Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen kkkkkkkkkayd for the clue delivery! Beijing time September 13 news, Oracle today released the company's fiscal year 2023 first quarter results. According to the report, Oracle's total revenue in the first quarter was $11.445 billion (about 79.428 billion yuan), an increase of 18% compared with $9.728 billion in the same period last year. Net profit was $1.548 billion (about RMB 10.743 billion), down 37% from $2.457 billion in the same period last year, and 29% excluding exchange rate changes. Adjusted net profit, excluding GAAP, was $2.828 billion, down 4 per cent from $2.944 billion a year earlier, and up 4 per cent year-on-year, excluding exchange rate changes.

Oracle's first-quarter revenue was basically in line with Wall Street analysts' expectations, but adjusted earnings per share fell short of expectations. Oracle's shares rose more than 1 per cent in after-hours trading after the announcement.

First quarter results: summary of results:

For the quarter ended August 31, Oracle's net profit was $1.548 billion, down 37% from $2.457 billion a year earlier, or 29% year-on-year, excluding exchange rate changes, and its net profit margin was 14%. Compared with 25% in the same period last year Diluted earnings per share were $0.56, down 34% from $0.86 a year earlier, and 26% year-on-year excluding exchange rate changes.

In the first quarter of fiscal 2023, excluding one-time items (not in accordance with GAAP), Oracle's adjusted net profit was $2.828 billion, down 4% from $2.944 billion in the same period last year. Excluding exchange rate changes, it increased by 4% year-on-year. Adjusted earnings per share were $1.03, unchanged from $1.03 a year earlier, up 8 per cent year-on-year, excluding currency changes, but failed to meet Wall Street analysts' expectations. Analysts had on average expected Oracle's adjusted earnings per share of $1.07 in the first quarter, according to Refinitiv, a provider of financial market data and infrastructure.

Oracle's total revenue in the first quarter was $11.445 billion, up 18% from $9.728 billion a year earlier, and 23% year-on-year, excluding currency changes, which was largely in line with analysts' expectations. On average, 19 analysts had expected Oracle's first-quarter revenue to reach $11.46 billion, according to Yahoo Finance.

Oracle's first-quarter operating profit was $2.623 billion, down 23 per cent from $3.427 billion a year earlier, and 17 per cent year-on-year, excluding currency changes; operating profit margin was 23 per cent, compared with 35 per cent a year earlier. Excluding one-time items (not in accordance with US GAAP), Oracle's adjusted operating profit in the first quarter was $4.477 billion, up 3 per cent from $4.334 billion in the same period last year, and 10 per cent year-on-year excluding exchange rate changes; adjusted operating profit margin was 39 per cent, compared with 45 per cent a year earlier.

Operating expenses:

Oracle's total operating expenses in the first quarter were $8.822 billion, up 40 per cent from $6.301 billion a year earlier, up 45 per cent year-on-year, excluding exchange rate changes, and accounting for 77 per cent of revenue, compared with 65 per cent in the same period last year. Where:

-expenditure on cloud services and authorization support was $1.735 billion, an increase of 43% compared with $1.214 billion in the same period last year, 48% year-on-year growth excluding exchange rate changes, and 15% of revenue, compared with 13% in the same period last year.

-hardware expenditure was $249 million, an increase of 2% compared with $245 million in the same period last year, 6% year-on-year growth excluding exchange rate changes, and 2% of revenue, unchanged from the same period last year.

-spending on services was $1.053 billion, up 63 per cent from $644 million in the same period last year, 72 per cent year-on-year excluding exchange rate changes, and 9 per cent of revenue, compared with 7 per cent in the same period last year.

-sales and marketing expenditure was $2.177 billion, an increase of 17% compared with $1.854 billion in the same period last year, 23% year-on-year growth excluding exchange rate changes, and 19% of revenue, unchanged from the same period last year.

-R & D expenditure was $2.093 billion, up 24% from $1.684 billion in the same period last year, 27% year-on-year, excluding exchange rate changes, and 19% of revenue, compared with 18% in the same period last year.

-General and administrative expenses were $411 million, an increase of 38 per cent compared with $298 million in the same period last year, 42 per cent year-on-year growth excluding exchange rate changes, and 4 per cent of revenue, compared with 3 per cent in the same period last year.

-amortization expenditure on intangible assets was $919 million, up 203 per cent from $303 million in the same period last year, 204 per cent year-on-year excluding exchange rate changes, and 8 per cent of revenue, compared with 3 per cent in the same period last year.

-M & A-related and other expenses were $41 million, up 106% from $21 million in the same period last year, 110% year-on-year, excluding exchange rate changes, and accounting for about 0% of revenue, the same as in the same period last year.

-restructuring expenditure was $144 million, up 276 per cent from $38 million in the same period last year, 310 per cent year-on-year, excluding exchange rate changes, and accounting for about 0 per cent of revenue, compared with about 0 per cent in the same period last year.

Performance of each department:

Oracle's first-quarter revenue from cloud services and authorization support was $8.417 billion, up 14 per cent from $7.371 billion a year earlier, up 20 per cent year-on-year, excluding exchange rate changes, and accounting for 73 per cent of total revenue, compared with 76 per cent in the same period last year.

Oracle's first-quarter revenue from cloud licensing and on-site licensing was $904 million, up 11 per cent from $813 million a year earlier, up 19 per cent year-on-year, excluding exchange rate changes, and accounted for 8 per cent of total revenue, compared with 8 per cent in the same period last year.

Oracle's first-quarter hardware revenue was $763 million, unchanged from $763 million a year earlier, up 5 per cent year-on-year, excluding currency changes, and accounting for 7 per cent of total revenue, compared with 8 per cent a year earlier.

Oracle's first-quarter revenue from its services business was $1.361 billion, up 74 per cent from $781 million a year earlier, up 84 per cent year-on-year, excluding exchange rate changes, and accounting for 12 per cent of total revenue, compared with 8 per cent in the same period last year.

At the end of the first quarter, Oracle had short-term deferred revenue of $10.5 billion. Over the past 12 months, Oracle has an operating cash flow of $10.5 billion.

Pay dividends:

Oracle announced today that its board of directors plans to pay a quarterly cash dividend to common shareholders at a price of $0.32 per share, which will be paid on October 25, 2022 to shareholders of record as of the end of business hours on October 12, 2022.

Executive comments:

Oracle CEO Safra Catz said: "in the first quarter, excluding currency changes, the company's total revenue increased by 23%, which is $200 million higher than our previous guidance. Even excluding the performance of Cerner (Oracle's previously acquired medical information company), total revenue, excluding currency changes, is up 8 per cent, driven by Oracle's fast-growing applications and infrastructure cloud business, which now accounts for more than 30 per cent of our total revenue. As our cloud business accounts for an increasing proportion of our overall business, we expect organic revenue growth excluding currency changes to reach double digits and earnings per share to grow accordingly. Cerner will also have a positive impact on revenue and earnings per share growth in the coming quarters as we fully integrate this business into Oracle and benefit from the resulting cost-effectiveness. This is our first quarter with Cerner, and the business has just had its best quarterly revenue in history. We expect Cerner to perform better in the coming quarters as we develop a new set of healthcare cloud services. "

Performance outlook:

Oracle expects adjusted earnings per share of between $1.16 and $1.20 in the second quarter of fiscal 2023, and revenue growth of between 15 and 17 per cent year-on-year, falling short of analysts' expectations. Analysts on average expect Oracle's adjusted earnings per share to reach $1.27 in the second quarter of 2023, on revenue of $12.17 billion, or nearly 18% year-on-year growth, according to Refinitiv, a provider of financial market data and infrastructure.

Katz said the exchange rate move would have a negative impact on the company's revenue by 5% to 6% in the second quarter, resulting in a negative impact on earnings per share of up to 7 cents.

Stock price response:

On the day, Oracle shares rose $1.17, or 1.54%, to $77.08 in regular Nasdaq trading. Oracle shares rose 97 cents, or 1.26%, to $78.05 in after-hours trading as of 06:11 EDT on Monday (06:11 Beijing time on Tuesday). In the past 52 weeks, Oracle's price has been as high as $106.34 and as low as $63.76.

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