To The Moon

Oracle (ORCL) Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Oracle ORCL reported third-quarter fiscal 2023 non-GAAP earnings of $1.22 per share, which beat the Zacks Consensus Estimate for earnings by 1.67%. The bottom line was up 13% year over year at constant currency or cc.

Management had guided non-GAAP earnings per share (EPS) to grow between 4% and 8% and be between $1.17 and $1.21 in USD.

Revenues increased 18% (up 21% at cc) year over year to $12.39 billion and beat the Zacks Consensus Estimate by 0.03%. The top-line performance was mainly driven by strength in infrastructure and applications cloud businesses.

For the fiscal third quarter, Oracle had anticipated total revenues to grow in the range of 21-23% in cc and 17-19% in USD.

Revenues from the Americas added $7.67 billion to total revenues. Europe/Middle East/Africa added $3.06 billion, while revenues from the Asia Pacific came in at $1.66 billion.

Revenues by Offerings

Oracle’s Cloud services and license support revenues were up 17% in USD and up 20% in cc to $8.9 billion. Cloud license and on-premise license revenues were unchanged in USD and up 4% in cc to $1.3 billion. For the third quarter of fiscal 2023, Cerner contributed $1.5 billion to total revenues.

The upside can be attributed to continued strength in the Fusion, Autonomous Database and Oracle Cloud Infrastructure (OCI) services.

Cloud revenue (IaaS plus SaaS) came in at $4.1 billion, up 45% in USD and 48% in cc. Cloud Infrastructure (IaaS) revenue came in at $1.2 billion, up 55% in USD and 57% in cc. Cloud Application (SaaS) revenue of $2.9 billion increased 42% in USD and 44% in cc.

Fusion Cloud ERP (SaaS) revenue came in at $0.7 billion, up 25% in USD and 28% in cc. NetSuite Cloud ERP (SaaS) revenue of $0.7 billion soared 23% in USD and 26% in cc.

Breakup of Cloud Services & License Support Revenues

Applications revenues amounted to $4.16 billion, up 31% year over year (up 33% at cc).

Infrastructure-related revenues were $4.75 billion, up 7% on a year-over-year basis (up 10% at cc).

Hardware revenues were $811 million, which increased 2% year over year (up 4% at cc).

Services revenues rose 74% (up 80% at cc) to $1.37 billion.