>>> Oracle misses by $0.02, misses on revs; increases dividend

Oracle misses by $0.02, misses on revs; increases dividend
  • Reports Q3 (Feb) earnings of $1.47 per share, excluding non-recurring items, $0.02 worse than the FactSet Consensus of $1.49; revenues rose 6.4% year/year to $14.13 bln vs the $14.38 bln FactSet Consensus.
    • Q3 Cloud Revenue (IaaS plus SaaS) $6.2 billion, up 23% in USD and up 25% in constant currency Q3.
    • Cloud Infrastructure (IaaS) Revenue$2.7 billion, up 49% in USD and up 51% in constant currency Q3.
    • Cloud Application (SaaS) Revenue$3.6 billion, up 9% in USD and up 10% in constant currency Q3.
    • Fusion Cloud ERP (SaaS) Revenue$0.9 billion, up 16% in USD and up 18% in constant currency Q3.
    • NetSuite Cloud ERP (SaaS) Revenue$0.9 billion, up 16% in USD and up 17% in constant currency.
  • Note: Co typically guides on the call.
  • "Oracle signed sales contracts for more than $48 billion in Q3," said Oracle CEO, Safra Catz. "This record sales number pushed our Remaining Performance Obligations, or RPO, up 63% to over $130 billion. We have now signed cloud agreements with several world leading technology companies including: OpenAI, xAI, Meta, NVIDIA and AMD. We expect that our huge $130 billion sales backlog will help drive a 15% increase in Oracle's overall revenue in our next fiscal year beginning this June. And we expect RPO to continue to grow rapidly—as we look forward to signing our first Stargate contract—yet another big opportunity for Oracle to expand both its AI training and AI inferencing businesses in the near future."
  • "We are on schedule to double our data center capacity this calendar year," said Oracle Chairman and CTO, Larry Ellison. "Customer demand is at record levels. Our Database MultiCloud revenue from Microsoft, Google and Amazon is up 92% in the last three months alone. GPU consumption for AI training grew 244% in the last 12 months. And we are seeing enormous demand for AI inferencing on our customers' private data. So, we are connecting OpenAI ChatGPT, xAI Grok and Meta Llama directly to Version 23ai of the Oracle Database with advanced vector capabilities."
  • Co also announces a 25% increase to its quarterly dividend to $0.50/sh.