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Feb 29, 2024

Oracle Q3 2024 Earnings Report

Oracle's Q3 2024 financial results were announced, with revenue up 7% and non-GAAP EPS increasing by 16%.

Key Takeaways

Oracle announced its Q3 Fiscal Year 2024 results, revealing a 7% increase in total revenue, reaching $13.3 billion. Cloud revenue, encompassing IaaS and SaaS, grew by 25% to $5.1 billion. The company's total Remaining Performance Obligations increased by 29% to $80 billion.

GAAP earnings per share was $0.85, while non-GAAP earnings per share increased by 16% to $1.41.

Total revenue reached $13.3 billion, marking a 7% increase.

Total Remaining Performance Obligations rose by 29% to $80 billion.

Cloud revenue (IaaS plus SaaS) grew by 25% to $5.1 billion.

Total Revenue
$11.4B
Previous year: $12.4B
-7.7%
EPS
$1.41
Previous year: $1.22
+15.6%
Operating Margin
28%
Non-GAAP Operating Margin
42%
Remaining Performance Obligations
$80.4B
Gross Profit
$9.41B
Previous year: $8.96B
+5.0%
Cash and Equivalents
$9.9B
Previous year: $8.22B
+20.5%
Free Cash Flow
$3.8B
Previous year: $1.65B
+130.8%
Total Assets
$137B
Previous year: $132B
+4.1%

Oracle

Oracle

Oracle Revenue by Segment

Oracle Revenue by Geographic Location

Forward Guidance

Oracle anticipates continued strong demand for its Gen2 AI infrastructure, with substantial contracts expected to drive future revenue growth. The company is focused on expanding its cloud datacenter capacity to meet this demand and expects its Gen2 Cloud Infrastructure business to maintain a hypergrowth phase.

Positive Outlook

  • Expects to continue receiving large contracts reserving cloud infrastructure capacity.
  • Demand for Gen2 AI infrastructure substantially exceeds supply.
  • Opening new and expanding existing cloud datacenters rapidly.
  • 43% of current $80 billion RPO will be recognized as revenue over the next four quarters.
  • Gen2 Cloud Infrastructure business will remain in a hypergrowth phase.

Challenges Ahead

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Revenue & Expenses

Visualization of income flow from segment revenue to net income