Oracle Announces Fiscal 2021 Third Quarter Financial Result

Oracle Corporation (NYSE: ORCL)
Oracle Corporation (NYSE: ORCL) today announced fiscal 2021 Q3 results. Total quarterly revenues were up 3% year-over-year to $10.1 billion.

Karachi, March 11, 2021: Oracle Corporation (NYSE: ORCL) has announced fiscal 2021 Q3 results. Total quarterly revenues were up 3 percent year-over-year to $10.1 billion. Cloud services and license support revenues were up 5 percent to $7.3 billion. Cloud license and on-premise license revenues were up 4 percent to $1.3 billion. 

Q3 GAAP operating income was up 10 percent to $3.9 billion and GAAP operating margin was 38 percent. Non-GAAP operating income was up 10 percent to $4.8 billion and non-GAAP operating margin was 47 percent. GAAP net income was up 95 percent to $5.0 billion, and GAAP earnings per share was up 113 percent to $1.68. The GAAP income statement was impacted by a one-time net tax benefit totaling $2.3 billion related to the transfer of certain assets between subsidiaries. Non-GAAP net income was up 10 percent to $3.5 billion, and non-GAAP earnings per share was up 20 percent to $1.16. 

Short-term deferred revenues were $8.1 billion. Operating cash flow was $14.7 billion during the trailing twelve months. 

“We continued to extend our huge lead in the cloud ERP market as Fusion ERP grew 30 percent and NetSuite ERP grew 24 percent in Q3,” said Oracle CEO, Safra Catz. “Oracle’s rapidly growing highly-profitable, multi-billion dollar cloud ERP businesses helped drive subscription revenue up 5 percent and operating income up 10 percent in the quarter. Subscription revenue now accounts for 72 percent of Oracle’s total revenues, and this highly predictable recurring revenue-stream along with expense discipline are enabling double-digit increases in non-GAAP earnings per share.” 

“Once again in Q3, Oracle’s Gen2 Cloud Infrastructure business added customers, and grew revenue at a rate in excess of 100 percent,” said Oracle Chairman and CTO, Larry Ellison. “We are opening new regions as fast as we can to support our rapidly growing multi-billion dollar infrastructure business. On the applications front, analysts continue to rank Oracle the clear number one in cloud ERP, and this quarter Oracle signed contracts totaling hundreds of millions of dollars to migrate several more large companies from SAP ERP to Oracle Fusion ERP.” 

The Board of Directors increased the authorization for share repurchases by $20 billion. Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.32 per share of outstanding common stock, reflecting a 33 percent increase over the current quarterly dividend of $0.24. Larry Ellison, Oracle’s Chairman of the Board of Directors, Chief Technology Officer and largest stockholder, did not participate in the deliberation, or the vote on this matter. This increased dividend will be paid to stockholders of record as of the close of business on April 8, 2021, with a payment date of April 22, 2021.

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