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Feb 28, 2021

Oracle Q3 2021 Earnings Report

Oracle's Q3 fiscal year 2021 financial results were announced, showcasing revenue growth and increased EPS.

Key Takeaways

Oracle announced its Q3 Fiscal Year 2021 results, with total quarterly revenues up 3% year-over-year to $10.1 billion. GAAP EPS increased by 113% to $1.68, while Non-GAAP EPS rose by 20% to $1.16. The company's cloud ERP market saw significant growth, with Fusion ERP up 30% and NetSuite ERP up 24%.

Q3 FY2021 GAAP EPS increased by 113% to $1.68, and Non-GAAP EPS increased by 20% to $1.16.

Oracle Gen2 Cloud Infrastructure, including Autonomous Database revenue, grew by over 100%.

Fusion Cloud ERP revenue increased by 30%, while NetSuite Cloud ERP revenue increased by 24%.

Total quarterly revenues were up 3% year-over-year to $10.1 billion.

Total Revenue
$10.1B
Previous year: $9.8B
+2.9%
EPS
$1.16
Previous year: $0.97
+19.6%
Gross Profit
$8.17B
Previous year: $7.83B
+4.3%
Cash and Equivalents
$22.3B
Previous year: $23.8B
-6.3%
Free Cash Flow
$3.29B
Previous year: $2.62B
+25.8%
Total Assets
$118B
Previous year: $96.7B
+22.1%

Oracle

Oracle

Oracle Revenue by Segment

Oracle Revenue by Geographic Location

Forward Guidance

Oracle's Q3 results reflect strong growth in cloud ERP and infrastructure businesses, driving subscription revenue and overall operating income.

Positive Outlook

  • Continued growth in cloud ERP market with Fusion ERP up 30% and NetSuite ERP up 24%.
  • Oracle Gen2 Cloud Infrastructure business added customers and grew revenue at a rate in excess of 100%.
  • Subscription revenue accounts for 72% of Oracle’s total revenues.
  • Double-digit increases in non-GAAP earnings per share.
  • Board of Directors increased the authorization for share repurchases by $20 billion.

Challenges Ahead

  • The COVID-19 pandemic has affected business operations.
  • Success depends on the ability to develop new products and services.
  • Cloud strategy may adversely affect revenues and profitability.
  • Potential for coding, manufacturing or configuration errors in offerings.
  • International sales and operations are subject to additional risks.

Revenue & Expenses

Visualization of income flow from segment revenue to net income