Oracle Q2 Earnings And Revenues Surpass Estimates

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Oracle (ORCL - Free Report) reported second-quarter fiscal 2021 non-GAAP earnings of $1.06 per share, beating the Zacks Consensus Estimate by 6%. Further, the bottom line was up 19% from the year-ago quarter (up 17% at constant currency or cc). Further, the reported figure surpassed the higher end of management’s guided range of 98 cents to $1.02 at USD, and 96 cents to $1 at cc.

Moreover, non-GAAP revenues improved 2% (up 1% at cc) year over year to $9.80 billion, outpacing the Zacks Consensus Estimate by 0.15%. For second-quarter fiscal 2021, Oracle anticipates total revenue growth rate on a year-over-year basis to be 1-3% at USD and 0-2% at cc.

Management refrained from making any comments regarding TikTok deal. It must be noted that on Sep 21, it was announced that ByteDance, TikTok app’s parent company, has received "a tentative approval" for a deal with the U.S. Government.

Per the preliminary agreement, Oracle and Walmart will invest to acquire 12.5% and 7.5%, respectively, of the newly formed TikTok Global business. TikTok is now devising a new company, TikTok Global, through which all TikTok services will be offered to users in the United States and most of the users in the rest of the world. Moreover, Oracle will become TikTok’s secure cloud provider, which is anticipated to aid it in fortifying its presence in the cloud market. However, nothing has been finalized yet.

Top Line in Detail

Oracle reported total revenues (on a GAAP basis) of $9.80 billion, up 2% (up 1% at cc) year over year, primarily led by improvement in cloud business.

Revenues by Offerings

Oracle’s top line benefited from the ongoing cloud-based momentum. Cloud services and license support revenues (72% of total revenues) in the reported quarter increased 4% year over year (up 4% at cc) to $7.112 billion.

Break up of Cloud services and license support revenues

Applications revenues (contributed 41% to total cloud services and license support revenues) amounted to $2.901 billion, up 5% year over year (up 5% at cc).

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