Oracle Tops Forecasts with Revenues Rising 3%
March 11, 2021
reported fiscal 2021 Q3 results. Total quarterly revenues were up 3%
year-over-year to $10.1 billion. Cloud services and license support revenues
were up 5% to $7.3 billion. Cloud license and on-premise license revenues were
up 4% to $1.3 billion.
Q3 GAAP operating income was up 10% to $3.9 billion and GAAP operating margin
was 38%. Non-GAAP operating income was up 10% to $4.8 billion and non-GAAP
operating margin was 47%. GAAP net income was up 95% to $5.0 billion, and GAAP
earnings per share was up 113% to $1.68. The GAAP income statement was impacted
by a one-time net tax benefit totaling $2.3 billion related to the transfer of
certain assets between subsidiaries. Non-GAAP net income was up 10% to $3.5
billion, and non-GAAP earnings per share was up 20% to $1.16.
The firm's earnings of $1.16 per share,
adjusted outpaced the $1.11 per share the Street was looking for. As to revenue,
the Texas company took in $10.09 billion with only $10.07 billion expected.
Short-term deferred revenues were $8.1 billion. Operating cash flow was $14.7
billion during the trailing twelve months.
"We continued to extend our huge lead in the cloud ERP market as Fusion ERP grew
30% and NetSuite ERP grew 24% in Q3," said Oracle CEO, Safra Catz. "Oracle's
rapidly growing highly-profitable, multi-billion dollar cloud ERP businesses
helped drive subscription revenue up 5% and operating income up 10% in the
quarter. Subscription revenue now accounts for 72% of Oracle's total revenues,
and this highly-predictable recurring revenue-stream along with expense
discipline are enabling double-digit increases in non-GAAP earnings per share."
again in Q3, Oracle's Gen2 Cloud Infrastructure business added customers, and
grew revenue at a rate in excess of 100%," said Oracle Chairman and CTO, Larry
Ellison. "We are opening new regions as fast as we can to support our rapidly
growing multi-billion dollar infrastructure business. On the applications front,
analysts continue to rank Oracle the clear number one in cloud ERP, and this
quarter Oracle signed contracts totaling hundreds of millions of dollars to
migrate several more large companies from SAP ERP to Oracle Fusion ERP."
The Board of Directors increased the authorization for share repurchases by $20
billion. Oracle also announced that its Board of Directors declared a quarterly
cash dividend of $0.32 per share of outstanding common stock, reflecting a 33%
increase over the current quarterly dividend of $0.24. Larry Ellison, Oracle's
Chairman of the Board of Directors, Chief Technology Officer and largest
stockholder, did not participate in the deliberation, or the vote on this
matter. This increased dividend will be paid to stockholders of record as of the
close of business on April 8, 2021, with a payment date of April 22, 2021.