Oracle Corporation (ORCL) Bundle
A Brief History of Oracle Corporation
Oracle Corporation, founded in 1977, has evolved into a leading provider of enterprise software and cloud computing solutions. As of 2024, Oracle continues to expand its cloud offerings while maintaining its core database business.
Financial Performance
For the first quarter of fiscal 2025, Oracle reported net income of $2.929 billion, an increase from $2.420 billion in the same quarter of fiscal 2024. This resulted in earnings per share of $1.03 diluted, compared to $0.86 in the prior year.
| Financial Metrics | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Net Income (in millions) | $2,929 | $2,420 | +21% |
| Earnings per Share (Diluted) | $1.03 | $0.86 | +20% |
| Cash Flows from Operating Activities (in millions) | $7,427 | $6,974 | +6% |
| Dividends Declared per Share | $0.40 | $0.40 | No Change |
Cloud Services Growth
Oracle's cloud services revenue has been a focal point, with cloud services and license support revenues reaching $10.257 billion as of August 31, 2024, up from $8.203 billion in May 2024.
Stock Performance and Repurchase Program
As part of its stock repurchase program, Oracle repurchased 1.1 million shares for $150 million in the first quarter of fiscal 2025. As of August 31, 2024, approximately $6.8 billion remained available for stock repurchases.
Restructuring Plans
Oracle initiated a restructuring plan in 2024 aimed at improving operational efficiencies, with expected costs of up to $635 million. In the first quarter of fiscal 2025, the company recorded restructuring expenses of $73 million.
Market Position and Future Outlook
Oracle's total remaining performance obligations were reported at $99.1 billion as of August 31, 2024, indicating a strong backlog of future revenue. The company's strategic focus remains on expanding its cloud infrastructure and enhancing its software offerings in a competitive market.
A Who Owns Oracle Corporation (ORCL)
Major Shareholders
As of 2024, Oracle Corporation's ownership is characterized by a mix of institutional and individual investors. The breakdown of major shareholders is as follows:
| Shareholder Type | Percentage Ownership | Number of Shares (Approx.) |
|---|---|---|
| Institutional Investors | 60% | 1.3 billion |
| Individual Investors | 5% | 110 million |
| Company Executives and Directors | 2% | 44 million |
| Other Entities (including mutual funds) | 33% | 720 million |
Top Institutional Investors
The following table lists some of the top institutional investors in Oracle Corporation:
| Institution | Percentage Ownership | Number of Shares (Approx.) |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 187 million |
| BlackRock, Inc. | 7.3% | 160 million |
| State Street Corporation | 4.1% | 90 million |
| Fidelity Investments | 3.9% | 85 million |
| Invesco Ltd. | 2.5% | 55 million |
Executive Ownership
As of 2024, key executives and board members hold a significant portion of Oracle's shares. The following table highlights their ownership:
| Name | Position | Shares Owned (Approx.) |
|---|---|---|
| Safra Catz | CEO | 12 million |
| Larry Ellison | CTO & Co-founder | 1.1 billion |
| Oracle Board Members (Collectively) | Various | 32 million |
Market Capitalization
As of August 31, 2024, Oracle's market capitalization stands at approximately:
| Metric | Value |
|---|---|
| Market Capitalization | $250 billion |
Recent Stock Performance
Oracle's stock performance over the past year has shown significant volatility. The following table summarizes key stock metrics:
| Metric | Value |
|---|---|
| 52-week High | $110.00 |
| 52-week Low | $75.00 |
| Current Price (as of August 31, 2024) | $90.00 |
Stock Repurchase Program
Oracle has an active stock repurchase program with the following details:
| Details | Value |
|---|---|
| Remaining Authorization | $6.8 billion |
| Shares Repurchased in Q1 2025 | 1.1 million |
| Average Price Paid per Share | $136.76 |
Recent Developments
Oracle Corporation has made several strategic moves in 2024, including:
- Investment in cloud infrastructure expansion.
- Acquisition of smaller tech firms to bolster its AI capabilities.
- Increased focus on hybrid cloud solutions.
Oracle Corporation (ORCL) Mission Statement
Mission Statement Overview
As of 2024, Oracle Corporation's mission statement focuses on delivering innovative technology solutions that empower businesses to achieve their full potential. The company emphasizes its commitment to providing cloud-based services and software solutions that enhance productivity and efficiency for organizations worldwide.
Current Financial Performance
Oracle's financial performance highlights its strong market position and growth trajectory in the technology sector. For the first quarter of fiscal year 2025, Oracle reported the following financial data:
| Financial Metrics | Q1 2025 (Aug 31, 2024) | Q1 2024 (Aug 31, 2023) |
|---|---|---|
| Total Revenues | $13,307 million | $12,453 million |
| Cloud Services and License Support | $10,519 million | $9,547 million |
| Net Income | $2,929 million | $2,420 million |
| Basic Earnings Per Share | $1.06 | $0.89 |
| Diluted Earnings Per Share | $1.03 | $0.86 |
Strategic Focus Areas
Oracle's mission emphasizes several strategic focus areas:
- Innovation in Cloud Computing
- Enhancement of Artificial Intelligence and Machine Learning capabilities
- Commitment to Customer Success
- Expansion of Global Reach and Market Penetration
Market Position and Competitive Advantage
Oracle's market position in the cloud computing segment is strengthened by its extensive product offerings, including:
| Product Category | Q1 2025 Revenue | Q1 2024 Revenue |
|---|---|---|
| Applications Cloud Services | $4,769 million | $4,471 million |
| Infrastructure Cloud Services | $5,750 million | $5,076 million |
Investment in Research and Development
Oracle continues to invest significantly in research and development to maintain its competitive edge. The company allocated:
| Expense Category | Q1 2025 Amount | Q1 2024 Amount |
|---|---|---|
| Research and Development | $2,306 million | $2,216 million |
Stockholder Returns and Equity
Oracle is committed to returning value to its shareholders through dividends and share repurchase programs. Key statistics include:
| Metric | Q1 2025 |
|---|---|
| Cash Dividends Declared | $0.40 per share |
| Shares Repurchased | 1.1 million shares for $150 million |
| Remaining Stock Repurchase Authorization | $6.8 billion |
Future Outlook
Oracle's mission statement reflects its ongoing commitment to innovation and excellence in technology solutions. The company aims to continue expanding its cloud services and remains focused on delivering value to its customers and shareholders alike.
Conclusion
As Oracle Corporation aligns its mission with its operational strategies, the company is poised for continued growth and success in the competitive technology landscape.
How Oracle Corporation (ORCL) Works
Business Model
Oracle Corporation operates primarily through its cloud and license business, which encompasses various applications and infrastructure technologies delivered through cloud-based and on-premise models. The company generates revenue through:
- Cloud services and license support
- Cloud license and on-premise licenses
- Hardware sales
- Services such as consulting and advanced customer support
Financial Performance Overview
As of August 31, 2024, Oracle reported the following financial metrics for the first quarter of fiscal 2025:
| Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenues | $13,307 | $12,453 | 6.9% |
| Net Income | $2,929 | $2,420 | 21.1% |
| Earnings per Share (Diluted) | $1.03 | $0.86 | 19.7% |
| Cloud Services and License Support Revenue | $10,519 | $9,547 | 10.2% |
| Hardware Revenue | $655 | $714 | -8.3% |
| Service Revenue | $1,263 | $1,383 | -8.7% |
Revenue Breakdown by Segment
The company's revenue can be further broken down by segment and geographical region:
| Segment | Revenue (Q1 2025 in millions) | Revenue (Q1 2024 in millions) | Change (%) |
|---|---|---|---|
| Cloud Services | $5,623 | $4,635 | 21.4% |
| License Support | $4,896 | $4,912 | -0.3% |
| Cloud License and On-Premise License | $870 | $809 | 7.5% |
| Hardware | $655 | $714 | -8.3% |
| Services | $1,263 | $1,383 | -8.7% |
Operating Expenses
Oracle's operating expenses for the first quarter of fiscal 2025 are as follows:
| Expense Type | Q1 2025 (in millions) | Q1 2024 (in millions) |
|---|---|---|
| Cloud Services and License Support | $2,597 | $2,179 |
| Hardware | $162 | $219 |
| Services | $1,147 | $1,212 |
| Sales and Marketing | $2,036 | $2,026 |
| Research and Development | $2,306 | $2,216 |
| General and Administrative | $358 | $393 |
| Total Operating Expenses | $9,316 | $9,157 |
Cash Flow and Liquidity
For the three months ended August 31, 2024, Oracle's cash flow metrics are as follows:
| Cash Flow Type | Q1 2025 (in millions) | Q1 2024 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $7,427 | $6,974 |
| Net Cash Used for Investing Activities | ($2,765) | ($1,562) |
| Net Cash Used for Financing Activities | ($4,585) | ($3,528) |
Stockholder Equity and Dividends
As of August 31, 2024, Oracle's stockholder equity details are as follows:
| Item | Amount (in millions) |
|---|---|
| Total Stockholders' Equity | $11,269 |
| Cash Dividends Declared per Common Share | $0.40 |
| Shares Repurchased (in millions) | 1.1 |
Deferred Revenues
Deferred revenues as of August 31, 2024, are detailed below:
| Deferred Revenue Type | Current (in millions) | Non-Current (in millions) |
|---|---|---|
| Cloud Services and License Support | $10,257 | $1,429 |
| Hardware | $660 | N/A |
| Services | $487 | N/A |
| Cloud License and On-Premise License | $51 | N/A |
Research and Development Investment
Oracle continues to invest heavily in R&D, reflecting its commitment to maintaining competitive advantage:
| Research and Development Expenses (in millions) | Q1 2025 | Q1 2024 |
|---|---|---|
| Total R&D Expenses | $2,306 | $2,216 |
How Oracle Corporation (ORCL) Makes Money
Revenue Streams
Oracle Corporation generates revenue through several key business segments, primarily focusing on cloud services, software licenses, hardware sales, and consulting services. As of August 31, 2024, the total revenues reported were $13.3 billion, reflecting an increase from the $12.5 billion reported in the same period of the previous year.
| Segment | Q1 FY 2025 Revenue (in millions) | Q1 FY 2024 Revenue (in millions) | Percent Change |
|---|---|---|---|
| Cloud Services and License Support | $10,519 | $9,547 | 10% |
| Cloud License and On-Premise License | $870 | $809 | 7% |
| Hardware | $655 | $714 | -8% |
| Services | $1,263 | $1,383 | -9% |
| Total Revenues | $13,307 | $12,453 | 7% |
Cloud Services and License Support
The cloud services segment is the largest revenue contributor, accounting for approximately 79% of total revenues. This segment includes subscription-based services for applications and infrastructure technologies, with revenues generally recognized over the contractual term. In Q1 FY 2025, cloud services revenue reached $10.5 billion, up from $9.5 billion in Q1 FY 2024, marking a 10% increase.
Hardware Business
Oracle's hardware business, which includes Oracle Engineered Systems and other hardware products, generated $655 million in revenue for Q1 FY 2025, a decline of 8% from $714 million in Q1 FY 2024. This segment's revenue is recognized at the point of delivery, and hardware support contracts are recognized over the contract term.
Services Revenue
Oracle’s services segment, which includes consulting and support services, reported revenues of $1.3 billion in Q1 FY 2025, down from $1.4 billion in Q1 FY 2024. The decline of 9% reflects decreased demand for consulting services.
Geographic Revenue Distribution
The geographic distribution of Oracle's revenues for Q1 FY 2025 is as follows:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Americas | $8,372 | 63% |
| EMEA | $3,228 | 24% |
| Asia Pacific | $1,707 | 13% |
Operating Expenses
Operating expenses for Oracle in Q1 FY 2025 totaled $9.3 billion, slightly higher than $9.2 billion in Q1 FY 2024. Key components include:
| Expense Type | Q1 FY 2025 (in millions) | Q1 FY 2024 (in millions) |
|---|---|---|
| Cloud Services and License Support | $2,597 | $2,179 |
| Hardware | $162 | $219 |
| Services | $1,147 | $1,212 |
| Sales and Marketing | $2,036 | $2,026 |
| Research and Development | $2,306 | $2,216 |
| General and Administrative | $358 | $393 |
Net Income
For the three months ended August 31, 2024, Oracle reported a net income of $2.9 billion, compared to $2.4 billion in the same period of the previous year. This reflects a strong performance driven by increased revenues and effective cost management strategies.
Earnings Per Share
Earnings per share for Q1 FY 2025 were reported at $1.06 for basic shares and $1.03 for diluted shares, compared to $0.89 and $0.86, respectively, in Q1 FY 2024.
Deferred Revenues
As of August 31, 2024, Oracle had deferred revenues of $11.5 billion, up from $9.3 billion at the end of the previous fiscal year, indicating strong future revenue recognition potential from existing contracts.
Conclusion
Oracle Corporation continues to leverage its strong position in cloud computing and enterprise solutions to drive revenue growth across its business segments while managing operational efficiencies to enhance profitability.
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