Oracle released the company’s financial report for the third quarter of fiscal year 2023 today.
The report shows that Oracle’s total revenue in the third fiscal quarter was US$12.398 billion, an increase of 18% compared with US$10.513 billion in the same period last year, and a year-on-year increase of 21% excluding the impact of exchange rate changes; net profit was US$1.896 billion, an increase of The US$2.319 billion in the same period last year decreased by 18%, and the impact of exchange rate changes was not included in the year-on-year decrease of 13%; excluding one-time items (not in accordance with US GAAP), Oracle’s adjusted net profit was US$3.382 billion, an increase of 9% compared with the US$3.102 billion in the same period last year, and a year-on-year increase of 13% excluding the impact of exchange rate changes.
Oracle’s third-quarter adjusted diluted earnings per share exceeded Wall Street analysts’ expectations, but revenue was slightly lower than expected. Judging from the performance of various businesses, except for the cloud service and authorization support business revenue exceeding expectations, the revenue of other businesses failed to meet expectations. After the financial report was released, Oracle’s stock price fell sharply by nearly 4% after hours.
Key results for the third fiscal quarter:
In the fiscal quarter that ended February 28, 2023, Oracle’s net profit was US$1.896 billion, a decrease of 18% compared with US$2.319 billion in the same period last year, and a year-on-year decrease of 13% excluding the impact of exchange rate changes; Diluted earnings per share was US$0.68, a decrease of 19% compared with US$0.84 in the same period last year, and a decrease of 14% excluding the impact of exchange rate changes.
In the third fiscal quarter of the fiscal year 2023, excluding one-time items (not in accordance with US GAAP), Oracle’s adjusted net income was $3.382 billion, an increase of 9% compared with $3.102 billion in the same period last year, excluding The impact of currency changes was up 13% year-over-year; adjusted diluted EPS was $1.22, up 8% from $1.13 in the same period last year, and 13% year-over-year excluding the impact of currency changes, this performance exceeded Wall Street analysis The division previously expected. According to data provided by the Yahoo Finance website, 24 analysts had expected Oracle’s third-quarter adjusted earnings per share to reach $1.2 on average.
Oracle’s total revenue in the third fiscal quarter was $12.398 billion, an increase of 18% compared with $10.513 billion in the same period last year, and a year-on-year increase of 21% excluding the impact of exchange rate changes. Excluding one-time items (not in accordance with US GAAP), Oracle’s total revenue in the third fiscal quarter was also US$12.398 billion, an increase of 18% compared with US$10.513 billion in the same period last year, excluding the impact of exchange rate changes. An increase of 21% year-on-year, this performance was slightly lower than analysts had expected. According to data provided by the Yahoo Finance website, 21 analysts had expected Oracle’s third-quarter revenue to reach $12.42 billion on average.
Oracle’s operating profit in the third quarter was US$3.260 billion, a decrease of 15% compared with US$3.822 billion in the same period last year, and an 11% year-on-year decrease excluding the impact of exchange rate changes; the operating profit margin was 26%, compared with the same period last year 36%. Excluding one-time items (not in accordance with U.S. GAAP), Oracle’s third-quarter adjusted operating income was $5.185 billion, an increase of 8% compared to $4.814 billion in the same period last year, excluding the impact of currency changes. An increase of 11%; the operating margin was 42%, compared with 46% in the same period last year.
Operating expenses:
Oracle’s total operating expenses in the third fiscal quarter were $9.138 billion, an increase of 37% compared with $6.691 billion in the same period last year, and a year-on-year increase of 39% excluding the impact of exchange rate changes. Oracle’s total operating expenses as a percentage of revenue in the third quarter were 74 percent, compared with 64 percent a year earlier. in:
- Cloud services and licensing support expenses were $1.980 billion, an increase of 52% compared to $1.305 billion in the same period last year, and a year-over-year increase of 54% excluding the impact of currency changes; cloud services and licensing support expenses as a percentage of revenue The proportion was 16%, compared with 13% in the same period last year.
- Hardware spending of $244 million was flat compared to $244 million in the same period last year, up 2% year-over-year excluding currency effects; hardware spending as a percentage of revenue was 2% compared to last year The same period was 2%.
- Services expenses were $1.215 billion, an increase of 81% compared to $669 million in the same period last year, or an increase of 87% year-over-year excluding the impact of currency changes; services expenses accounted for 10% of revenue, compared with 7% in the same period last year.
- Sales and marketing expenses of $2.150 billion, up 7% from $2.004 billion in the same period last year, or 10% excluding currency effects; sales and marketing expenses as a percentage of revenue were 18% , compared with 19% in the same period last year.
- Research and development expenses were $2.146 billion, an increase of 18% from $1.816 billion in the same period last year, and a year-on-year increase of 20% excluding the impact of exchange rate changes; research and development expenses accounted for 17% of revenue, compared with The same period last year was 17%.
- G&A expenses of $402 million, up 20% from $335 million in the same period last year, or 22% excluding currency effects; G&A expenses as a percentage of revenue were 3% , compared with 3% in the same period last year.
- Amortization of intangible assets was $886 million, an increase of 217% compared to $279 million in the same period last year, and an increase of 217% excluding the impact of exchange rate changes; amortization of intangible assets as a percentage of revenue 7%, compared with 3% in the same period last year.
- M&A-related and other expenses were $37 million, an increase of 90% from $20 million in the same period last year, or a 95% increase excluding currency effects; M&A-related and other expenses as a percentage of revenue The proportion is about 0%, compared with about 0% in the same period last year.
- Restructuring expenses were $78 million, an increase of 311% compared to $19 million in the same period last year, and an increase of 337% year-over-year excluding the impact of currency changes; restructuring expenses accounted for approximately 1% of revenue, compared with It was about 0% in the same period last year.
Performance of each department:
Oracle’s third-quarter cloud service and authorization support business revenue was US$8.923 billion, an increase of 17% compared with US$7.637 billion in the same period last year, and a year-on-year increase of 20% excluding the impact of exchange rate changes, exceeding analysts’ expectations; The proportion of total revenue was 72%, compared with 73% in the same period last year. Wall Street analysts had expected, on average, that Oracle’s third-quarter cloud services and licensing support business revenue would reach $8.83 billion.
Oracle’s third-quarter cloud authorization and on-site authorization business revenue was US$1.288 billion, which was basically the same as the US$1.289 billion in the same period last year. The impact of exchange rate changes was not included in the year-on-year increase of 4%, which failed to meet analyst expectations; The proportion of total revenue was 10%, compared with 12% in the same period last year. Wall Street analysts had expected, on average, that Oracle’s third-quarter cloud licensing and on-premises licensing business revenue would reach $1.39 billion.
Oracle’s hardware business revenue in the third fiscal quarter was US$811 million, an increase of 2% compared with US$798 million in the same period last year, and a year-on-year increase of 4% excluding the impact of exchange rate changes, which failed to meet analyst expectations; The proportion of revenue was 7%, compared with 8% in the same period last year. Wall Street analysts on average had expected Oracle’s third-quarter hardware revenue to reach $815.5 million.
Oracle’s service business revenue in the third fiscal quarter was US$1.376 billion, an increase of 74% compared with US$789 million in the same period last year, and an 80% increase year-on-year without the impact of exchange rate changes, failing to meet analyst expectations; The proportion of revenue was 11%, compared with 7% in the same period last year. Wall Street analysts had expected, on average, that Oracle’s third-quarter services revenue would reach $1.43 billion.
Oracle had short-term deferred revenue of $8.6 billion at the end of its fiscal third quarter. Over the past 12 months, Oracle’s cash flow from operations was $15.5 billion.
Other financial information:
Oracle’s board of directors announced that it plans to pay a quarterly cash dividend of 40 cents per outstanding common share to common stockholders, a 25% increase from the current quarterly dividend of $0.32. Release to Shareholders of Record as of market close on April 11, 2023.
Stock price change:
On the same day, Oracle’s share price fell $1.62 in regular Nasdaq trading to close at $86.87, a drop of 1.83%. In subsequent after-hours trading as of 4:48 p.m. Eastern time on Thursday, Oracle shares fell another $3.28, or 3.78%, to $83.59. Over the past 52 weeks, Oracle has had a high of $91.22 and a low of $60.78.
