Oracle's net profit increased by 95% year-on-year as the company has announced a total sum of $10.1 billion as their 3rd quarter revenue
It was reported that Oracle today released its third-quarter financial report for the 2021 fiscal year. According to the report, Oracle’s total revenue for the third fiscal quarter was US$ 10.085 billion, an increase of 3% compared to US$9.796 billion in the same period last year. Excluding the impact of exchange rate changes, it was the same year-on-year; net profit was US$5.021 billion, compared with the same period last year. The US$2.571 billion of US$2.571 billion increased by 95% compared to the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase of 87%;

Oracle's third-quarter revenue and adjusted earnings per share exceeded Wall Street analysts' previous expectations, but its stock price still fell nearly 3% after the market.

Main results of the third fiscal quarter: In the fiscal quarter ended February 28, Oracle’s net profit was US$ 5.021 billion, an increase of 95% compared to US$2.571 billion in the same period last year. Excluding the impact of exchange rate changes, it was the same as the same period last year. An increase of 87%; diluted earnings per share was US$1.68, an increase of 113% compared to 79 cents per share in the same period last year, and a 104% year-on-year increase excluding the impact of exchange rate changes.

In the third quarter of fiscal 2021, excluding one-off items (not in accordance with US GAAP), Oracle’s adjusted net profit was US$3.485 billion, an increase of 10% compared to US$3.16 billion in the same period last year. The impact of exchange rate changes was a year-on-year increase of 6%; adjusted diluted earnings per share was US$1.16, an increase of 20% compared to 97 cents in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase of 16%. This performance exceeded Wall Street analysts had expected. According to data provided by the Yahoo Finance website, 24 analysts had previously expected Oracle’s adjusted earnings per share for the third fiscal quarter to reach $1.11.

Oracle's total revenue for the third fiscal quarter was US$10.085 billion, an increase of 3% compared to US$9.796 billion in the same period last year. Excluding the impact of exchange rate changes, it was flat year-on-year. Excluding one-time items (not in accordance with US GAAP), Oracle’s total revenue for the third fiscal quarter was US$10.086 billion, an increase of 3% compared to US$9.797 billion in the same period last year. Excluding the impact of exchange rate changes, it was the same as last year. Flat, this performance also slightly exceeded analysts' previous expectations. According to data provided by the Yahoo Finance website, 21 analysts had previously expected Oracle's third-quarter revenue to reach 10.07 billion US dollars on average.

Oracle's third-quarter operating profit was US$3.878 billion, an increase of 10% compared to US$3.528 billion in the same period last year. Excluding the impact of exchange rate changes, it increased by 5% year-on-year; operating profit margin was 38%, compared to the same period last year Is 36%. Excluding one-time items (not in accordance with US GAAP), Oracle's third-quarter operating profit was US$4.784 billion, an increase of 10% compared to US$4.357 billion in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase6 %; operating profit margin was 47%, compared with 44% in the same period last year.

Operating expenses:
Oracle's total operating expenses in the third fiscal quarter were US$6.207 billion, a decrease of 1% compared with US$6.268 billion in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year decrease of 2%. among them:
  • Cloud services and authorized support expenditures were US$1.064 billion, an increase of 7% compared to US$991 million in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase of 6%; Cloud services and authorized support expenditures accounted for revenue The ratio is 11%, compared to 10% in the same period last year.
  • Hardware expenditure was US$230 million, a 15% decrease compared to US$271 million in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year decrease of 16%; hardware expenditures accounted for 2% of revenue. It was 3% in the same period last year.
  • Service expenditure was US$621 million, a decrease of 12% compared to US$702 million in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year decrease of 14%; service expenditures accounted for 6% of revenue. It was 7% in the same period last year.
  • Sales and marketing expenses were US$1.915 billion, a decrease of 7% compared to US$2.049 billion in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year decrease of 8%; sales and marketing expenses accounted for 19% of revenue , Compared to 21% in the same period last year.
  • R&D expenditure was US$1.621 billion, an increase of 8% compared to US$1.5 billion in the same period last year. Excluding the impact of exchange rate changes, it also increased by 8% year-on-year; R&D expenditure accounted for 16% of revenue. It was 15% in the same period last year.
  • General and administrative expenses were US$330 million, an increase of 15% compared to US$288 million in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase of 14%; general and administrative expenses accounted for 3% of revenue , Compared to 3% in the same period last year.
  • Intangible assets amortization expenses were US$347 million, a decrease of 13% compared to US$400 million in the same period last year. Excluding the impact of exchange rate changes, the same year-on-year decrease was 14%; the proportion of intangible assets amortization expenses in revenue 4%, compared with 4% in the same period last year.
  • M&A-related expenses and other expenses were US$13 million, an increase of 92% compared to US$7 million in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase of 91%; M&A-related expenses and other expenses accounted for revenue The ratio is 0%, compared to 0% in the same period last year.
  • Restructuring expenditure was US$66 million, an increase of 10% compared to US$60 million in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase of 1%. Restructuring expenses accounted for 1% of revenue, compared with 1% in the same period last year.

Performance of each department:
Oracle’s revenue from cloud services and authorization support services in the third fiscal quarter was US$7.252 billion, an increase of 5% compared to US$6.930 billion in the same period last year. Excluding the impact of exchange rate changes, it increased by 2% year-on-year; in the total revenue The proportion was 72%, compared with 71% in the same period last year.

Oracle's revenue from cloud authorization and on-site authorization in the third fiscal quarter was US$1.276 billion, an increase of 4% compared to US$1.231 billion in the same period last year. Excluding the impact of exchange rate changes, it was flat year-on-year; as a percentage of total revenue This is 13%, compared to 12% in the same period last year.

Oracle’s hardware business revenue in the third fiscal quarter was US$820 million, a 4% decrease compared with US$857 million in the same period last year. Excluding the impact of exchange rate changes, it was a 6% year-on-year decrease; its share of total revenue was 8%. %, compared to 9% in the same period last year.

Oracle's service business revenue in the third fiscal quarter was US$737 million, a 5% decrease from US$778 million in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year decrease of 8%; the proportion of total revenue was 7 %, compared to 8% in the same period last year.

As of the end of the third fiscal quarter, Oracle's short-term deferred revenue was $8.1 billion. In the past 12 months, Oracle's operating cash flow was $14.7 billion.

Other financial information:
Oracle today announced that the company’s board of directors has increased the amount of its authorized share repurchase program by US$20 billion. In addition, Oracle’s board of directors also announced that it plans to pay a quarterly cash dividend to common shareholders at a price of 24 cents per share, which will be paid on April 22, 2021 to shareholders of record as of the close of April 8, 2021.

Executive Comments:
Oracle CEO Safra Catz said: "With Fusion ERP growing by 30% in the third quarter and NetSuite ERP growing by 24%, we continue to expand our huge leading position in the cloud ERP market. Oracle’s high-profit, multi-billion-dollar cloud ERP business achieved rapid growth, helping to drive 5% growth in subscription revenue and 10% increase in operating profit during the quarter. Subscription revenue now accounts for 72% of Oracle’s total revenue, and This highly predictable recurring income stream, coupled with the role of expense discipline, has resulted in double-digit growth in earnings per share that is not in accordance with the US GAAP."

Stock price changes:
On the same day, Oracle's stock price fell by 0.45 US dollars in Nasdaq regular trading to close at 72.19 US dollars, a decrease of 0.62%. In the subsequent after-hours trading at 4:14 pm on Wednesday, US Eastern Time (5:14 am on Thursday, Beijing time), Oracle's stock price fell again by 1.97 US dollars to 70.22 US dollars, a decline of 2.73%. In the past 52 weeks, Oracle’s highest price was US$73.62 and the lowest price was US$39.71.
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