Oracle Q2 Earnings And Revenues Surpass Estimates

Moreover, the next-generation autonomous database launched by Oracle, supported by ML, is gaining traction. In the reported quarter, the company added new Autonomous Database cloud customers. New product introductions, including new OCI managed services, are likely to bolster growth in this category. Markedly, autonomous database in Gen2 public cloud infrastructure is witnessing rapid adoption.

Oracle’s latest Exadata Cloud@Customer service offering is also gaining traction among on-premise customers.

Noteworthy deal wins of OCI during the reported quarter include MercadoLibre (MELI - Free Report), Conduent (CNDT), Nippon Life India Asset Management, OUTFRONT Media, DeepZen, Workhuman, Temple University, and IQAX.

Oracle, currently carrying a Zacks Rank #3 (Hold), is making every effort to enhance functionalities of cloud-based applications, which is encouraging adoption.

These initiatives are expected to provide the company an edge in the Database-as-a-Service market and reinforce its competitive position against Amazon’s (AMZN) Amazon Web Services.

Operating Details

Non-GAAP operating expenses fell 6% year over year (down 7% at cc) to $5.212 billion. As a percentage of non-GAAP revenues, the figure contracted 480 basis points (bps) to 53.2%.

Non-GAAP operating income during the reported quarter was $4.588 billion, up 14% year over year (up 12% at cc).

Non-GAAP operating margin expanded 478 bps (expanded 452 bps at cc) on a year-over-year basis to 47%.

Balance Sheet & Cash Flow

As of Nov 30, 2020, Oracle had cash & cash equivalents, and marketable securities of $38.593 billion, compared with $42.279 billion as of Aug 31, 2020.

Operating cash flow and free cash flow for the 12 months ended Nov 30, 2020 came in at $13.967 billion and $12.134 billion, respectively.

Share Repurchases & Dividends

Oracle repurchased 68 million shares worth approximately $4 billion during the fiscal second quarter and paid out dividends worth $3 billion during the 12 months ended Nov 30, 2020.

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