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

According to news in the morning of March 10, Beijing time, Oracle today released its financial results for the third quarter of fiscal 2023.

According to the report, Oracle's total revenue in the third quarter was $12.398 billion, an increase of 18% compared with $10.513 billion in the same period last year, and 21% year-on-year growth excluding exchange rate changes. Net profit was $1.896 billion, down 18% from $2.319 billion in the same period last year, and 13% excluding exchange rate changes Excluding one-time items (not in accordance with US GAAP), Oracle's adjusted net profit was $3.382 billion, up 9 per cent from $3.102 billion in the same period last year, and 13 per cent year-on-year excluding exchange rate changes.

Oracle's third-quarter adjusted diluted earnings per share beat Wall Street analysts' expectations, but revenue was slightly lower than expected. From the performance of each business, with the exception of cloud services and authorization support business revenue exceeded expectations, other business revenue failed to meet expectations. Oracle's shares fell nearly 4 per cent after the results were released.

Main results of the third quarter: for the quarter ended February 28, 2023, Oracle's net profit was $1.896 billion, down 18% from $2.319 billion in the same period last year, and 13% year-on-year, excluding exchange rate changes; diluted earnings per share were $0.68, down 19% from $0.84 per share in the same period last year, and 14% excluding exchange rate changes.

In the third quarter of fiscal 2023, excluding one-time items (not in accordance with GAAP), Oracle's adjusted net profit was $3.382 billion, an increase of 9% compared with $3.102 billion in the same period last year. Excluding the impact of exchange rate changes, an increase of 13% year-on-year Adjusted diluted earnings per share were $1.22, up 8 per cent from 1.13 in the same period last year, and 13 per cent year-on-year, excluding currency changes, which exceeded Wall Street analysts' expectations. On average, 24 analysts had expected Oracle's adjusted earnings per share to reach $1.20 in the third quarter, according to Yahoo Finance.

Oracle's total revenue in the third quarter was $12.398 billion, up 18% from $10.513 billion in the same period last year, and 21% year-on-year, excluding currency changes. Excluding one-time items (not in accordance with GAAP), Oracle's third-quarter revenue was also $12.398 billion, up 18% from $10.513 billion in the same period last year, and 21% year-on-year, excluding currency changes. the performance was slightly lower than analysts had expected. On average, 21 analysts had expected Oracle's third-quarter revenue to reach $12.42 billion, according to Yahoo Finance.

Oracle's third-quarter operating profit was $3.26 billion, down 15 per cent from $3.822 billion in the same period last year, and 11 per cent year-on-year, excluding currency changes; operating profit margin was 26 per cent, compared with 36 per cent in the same period last year. Excluding one-time items (not in accordance with US GAAP), Oracle's adjusted operating profit in the third quarter was $5.185 billion, up 8 per cent from $4.814 billion in the same period last year, and 11 per cent year-on-year excluding exchange rate changes; operating profit margin was 42 per cent, compared with 46 per cent in the same period last year.

Operating expenses: Oracle's total operating expenses in the third quarter were $9.138 billion, up 37% from $6.691 billion in the same period last year, and 39% year-on-year, excluding currency changes. Oracle's total operating expenses accounted for 74% of revenue in the third quarter, compared with 64% in the same period last year. Where:

-the expenditure on cloud services and authorization support was US $1.98 billion, an increase of 52% compared with US $1.305 billion in the same period last year, and 54% year-on-year growth excluding exchange rate changes. Cloud services and authorization support expenditure accounted for 16% of revenue, compared with 13% in the same period last year.

-hardware spending was $244 million, unchanged from $244 million in the same period last year, with a year-on-year increase of 2 per cent excluding exchange rate changes; hardware expenditure accounted for 2 per cent of revenue, compared with 2 per cent in the same period last year.

-Services expenditure was $1.215 billion, an increase of 81 per cent compared with $669 million in the same period last year, and 87 per cent year-on-year growth excluding exchange rate changes; service expenditure accounted for 10 per cent of revenue, compared with 7 per cent in the same period last year.

-sales and marketing expenditure was $2.15 billion, up 7 per cent from $2.004 billion in the same period last year, and 10 per cent year-on-year, excluding exchange rate changes; sales and marketing expenses accounted for 18 per cent of revenue, compared with 19 per cent in the same period last year.

-R & D expenditure was $2.146 billion, an increase of 18% compared with $1.816 billion in the same period last year, and 20% year-on-year growth excluding exchange rate changes; R & D expenditure accounted for 17% of revenue, compared with 17% in the same period last year.

-General and administrative expenses were $402 million, an increase of 20 per cent compared with $335 million in the same period last year, and 22 per cent year-on-year growth excluding exchange rate changes; general and administrative expenses accounted for 3 per cent of revenue, compared with 3 per cent in the same period last year.

-amortization expenditure on intangible assets was $886 million, an increase of 217 per cent compared with $279 million in the same period last year, and 217 per cent year-on-year growth excluding exchange rate changes; amortization of intangible assets accounted for 7 per cent of revenue, compared with 3 per cent in the same period last year.

-M & A-related and other expenses were $37 million, up 90 per cent from $20 million in the same period last year, and 95 per cent year-on-year excluding exchange rate changes; M & A-related and other expenses accounted for about 0 per cent of revenue, compared with about 0 per cent in the same period last year.

-restructuring expenditure was $78 million, an increase of 311 per cent compared with $19 million in the same period last year, and 337 per cent year-on-year growth excluding exchange rate changes; restructuring expenditure accounted for about 1 per cent of revenue, compared with about 0 per cent in the same period last year.

Performance by division: revenue from Oracle's cloud services and authorization support business was $8.923 billion in the third quarter, up 17% from $7.637 billion in the same period last year, and 20% year-on-year growth excluding currency changes, exceeding analysts' expectations; accounted for 72% of total revenue, compared with 73% in the same period last year. On average, Wall Street analysts had expected revenue from Oracle's cloud services and licensing support business to reach $8.83 billion in the third quarter.

Oracle's third-quarter revenue from cloud licensing and on-site licensing was $1.288 billion, roughly the same as $1.289 billion in the same period last year. Excluding exchange rate changes, it grew by 4% year-on-year, falling short of analysts' expectations. It accounted for 10% of total revenue, compared with 12% in the same period last year. On average, Wall Street analysts had expected Oracle's cloud licensing and on-site licensing revenue to reach $1.39 billion in the third quarter.

Oracle's third-quarter hardware revenue was $811 million, up 2 per cent from $798 million in the same period last year. Excluding currency changes, it rose 4 per cent year-on-year, falling short of analysts' expectations; it accounted for 7 per cent of total revenue, compared with 8 per cent in the same period last year. On average, Wall Street analysts had expected Oracle's hardware revenue to reach $815.5 million in the third quarter.

Oracle's third-quarter revenue from its services business was $1.376 billion, up 74 per cent from $789 million in the same period last year. Excluding currency changes, it rose 80 per cent year-on-year, falling short of analysts' expectations; it accounted for 11 per cent of total revenue, compared with 7 per cent in the same period last year. On average, Wall Street analysts had expected Oracle's services revenue to reach $1.43 billion in the third quarter.

At the end of the third quarter, Oracle had short-term deferred revenue of $8.6 billion. Over the past 12 months, Oracle has an operating cash flow of $15.5 billion.

Other financial information: Oracle's board of directors announced that it plans to pay a quarterly cash dividend to common shareholders at a price of 40 cents per outstanding common share, a 25% increase from the current quarterly dividend of $0.32. The dividend will be paid to shareholders of record as of April 24, 2023, as of April 11, 2023.

Share price movements: Oracle shares fell $1.62, or 1.83%, to close at $86.87 in regular Nasdaq trading. Oracle shares fell another $3.28, or 3.78 per cent, to $83.59 in after-hours trading as of 04:48 est (05:48 Beijing time on Friday). In the past 52 weeks, Oracle's highest price is $91.22 and its lowest price is $60.78.

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