Oracle RPO Soars 44% to $98 Billion

Oracle Corporation (NYSE: ORCL) has released its fiscal 2024 fourth-quarter and full-year financial results. The company's total remaining performance obligations (RPO) for Q4 surged by a substantial 44% to reach $98 billion, indicating significant demand and future revenue potential.

In Q4, Oracle's GAAP earnings per share stood at $1.11, while non-GAAP earnings per share were reported at $1.63. The total revenue for the quarter amounted to $14.3 billion, marking a 3% increase in USD and a 4% increase in constant currency compared to the same period last year.

Cloud revenue, including Infrastructure as a Service (IaaS) and Software as a Service (SaaS), experienced robust growth, reaching $5.3 billion, up 20% in USD and constant currency. Within the cloud segment, IaaS revenue specifically surged by 42% to $2.0 billion, while SaaS revenue increased by 10% to $3.3 billion. Notably, Fusion Cloud ERP (SaaS) revenue and NetSuite Cloud ERP (SaaS) revenue both demonstrated healthy growth, up 14% and 19% in USD and constant currency, respectively.

For the fiscal year 2024, Oracle reported total revenues of $53.0 billion, up 6% in USD and constant currency. Cloud services and license support revenues saw a substantial increase of 12% in USD and 11% in constant currency, amounting to $39.4 billion. However, cloud license and on-premise license revenues experienced a decline, down 12% in both USD and constant currency to $5.1 billion.

In terms of operating income, Q4 GAAP operating income was $4.7 billion, with non-GAAP operating income reaching $6.7 billion, marking an 8% increase in USD and a 9% increase in constant currency. For the full fiscal year, GAAP operating income stood at $15.4 billion, with non-GAAP operating income reaching $23.1 billion, representing a 44% non-GAAP operating margin.

Oracle's short-term deferred revenues reached $9.3 billion, while operating cash flow for fiscal year 2024 surged by 9% in USD to $18.7 billion.

Safra Catz, CEO of Oracle, highlighted the company's record-level sales in Q3 and Q4, which propelled the RPO to $98 billion. Notably, Oracle signed over 30 AI sales contracts totaling more than $12.5 billion in Q4. Catz anticipates continued strong AI demand, projecting double-digit revenue growth for the upcoming fiscal year.

Larry Ellison, Chairman and CTO of Oracle, emphasized the significant expansion of their multicloud cooperation with Microsoft in Q4. The collaboration aims to support OpenAI and ChatGPT, with 11 out of the 23 OCI data centers built inside Azure going live. Additionally, Oracle has initiated an agreement with Google to interconnect their clouds, with plans to build 12 OCI data centers inside the Google Cloud.

In light of these results, Oracle's board of directors has declared a quarterly cash dividend of $0.40 per share of outstanding common stock.

The company will be hosting a conference call and webcast today to discuss these results, providing investors and stakeholders with an opportunity to gain further insights into Oracle's financial performance. Today the company's shares have moved -0.5% to a price of $123.88. For the full picture, make sure to review Oracle's 8-K report.

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