2023 Q2 Form 10-K Financial Statement

#000095017023028914 Filed on June 20, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 2022
Revenue $13.84B $49.95B $42.44B
YoY Change -67.4% 17.7% 4.84%
Cost Of Revenue $3.730B $13.56B $8.877B
YoY Change 55.61% 52.8% 13.01%
Gross Profit $10.11B $36.39B $33.56B
YoY Change 7.03% 8.42% 2.88%
Gross Profit Margin 73.04% 72.85% 79.08%
Selling, General & Admin $2.689B $10.41B $9.364B
YoY Change 3.42% 11.19% 4.79%
% of Gross Profit 26.61% 28.61% 27.9%
Research & Development $2.226B $8.623B $7.219B
YoY Change 13.28% 19.45% 10.6%
% of Gross Profit 22.02% 23.7% 21.51%
Depreciation & Amortization $1.586B $6.108B $1.972B
YoY Change 90.85% 209.74% 28.3%
% of Gross Profit 15.69% 16.78% 5.88%
Operating Expenses $5.785B $22.62B $7.219B
YoY Change 19.7% 213.3% 10.6%
Operating Profit $4.322B $13.77B $10.93B
YoY Change -6.25% 26.06% -28.18%
Interest Expense -$955.0M -$3.505B $2.755B
YoY Change 18.05% -227.22% 10.38%
% of Operating Profit -22.1% -25.45% 25.22%
Other Income/Expense, Net -$76.00M -$462.0M -$86.00M
YoY Change 10.14% 437.21% -118.18%
Pretax Income $3.109B $9.126B -$629.0M
YoY Change -14.21% -1550.87% -114.38%
Income Tax -$210.0M $623.0M $932.0M
% Of Pretax Income -6.75% 6.83%
Net Earnings $3.319B $8.503B $6.717B
YoY Change 4.08% 26.59% -51.13%
Net Earnings / Revenue 23.99% 17.02% 15.83%
Basic Earnings Per Share $3.15 $2.49
Diluted Earnings Per Share $1.19 $3.07 $2.41
COMMON SHARES
Basic Shares Outstanding 2.714B 2.696B 2.700B
Diluted Shares Outstanding 2.766B 2.786B

Balance Sheet

Concept 2023 Q2 2023 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $10.19B $10.19B $21.90B
YoY Change -53.49% -53.49% -52.95%
Cash & Equivalents $9.765B $9.765B $21.38B
Short-Term Investments $422.0M $422.0M $519.0M
Other Short-Term Assets $3.902B $3.902B $2.673B
YoY Change 3.28% 45.98% 0.34%
Inventory $298.0M $314.0M
Prepaid Expenses
Receivables $6.915B $6.915B $5.953B
Other Receivables $0.00 $0.00 $791.0M
Total Short-Term Assets $21.00B $21.00B $31.63B
YoY Change -33.6% -33.6% -43.07%
LONG-TERM ASSETS
Property, Plant & Equipment $17.07B $17.07B $13.22B
YoY Change 75.68% 29.15% 87.49%
Goodwill $62.26B
YoY Change 42.11%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $24.21B $24.21B $19.20B
YoY Change 6.68% 26.13% -13.24%
Total Long-Term Assets $113.4B $113.4B $77.66B
YoY Change 45.99% 45.99% 2.81%
TOTAL ASSETS
Total Short-Term Assets $21.00B $21.00B $31.63B
Total Long-Term Assets $113.4B $113.4B $77.66B
Total Assets $134.4B $134.4B $109.3B
YoY Change 22.95% 22.95% -16.64%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.204B $1.204B $1.317B
YoY Change -8.58% -8.58% 76.78%
Accrued Expenses $2.053B $2.053B $2.671B
YoY Change 5.61% -23.14% 32.42%
Deferred Revenue $8.970B
YoY Change 7.34%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $4.061B $4.061B $3.749B
YoY Change 8.32% 8.32% -54.56%
Total Short-Term Liabilities $23.09B $23.09B $19.51B
YoY Change 18.34% 18.34% -19.26%
LONG-TERM LIABILITIES
Long-Term Debt $86.42B $86.42B $72.11B
YoY Change 19.84% 19.84% -5.11%
Other Long-Term Liabilities $17.55B $17.55B $17.41B
YoY Change 237.23% 0.76% 1.64%
Total Long-Term Liabilities $104.0B $104.0B $89.52B
YoY Change 8.8% 16.13% -3.87%
TOTAL LIABILITIES
Total Short-Term Liabilities $23.09B $23.09B $19.51B
Total Long-Term Liabilities $104.0B $104.0B $89.52B
Total Liabilities $132.8B $132.8B $115.5B
YoY Change 14.99% 14.99% -8.22%
SHAREHOLDERS EQUITY
Retained Earnings -$27.62B
YoY Change -11.86%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.556B $1.556B -$6.220B
YoY Change
Total Liabilities & Shareholders Equity $134.4B $134.4B $109.3B
YoY Change 22.95% 22.95% -16.64%

Cashflow Statement

Concept 2023 Q2 2023 2022
OPERATING ACTIVITIES
Net Income $3.319B $8.503B $6.717B
YoY Change 4.08% 26.59% -51.13%
Depreciation, Depletion And Amortization $1.586B $6.108B $1.972B
YoY Change 90.85% 209.74% 28.3%
Cash From Operating Activities $5.647B $17.17B $9.539B
YoY Change 41.71% 79.95% -39.96%
INVESTING ACTIVITIES
Capital Expenditures $1.913B $8.695B $4.511B
YoY Change -234.43% 92.75% 111.29%
Acquisitions $27.72B $148.0M
YoY Change 18630.41% 260.98%
Other Investing Activities $301.0M -$27.79B $15.73B
YoY Change 14.89% -276.65% -243.49%
Cash From Investing Activities -$1.612B -$36.48B $11.22B
YoY Change 38.85% -425.17% -185.66%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $120.0M -$1.311B $15.77B
YoY Change -108.32% -17.66%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.440B 7.910B -29.13B
YoY Change -39.39% -127.16% 180.65%
NET CHANGE
Cash From Operating Activities 5.647B 17.17B 9.539B
Cash From Investing Activities -1.612B -36.48B 11.22B
Cash From Financing Activities -2.440B 7.910B -29.13B
Net Change In Cash 1.595B -11.41B -8.715B
YoY Change -232.7% 30.91% 22.04%
FREE CASH FLOW
Cash From Operating Activities $5.647B $17.17B $9.539B
Capital Expenditures $1.913B $8.695B $4.511B
Free Cash Flow $3.734B $8.470B $5.028B
YoY Change -30.95% 68.46% -63.44%

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<p style="text-indent:0.0%;font-size:10.0pt;margin-top:6.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;">Oracle Corporation provides products and services that substantially address all aspects of enterprise information technology (IT) environments, including applications and infrastructure technologies. We deliver our products and services to customers worldwide through a variety of flexible and interoperable IT deployment models. These models include on-premise, cloud-based and hybrid deployments (an approach that combines both on-premise and cloud based deployments). Oracle Cloud Software-as-a-Service and Oracle Cloud Infrastructure (SaaS and OCI, respectively, and collectively, Oracle Cloud Services) offerings provide comprehensive and integrated applications and infrastructure services delivered via various cloud delivery models enabling our customers to choose the best option that meets their specific business needs. Customers may also elect to purchase Oracle software licenses and hardware products and related services to manage their own cloud-based or on-premise IT environments. Customers that purchase our software licenses may elect to purchase license support contracts, which provide our customers with rights to unspecified license upgrades and maintenance releases issued during the support period as well as technical support assistance. Customers that purchase our hardware products may elect to purchase hardware support contracts, which provide customers with software updates and can include product repairs, maintenance services, and technical support services. We also offer customers a broad set of services offerings that are designed to improve customer utilization of their investments in Oracle applications and infrastructure technologies.</span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:6.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;">Oracle Corporation conducts business globally and was incorporated in 2005 as a Delaware corporation and is the successor to operations originally begun in June 1977.</span></p>
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<p style="text-indent:0.0%;font-size:10.0pt;margin-top:12.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:bold;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;">Use of Estimates</span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:6.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;">Our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP) as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC), and we consider various staff accounting bulletins and other applicable guidance issued by the SEC. These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent that there are differences between these estimates, judgments or assumptions and actual results, our consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting among available alternatives would not produce a materially different result.</span></p><p style="text-indent:0.0%;font-size:10.0pt;margin-top:6.0pt;font-family:Times New Roman;margin-bottom:0.0pt;text-align:justify;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;">During the first quarter of fiscal 2023, we completed an assessment of the useful lives of our servers and increased the estimate of the useful lives from </span><span style="font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;">four years</span></span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;"> to </span><span style="font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;"><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;">five years</span></span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;"> effective at the beginning of fiscal 2023. Based on the carrying value of our servers as of May 31, 2022, this change in accounting estimate decreased our total operating expenses by $</span><span style="font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;">434</span><span style="background-color:rgba(0,0,0,0);color:rgba(0,0,0,1);white-space:pre-wrap;font-weight:normal;font-size:10.0pt;font-family:&quot;Calibri&quot;, sans-serif;min-width:fit-content;"> million during fiscal 2023.</span></p>
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