Oracle Corp. Files Q1 2025 10-Q

TL;DR

ORCL Q1 24 results are in. Cloud services remain the focus.

AI Summary

Oracle Corp. filed its 10-Q for the period ending August 31, 2024. The filing details financial performance across its various business segments, including Cloud Services and License Support, which is a key revenue driver. The company's financial statements and disclosures provide insights into its operational results and strategic positioning for the fiscal year.

Why It Matters

This filing provides investors and analysts with Oracle's latest financial performance data, crucial for understanding the company's trajectory in the competitive cloud and software market.

Risk Assessment

Risk Level: medium — The company operates in a highly competitive and rapidly evolving technology sector, facing risks related to market share, innovation, and economic conditions.

Key Numbers

• 2024-08-31 — Reporting Period End Date (Indicates the end of the fiscal quarter being reported.)
• 2024-06-01 — Reporting Period Start Date (Indicates the start of the fiscal quarter being reported.)

Key Players & Entities

• ORACLE CORP (company) — Filer
• 20240831 (date) — Period of Report
• 2300 ORACLE WAY (address) — Business Address
• AUSTIN (city) — Business Address City
• TX (state) — Business Address State
• 78741 (zip_code) — Business Address Zip
• 0000950170-24-104905 (accession_number) — Filing Accession Number

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share 3.125% senior notes due Jul

Filing Documents

• orcl-20240831.htm (10-Q) — 1991KB
• orcl-ex31_01.htm (EX-31.01) — 18KB
• orcl-ex32_01.htm (EX-32.01) — 10KB
• 0000950170-24-104905.txt ( ) — 7516KB
• orcl-20240831.xsd (EX-101.SCH) — 1057KB
• orcl-20240831_htm.xml (XML) — 1277KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets as of August 31, 2024 and May 31, 2024 3 Condensed Consolidated Statements of Operations for the Three Months Ended August 31, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended August 31, 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended August 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Three Months Ended August 31, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37 PART II. OTHER INFORMATION 38 Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 6. Exhibits 39

Signatures

Signatures 40 Table of Contents Cautionary Note on Forward-Looking Statements For purposes of this Quarterly Report on Form 10-Q (this Quarterly Report), the terms "Oracle," "we," "us" and "our" refer to Oracle Corporation and its consolidated subsidiaries. This Quarterly Report contains statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the Securities Act of 1933, as amended (the Securities Act). These include, among other things, statements regarding: our expectation that we may acquire, and realize the anticipated benefits of acquiring, companies, products, services and technologies to further our corporate strategy as compelling opportunities become available; our expectation that, on a constant currency basis, our total cloud and license revenues generally will continue to increase due to expected growth in our cloud services and continued demand for our cloud license and on-premise license and license support offerings; our expectation that substantially all of our customers will renew their license support contracts upon expiration; our expectation that current and expected customer demand will require continued growth in our cloud services and license support expenses in order to increase our existing data center capacity and establish additional data centers in new geographic locations; our expectation that our hardware business will have lower operating margins as a percentage of revenues than our cloud and license business; our expectation that we will continue to make significant investments in research and development to maintain and improve our current products and service offerings, and our belief that research and development efforts are essential to maintaining our competitive posi

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

Financial St atements (Unaudited)

Item 1. Financial St atements (Unaudited) ORACLE CORPORATION CONDENSED CONSOLIDA TED BALANCE SHEETS As of August 31, 2024 and May 31, 2024 (Unaudited) (in millions, except per share data) August 31, 2024 May 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 10,616 $ 10,454 Marketable securities 295 207 Trade receivables, net of allowances for credit losses of $ 574 and $ 485 as of August 31, 2024 and May 31, 2024, respectively 8,021 7,874 Prepaid expenses and other current assets 4,140 4,019 Total current assets 23,072 22,554 Non-current assets: Property, plant and equipment, net 23,094 21,536 Intangible assets, net 6,270 6,890 Goodwill, net 62,249 62,230 Deferred tax assets 12,219 12,273 Other non-current assets 17,310 15,493 Total non-current assets 121,142 118,422 Total assets $ 144,214 $ 140,976 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable and other borrowings, current $ 9,201 $ 10,605 Accounts payable 2,207 2,357 Accrued compensation and related benefits 1,772 1,916 Deferred revenues 11,455 9,313 Other current liabilities 7,410 7,353 Total current liabilities 32,045 31,544 Non-current liabilities: Notes payable and other borrowings, non-current 75,314 76,264 Income taxes payable 11,038 10,817 Deferred tax liabilities 3,442 3,692 Other non-current liabilities 11,106 9,420 Total non-current liabilities 100,900 100,193 Commitments and contingencies Oracle Corporation stockholders' equity: Preferred stock, $ 0.01 par value—authorized: 1.0 shares; outstanding: none — — Common stock, $ 0.01 par value and additional paid in capital—authorized: 11,000 shares; outstanding: 2,771 shares and 2,755 shares as of August 31, 2024 and May 31, 2024, respectively 33,083 32,764 Accumulated deficit ( 20,939 ) ( 22,628 ) Accumulated other compre

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View this 10-Q filing on SEC EDGAR