Despite some uncertainty surrounding currency fluctuations, Oracle (ticker: ORCL) presented an optimistic outlook on their financial performance for the year ending May 31, 2023. Boosted by a strategic acquisition and strong financial growth across business segments, Oracle’s success can be attributed to various factors, including strong cloud and license support revenue, increased demand for their hardware products, and favorable market conditions.
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Strong Growth Across Three Main Businesses
According to the company’s SEC report, Oracle’s total revenue in constant currency increased by 22% in fiscal 2023 as compared to fiscal 2022, reflecting strong growth across its three main businesses – cloud and license, hardware, and services. A key driver of this growth was the acquisition of Cerner, which contributed $5.9 billion to Oracle’s total revenues in fiscal 2023.
The cloud and license business reported an 18% increase in constant currency revenues, driven by higher cloud services and license support revenues. Customers continued to invest in Oracle’s applications and infrastructure technologies, and also renewed related cloud contracts and license support contracts to benefit from the latest versions and support services. The hardware business experienced a 6% increase in constant currency revenues, primarily due to demand for Oracle Exadata and other strategic hardware product offerings. Furthermore, the services business saw an impressive 81% growth in constant currency revenues, with an increase reported in each primary services offering.
Positive Geographic Revenue Distribution
Oracle’s geographic revenue distribution also showed positive trends, with the Americas being the largest contributor to constant currency total revenue growth, accounting for 84%, followed by the EMEA region contributing 10%, and the Asia Pacific region accounting for 6%. Additionally, the company’s operating margin and total operating margin as a percentage of revenues increased in fiscal 2023, showcasing a strong financial position for Oracle.
Lower Operating Expenses and Successful Acquisition Strategies
Though the company reported increasing operating expenses owing to its acquisition of Cerner and other investments, the constant currency total operating expenses were significantly lower than those in fiscal 2022, which had been affected by $4.7 billion in litigation-related charges. This suggests that Oracle’s acquisition and expansion strategies are proving to be successful and well-timed.
Conclusion
In conclusion, Oracle’s financial performance in fiscal 2023 highlights its steady growth, competitive strength, and adaptability in a rapidly changing industry landscape. As the company continues to make strategic acquisitions and invest in its core businesses, the potential for future success remains high. It’s important, however, to keep an eye on how external factors such as changing foreign currency rates and economic conditions may impact Oracle’s financial growth and overall strategy.
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!