Oracle announces 3Q results
Oracle Corporation this week announced fiscal 2019 3Q results.
Total revenues were US $ 9.6 billion, down one percent in US dollar and up 3 percent in constant currency compared to 3Q last year.
Cloud services and license support revenues were US $ 6.7 billion, while cloud license and on-premise license revenues were US $ 1.3 billion. Total cloud services and license support plus cloud license and on-premise license revenues were US $ 7.9 billion, unchanged in US dollar and up 3 percent in constant currency.
GAAP operating income was up 3 percent to US $ 3.4 billion and GAAP operating margin was 35 percent. NON-GAAP operating income was up 2 percent to US $ 4.3 billion and NON-GAAP operating margin was 44 percent.
GAAP net income increased to US $ 2.7 billion and NON-GAAP net income was down 8 percent to US $ 3.2 billion. GAAP earnings per share increased to US $ 0.76 while NON-GAAP earnings per share was up 8 percent to US $ 0.87.
Short-term deferred revenues were up one percent to US $ 8.0 billion compared to a year ago. Operating cash flow was US $ 14.8 billion during the trailing 12 months.
“I’m pleased with 3Q NONGAAP results as revenues grew 3 percent, operating income increased 5 percent and EPS grew 12 percent in constant currency,” said Oracle CEO Safra Catz.
“Our overall operating margin improved to 44 percent as our lower margin hardware business continued to get smaller while our higher margin cloud business continued to get bigger. With yearto-date NON-GAAP EPS growth rate now at 16 percent in constant currency, we will comfortably deliver another year of double-digit EPS growth.”
“Our fusion HCM, ERP, supply chain and manufacturing cloud applications revenue in total grew 32 percent in Q3,” said Oracle CEO Mark Hurd.
“Our Netsuite ERP cloud applications also delivered strong results with a revenue growth rate of 30 percent. That said, let me call your attention to the following approved statement about Oracle’s entire applications business from industry analyst IDC.”
Per IDC’S latest annual market share results, Oracle is the #1 Enterprise Applications vendor in North America based on market share and revenue, surpassing Salesforce.com and SAP.
(Source: IDC Semi-annual Software Tracker, October 2018. Market share and revenue for 2H2017-1H2018. North America is the USA and Canada. Enterprise Applications refer to the IDC markets CRM, Enterprise Resource Management (including HCM, Financials, Procurement, Order Management, PPM, EAM), SCM and Production Applications)
“The future of Oracle’s Cloud Infrastructure business rests upon our highly-secure Gen2 Cloud Infrastructure featuring the world’s first and only Autonomous Database,” said Oracle CTO Larry Ellison.
“By the end of 3Q we had nearly 1,000 paying Autonomous Database customers and we added around 4,000 new Autonomous Database trials in 3Q. It’s early days but this is the most successful introduction of a new product in Oracle’s forty year history.”
Oracle also announced that its board of directors declared a quarterly cash dividend of US $ 0.24 per share of outstanding common stock, reflecting a 26 percent increase over the current quarterly dividend of US $ 0.19.
Larry Ellison, Oracle’s Chairman of the Board, 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 11, 2019, with a payment date of April 25, 2019.