2024 Q2 Form 10-K Financial Statement

#000095017024075605 Filed on June 20, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024
Revenue $14.29B $52.96B
YoY Change 3.25% 6.02%
Cost Of Revenue $3.923B $15.14B
YoY Change 5.17% 11.64%
Gross Profit $10.36B $37.82B
YoY Change 2.54% 3.92%
Gross Profit Margin 72.54% 71.41%
Selling, General & Admin $2.516B $9.822B
YoY Change -6.43% -5.67%
% of Gross Profit 24.28% 25.97%
Research & Development $2.226B $8.915B
YoY Change 0.0% 3.39%
% of Gross Profit 21.48% 23.57%
Depreciation & Amortization $1.554B $6.139B
YoY Change -2.02% 0.51%
% of Gross Profit 14.99% 16.23%
Operating Expenses $5.485B $21.75B
YoY Change -5.19% -3.85%
Operating Profit $4.879B $16.07B
YoY Change 12.89% 16.68%
Interest Expense -$878.0M -$3.514B
YoY Change -8.06% 0.26%
% of Operating Profit -18.0% -21.87%
Other Income/Expense, Net -$26.00M -$98.00M
YoY Change -65.79% -78.79%
Pretax Income $3.782B $11.74B
YoY Change 21.65% 28.65%
Income Tax $639.0M $1.274B
% Of Pretax Income 16.9% 10.85%
Net Earnings $3.143B $10.47B
YoY Change -5.3% 23.1%
Net Earnings / Revenue 22.0% 19.76%
Basic Earnings Per Share $3.82
Diluted Earnings Per Share $1.11 $3.71
COMMON SHARES
Basic Shares Outstanding 2.756B 2.744B
Diluted Shares Outstanding 2.823B

Balance Sheet

Concept 2024 Q2 2024
SHORT-TERM ASSETS
Cash & Short-Term Investments $10.66B $10.66B
YoY Change 4.65% 4.65%
Cash & Equivalents $10.45B $10.45B
Short-Term Investments $207.0M $207.0M
Other Short-Term Assets $4.019B $4.019B
YoY Change 3.0% 3.0%
Inventory $334.0M
Prepaid Expenses
Receivables $7.874B $7.874B
Other Receivables $0.00 $0.00
Total Short-Term Assets $22.55B $22.55B
YoY Change 7.38% 7.38%
LONG-TERM ASSETS
Property, Plant & Equipment $21.54B $21.54B
YoY Change 26.17% 26.17%
Goodwill $62.23B
YoY Change -0.05%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $27.77B $27.77B
YoY Change 14.67% 14.67%
Total Long-Term Assets $118.4B $118.4B
YoY Change 4.45% 4.45%
TOTAL ASSETS
Total Short-Term Assets $22.55B $22.55B
Total Long-Term Assets $118.4B $118.4B
Total Assets $141.0B $141.0B
YoY Change 4.91% 4.91%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.357B $2.357B
YoY Change 95.76% 95.76%
Accrued Expenses $1.916B $1.916B
YoY Change -6.67% -6.67%
Deferred Revenue $9.313B
YoY Change 3.82%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $10.61B $10.61B
YoY Change 161.14% 161.14%
Total Short-Term Liabilities $31.54B $31.54B
YoY Change 36.61% 36.61%
LONG-TERM LIABILITIES
Long-Term Debt $76.26B $76.26B
YoY Change -11.75% -11.75%
Other Long-Term Liabilities $20.24B $20.24B
YoY Change 15.34% 15.34%
Total Long-Term Liabilities $96.50B $96.50B
YoY Change -7.18% -7.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $31.54B $31.54B
Total Long-Term Liabilities $96.50B $96.50B
Total Liabilities $131.7B $131.7B
YoY Change -0.82% -0.82%
SHAREHOLDERS EQUITY
Retained Earnings -$22.63B
YoY Change -18.07%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.239B $9.239B
YoY Change
Total Liabilities & Shareholders Equity $141.0B $141.0B
YoY Change 4.91% 4.91%

Cashflow Statement

Concept 2024 Q2 2024
OPERATING ACTIVITIES
Net Income $3.143B $10.47B
YoY Change -5.3% 23.1%
Depreciation, Depletion And Amortization $1.554B $6.139B
YoY Change -2.02% 0.51%
Cash From Operating Activities $6.081B $18.67B
YoY Change 7.69% 8.79%
INVESTING ACTIVITIES
Capital Expenditures $2.798B $6.866B
YoY Change 46.26% -21.04%
Acquisitions $63.00M
YoY Change -99.77%
Other Investing Activities $32.00M -$494.0M
YoY Change -89.37% -98.22%
Cash From Investing Activities -$2.766B -$7.360B
YoY Change 71.59% -79.83%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$39.00M -$2.500B
YoY Change -132.5% 90.69%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.274B -10.55B
YoY Change -6.8% -233.43%
NET CHANGE
Cash From Operating Activities 6.081B 18.67B
Cash From Investing Activities -2.766B -7.360B
Cash From Financing Activities -2.274B -10.55B
Net Change In Cash 1.041B 759.0M
YoY Change -34.73% -106.65%
FREE CASH FLOW
Cash From Operating Activities $6.081B $18.67B
Capital Expenditures $2.798B $6.866B
Free Cash Flow $3.283B $11.81B
YoY Change -12.08% 39.4%

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<p style="font-size:10pt;margin-top:6pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;">Oracle Corporation provides products and services that substantially address all aspects of enterprise information technology (IT) needs, 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 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="font-size:10pt;margin-top:6pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',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="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;">Use of Estimates</span></p><p style="font-size:10pt;margin-top:6pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;">Our consolidated financial statements are prepared in accordance with United States (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</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;"> </span></p><p style="font-size:10pt;margin-top:6pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;">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="font-size:10pt;margin-top:6pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',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:10pt;font-family:'Calibri',sans-serif;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;">four years</span></span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;"> to </span><span style="font-size:10pt;font-family:'Calibri',sans-serif;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;">five years</span></span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',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:10pt;font-family:'Calibri',sans-serif;color:#000000;white-space:pre-wrap;min-width:fit-content;">434</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:'Calibri',sans-serif;min-width:fit-content;"> million during fiscal 2023.</span></p>
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