Oracle Reports Robust Fiscal 2024 Q4 and Full-Year Financial Results

Oracle Corporation (NYSE: ORCL) has announced its fiscal 2024 Q4 and full-year financial results, showcasing a notable increase in revenues and operating income, driven by strong demand in cloud services and AI training models, according to Oracle blog.

Q4 and Full-Year Financial Highlights

For the fourth quarter, Oracle reported a 3% year-over-year increase in total revenues, reaching $14.3 billion, and a 4% rise in constant currency. Cloud services and license support revenues saw a significant 9% boost in USD, amounting to $10.2 billion, and a 10% increase in constant currency. However, cloud license and on-premise license revenues declined by 15% in USD and 14% in constant currency, totaling $1.8 billion.

Q4 GAAP operating income stood at $4.7 billion, while non-GAAP operating income was reported at $6.7 billion, marking an 8% increase in USD and 9% in constant currency. The GAAP operating margin was 33%, with a non-GAAP operating margin of 47%. GAAP net income for the quarter was $3.1 billion, and non-GAAP net income reached $4.6 billion. GAAP earnings per share (EPS) were $1.11, whereas non-GAAP EPS was $1.63.

Short-term deferred revenues were $9.3 billion, and operating cash flow for the fiscal year 2024 was $18.7 billion, up 9% in USD.

Full-Year Performance

For the full fiscal year 2024, Oracle's total revenues increased by 6% in both USD and constant currency, reaching $53.0 billion. Cloud services and license support revenues rose by 12% in USD and 11% in constant currency, totaling $39.4 billion. Conversely, cloud license and on-premise license revenues decreased by 12% in both USD and constant currency, amounting to $5.1 billion.

GAAP operating income for the fiscal year was $15.4 billion, with a GAAP operating margin of 29%. Non-GAAP operating income was $23.1 billion, and the non-GAAP operating margin was 44%. GAAP net income reached $10.5 billion, while non-GAAP net income was $15.7 billion. GAAP EPS was $3.71, and non-GAAP EPS was $5.56.

AI and Cloud Collaboration

Oracle's CEO, Safra Catz, highlighted the impact of AI on the company's performance, noting, "In Q3 and Q4, Oracle signed the largest sales contracts in our history—driven by enormous demand for training AI large language models in the Oracle Cloud.” These contracts significantly boosted Oracle's remaining performance obligation (RPO) by 44% to $98 billion.

Larry Ellison, Oracle's Chairman and CTO, emphasized the company's expanded multicloud cooperation with Microsoft in Q4, supporting OpenAI and ChatGPT. Ellison mentioned that 11 out of the 23 OCI data centers being built inside Azure are now operational, enhancing cloud database growth. Additionally, Oracle has signed an agreement with Google to interconnect their clouds, with 12 OCI data centers expected to go live within the Google Cloud by September 2024.

Dividend Declaration

The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock, payable to stockholders of record as of July 11, 2024, with a payment date of July 25, 2024.

Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast to discuss these results at 4:00 p.m. Central. A live and replay webcast will be accessible on the Oracle Investor Relations website.