DBT Bureau
Pune, 12 Dec 2024
Oracle Corporation reported its fiscal 2025 Q2 results. Total quarterly revenues were up 9% year-over-year, in both USD and constant currency, reaching $14.1 billion. Cloud services and license support revenues increased by 12% year-over-year, in both USD and constant currency, to $10.8 billion. Cloud license and on-premise license revenues grew by 1% in USD and 3% in constant currency, totaling $1.2 billion.
Q2 GAAP operating income was $4.2 billion. Non-GAAP operating income was $6.1 billion, up 10% in both USD and constant currency. GAAP operating margin was 30%, and non-GAAP operating margin was 43%. GAAP net income was $3.2 billion, while non-GAAP net income reached $4.2 billion, up 12% in both USD and constant currency. Q2 GAAP earnings per share was $1.10, up 24% in USD and 23% in constant currency, while non-GAAP earnings per share was $1.47, up 10% in both USD and constant currency.
Short-term deferred revenues amounted to $9.4 billion. Over the last twelve months, operating cash flow totaled $20.3 billion, and free cash flow was $9.5 billion.
“Record-level AI demand drove Oracle Cloud Infrastructure revenue up 52% in Q2, a much higher growth rate than any of our hyperscale cloud infrastructure competitors,” said Oracle CEO Safra Catz. “Growth in the AI segment of our infrastructure business was extraordinary—GPU consumption was up 336% in the quarter—and we delivered the world’s largest and fastest AI supercomputer, scaling up to 65,000 NVIDIA H200 GPUs. With our remaining performance obligation (RPO) up 50% to $97 billion, we believe our already impressive growth rates will continue to climb even higher. This fiscal year, total Oracle Cloud revenue should exceed $25 billion.”
“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds,” said Oracle Chairman and CTO Larry Ellison. “We just signed an agreement with Meta for them to use Oracle’s AI Cloud Infrastructure and collaborate with Oracle on the development of AI agents based on Meta’s Llama models. The Oracle Cloud trains dozens of specialized AI models and embeds hundreds of AI agents in cloud applications. For example, Oracle’s AI agents automate drug design, image and genomic analysis for cancer diagnostics, audio updates to electronic health records for patient care, satellite image analysis to predict and improve agricultural output, fraud and money laundering detection, dual-factor biometric computer logins, and real-time video weapons detection in schools. Oracle-trained AI models and AI agents will improve the rate of scientific discovery, economic development, and corporate growth worldwide. The scale of the opportunity is unimaginable.”
The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 9, 2025, with a payment date of January 23, 2025.
