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TICKERS: ORCL

Oracle Shares Soar into the Cloud to New 52-Week High on Q2 Earnings
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Shares of global cloud infrastructure and enterprise software firm Oracle Corp. traded 16% higher after the company reported Q2/22 financial results that exceeded prior revenue guidance and non-GAAP earnings estimates.

After U.S. markets closed for trading yesterday afternoon, enterprise software and cloud infrastructure company Oracle Corp. (ORCL:NYSE) announced financial results for the second quarter of 2022 ended Nov. 30, 2021.

Oracle reported that Q2/22 revenues, increased by 6% to $10.36 billion, compared to $9.90 billion in Q2/21. The company advised that cloud services and license support revenues, which account for about 73% of all revenues, also increased by 6% in the quarter to $7.554 billion, versus $7.112 billion during Q2/21.

The firm added that cloud license and on-premise license revenues, which make up approximately 12% to total revenues, rose 13% year-over-year to $1.237 billion in Q2/22, compared to $1.092 billon in Q2/21.

Oracle highlighted that total during Q2/22, IaaS and SaaS cloud revenue together were up by 22% to $2.7 billion.

The firm mentioned that "its Q2/22 GAAP results were adversely impacted by the payment of a judgment related to a 10-year-old dispute surrounding former CEO Mark Hurd's employment." The firm listed that the payment directly contributed to a GAAP operating loss of $824 million in Q2/22 and resulted in a loss per share of $0.46.

Oracle reported that on a non-GAAP basis, operating income in Q2/22 grew by 6% to $4.855 billion and stated that non-GAAP earnings per share in the quarter increased by 14% to $1.21.

The company's CEO Safra Catz stated, "Oracle's Q2 Non-GAAP earnings per share was up 14% to $1.21—beating guidance by $0.10…Constant currency revenue beat guidance by $200 million. These strong results are being driven by the 22% growth of our infrastructure and applications cloud businesses which are approaching $11 billion in annualized revenue. We now have 8,500 Fusion ERP customers with revenue growing 35%, 28,400 NetSuite ERP customers with revenue growing 29%, and our Gen2 infrastructure businesses are growing even faster—and accelerating."

Oracle's Chairman and CTO Larry Ellison commented, "Oracle's Autonomous Database and new MySQL Database with HeatWave are the world's two highest-performance databases. … Because of their extreme high performance, both products present huge growth opportunities for our cloud infrastructure business. Oracle database on-premise customers are choosing our Autonomous Database as they move to the public cloud and our unique [email protected] service. Amazon Aurora customers are discovering that moving to MySQL with HeatWave can increase their performance by more than 10 times—with a corresponding reduction in cost. These two databases will sustain Oracle's database market and technology leadership for years to come."

The company listed that its board of directors has approved a $10 billion increase in its corporate share repurchase program. The firm added that the board also approved a $0.32 per share quarterly dividend payable on Jan. 19, 2022, to common shareholders of record on Jan. 7, 2022.

Oracle is an industry standard provider of enterprise level information technology (IT) products and services. The firm presently is focused on offering its highly reliable integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The company's cloud infrastructure capabilities include autonomous operations, integrated security and server-less services via its global public cloud regions or within a company's existing data center.

The company markets its cloud and license, hardware, applications, services and infrastructure offerings to large global corporations, government agencies, educational institutions and resellers. The company indicates on its company website that it presently serves over 30,000 clients of all sizes who utilize its cloud applications to host and run their most important front- and back-end business systems.

Oracle began the day with a market cap of around $242.7 billion with approximately 2.734 million shares outstanding. ORCL shares opened 17% higher today at $104.29 (+$15.52, +17.48%) over yesterday's $88.77 closing price and reached a new 52-week high price this morning of $106.34. The stock has traded today between $100.10 and $106.34 per share and is currently trading at $103.15 (+$14.38, +16.20%).

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