Oracle's 10-K Reveals Strong Cloud Revenue Growth

Oracle's 10-K filing for the fiscal year ended May 31, 2024, reveals a detailed breakdown of the company's business segments and financial performance. Here are the key highlights from the report:

Cloud and License Business: Represented 84% and 83% of total revenues in fiscal 2024 and 2023, respectively. Cloud services and license support revenues accounted for a significant portion of the business's revenue streams. Cloud services revenues represented 37%, 32%, and 25% of total revenues during fiscal 2024, 2023, and 2022, respectively. Expected growth in cloud services offerings and continued demand for cloud license and on-premise license and license support offerings are anticipated to contribute to future revenue growth.

Hardware Business: Represented 6% of total revenues in both fiscal 2024 and 2023. Provides a broad selection of enterprise hardware products and hardware-related software products. * Quarterly hardware revenues are difficult to predict due to various factors, including customer demand and economic conditions.

Services Business: Represented 10% and 11% of total revenues in fiscal 2024 and 2023, respectively. Offers consulting services and advanced customer services to help maximize the performance of Oracle applications and infrastructure technologies. * Services business has lower margins compared to the cloud and license and hardware businesses.

Acquisitions: Oracle has historically invested billions of dollars in acquiring complementary companies, products, services, and technologies. The company acquired Cerner in fiscal 2023 and made other acquisitions during fiscal 2024 and 2023.

Investment in Ampere Computing Holdings LLC: Oracle has made investments in Ampere, a related party entity, in the form of equity and convertible debt instruments. The total carrying value of Oracle's investments in Ampere was $1.5 billion and $1.2 billion as of May 31, 2024 and 2023, respectively. * Oracle owns an approximate 29% ownership interest in Ampere and also holds convertible debt investments in the company.

The market has reacted to these announcements by moving the company's shares -1.2% to a price of $142.91. If you want to know more, read the company's complete 10-K report here.

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