NIX Solutions: Oracle Reports Mixed Q4 and FY 2024 Results

Oracle Corporation reported its financial results for the fourth quarter and the entire 2024 fiscal year, ending May 31, 2024. While the quarterly earnings and revenue fell below Wall Street forecasts, Oracle’s shares rose 11% in extended trading on Tuesday. This surge was attributed to the company’s announcement of cloud-related deals with Google and OpenAI.

NIX Solutions

Oracle’s adjusted non-GAAP earnings per share for the final three months of fiscal 2024 were $1.63 on revenue of $14.3 billion. This represented a 3% decline year-over-year and fell short of Wall Street analysts’ estimates of $14.55 billion in revenue and adjusted earnings of $1.65 per share. The net income (GAAP) for the quarter was $3.14 billion, or $1.11 per share, compared to $3.32 billion, or $1.19 per share, in the comparable quarter of fiscal 2023.

Cloud Services and Future Outlook

Cloud services and license support generated revenue of $10.23 billion, marking a 9% increase year-over-year. However, cloud and on-premise licensing revenue was $1.84 billion, a 15% decline year-over-year and below the StreetAccount consensus estimate of $2.09 billion. Services revenue of $1.37 billion was down 6% year-over-year. Hardware sales fell 1% year-over-year to $842 million. Cloud infrastructure (IaaS) revenue reached $2.0 billion, up 42% year-over-year, though this was a slowdown from the previous quarter’s growth rate of 49%.

Overall, Oracle’s total revenue for fiscal 2024 was $52.96 billion, a 6% increase from the previous year. The company’s net profit saw a year-on-year rise of 23%, reaching $10.47 billion.

Looking ahead, Oracle expects adjusted earnings for the first quarter of fiscal 2025 to be in the range of $1.31 to $1.35 per share, with revenue growth projected to be between 5% and 7%, notes NIX Solutions. Analysts surveyed by LSEG forecast current-quarter non-GAAP earnings per share of $1.32 on revenue of $13.39 billion, reflecting a 7.6% increase.

We’ll keep you updated with further developments and detailed analyses of Oracle’s performance and strategic moves in the tech industry.