Oracle Corporation Q2 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Highlights

  • Total quarterly revenue was $12.9 billion, up 4% year-over-year including Cerner, and up 6% excluding Cerner. This compares to low single‑digit growth last quarter, showing slight acceleration.
  • Cloud services and license support reached $9.6 billion, up 11%, now representing 74% of total revenue—an increase from roughly 72% last quarter, continuing the shift toward recurring revenue.
  • Total cloud revenue excluding Cerner was $4.1 billion, up 25% (vs. ~30% growth last quarter, slightly slower but still strong).
  • Including Cerner, cloud revenue was $4.8 billion, up 24%.
  • IaaS revenue grew 50% year-over-year to $1.6 billion (accelerating from 48% last quarter).
  • SaaS revenue rose 14% to $3.2 billion (similar pace to recent quarters).
  • OCI consumption revenue surged 71%, compared to roughly 60%+ growth last quarter—indicating accelerating demand.
  • Non‑GAAP operating income was $5.5 billion, up 7% (vs. 6% growth last quarter). Operating margin improved to 43% from 41% a year ago.
  • Non‑GAAP EPS was $1.34, up 11%, at the high end of guidance.
  • RPO surpassed $65 billion, up 11% excluding Cerner, representing more than a full year of revenue and increasing from ~$60B last quarter.

Cloud & OCI Commentary

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Operator: Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oracle Corporation's Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions]. Ken Bond, you may begin your conference. Ken Bond: Thank you, Emma. Good afternoon, everyone, and welcome to Oracle's second quarter fiscal year 2024 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. Additionally, a list of many customers who purchased Oracle Cloud services or went live on Oracle Cloud recently will be available from our Investor Relations website. On the call today, our Chairman and Chief Technology Officer, Larry Ellison, and Chief Executive Officer, 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

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