Oracle Corp Q4 2024 Financial Report

Introduction

On June 14, 2024, Oracle Corp. (NYSE: ORCL) released its financial results for the fourth quarter and fiscal year (FY) 2024, ending May 31, 2024. The report showcases impressive growth in cloud revenue and strong financial performance across multiple metrics, marking a significant phase in Oracle's strategic pivot to cloud services.

Financial Highlights

Revenue

The total revenue for FY 2024 amounted to $52.96 billion. Revenue from cloud services, comprising SaaS and IaaS, was a key driver of this growth. Total cloud revenue, excluding contributions from Cerner, reached $17.2 billion, representing a 26% year-over-year increase.

Cloud Services and License Support

Oracle achieved $10.2 billion in total cloud services and license support revenue in Q4, reflecting a 10% year-over-year increase. Notably, SaaS revenue grew by 10% to $3.3 billion, and IaaS revenue surged by 42% to $2 billion, underscoring the growing demand for Oracle's cloud solutions.

Gross Profit and Margins

The gross profit for the year stood at $34.81 billion, with a gross profit margin of 65.72%. Oracle's strategic focus on cloud services has led to higher efficiency, driving an operating income of $16.07 billion and an operating income ratio of 30.34%.

Operating Expenses

Oracle’s operating expenses for FY 2024 were $18.74 billion. This includes Research and Development (R&D) expenses of $8.92 billion and Selling, General, and Administrative (SG&A) expenses totaling $9.82 billion.

Net Income

Oracle reported a net income of $10.47 billion for FY 2024, resulting in a net profit margin of 19.76%. Earnings per share (EPS) was reported at $3.81, with diluted EPS at $3.71.

Cash Flow

The company generated an operating cash flow of $18.67 billion and a free cash flow of $11.81 billion. Additionally, Oracle's capital expenditures for the year totaled $6.87 billion.

Balance Sheet

Oracle's total assets by the end of FY 2024 reached $140.98 billion. Cash and cash equivalents stood at $10.45 billion, while goodwill—primarily from acquisitions—amounted to $62.23 billion. The company’s total liabilities were $131.74 billion, with long-term debt constituting $76.26 billion. Total stockholders’ equity was reported at $9.24 billion, reflecting the company's strong financial foundation.

Strategic Achievements

Cloud Infrastructure Expansion

Oracle made significant strides in its cloud infrastructure, launching multiple new data centers and entering into high-profile partnerships. The company's Remaining Performance Obligation (RPO) surged to $98 billion, marking a 44% increase from Q3, driven by substantial contracts with leading AI and tech companies.

Multi-Cloud Strategy

Oracle continues to push its multi-cloud strategy, enhancing its interoperability with other leading cloud providers. Notably, Oracle announced a new partnership with Google Cloud, enabling seamless customer access to Oracle Database Services running on Oracle Cloud Infrastructure (OCI) within Google Cloud data centers.

Outlook for FY 2025

Looking forward, Oracle expects continued robust demand for its cloud offerings, with forecasts indicating double-digit revenue growth for FY 2025. The company anticipates an increase in CapEx to support the expanding cloud capacity and meet the substantial customer backlog and growing pipeline demands.

For further details, view the complete financial report here.