Oracle Corporation, a leading provider of applications and infrastructure technologies, has seen a significant increase in customer demand for its cloud services in recent years. As disclosed in the company’s SEC filing, Oracle’s cloud services accounted for 32% of total revenues in fiscal 2023, up from 25% in 2022 and 22% in 2021.
The company, initially founded in June 1977 and later incorporated in 2005, offers a comprehensive portfolio of applications and infrastructure technologies designed to meet various organization’s IT environment needs. These solutions are the building blocks of Oracle Cloud Services, as well as partners’ cloud services and customers’ cloud IT environments. The company’s offerings are available through Oracle Cloud or other IT deployment models, including cloud-based, hybrid, and on-premise deployments.
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Industry Shift towards Cloud-Based Applications and Infrastructure
The growing demand for Oracle’s cloud services reflects an industry shift towards adopting cloud-based applications and infrastructure capabilities. Oracle Cloud Services offers customers access to the latest versions of technologies, providing enterprise-grade, reliable, scalable, and secure features. The company believes it is in the early stage of what is expected to be a material migration of its existing customer base from on-premise applications and infrastructure products to the Oracle Cloud.
The company also aims to market its cloud services offerings to a broader ecosystem of small and medium-sized businesses, non-IT lines of business purchasers, developers, and partners due to the highly available, intuitive design, ease of access, low touch, and low-cost characteristics of Oracle Cloud.
Oracle’s Applications and Infrastructure Technologies
Oracle’s applications technologies are marketed, sold, delivered, and supported through its cloud and license business. In fiscal 2023, applications cloud services and license support revenues represented 47% of total cloud services and license support revenues, up from 42% in 2022 and 41% in 2021. The company’s applications offerings include its Oracle Cloud Software-as-a-Service (SaaS) solutions, which provide customers with various software applications with flexible deployment models.
Oracle’s SaaS offerings cover a wide range of core business functions such as Enterprise Resource Planning (ERP), Enterprise Performance Management (EPM), Supply Chain and Manufacturing Management (SCM), Human Capital Management (HCM), Sales, Service, Marketing, and industry-specific solutions. Oracle’s SaaS capabilities simplify customer IT environments, reduce implementation and upgrade time, enable agility, minimize risk, and provide an intuitive user experience for both casual and experienced users.
Furthermore, Oracle’s infrastructure technologies are marketed, sold, and delivered through its cloud and license business and hardware business. The infrastructure cloud services and license support revenues represented 53% of total cloud services and license support revenues in fiscal 2023, down from 58% in 2022 and 59% in 2021.
One of the major offerings within Oracle’s infrastructure technologies is Oracle Cloud Infrastructure (OCI). OCI provides cloud-based compute, storage, and networking capabilities, among other services, to customers who can leverage the Oracle Cloud for enterprise-grade, high-performance, scalable, cost-effective, and secure infrastructure technologies. The company continues to invest in OCI to improve its features and performance, expand its catalog of cloud-based tools and services, and increase its geographic footprint.
Conclusion
In summary, Oracle Corporation has experienced a substantial increase in customer demand for its cloud services, resulting in a higher proportion of revenue generated through its cloud services offerings. This growth reflects the wider industry trend towards adopting cloud-based applications and infrastructure capabilities, as organizations recognize the value of deploying solutions through a lower cost, rapidly deployable, flexible, and interoperable services model. As Oracle continues to innovate and invest in its cloud services, the company is well-positioned to capture a more significant market share in the ever-growing cloud services industry.
Income Statement
Financials in millions USD. Fiscal year is June – May. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 – 1992 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | Revenue | 42440 | 40479 | 39068 | 39506 | 39383 | 37792 | 37047 | 38226 | 38275 | 37180 | Upgrade |
| 1 | Revenue Growth (YoY) | 4.84% | 3.61% | -1.11% | 0.31% | 4.21% | 2.01% | -3.08% | -0.13% | 2.95% | 0.16% | Upgrade |
| 2 | Cost of Revenue | 8877 | 7855 | 7938 | 7995 | 8060 | 7452 | 7479 | 7532 | 7236 | 7379 | Upgrade |
| 3 | Gross Profit | 33563 | 32624 | 31130 | 31511 | 31323 | 30340 | 29568 | 30694 | 31039 | 29801 | Upgrade |
| 4 | Selling, General & Admin | 9364 | 8936 | 9275 | 9774 | 9715 | 9257 | 9039 | 8732 | 8605 | 8134 | Upgrade |
| 5 | Research & Development | 7219 | 6527 | 6067 | 6026 | 6084 | 6153 | 5787 | 5524 | 5151 | 4850 | Upgrade |
| 6 | Other Operating Expenses | 6054 | 1948 | 1892 | 2176 | 2260 | 2017 | 2138 | 2567 | 2524 | 2133 | Upgrade |
| 7 | Operating Expenses | 22637 | 17411 | 17234 | 17976 | 18059 | 17427 | 16964 | 16823 | 16280 | 15117 | Upgrade |
| 8 | Operating Income | 10926 | 15213 | 13896 | 13535 | 13264 | 12913 | 12604 | 13871 | 14759 | 14684 | Upgrade |
| 9 | Interest Expense / Income | 2755 | 2496 | 1995 | 2082 | 2025 | 1798 | 1467 | 1143 | 914 | 797 | Upgrade |
| 10 | Other Expense / Income | 522 | -282 | -162 | -815 | -1185 | -565 | -305 | -106 | 141 | -11 | Upgrade |
| 11 | Pretax Income | 7649 | 12999 | 12063 | 12268 | 12424 | 11680 | 11442 | 12834 | 13704 | 13898 | Upgrade |
| 12 | Income Tax | 932 | -747 | 1928 | 1185 | 8837 | 2228 | 2541 | 2896 | 2749 | 2973 | Upgrade |
| 13 | Net Income | 6717 | 13746 | 10135 | 11083 | 3587 | 9452 | 8901 | 9938 | 10955 | 10925 | Upgrade |
| 14 | Net Income Growth | -51.13% | 35.63% | -8.55% | 208.98% | -62.05% | 6.19% | -10.43% | -9.28% | 0.27% | 9.46% | Upgrade |
| 15 | Shares Outstanding (Basic) | 2700 | 2945 | 3211 | 3634 | 4121 | 4115 | 4221 | 4404 | 4528 | 4769 | Upgrade |
| 16 | Shares Outstanding (Diluted) | 2786 | 3022 | 3294 | 3732 | 4238 | 4217 | 4305 | 4503 | 4604 | 4844 | Upgrade |
| 17 | Shares Change | -7.81% | -8.26% | -11.74% | -11.94% | 0.50% | -2.04% | -4.40% | -2.19% | -4.95% | -4.93% | Upgrade |
| 18 | EPS (Basic) | 2.49 | 4.67 | 3.16 | 3.05 | 0.87 | 2.30 | 2.11 | 2.26 | 2.42 | 2.29 | Upgrade |
| 19 | EPS (Diluted) | 2.41 | 4.55 | 3.08 | 2.97 | 0.85 | 2.24 | 2.07 | 2.21 | 2.38 | 2.26 | Upgrade |
| 20 | EPS Growth | -47.03% | 47.73% | 3.70% | 249.41% | -62.05% | 8.21% | -6.33% | -7.14% | 5.31% | 15.31% | Upgrade |
| 21 | Free Cash Flow Per Share | 1.86 | 4.67 | 3.60 | 3.55 | 3.31 | 2.94 | 2.96 | 3.00 | 3.17 | 2.85 | Upgrade |
| 22 | Dividend Per Share | 1.280 | 1.040 | 0.960 | 0.810 | 0.760 | 0.640 | 0.600 | 0.510 | 0.480 | 0.300 | Upgrade |
| 23 | Dividend Growth | 23.08% | 8.33% | 18.52% | 6.58% | 18.75% | 6.67% | 17.65% | 6.25% | 60.00% | 25.00% | Upgrade |
| 24 | Gross Margin | 79.08% | 80.59% | 79.68% | 79.76% | 79.53% | 80.28% | 79.81% | 80.30% | 81.09% | 80.15% | Upgrade |
| 25 | Operating Margin | 25.74% | 37.58% | 35.57% | 34.26% | 33.68% | 34.17% | 34.02% | 36.29% | 38.56% | 39.49% | Upgrade |
| 26 | Profit Margin | 15.83% | 33.96% | 25.94% | 28.05% | 9.11% | 25.01% | 24.03% | 26.00% | 28.62% | 29.38% | Upgrade |
| 27 | Free Cash Flow Margin | 11.85% | 33.97% | 29.63% | 32.63% | 34.66% | 32.03% | 33.73% | 34.50% | 37.47% | 36.51% | Upgrade |
| 28 | Effective Tax Rate | 12.18% | -5.75% | 15.98% | 9.66% | 71.13% | 19.08% | 22.21% | 22.57% | 20.06% | 21.39% | Upgrade |
| 29 | EBITDA | 13526 | 18411 | 17026 | 17269 | 17234 | 15929 | 15418 | 16838 | 17526 | 17626 | Upgrade |
| 30 | EBITDA Margin | 31.87% | 45.48% | 43.58% | 43.71% | 43.76% | 42.15% | 41.62% | 44.05% | 45.79% | 47.41% | Upgrade |
| 31 | Depreciation & Amortization | 3122 | 2916 | 2968 | 2919 | 2785 | 2451 | 2509 | 2861 | 2908 | 2931 | Upgrade |
| 32 | EBIT | 10404 | 15495 | 14058 | 14350 | 14449 | 13478 | 12909 | 13977 | 14618 | 14695 | Upgrade |
| 33 | EBIT Margin | 24.51% | 38.28% | 35.98% | 36.32% | 36.69% | 35.66% | 34.84% | 36.56% | 38.19% | 39.52% | Upgrade |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!