Cloud SaaS and PaaS Revenues up 34% in U.S. Dollars and up 38% in Constant Currency
REDWOOD SHORES, CA -- (Marketwired) -- 09/16/15 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2016 Q1 results. The strengthening of the U.S. dollar compared to foreign currencies had a significant impact on results in the quarter. Total Revenues were $8.4 billion, down 2% in U.S. dollars but up 7% in constant currency. Cloud plus On-Premise Software Revenues were $6.5 billion, down 2% in U.S. dollars and up 6% in constant currency. Total Cloud Revenues were $611 million, up 29% in U.S. dollars and up 34% in constant currency. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $451 million, up 34% in U.S. dollars and up 38% in constant currency. Cloud infrastructure as a service (IaaS) revenues were $160 million, up 16% in U.S. dollars and up 23% in constant currency. Total On-Premise Software Revenues were $5.8 billion, down 4% in U.S. dollars but up 4% in constant currency. Total Hardware Revenues were $1.1 billion, down 3% in U.S. dollars but up 6% in constant currency. Total Services Revenues were $862 million, up 1% in U.S. dollars and up 10% in constant currency.
Operating Income was $2.7 billion and Operating Margin was 31%. Non-GAAP Operating Income was $3.5 billion and non-GAAP Operating Margin was 41%. Net Income was $1.7 billion while non-GAAP Net Income was $2.3 billion. Earnings Per Share was $0.40, while non-GAAP Earnings Per Share was $0.53. Without the impact of the U.S. dollar strengthening compared to foreign currencies, Oracle's reported Q1 GAAP and non-GAAP Earnings Per Share would have been 6 cents higher.
Short-term deferred revenues were $9.1 billion, up 2% in U.S. dollars and up 10% in constant currency compared with a year ago. Operating cash flow on a trailing twelve-month basis was $13.5 billion.
"Our traditional on-premise software business plus our new cloud business grew at a combined rate of 6% in constant currency," said Oracle CEO, Safra Catz. "This growth is being driven by new SaaS and PaaS annual recurring cloud subscription contracts which almost tripled in the quarter. As our cloud business scales-up, we plan to double our SaaS and PaaS cloud margins over the next two years -- starting from 40% this just completed Q1, to approximately 60% this coming Q4, and then on up to 80% two years from now. Rapidly growing cloud revenue combined with a doubling of cloud margins will have a huge impact on EPS growth going forward."
"In Q1 SaaS and PaaS revenue was up 38% in constant currency -- in Q4 that revenue growth rate will be over 60%," said Oracle CEO, Mark Hurd. "That cloud revenue growth rate is being driven by a year-over-year bookings growth rate of over 150% in Q1. Our increasing revenue growth rate is in sharp contrast to our primary cloud competitor's revenue growth rates which are on their way down."
"We are still on target to book between $1.5 and $2.0 billion of new SaaS and PaaS business this fiscal year," said Oracle Executive Chairman and CTO Larry Ellison. "That means Oracle would sell between 50% more and double the amount of new cloud business than salesforce.com plans to sell in their current fiscal year. Oracle is the world's second largest SaaS and PaaS company, but we are rapidly closing in on number one."
The Board of Directors also declared a quarterly cash dividend of $0.15 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 14, 2015, with a payment date of October 28, 2015.
Q1 Fiscal 2016 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 of this event, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle's Q1 results and Fiscal 2016 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, Pass Code: 33778759.
About Oracle
Oracle offers a comprehensive and fully integrated stack of cloud applications and platform services. For more information about Oracle (NYSE: ORCL), visit 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 our expectations of future increases in our SaaS and PaaS cloud margins, revenues, and growth rates; EPS growth; and the competitive landscape for enterprise cloud, 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) Economic, geopolitical and market conditions, including the continued slow economic recovery in Europe, parts of the U.S. and other parts of the world, 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. (2) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, fluctuations in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for contracts. (3) Our cloud computing strategy, including our Cloud SaaS, PaaS, Infrastructure as a Service and Database as a Service offerings, may not be successful. (4) If we are unable to develop new or sufficiently differentiated products and services, or to enhance and improve our products and support services in a timely manner or to position and/or price our products and services to meet market demand, customers may not buy new software licenses, cloud software subscriptions or hardware systems products or purchase or renew support contracts. (5) Our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses. (6) If the security measures for our software, hardware, services or Oracle Cloud offerings are compromised or subject to a successful cyber-attack, or if such offerings contain significant coding, manufacturing or configuration errors, we may experience reputational harm, legal claims and financial exposure. (7) We have an 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 September 16, 2015. Oracle undertakes no duty to update any statement in light of new information or future events.
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)
%
Increase
(Decrease)
Three Months Ended August 31, % in
----------------------------- Increase Constant
% of % of (Decrease) Currency
2015 Revenues 2014 Revenues in US $ (1)
------ ------- ------ ------- --------- ---------
REVENUES
Cloud software as a
service and platform as
a service $ 451 5% $ 337 4% 34% 38%
Cloud infrastructure as a
service 160 2% 138 1% 16% 23%
------ ------- ------ -------
Total Cloud Revenues 611 7% 475 5% 29% 34%
New software licenses 1,151 14% 1,370 16% (16%) (9%)
Software license updates
and product support 4,696 56% 4,731 55% (1%) 8%
------ ------- ------ -------
Total On-Premise
Software Revenues 5,847 70% 6,101 71% (4%) 4%
------ ------- ------ -------
Total Cloud and On-
Premise Software
Revenues 6,458 77% 6,576 76% (2%) 6%
Hardware products 570 7% 578 7% (1%) 9%
Hardware support 558 6% 587 7% (5%) 4%
------ ------- ------ -------
Total Hardware Revenues 1,128 13% 1,165 14% (3%) 6%
------ ------- ------ -------
Total Services Revenues 862 10% 855 10% 1% 10%
------ ------- ------ -------
Total Revenues 8,448 100% 8,596 100% (2%) 7%
------ ------- ------ -------
OPERATING EXPENSES
Sales and marketing 1,731 21% 1,706 20% 1% 10%
Cloud software as a
service and platform as
a service 276 3% 149 2% 85% 91%
Cloud infrastructure as a
service 89 1% 79 1% 12% 19%
Software license updates
and product support 291 4% 272 3% 7% 15%
Hardware products 303 4% 298 4% 2% 13%
Hardware support 180 2% 192 2% (6%) 2%
Services 711 8% 691 8% 3% 12%
Research and development 1,390 17% 1,329 16% 5% 7%
General and
administrative 257 3% 276 3% (7%) (2%)
Amortization of
intangible assets 452 5% 547 6% (17%) (17%)
Acquisition related and
other 31 0% 25 0% 28% 28%
Restructuring 83 1% 69 1% 20% 49%
------ ------- ------
Total Operating
Expenses 5,794 69% 5,633 66% 3% 9%
------ ------- ------
OPERATING INCOME 2,654 31% 2,963 34% (10%) 2%
Interest expense (374) (4%) (261) (3%) 43% 43%
Non-operating income, net 30 0% 16 0% 84% 202%
------ ------- ------
INCOME BEFORE PROVISION
FOR INCOME TAXES 2,310 27% 2,718 31% (15%) (2%)
------ ------- ------
Provision for income
taxes 563 6% 534 6% 5% 22%
------ ------- ------
NET INCOME $1,747 21% $2,184 25% (20%) (8%)
====== ======= ======
EARNINGS PER SHARE:
Basic $ 0.40 $ 0.49
Diluted $ 0.40 $ 0.48
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 4,317 4,451
Diluted 4,412 4,548
(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, 2015, 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 August 31, 2015
compared with the corresponding prior year period decreased our revenues
by 9 percentage points, operating expenses by 6 percentage points and
operating income by 12 percentage points.
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)
($ in millions, except per share data)
Three Months Ended August 31,
-------------------------------------------------
2015 2015 2014 2014
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
------- ------- -------- ------- ------- --------
TOTAL REVENUES $ 8,448 $ 3 $ 8,451 $ 8,596 $ 3 $ 8,599
TOTAL CLOUD AND ON-PREMISE
SOFTWARE REVENUES $ 6,458 $ 2 $ 6,460 $ 6,576 $ 2 $ 6,578
Cloud software as a
service and platform as
a service 451 1 452 337 2 339
Cloud infrastructure as
a service 160 - 160 138 - 138
New software licenses 1,151 - 1,151 1,370 - 1,370
Software license updates
and product support 4,696 1 4,697 4,731 - 4,731
TOTAL HARDWARE REVENUES $ 1,128 $ 1 $ 1,129 $ 1,165 $ 1 $ 1,166
Hardware products 570 - 570 578 - 578
Hardware support 558 1 559 587 1 588
TOTAL OPERATING EXPENSES $ 5,794 $ (816) $ 4,978 $ 5,633 $ (853) $ 4,780
Stock-based compensation
(3) 250 (250) - 212 (212) -
Amortization of
intangible assets (4) 452 (452) - 547 (547) -
Acquisition related and
other 31 (31) - 25 (25) -
Restructuring 83 (83) - 69 (69) -
OPERATING INCOME $ 2,654 $ 819 $ 3,473 $ 2,963 $ 856 $ 3,819
OPERATING MARGIN % 31% 41% 34% 44%
INCOME TAX EFFECTS (5) $ 563 $ 219 $ 782 $ 534 $ 234 $ 768
NET INCOME $ 1,747 $ 600 $ 2,347 $ 2,184 $ 622 $ 2,806
DILUTED EARNINGS PER SHARE $ 0.40 $ 0.53 $ 0.48 $ 0.62
DILUTED WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING 4,412 - 4,412 4,548 - 4,548
% Increase
% Increase (Decrease) in
(Decrease) Constant Currency
in US $ (2)
------------------- -------------------
GAAP Non-GAAP GAAP Non-GAAP
--------- --------- --------- ---------
TOTAL REVENUES (2%) (2%) 7% 7%
TOTAL CLOUD AND ON-PREMISE
SOFTWARE REVENUES (2%) (2%) 6% 6%
Cloud software as a
service and platform as
a service 34% 33% 38% 38%
Cloud infrastructure as
a service 16% 16% 23% 23%
New software licenses (16%) (16%) (9%) (9%)
Software license updates
and product support (1%) (1%) 8% 8%
TOTAL HARDWARE REVENUES (3%) (3%) 6% 6%
Hardware products (1%) (1%) 9% 9%
Hardware support (5%) (5%) 4% 4%
TOTAL OPERATING EXPENSES 3% 4% 9% 11%
Stock-based compensation
(3) 18% * 18% *
Amortization of
intangible assets (4) (17%) * (17%) *
Acquisition related and
other 28% * 28% *
Restructuring 20% * 49% *
OPERATING INCOME (10%) (9%) 2% 0%
OPERATING MARGIN % (305) bp. (331) bp. (155) bp. (248) bp.
INCOME TAX EFFECTS (5) 5% 2% 22% 14%
NET INCOME (20%) (16%) (8%) (7%)
DILUTED EARNINGS PER SHARE (18%) (14%) (5%) (4%)
DILUTED WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING (3%) (3%) (3%) (3%)
(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, 2015, which was the last day of our prior
fiscal year, rather than the actual exchange rates in effect during the
respective periods.
(3) Stock-based compensation was included in the following GAAP operating
expense categories:
Three Months Ended Three Months Ended
August 31, 2015 August 31, 2014
---------------------- ----------------------
GAAP Adj. Non-GAAP GAAP Adj. Non-GAAP
------ ------ -------- ------ ------ --------
Sales and marketing $ 51 $ (51) $ - $ 43 $ (43) $ -
Cloud software as a
service and platform as
a service 4 (4) - 2 (2) -
Cloud infrastructure as a
service 1 (1) - 1 (1) -
Software license updates
and product support 6 (6) - 5 (5) -
Hardware products 2 (2) - 1 (1) -
Hardware support 1 (1) - 1 (1) -
Services 8 (8) - 6 (6) -
Research and development 148 (148) - 108 (108) -
General and
administrative 29 (29) - 45 (45) -
------ ------ -------- ------ ------ --------
Subtotal 250 (250) - 212 (212) -
------ ------ -------- ------ ------ --------
Acquisition related and
other 3 (3) - 3 (3) -
------ ------ -------- ------ ------ --------
Total stock-based
compensation $ 253 $(253) $ - $ 215 $(215) $ -
====== ====== ======== ====== ====== ========
(4) Estimated future annual amortization expense related to intangible
assets as of August 31, 2015 was as follows:
Remainder of Fiscal 2016 $1,173
Fiscal 2017 995
Fiscal 2018 848
Fiscal 2019 742
Fiscal 2020 598
Fiscal 2021 457
Thereafter 1,142
------
Total intangible assets,
net $5,955
======
(5) Income tax effects were calculated reflecting an effective GAAP tax rate
of 24.4% and 19.7% in the first quarter of fiscal 2016 and 2015,
respectively, and an effective non-GAAP tax rate of 25.0% and 21.5% in
the first quarter of fiscal 2016 and 2015, respectively. The difference
between our GAAP and non-GAAP tax rates in the first quarter of fiscal
2016 and 2015 were primarily due to the net tax effects of acquisition
related items, including the tax effects of amortization of intangible
assets.
* Not meaningful
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
August 31, May 31,
2015 2015
----------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $ 16,739 $ 21,716
Marketable securities 39,191 32,652
Trade receivables, net 3,475 5,618
Inventories 251 314
Deferred tax assets 671 663
Prepaid expenses and other current assets 1,795 2,220
----------- ----------
Total Current Assets 62,122 63,183
Non-Current Assets:
Property, plant and equipment, net 3,896 3,686
Intangible assets, net 5,955 6,406
Goodwill, net 34,133 34,087
Deferred tax assets 789 795
Other assets 2,811 2,746
----------- ----------
Total Non-Current Assets 47,584 47,720
----------- ----------
TOTAL ASSETS $ 109,706 $ 110,903
=========== ==========
LIABILITIES AND EQUITY
Current Liabilities:
Notes payable, current $ 2,000 $ 1,999
Accounts payable 422 806
Accrued compensation and related benefits 1,384 1,839
Deferred revenues 9,078 7,245
Other current liabilities 2,507 3,402
----------- ----------
Total Current Liabilities 15,391 15,291
Non-Current Liabilities:
Notes payable, non-current 40,050 39,959
Income taxes payable 4,408 4,386
Other non-current liabilities 2,319 2,169
----------- ----------
Total Non-Current Liabilities 46,777 46,514
Equity 47,538 49,098
----------- ----------
TOTAL LIABILITIES AND EQUITY $ 109,706 $ 110,903
=========== ==========
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
Three Months Ended
August 31,
------------------------
2015 2014
----------- -----------
Cash Flows From Operating Activities:
Net income $ 1,747 $ 2,184
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 219 160
Amortization of intangible assets 452 547
Deferred income taxes (30) (68)
Stock-based compensation 253 215
Tax benefits on the exercise of stock options
and vesting of restricted stock-based awards 102 96
Excess tax benefits on the exercise of stock
options and vesting of restricted stock-based
awards (25) (51)
Other, net 45 46
Changes in operating assets and liabilities,
net of effects from acquisitions:
Decrease in trade receivables, net 2,150 2,506
Decrease in inventories 50 10
Decrease in prepaid expenses and other
assets 379 275
Decrease in accounts payable and other
liabilities (1,353) (1,088)
(Decrease) increase in income taxes payable (204) 80
Increase in deferred revenues 2,071 1,816
----------- -----------
Net cash provided by operating activities 5,856 6,728
----------- -----------
Cash Flows From Investing Activities:
Purchases of marketable securities and other
investments (11,669) (10,340)
Proceeds from maturities and sales of marketable
securities and other investments 4,644 3,878
Acquisitions, net of cash acquired - (37)
Capital expenditures (446) (201)
----------- -----------
Net cash used for investing activities (7,471) (6,700)
----------- -----------
Cash Flows From Financing Activities:
Payments for repurchases of common stock (2,846) (2,000)
Proceeds from issuances of common stock 296 593
Shares repurchased for tax withholdings upon
vesting of restricted stock-based awards (70) (5)
Payments of dividends to stockholders (650) (537)
Proceeds from borrowings, net of issuance costs - 9,945
Repayments of borrowings - (1,500)
Excess tax benefits on the exercise of stock
options and vesting of restricted stock-based
awards 25 51
Distributions to noncontrolling interests (25) (27)
----------- -----------
Net cash (used for) provided by financing
activities (3,270) 6,520
----------- -----------
Effect of exchange rate changes on cash and cash
equivalents (92) (138)
----------- -----------
Net (decrease) increase in cash and cash
equivalents (4,977) 6,410
----------- -----------
Cash and cash equivalents at beginning of period 21,716 17,769
----------- -----------
Cash and cash equivalents at end of period $ 16,739 $ 24,179
=========== ===========
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
FREE CASH FLOW - TRAILING 4-QUARTERS (1)
($ in millions)
Fiscal 2015 Fiscal 2016
---------------------------------- -------------------- -----
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
------- ------- ------- ------- ------- ----- ----- -----
GAAP
Operating
Cash Flow $15,357 $15,273 $14,509 $14,336 $13,464
Capital
Expenditures (628) (727) (948) (1,391) (1,636)
------- ------- ------- ------- ------- ----- ----- -----
Free Cash
Flow $14,729 $14,546 $13,561 $12,945 $11,828
======= ======= ======= ======= ======= ===== ===== =====
% Growth over
prior year 4% 0% (6)% (10)% (20)%
------- ------- ------- ------- ------- ----- ----- -----
GAAP Net
Income $10,948 $10,896 $10,827 $ 9,938 $ 9,501
Free Cash
Flow as a %
of Net
Income 135% 133% 125% 130% 124%
(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
Q1 FISCAL 2016 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
($ in millions)
Fiscal 2015
------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------- -------- -------- -------- --------
REVENUES
Cloud software as a
service and platform as a
service $ 337 $ 361 $ 372 $ 416 $ 1,485
Cloud infrastructure as a
service 138 155 155 160 608
-------- -------- -------- -------- --------
Total Cloud Revenues 475 516 527 576 2,093
New software licenses 1,370 2,045 1,982 3,138 8,535
Software license updates
and product support 4,731 4,768 4,661 4,686 18,847
-------- -------- -------- -------- --------
Total On-Premise
Software Revenues 6,101 6,813 6,643 7,824 27,382
-------- -------- -------- -------- --------
Total Cloud and On-
Premise Software
Revenues 6,576 7,329 7,170 8,400 29,475
Hardware products 578 717 712 818 2,825
Hardware support 587 617 587 589 2,380
-------- -------- -------- -------- --------
Total Hardware
Revenues 1,165 1,334 1,299 1,407 5,205
Total Services
Revenues 855 935 858 899 3,546
-------- -------- -------- -------- --------
Total Revenues $ 8,596 $ 9,598 $ 9,327 $ 10,706 $ 38,226
======== ======== ======== ======== ========
AS REPORTED REVENUE GROWTH
RATES
Cloud software as a
service and platform as a
service 32% 39% 30% 29% 32%
Cloud infrastructure as a
service 26% 60% 28% 25% 33%
Total Cloud Revenues 31% 45% 29% 28% 33%
New software licenses (2%) (4%) (7%) (17%) (9%)
Software license updates
and product support 7% 6% 2% 0% 4%
Total On-Premise
Software Revenues 5% 3% (1%) (8%) (1%)
Total Cloud and On-
Premise Software
Revenues 6% 5% 1% (6%) 1%
Hardware products (14%) 0% (2%) (6%) (5%)
Hardware support (1%) 1% (2%) (1%) (1%)
Total Hardware
Revenues (8%) 1% (2%) (4%) (3%)
Total Services
Revenues (7%) (3%) (3%) (4%) (4%)
Total Revenues 3% 3% 0% (5%) 0%
CONSTANT CURRENCY GROWTH
RATES (2)
Cloud software as a
service and platform as a
service 32% 41% 34% 35% 35%
Cloud infrastructure as a
service 25% 62% 32% 31% 36%
Total Cloud Revenues 30% 47% 33% 34% 36%
New software licenses (2%) 0% 0% (10%) (4%)
Software license updates
and product support 6% 9% 8% 8% 8%
Total On-Premise
Software Revenues 4% 6% 6% 0% 4%
Total Cloud and On-
Premise Software
Revenues 6% 8% 7% 2% 5%
Hardware products (14%) 4% 6% 3% 0%
Hardware support (2%) 5% 4% 7% 4%
Total Hardware
Revenues (8%) 4% 5% 5% 2%
Total Services
Revenues (8%) 1% 3% 5% 0%
Total Revenues 2% 7% 6% 3% 4%
GEOGRAPHIC REVENUES
REVENUES
Americas $ 4,620 $ 5,221 $ 5,134 $ 6,133 $ 21,107
Europe, Middle East &
Africa 2,589 2,911 2,813 3,067 11,380
Asia Pacific 1,387 1,466 1,380 1,506 5,739
-------- -------- -------- -------- --------
Total Revenues $ 8,596 $ 9,598 $ 9,327 $ 10,706 $ 38,226
======== ======== ======== ======== ========
HEADCOUNT
GEOGRAPHIC AREA
Americas 54,073 57,243 58,117 58,415
Europe, Middle East &
Africa 23,349 26,997 26,989 26,988
Asia Pacific 45,496 46,312 46,456 46,962
-------- -------- -------- -------- --------
Total Company 122,918 130,552 131,562 132,365
======== ======== ======== ======== ========
Fiscal 2016
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------- -------- -------- -------- --------
REVENUES
Cloud software as a
service and platform as a
service $ 451 $ 451
Cloud infrastructure as a
service 160 160
-------- -------- -------- -------- --------
Total Cloud Revenues 611 611
New software licenses 1,151 1,151
Software license updates
and product support 4,696 4,696
-------- -------- -------- -------- --------
Total On-Premise
Software Revenues 5,847 5,847
-------- -------- -------- -------- --------
Total Cloud and On-
Premise Software
Revenues 6,458 6,458
Hardware products 570 570
Hardware support 558 558
-------- -------- -------- -------- --------
Total Hardware
Revenues 1,128 1,128
Total Services
Revenues 862 862
-------- -------- -------- -------- --------
Total Revenues $ 8,448 $ 8,448
======== ======== ======== ======== ========
AS REPORTED REVENUE GROWTH
RATES
Cloud software as a
service and platform as a
service 34% 34%
Cloud infrastructure as a
service 16% 16%
Total Cloud Revenues 29% 29%
New software licenses (16%) (16%)
Software license updates
and product support (1%) (1%)
Total On-Premise
Software Revenues (4%) (4%)
Total Cloud and On-
Premise Software
Revenues (2%) (2%)
Hardware products (1%) (1%)
Hardware support (5%) (5%)
Total Hardware
Revenues (3%) (3%)
Total Services
Revenues 1% 1%
Total Revenues (2%) (2%)
CONSTANT CURRENCY GROWTH
RATES (2)
Cloud software as a
service and platform as a
service 38% 38%
Cloud infrastructure as a
service 23% 23%
Total Cloud Revenues 34% 34%
New software licenses (9%) (9%)
Software license updates
and product support 8% 8%
Total On-Premise
Software Revenues 4% 4%
Total Cloud and On-
Premise Software
Revenues 6% 6%
Hardware products 9% 9%
Hardware support 4% 4%
Total Hardware
Revenues 6% 6%
Total Services
Revenues 10% 10%
Total Revenues 7% 7%
GEOGRAPHIC REVENUES
REVENUES
Americas $ 4,716 $ 4,716
Europe, Middle East &
Africa 2,456 2,456
Asia Pacific 1,276 1,276
-------- -------- -------- -------- --------
Total Revenues $ 8,448 $ 8,448
======== ======== ======== ======== ========
HEADCOUNT
GEOGRAPHIC AREA
Americas 59,901
Europe, Middle East &
Africa 27,030
Asia Pacific 48,139
-------- -------- -------- -------- --------
Total Company 135,070
======== ======== ======== ======== ========
(1) The sum of the quarterly financial information may vary from year-to-
date financial information 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, 2015 and 2014 for the fiscal 2016 and fiscal
2015 constant currency growth rate calculations presented, respectively,
rather than the actual exchange rates in effect during the respective
periods.
ORACLE CORPORATION
Q1 FISCAL 2016 FINANCIAL RESULTS
SUPPLEMENTAL GEOGRAPHIC REVENUES ANALYSIS (1)
($ in millions)
Fiscal 2015
-------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
------- ------- ------- ------- -------
AMERICAS
Total Cloud and On-Premise
Software Revenues $ 3,614 $ 4,044 $ 4,021 $ 4,926 $16,604
======= ======= ======= ======= =======
Total Hardware Revenues $ 583 $ 716 $ 686 $ 751 $ 2,737
======= ======= ======= ======= =======
AS REPORTED GROWTH RATES
Total Cloud and On-Premise
Software Revenues 5% 6% 5% 6% 6%
Total Hardware Revenues (9%) 3% 5% 1% 0%
CONSTANT CURRENCY GROWTH RATES
(2)
Total Cloud and On-Premise
Software Revenues 6% 8% 7% 9% 7%
Total Hardware Revenues (8%) 5% 7% 4% 2%
EUROPE / MIDDLE EAST / AFRICA
Total Cloud and On-Premise
Software Revenues $ 1,992 $ 2,234 $ 2,169 $ 2,369 $ 8,764
======= ======= ======= ======= =======
Total Hardware Revenues $ 338 $ 380 $ 379 $ 423 $ 1,519
======= ======= ======= ======= =======
AS REPORTED GROWTH RATES
Total Cloud and On-Premise
Software Revenues 10% 4% (3%) (22%) (5%)
Total Hardware Revenues (6%) 2% (6%) (4%) (3%)
CONSTANT CURRENCY GROWTH RATES
(2)
Total Cloud and On-Premise
Software Revenues 7% 9% 9% (8%) 3%
Total Hardware Revenues (7%) 8% 8% 15% 6%
ASIA PACIFIC
Total Cloud and On-Premise
Software Revenues $ 970 $ 1,051 $ 980 $ 1,105 $ 4,107
======= ======= ======= ======= =======
Total Hardware Revenues $ 244 $ 238 $ 234 $ 233 $ 949
======= ======= ======= ======= =======
AS REPORTED GROWTH RATES
Total Cloud and On-Premise
Software Revenues 3% 2% (3%) (10%) (3%)
Total Hardware Revenues (8%) (7%) (12%) (16%) (11%)
CONSTANT CURRENCY GROWTH RATES
(2)
Total Cloud and On-Premise
Software Revenues 2% 7% 4% (1%) 3%
Total Hardware Revenues (8%) (3%) (6%) (8%) (6%)
TOTAL COMPANY
Total Cloud and On-Premise
Software Revenues $ 6,576 $ 7,329 $ 7,170 $ 8,400 $29,475
======= ======= ======= ======= =======
Total Hardware Revenues $ 1,165 $ 1,334 $ 1,299 $ 1,407 $ 5,205
======= ======= ======= ======= =======
AS REPORTED GROWTH RATES
Total Cloud and On-Premise
Software Revenues 6% 5% 1% (6%) 1%
Total Hardware Revenues (8%) 1% (2%) (4%) (3%)
CONSTANT CURRENCY GROWTH RATES
(2)
Total Cloud and On-Premise
Software Revenues 6% 8% 7% 2% 5%
Total Hardware Revenues (8%) 4% 5% 5% 2%
Fiscal 2016
----------------------------------------
Q1 Q2 Q3 Q4 TOTAL
------- ------- ------- ------- -------
AMERICAS
Total Cloud and On-Premise
Software Revenues $ 3,684 $ 3,684
======= ======= ======= ======= =======
Total Hardware Revenues $ 589 $ 589
======= ======= ======= ======= =======
AS REPORTED GROWTH RATES
Total Cloud and On-Premise
Software Revenues 2% 2%
Total Hardware Revenues 1% 1%
CONSTANT CURRENCY GROWTH RATES
(2)
Total Cloud and On-Premise
Software Revenues 6% 6%
Total Hardware Revenues 6% 6%
EUROPE / MIDDLE EAST / AFRICA
Total Cloud and On-Premise
Software Revenues $ 1,873 $ 1,873
======= ======= ======= ======= =======
Total Hardware Revenues $ 330 $ 330
======= ======= ======= ======= =======
AS REPORTED GROWTH RATES
Total Cloud and On-Premise
Software Revenues (6%) (6%)
Total Hardware Revenues (2%) (2%)
CONSTANT CURRENCY GROWTH RATES
(2)
Total Cloud and On-Premise
Software Revenues 7% 7%
Total Hardware Revenues 14% 14%
ASIA PACIFIC
Total Cloud and On-Premise
Software Revenues $ 901 $ 901
======= ======= ======= ======= =======
Total Hardware Revenues $ 209 $ 209
======= ======= ======= ======= =======
AS REPORTED GROWTH RATES
Total Cloud and On-Premise
Software Revenues (7%) (7%)
Total Hardware Revenues (14%) (14%)
CONSTANT CURRENCY GROWTH RATES
(2)
Total Cloud and On-Premise
Software Revenues 7% 7%
Total Hardware Revenues (3%) (3%)
TOTAL COMPANY
Total Cloud and On-Premise
Software Revenues $ 6,458 $ 6,458
======= ======= ======= ======= =======
Total Hardware Revenues $ 1,128 $ 1,128
======= ======= ======= ======= =======
AS REPORTED GROWTH RATES
Total Cloud and On-Premise
Software Revenues (2%) (2%)
Total Hardware Revenues (3%) (3%)
CONSTANT CURRENCY GROWTH RATES
(2)
Total Cloud and On-Premise
Software Revenues 6% 6%
Total Hardware Revenues 6% 6%
(1) The sum of the quarterly financial information may vary from year-to-
date financial information 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, 2015 and 2014 for the fiscal 2016 and fiscal
2015 constant currency growth rate calculations presented, respectively,
rather than the actual exchange rates in effect during the respective
periods.
Contact: Ken Bond Oracle Investor Relations 1.650.607.0349 Email Contact Deborah Hellinger Oracle Corporate Communications 1.212.508.7935 Email Contact
Source: Oracle Corporation