The American multinational software and technology corporation, Oracle Corp (ticker: ORCL), has reported a 14% increase in its cloud and license revenues, totaling $41.1 billion, in fiscal 2023. The growth can be mainly attributed to the rise in demand for Oracle’s cloud services, license support offerings, and the acquisition of Cerner Corp. Oracle’s cloud services revenue alone saw a 47% growth year-over-year, reaching $15.9 billion. In addition, the company saw a 212% growth in the amortization of intangible assets, totaling $3.6 billion in fiscal 2023.
Oracle’s acquisition of Cerner, a healthcare information technology provider, contributed significantly to both the top- and bottom-line growth. Cerner contributed $3.6 billion to the cloud and license business revenues in the reported period, while the hardware revenues increased by 9% due to a $140 million contribution from Cerner.
On a constant currency basis, total research and development expenses saw a 21% growth, amounting to $8.6 billion in fiscal 2023. This increase can be primarily attributed to higher employee-related expenses and the acquisition of Cerner. Operating expenses associated with Oracle’s hardware business, such as the cost of hardware products, materials, labor, warranty and related expenses, infrastructure, sales, and marketing expenses, largely rely on personnel and technology infrastructure expenditures, facilities expenses, and external contractor expenses.
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Geographical Revenue Breakdown
Geographically, the Americas, Europe, the Middle East, and Africa (EMEA), and the Asia Pacific regions contributed 84%, 9%, and 7% respectively to the constant currency revenue growth of Oracle’s cloud and license business during fiscal 2023. In terms of geographic revenue contribution, the Americas represented 63%, followed by EMEA with 24%, and Asia Pacific with 13%.
Services Business Growth
The services business also reported a 75% increase in total revenues, reaching $5.6 billion in fiscal 2023, mainly due to the Cerner acquisition and increased revenues across its primary offerings. The growth in the services business contributed heavily to the company’s overall margin, with the total margin percentage reaching 20% in fiscal 2023.
Hardware Business Performance
Despite facing global supply chain shortages for technology components, resulting in manufacturing delays, the hardware business’ revenues increased by 6%, totaling $3.3 billion in fiscal 2023. In constant currency, total hardware expenses and margin increased by 6% each, resulting in a flat total margin percentage of 59%.
Overall, the growth in Oracle’s cloud and license business, hardware business, and services business, along with the acquisition of Cerner, indicates a strong financial performance for the company in fiscal 2023.
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 |
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