Q3 FY17 GAAP EPS UP 6% TO $0.53 and NON-GAAP EPS UP 7% TO $0.69

Published in Revenue & Profits

Q3 FY17 SaaS and PaaS Cloud Revenues Up 73% on a GAAP Basis and Up 85% on a Non-GAAP Basis

REDWOOD SHORES, Calif., March 15, 2017 -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2017 Q3 results. Total Revenues were $9.2 billion, up 2% in US dollars and up 3% in constant currency. Non-GAAP Total Revenues were $9.3 billion, up 3% in US dollars and up 4% in constant currency. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $1.0 billion, up 73% in US dollars and up 74% in constant currency. Non-GAAP SaaS and PaaS revenues were $1.1 billion, up 85% in US dollars and up 86% in constant currency. Total Cloud Revenues, including infrastructure as a service (IaaS), were $1.2 billion, up 62% in US dollars and up 63% in constant currency. Total Cloud and On-Premise Software Revenues were $7.4 billion, up 4% in US dollars and up 5% in constant currency.

Operating Income was $3.0 billion and Operating Margin was 32%. Non-GAAP Operating Income was $3.9 billion, up 3% in US dollars and up 4% in constant currency, and non-GAAP Operating Margin was 43%. Net Income was $2.2 billion while non-GAAP Net Income was $2.9 billion, up 6% in US dollars and up 7% in constant currency. Earnings Per Share was $0.53, while non-GAAP Earnings Per Share was $0.69, up 7% in U.S. dollars. Without the impact of the US dollar strengthening compared to foreign currencies, Oracle’s reported GAAP Earnings Per Share would have been 1 cent higher.

Short-term deferred revenues were $7.4 billion, up 7% in US dollars and constant currency compared with a year ago. Operating cash flow on a trailing twelve-month basis was $13.5 billion.

“The hyper-growth we continue to experience in the cloud has rapidly driven both our SaaS and PaaS businesses to scale,” said Oracle CEO, Safra Catz. “On an annualized non-GAAP basis, our total cloud business has reached the $5 billion mark, and our SaaS and PaaS businesses grew at the astonishing rate of 85% in Q3. That growth and the resulting scale enabled our SaaS and PaaS businesses to increase non-GAAP gross margins to 65%.  Our new, large, fast growing, high-margin cloud businesses are driving Oracle’s total revenue and earnings up and improving nearly every important non-GAAP business metric you care to inspect; total revenue is up, margins are up, operating income is up, net income is up, EPS is up. Take a look. Q3 was a very strong quarter.”

“Over the last year, we sold more new SaaS and PaaS than Salesforce.com, and we’re growing more than 3 times faster,” said Oracle CEO, Mark Hurd. “If these trends continue, where we are selling more SaaS and PaaS in absolute dollars AND growing dramatically faster, it’s just a matter of when we catch and pass Salesforce.com in total cloud revenue.”

“Both our SaaS and PaaS businesses are doing great, but I’m even more excited about our second generation IaaS business,” said Oracle Chairman and CTO, Larry Ellison. “Our new Gen2 IaaS is both faster and lower cost than Amazon Web Services. And now our biggest customers can run their largest and most demanding Oracle database workloads in the Oracle Cloud – something that is absolutely impossible to do in the Amazon Cloud.”

Oracle also announced that its Board of Directors declared a quarterly cash dividend of $0.19 per share of outstanding common stock, reflecting a 27% increase over the current quarterly dividend of $0.15. Larry Ellison, Oracle’s Chairman of the Board, Chief Technology Officer and largest stockholder, did not participate in the deliberation or the vote on this matter. This increased dividend will be paid to stockholders of record as of the close of business on April 12, 2017, with a payment date of April 26, 2017.


Q3 Fiscal 2017 Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing 816.287.5563, Passcode: 425392. To access the live webcast, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle’s Q3 results and Fiscal 2017 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing 855.859.2056 or 404.537.3406, Passcode: 83283985.