Oracle (ORCL) earnings Q2 2023

0
142


Safra Catz, Oracle’s CEO and then one of Oracle’s two co-CEOs, smiles during Oracle’s OpenWorld conference in San Francisco on, Sept. 20, 2016.

David Paul Morris | Bloomberg | Getty Images

Oracle shares rose as much as 4% in extended trading on Monday after the software company reported results for the fiscal second quarter that topped analysts’ estimates.

Here’s how the company did:

  • Earnings: $1.21 per share, adjusted, vs. $1.18 per share as expected by analysts, according to Refinitiv.
  • Revenue: $12.28 billion, vs. $12.05 billion as expected by analysts, according to Refinitiv.

Oracle’s total revenue grew 18% year over year in the quarter, which ended on Nov. 30, according to a statement. Health care software company Cerner, which Oracle acquired for $28 billion in June, contributed $1.5 billion in revenue.

Without the impact from foreign-exchange rates, Oracle’s adjusted earnings would have been 9 cents higher, the company said. Revenue for the quarter was over $200 million above the high end of its guidance range, Safra Catz, Oracle’s CEO, said in the statement. She cited strength in cloud infrastructure and cloud-based applications.

Net income was $1.74 billion, compared with a net loss of $1.25 billion in the year-ago quarter. Last year’s loss came in connection to a payment for a judgment tied to Mark Hurd, who previously served as co-CEO alongside Catz. Hurd died in 2019.

Oracle widened its adjusted operating margin to 41% from 39% in the previous quarter. Revenue in the company’s cloud services and license support segment increased 14% to $8.6 billion, higher than the $8.56 billion consensus among analysts polled by StreetAccount. Revenue from cloud infrastructure jumped 53% to $1 billion.

Revenue from cloud and on-premises licenses, at $1.44 billion, exceeded the $1.24 billion StreetAccount consensus.

In the quarter Oracle announced Alloy, a means for partners to run the company’s cloud services in their own data centers. Separately, the U.S. Securities and Exchange Commission fined Oracle $23 million over alleged violations of the Foreign Corrupt Practices Act.

Oracle said it was aiming for $65 billion in organic revenue, including Cerner’s contribution, in the 2026 fiscal year, with a 45% adjusted operating margin.

Prior to the after-hours move, shares of Oracle are down about 7% for the year, while the S&P 500 index has tumbled 15% over the same period.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

WATCH: Two takes on the software space with Baird’s Will Power and Mighty Capital’s SC Moatti

Two takes on the software space with Baird's Will Power and Mighty Capital's SC Moatti



Source link