Oracle Corporation Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance Highlights

  • Total revenue was $9.2 billion, up 1% year-over-year (YoY). This reflects modest improvement versus the prior year Q1 but a slower pace compared to Q4’s strong results.
  • Cloud Services and License Support revenue reached $6.8 billion, up 4% YoY, continuing steady mid‑single‑digit growth.
  • Cloud and On-Premise License revenue of $812 million declined 6% YoY, following strong 15% growth in Q4. Management attributed this decline primarily to a North America salesforce reorganization.
  • Non-GAAP operating income was $3.8 billion, up 4% YoY; operating margin improved from 41% to 42% YoY.
  • Non-GAAP EPS was $0.81, up 16% in constant currency and 14% in USD. GAAP EPS was $0.63, up 13% in constant currency.
  • Operating cash flow over the last 12 months was $13.8 billion. Free cash flow was $12.2 billion.
  • Oracle repurchased 89 million shares for $5 billion during the quarter, bringing 12‑month buybacks to $31 billion and reducing shares outstanding by over 25% over five years.
  • Board increased share repurchase authorization by $15 billion; quarterly dividend maintained at $0.24.

Key Business Segment Commentary

Applications Ecosystem

  • Application revenue was $2.8 billion, up 3% YoY.
  • Fusion Apps grew nearly 40% YoY:
    • Fusion ERP up mid‑40%

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Operator: Welcome to Oracle's First Quarter 2020 Earnings Conference Call. I'd now like to turn today's call over to Ken Bond, Senior Vice President. Ken? Ken Bond: Thank you, Holly. Good afternoon, everyone, and thank you for joining us on short notice. Welcome to Oracle's first quarter fiscal year 2020 earnings conference call. A copy of the press release and financial tables which includes a GAAP to non-GAAP reconciliation and other supplemental financial information can be viewed and downloaded from our Investor Relations' website. On the call today are Chairman and Chief Technology Officer, Larry Ellison; and CEO, Safra Catz. As a reminder, today's discussion will include forward-looking statements including predictions, expectations, estimates, or other information that might be considered forward-looking. Throughout today's discussion, we will present some important factors relating to our business which may potentially affect these forward-looking statements. These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from statements made today. As a result, we caution you against placing undue reliance on these forward-looking statements and we encourage you to review our most recent reports including our 10-K and 10-Q and any applicable amendments for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock. And finally, we are not ob

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