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Feb 28, 2023

Oracle Q3 2023 Earnings Report

Oracle's Q3 fiscal year 2023 financial results were announced, with total revenue up 18% and non-GAAP EPS at $1.22.

Key Takeaways

Oracle announced Q3 fiscal year 2023 results with total revenue of $12.4 billion, up 18% in USD and 21% in constant currency. Non-GAAP EPS reached $1.22, driven by strong growth in cloud services.

GAAP earnings per share was $0.68, while non-GAAP earnings per share was $1.22.

Total revenue reached $12.4 billion, reflecting an 18% increase in USD and a 21% increase in constant currency.

Cloud revenue (IaaS plus SaaS) was $4.1 billion, up 45% in USD and 48% in constant currency.

Cloud Infrastructure (IaaS) revenue was $1.2 billion, up 55% in USD and 57% in constant currency.

Total Revenue
$12.4B
Previous year: $10.5B
+17.9%
EPS
$1.22
Previous year: $1.13
+8.0%
Gross Profit
$8.96B
Previous year: $8.3B
+8.0%
Cash and Equivalents
$8.22B
Previous year: $22.7B
-63.8%
Free Cash Flow
$1.65B
Previous year: $2.74B
-40.0%
Total Assets
$132B
Previous year: $109B
+21.1%

Oracle

Oracle

Oracle Revenue by Segment

Oracle Revenue by Geographic Location

Forward Guidance

Oracle expects continued growth in its cloud businesses and healthcare sector due to recent Cerner acquisition.

Positive Outlook

  • Strong quarterly earnings growth driven by cloud businesses.
  • Cloud businesses now exceed $16 billion in annualized revenue.
  • Leader in Cloud ERP with approximately 10,000 Fusion ERP customers.
  • Over 34,000 NetSuite ERP customers.
  • Technically advanced Gen2 infrastructure business in hypergrowth phase.

Challenges Ahead

  • US dollar strengthening compared to foreign currencies.
  • Increased operating expenses.
  • Increased amortization of intangible assets.
  • Increased restructuring expenses.
  • Unfavorable legal proceedings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income