Oracle Reports Strong Q3 Financial Results

Oracle Corporation (NYSE: ORCL) has announced its fiscal 2024 third-quarter financial results, showing strong performance across various metrics. In Q3, the company reported a 7% year-over-year increase in total revenue to $13.3 billion, both in USD and constant currency, with cloud revenue (IAAS plus SAAS) reaching $5.1 billion, reflecting a 25% increase in USD and 24% in constant currency.

The company's total remaining performance obligations saw a substantial increase of 29% to $80 billion, setting an all-time record. Additionally, short-term deferred revenues were reported at $8.9 billion.

In terms of operating income, GAAP operating income was $3.8 billion, while non-GAAP operating income reached $5.8 billion, marking a 12% increase in both USD and constant currency. GAAP net income was $2.4 billion, with non-GAAP net income at $4.0 billion, representing an 18% increase in both USD and constant currency.

Moreover, the company's cloud infrastructure (IAAS) revenue showed significant growth, with a 49% increase in both USD and constant currency, reaching $1.8 billion. Cloud application (SAAS) revenue also demonstrated positive performance, reaching $3.3 billion, up 14% in both USD and constant currency. The specific segments within cloud application revenue, such as Fusion Cloud ERP (SAAS) and NetSuite Cloud ERP (SAAS), also showcased growth of 18% and 21% respectively, in both USD and constant currency.

Oracle also highlighted its strong operating cash flow and free cash flow, reporting $18.2 billion and $12.3 billion respectively over the last twelve months.

The company's CEO, Safra Catz, emphasized the significant increase in cloud infrastructure contracts and expressed the expectation of continued growth, with 43% of the current $80 billion of remaining performance obligations anticipated to be recognized as revenue over the next four quarters.

Furthermore, Oracle's Chairman and CTO, Larry Ellison, announced the successful transition of the majority of Cerner customers to Oracle's Gen2 cloud infrastructure, with plans to deliver a new ambulatory clinic cloud application suite in the upcoming quarter, featuring an integrated voice interface called the clinical digital assistant.

In parallel to its financial results, Oracle declared a quarterly cash dividend of $0.40 per share of outstanding common stock, to be paid on April 24, 2024, to stockholders of record as of April 10, 2024.

Today the company's shares have moved 1.5% to a price of $114.13. For the full picture, make sure to review Oracle's 8-K report.

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