

100%

11,014

100%

1%

4%


OPERATING EXPENSES









Cloud services and license support 

975

9%

961

9%

1%

3%



Hardware

362

3%

461

4%

(21%)

(19%)



Services

726

7%

752

7%

(3%)

0%



Sales and marketing

2,318

21%

2,315

21%

0%

3%



Research and development 

1,562

14%

1,542

14%

1%

3%



General and administrative

329

3%

306

3%

8%

11%



Amortization of intangible assets

424

4%

415

4%

2%

2%



Acquisition related and other

15

0%

20

0%

(23%)

(21%)



Restructuring

168

1%

81

0%

108%

118%



      Total operating expenses 

6,879

62%

6,853

62%

0%

3%


OPERATING INCOME 

4,257

38%

4,161

38%

2%

6%



Interest expense

(525)

(4%)

(548)

(5%)

(4%)

(4%)



Non-operating income, net 

134

1%

294

3%

(54%)

(54%)


INCOME BEFORE PROVISION FOR INCOME TAXES

3,866

35%

3,907

36%

(1%)

3%



Provision for income taxes

126

1%

631

6%

(80%)

(79%)


NET INCOME 

$  3,740

34%

$ 3,276

30%

14%

19%











EARNINGS PER SHARE:









Basic

$    1.10


$    0.81






Diluted

$    1.07


$    0.79





WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:









Basic

3,389


4,046






Diluted

3,495


4,149


















































(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, 2018, 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 May 31, 2019 compared with the corresponding prior year period decreased our revenues by 3 percentage points, operating expenses by 3 percentage points and operating income by 4 percentage points.











 

ORACLE  CORPORATION


Q4 FISCAL 2019 FINANCIAL RESULTS

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

($ in millions, except per share data)




Three Months Ended May 31,


% Increase (Decrease)

in US $

% Increase (Decrease) in

Constant Currency (2) 



2019




2019


2018




2018


GAAP

Non-GAAP

GAAP

Non-GAAP




GAAP


Adj.


Non-GAAP


GAAP


Adj.


Non-GAAP






















TOTAL REVENUES

$ 11,136


$           3


$            11,139


$ 11,014


$        9


$            11,023


1%

1%

4%

4%



     Cloud services and license support

6,799


3


6,802


6,768


9


6,777


0%

0%

3%

3%





















TOTAL OPERATING EXPENSES

$    6,879


$  (1,001)


$              5,878


$    6,853


$  (909)


$              5,944


0%

(1%)

3%

1%



     Sales and marketing (3)

2,318


(82)


2,236


2,315


(84)


2,231


0%

0%

3%

3%



     Stock-based compensation (4)

312


(312)


-


309


(309)


-


1%

*

1%

*



      Amortization of intangible assets (5)

424


(424)


-


415


(415)


-


2%

*

2%

*



     Acquisition related and other

15


(15)


-


20


(20)


-


(23%)

*

(21%)

*



     Restructuring

168


(168)


-


81


(81)


-


108%

*

118%

*


OPERATING INCOME

$    4,257


$   1,004


$              5,261


$    4,161


$    918


$              5,079


2%

4%

6%

7%


OPERATING MARGIN %

38%




47%


38%




46%


45 bp.

115 bp.

79 bp.

132 bp.


INCOME TAX EFFECTS (6)

$       126


$      673


$                  799


$       631


$    249


$                  880


(80%)

(9%)

(79%)

(6%)


NET INCOME 

$    3,740


$      331


$               4,071


$    3,276


$    669


$               3,945


14%

3%

19%

7%


DILUTED EARNINGS PER SHARE

$      1.07




$                 1.16


$      0.79




$                 0.95


36%

23%

41%

27%


DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 

3,495


-


3,495


4,149


-


4,149


(16%)

(16%)

(16%)

(16%)








































(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, 2018, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.





















(3)

Non-GAAP adjustments to sales and marketing expenses were as follows:















Three Months Ended

















May 31,

















2019


2018
















     Stock-based compensation (4)

$        (82)


$       (88)
















      Acquired deferred sales commissions amortization

-


4
















          Total non-GAAP sales and marketing adjustments

$        (82)


$       (84)


































(4)

Stock-based compensation was included in the following GAAP operating expense categories:



























Three Months Ended


Three Months Ended









May 31, 2019


May 31, 2018









GAAP


Adj.


Non-GAAP


GAAP


Adj.


Non-GAAP








     Cloud services and license support

$         25


$       (25)


$                     -


$         21


$     (21)


$                     -








     Hardware

3


(3)


-


3


(3)


-








     Services

12


(12)


-


11


(11)


-








     Research and development

231


(231)


-


228


(228)


-








     General and administrative

41


(41)


-


46


(46)


-








           Subtotal

312


(312)


-


309


(309)


-








     Sales and marketing

82


(82)


-


88


(88)


-








           Total stock-based compensation

$       394


$     (394)


$                     -


$       397


$  (397)


$                     -


























(5)

Estimated future annual amortization expense related to intangible assets as of May 31, 2019 was as follows:



     Fiscal 2020

$    1,583


















     Fiscal 2021

1,339


















     Fiscal 2022

1,090


















     Fiscal 2023

668


















     Fiscal 2024

440


















     Thereafter

159


















           Total intangible assets, net

$    5,279




































(6)

Income tax effects were calculated reflecting an effective GAAP tax rate of 3.3% and 16.1% in the fourth quarter of fiscal 2019 and 2018, respectively, and an effective non-GAAP tax rate of 16.4% and 18.2% in the fourth quarter of fiscal 2019 and 2018, respectively. The difference in our GAAP and non-GAAP tax rates in the fourth quarter of fiscal 2019 was primarily due to a tax benefit arising from the increase of a deferred tax asset associated with a partial realignment of our legal structure; the net tax effects on stock-based compensation expense; and acquisition related items, including the tax effects of amortization of intangible assets. The difference in our GAAP and non-GAAP tax rates in the fourth quarter of fiscal 2018 was primarily due to adjustments in our estimates for the one-time effects of the U.S. Tax Cuts and Jobs Act (refer to Appendix A for additional information), the net tax effects on stock-based compensation expense, and acquisition related items, including the tax effects o     f amortization of intangible assets.





















*

Not meaningful

















 

ORACLE  CORPORATION










 FISCAL 2019 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)












Year Ended May 31,

% Increase

% Increase

(Decrease)







% of 


% of 

(Decrease)

in Constant




2019

Revenues

2018

Revenues

in US $

Currency (1)


REVENUES









Cloud services and license support 

$ 26,707

68%

$ 26,222

66%

2%

4%



Cloud license and on-premise license

5,855

15%

5,772

15%

1%

4%



Hardware 

3,704

9%

3,994

10%

(7%)

(5%)



Services

3,240

8%

3,395

9%

(5%)

(2%)



      Total revenues

39,506

100%

39,383

100%

0%

3%


OPERATING EXPENSES









Cloud services and license support 

3,782

10%

3,606

9%

5%

7%



Hardware

1,360

4%

1,576

4%

(14%)

(11%)



Services

2,853

7%

2,878

7%

(1%)

2%



Sales and marketing

8,509

22%

8,433

22%

1%

3%



Research and development 

6,026

15%

6,084

15%

(1%)

0%



General and administrative

1,265

3%

1,282

3%

(1%)

1%



Amortization of intangible assets

1,689

4%

1,620

4%

4%

4%



Acquisition related and other

44

0%

52

0%

(15%)

(13%)



Restructuring

443

1%

588

2%

(25%)

(22%)



      Total operating expenses 

25,971

66%

26,119

66%

(1%)

2%


OPERATING INCOME 

13,535

34%

13,264

34%

2%

5%



Interest expense

(2,082)

(5%)

(2,025)

(5%)

3%

3%



Non-operating income, net 

815

2%

1,185

3%

(31%)

(31%)


INCOME BEFORE PROVISION FOR INCOME TAXES

12,268

31%

12,424

32%

(1%)

2%



Provision for income taxes (2) 

1,185

3%

8,837

23%

(87%)

(86%)


NET INCOME 

$ 11,083

28%

$    3,587

9%

209%

230%











EARNINGS PER SHARE:









Basic

$      3.05


$      0.87






Diluted

$      2.97


$      0.85





WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:









Basic

3,634


4,121






Diluted

3,732


4,238


















































(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, 2018, 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 year ended May 31, 2019 compared with the corresponding prior year period decreased our revenues by 3 percentage points, operating expenses by 3 percentage points and operating income by 3 percentage points.





(2)

Provision for income taxes for the periods presented included the impacts of the U.S. 2017 Tax Cuts and Jobs Act, which was signed into law during our third quarter of fiscal 2018, and for which additional discussion is included in Appendix A.











 

ORACLE CORPORATION


FISCAL 2019 YEAR TO DATE FINANCIAL RESULTS

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

($ in millions, except per share data)




Year Ended May 31,


% Increase (Decrease)

in US $

% Increase (Decrease) in

Constant Currency (2)




2019




2019


2018




2018


GAAP

Non-GAAP

GAAP

Non-GAAP




GAAP


Adj.


Non-GAAP


GAAP


Adj.


Non-GAAP






















TOTAL REVENUES

$   39,506


$          20


$   39,526


$   39,383


$          47


$   39,430


0%

0%

3%

3%



     Cloud services and license support

26,707


20


26,727


26,222


47


26,269


2%

2%

4%

4%





















TOTAL OPERATING EXPENSES

$   25,971


$   (3,829)


$   22,142


$   26,119


$   (3,844)


$   22,275


(1%)

(1%)

2%

2%



     Sales and marketing (3)

8,509


(360)


8,149


8,433


(339)


8,094


1%

1%

3%

3%



     Stock-based compensation (4)

1,293


(1,293)


-


1,245


(1,245)


-


4%

*

4%

*



     Amortization of intangible assets (5)

1,689


(1,689)


-


1,620


(1,620)


-


4%

*

4%

*



     Acquisition related and other

44


(44)


-


52


(52)


-


(15%)

*

(13%)

*



     Restructuring

443


(443)


-


588


(588)


-


(25%)

*

(22%)

*


OPERATING INCOME

$   13,535


$     3,849


$   17,384


$   13,264


$     3,891


$   17,155


2%

1%

5%

4%


OPERATING MARGIN %

34%




44%


34%




44%


58 bp.

47 bp.

82 bp.

53 bp.


INCOME TAX EFFECTS (6)

$     1,185


$     1,795


$     2,980


$     8,837


$   (5,439)


$     3,398


(87%)

(12%)

(86%)

(10%)


NET INCOME 

$   11,083


$     2,054


$   13,137


$     3,587


$     9,330


$   12,917


209%

2%

230%

5%


DILUTED EARNINGS PER SHARE

$       2.97




$       3.52


$       0.85




$       3.05


251%

16%

274%

19%


DILUTED WEIGHTED AVERAGE COMMON

SHARES OUTSTANDING

3,732


-


3,732


4,238


-


4,238


(12%)

(12%)

(12%)

(12%)








































(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, 2018, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.





















(3)

Non-GAAP adjustments to sales and marketing expenses were as follows:



























Year Ended

















May 31,

















2019


2018
















     Stock-based compensation (4)

$       (360)


$       (361)
















     Acquired deferred sales commissions amortization

-


22
















           Total non-GAAP sales and marketing adjustments

$       (360)


$       (339)


































(4)

Stock-based compensation was included in the following GAAP operating expense categories:



























Year Ended


Year Ended









May 31, 2019


May 31, 2018









GAAP


Adj.


Non-GAAP


GAAP


Adj.


Non-GAAP








     Cloud services and license support

$          99


$         (99)


$           -


$          82


$         (82)


$           -








     Hardware

10


(10)


-


10


(10)


-








     Services

49


(49)


-


52


(52)


-








     Research and development

963


(963)


-


921


(921)


-








     General and administrative

172


(172)


-


180


(180)


-








           Subtotal

1,293


(1,293)


-


1,245


(1,245)


-








     Sales and marketing

360


(360)


-


361


(361)


-








     Acquisition related and other

-


-


-


1


(1)


-








           Total stock-based compensation

$     1,653


$   (1,653)


$           -


$     1,607


$   (1,607)


$           -


























(5)

Estimated future annual amortization expense related to intangible assets as of May 31, 2019 was as follows:



     Fiscal 2020

$     1,583


















     Fiscal 2021

1,339


















     Fiscal 2022

1,090


















     Fiscal 2023

668


















     Fiscal 2024

440


















     Thereafter

159


















           Total intangible assets, net

$     5,279




































(6)

Income tax effects were calculated reflecting an effective GAAP tax rate of 9.7% and 71.1% in fiscal 2019 and 2018, respectively, and an effective non-GAAP tax rate of 18.5% and 20.8% in fiscal 2019 and 2018, respectively. The difference in our GAAP and non-GAAP tax rates in fiscal 2019 was primarily due to the impacts of the U.S. Tax Cuts and Jobs Act of 2017 (refer to Appendix A for additional information); a tax benefit arising from the increase of a deferred tax asset associated with a partial realignment of our legal structure; the net tax effects on stock-based compensation expense; and acquisition related items, including the tax effects of amortization of intangible assets. The difference in our GAAP and non-GAAP tax rates in fiscal 2018 was primarily due to adjustments in our estimates for the one-time effects of the U.S. Tax Cuts and Jobs Act.





















*

Not meaningful




















 

ORACLE  CORPORATION








FISCAL 2019 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)











May 31,

May 31,




2019

2018

ASSETS





Current Assets:






Cash and cash equivalents

$   20,514


$   21,620



Marketable securities

17,313


45,641



Trade receivables, net

5,134


5,136



Prepaid expenses and other current assets

3,425


3,762




Total Current Assets

46,386


76,159


Non-Current Assets:






   Property, plant and equipment, net

6,252


5,897



   Intangible assets, net

5,279


6,670



   Goodwill, net

43,779


43,755



   Deferred tax assets

2,696


1,395



   Other non-current assets

4,317


3,975




Total Non-Current Assets

62,323


61,692


TOTAL ASSETS

$ 108,709


$ 137,851


LIABILITIES AND EQUITY





Current Liabilities:






Notes payable and other borrowings, current 

$      4,494


$      4,491



Accounts payable

580


529



Accrued compensation and related benefits

1,628


1,806



Deferred revenues

8,374


8,341



Other current liabilities

3,554


3,957




Total Current Liabilities

18,630


19,124


Non-Current Liabilities:






Notes payable and other borrowings, non-current

51,673


56,128



Income taxes payable

13,295


13,429



Other non-current liabilities

2,748


2,297




Total Non-Current Liabilities

67,716


71,854


Equity

22,363


46,873


TOTAL LIABILITIES AND EQUITY

$ 108,709


$ 137,851









 

     ORACLE  CORPORATION 







FISCAL 2019 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)









Year Ended May 31,



2019

2018

Cash Flows From Operating Activities:





Net income 

$   11,083


$     3,587


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





Depreciation

1,230


1,165


Amortization of intangible assets

1,689


1,620


Deferred income taxes

(1,191)


(847)


Stock-based compensation

1,653


1,607


Other, net

157


(27)


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





(Increase) decrease in trade receivables, net

(82)


413


Decrease (increase) in prepaid expenses and other assets

261


(258)


Decrease in accounts payable and other liabilities

(102)


(260)


(Decrease) increase in income taxes payable

(453)


8,150


Increase in deferred revenues

306


236


Net cash provided by operating activities

14,551


15,386


Cash Flows From Investing Activities:





Purchases of marketable securities and other investments

(1,400)


(25,282)


Proceeds from maturities of marketable securities and other investments

12,681


20,372


Proceeds from sales of marketable securities 

17,299


2,745


Acquisitions, net of cash acquired

(363)


(1,724)


Capital expenditures

(1,660)


(1,736)


Net cash provided by (used for) investing activities

26,557


(5,625)


Cash Flows From Financing Activities:





Payments for repurchases of common stock

(36,140)


(11,347)


Proceeds from issuances of common stock

2,155


2,402


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

(503)


(506)


Payments of dividends to stockholders

(2,932)


(3,140)


Proceeds from borrowings, net of issuance costs

-


12,443


Repayments of borrowings

(4,500)


(9,800)


Other, net

(136)


(34)


Net cash used for financing activities

(42,056)


(9,982)


Effect of exchange rate changes on cash and cash equivalents

(158)


57


Net decrease in cash and cash equivalents

(1,106)


(164)


Cash and cash equivalents at beginning of period

21,620


21,784


Cash and cash equivalents at end of period

$   20,514


$   21,620








 

 ORACLE  CORPORATION 

 FISCAL 2019 FINANCIAL RESULTS 

 FREE CASH FLOW - TRAILING 4-QUARTERS (1) 

 ($ in millions) 














 Fiscal 2018 

 Fiscal 2019 




 Q1 

 Q2 

 Q3 

 Q4 

 Q1 

 Q2 

 Q3 

 Q4 












GAAP Operating Cash Flow

$   14,817

$   14,581

$   15,192

$   15,386

$   15,542

$   15,238

$   14,789

$   14,551













Capital Expenditures

(2,195)

(2,037)

(1,883)

(1,736)

(1,646)

(1,468)

(1,625)

(1,660)













Free Cash Flow

$   12,622

$   12,544

$   13,309

$   13,650

$   13,896

$   13,770

$   13,164

$   12,891













% Growth over prior year

0%

(1%)

13%

13%

10%

10%

(1%)

(6%)
























GAAP Net Income

$     9,745

$     9,932

$     3,643

$     3,587

$     3,708

$     3,827

$   10,619

$   11,083













Free Cash Flow as a % of Net Income

130%

126%

365%

381%

375%

360%

124%

116%
























(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.





 
















 ORACLE  CORPORATION 

 FISCAL 2019 FINANCIAL RESULTS 

 SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1) 

 ($ in millions) 

















 Fiscal 2018 

 Fiscal 2019 

 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 


 Q1 

 Q2 

 Q3 

 Q4 

 TOTAL 



REVENUES BY OFFERINGS














 Cloud services and license support  

$  6,407

$  6,461

$  6,587

$    6,768

$      26,222


$  6,609

$  6,637

$  6,662

$    6,799

$      26,707



 Cloud license and on-premise license 

894

1,331

1,299

2,247

5,772


867

1,217

1,251

2,520

5,855



 Hardware 

943

941

994

1,116

3,994


904

891

915

994

3,704



 Services  

860

856

796

883

3,395


813

817

786

823

3,240


















     Total revenues 

$  9,104

$  9,589

$  9,676

$ 11,014

$      39,383


$  9,193

$  9,562

$  9,614

$ 11,136

$      39,506


















AS REPORTED REVENUE GROWTH RATES 














 Cloud services and license support  

11%

11%

11%

8%

10%


3%

3%

1%

0%

2%



 Cloud license and on-premise license 

(13%)

(1%)

(9%)

(18%)

(12%)


(3%)

(9%)

(4%)

12%

1%



 Hardware  

(5%)

(7%)

(3%)

0%

(4%)


(4%)

(5%)

(8%)

(11%)

(7%)



 Services  

6%

1%

(2%)

(1%)

1%


(5%)

(5%)

(1%)

(7%)

(5%)


















      Total revenues 

6%

6%

5%

0%

4%


1%

0%

(1%)

1%

0%


















CONSTANT CURRENCY GROWTH RATES (2)














 Cloud services and license support  

10%

9%

7%

6%

8%


4%

5%

4%

3%

4%



 Cloud license and on-premise license 

(14%)

(3%)

(13%)

(18%)

(13%)


0%

(6%)

0%

15%

4%



 Hardware  

(6%)

(9%)

(7%)

(2%)

(6%)


(3%)

(3%)

(4%)

(8%)

(5%)



 Services  

6%

0%

(6%)

(3%)

(1%)


(4%)

(2%)

3%

(4%)

(2%)


















     Total revenues 

5%

5%

1%

(1%)

2%


2%

2%

3%

4%

3%


















CLOUD AND LICENSE REVENUES BY ECOSYSTEM (3)














 Applications revenues 

$  2,616

$  2,668

$  2,717

$    3,022

$      11,023


$  2,761

$  2,808

$  2,841

$    3,081

$      11,491



 Infrastructure revenues 

4,685

5,124

5,169

5,993

20,971


4,715

5,046

5,072

6,238

21,071



     Total cloud and license revenues 

$  7,301

$  7,792

$  7,886

$    9,015

$      31,994


$  7,476

$  7,854

$  7,913

$    9,319

$      32,562


















AS REPORTED REVENUE GROWTH RATES 














 Applications revenues 

17%

15%

9%

5%

11%


6%

5%

5%

2%

4%



 Infrastructure revenues 

3%

6%

6%

(2%)

3%


1%

(2%)

(2%)

4%

0%



     Total cloud and license revenues 

7%

9%

7%

1%

6%


2%

1%

0%

3%

2%


















CONSTANT CURRENCY GROWTH RATES (2)














 Applications revenues 

17%

13%

7%

4%

10%


7%

7%

7%

4%

6%



 Infrastructure revenues 

1%

4%

1%

(3%)

1%


2%

1%

2%

7%

3%



     Total cloud and license revenues 

7%

7%

3%

(1%)

4%


4%

3%

3%

6%

4%


















GEOGRAPHIC REVENUES














 Americas 

$  5,098

$  5,281

$  5,253

$    6,016

$      21,648


$  5,161

$  5,243

$  5,266

$    6,184

$      21,856



 Europe/Middle East/Africa 

2,535

2,796

2,881

3,197

11,409


2,576

2,782

2,781

3,132

11,270



 Asia Pacific 

1,471

1,512

1,542

1,801

6,326


1,456

1,537

1,567

1,820

6,380



     Total revenues 

$  9,104

$  9,589

$  9,676

$ 11,014

$      39,383


$  9,193

$  9,562

$  9,614

$ 11,136

$      39,506

































(1)

The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.







(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, 2018 and 2017 for the fiscal 2019 and fiscal 2018 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.







(3)

Applications ecosystem revenues represent the sum of applications related cloud services and license support revenues; and applications related license revenues. Infrastructure ecosystem revenues represent the sum of infrastructure related cloud services and license support revenues; and infrastructure related license revenues.  

















APPENDIX A
ORACLE CORPORATION
Q4 FISCAL 2019 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial 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. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects related to each of the below items except for the impact of the U.S. Tax Cuts and Jobs Act of 2017:

SOURCE Oracle


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