NYSE$ORCL

Oracle Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Announced fiscal year 2021 second quarter financial results, with GAAP EPS up 16% to $0.80 and total quarterly revenues up 2% year-over-year to $9.8 billion.

Oracle's Q2 FY2021 results showed a 2% increase in total quarterly revenues, reaching $9.8 billion. GAAP EPS increased by 16% to $0.80, and non-GAAP EPS rose by 19% to $1.06. The growth was driven by Fusion Cloud ERP and NetSuite Cloud ERP, which increased revenue by 33% and 21% respectively.

  • Q2 FY2021 GAAP EPS increased by 16% to $0.80, while Non-GAAP EPS increased by 19% to $1.06.
  • Oracle Gen2 Cloud Infrastructure and Autonomous Database revenue increased by over 100%.
  • Fusion Cloud ERP revenue increased by 33%, and NetSuite Cloud ERP revenue increased by 21%.
  • Total quarterly revenues were up 2% year-over-year to $9.8 billion.

Headline financials

Total Revenue

$9.8B

Previous: $9.61B+1.9%
EPS (adj)

$1.06

Previous: $0.90+17.8%
Capital Expenditures

-$1B

Previous: -$735M-36.6%
Free Cash Flow

$1.44B

Previous: $1.58B-8.8%
Net Income

$2.44B

Previous: $2.31B+5.7%
Operating Income

$3.58B

Previous: $3.18B+12.6%
Gross Profit

$7.86B

Previous: $4M+196425.0%
Cash & Equivalents

$28B

Previous: $24.5B+14.1%
Total Assets

$110B

Previous: $98.4B+11.8%
Stock-Based Comp

$488M

Previous: $397M+22.9%

Revenue & EPS history

Oracle · Revenue · Quarterly

$9.8B

Q2 2021+1.9%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Oracle · $1.6B total across 2 segments · Q2 2021

  • Hardware
    $844M-3.1%
  • Services
    $752M-6.7%

Forward guidance

Oracle anticipates continued growth in cloud services and license support revenues, driven by the increasing adoption of Oracle Gen2 Cloud Infrastructure and Autonomous Database.

Tailwinds

  • Expects to have 38 Cloud regions live by mid-2021.
  • Oracle increased its already aggressive expansion plan.
  • Opened 13 Cloud regions so far in 2020.
  • Customers ranked Oracle highest in overall satisfaction among SAP, Microsoft, and Workday.
  • Is helping drive the transition to a sustainable energy future.

Headwinds

  • The COVID-19 pandemic has affected how Oracle and its customers are operating their respective businesses.
  • Our cloud strategy, including our Oracle Cloud Software-as-a-Service and Infrastructure-as-a-Service offerings, may adversely affect our revenues and profitability.
  • We might experience significant coding, manufacturing or configuration errors in our cloud, license and hardware offerings.
  • Economic, political and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price.
  • Acquisitions present many risks and we may not achieve the financial and strategic goals that were contemplated at the time of a transaction.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.4%

Avg return

30 days after

44%

32 / 73 earnings

Positive

+15.4%

Q2 2022

Best reaction

-13.2%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-2.4%-0.4%
Q3 2026-0.0%+4.4%-7.6%
Q2 2026-4.2%-15.4%-11.0%
Q1 2026+10.9%+25.1%+21.3%
Q4 2025+2.7%+3.7%+5.7%
Q3 2025-3.1%+0.3%-10.4%
Q2 2025-7.3%-9.5%-14.9%
Q1 2025+9.9%+14.3%+25.7%
Q4 2024+12.8%+10.9%+14.7%
Q3 2024+13.4%+11.7%+8.3%
Q2 2024-11.3%-9.1%-8.5%
Q1 2024-13.2%-9.8%-13.2%
Q4 2023+6.2%+14.2%+5.6%
Q3 2023-5.0%-4.4%+8.4%
Q2 2023+0.9%-0.4%+10.9%
Q1 2023+0.2%-9.3%-16.0%
Q4 2022+5.3%-1.6%+7.9%
Q3 2022+2.3%+5.9%+6.4%
Q2 2022+15.4%+12.3%-1.6%
Q1 2022-3.7%-3.7%+7.5%
Q4 2021-6.7%-7.7%+4.4%
Q3 2021-7.2%-6.8%+4.0%
Q2 2021+1.5%+3.6%+6.1%
Q1 2021+0.1%+7.0%+7.4%
Q4 2020-3.2%+2.2%+4.8%
Q3 2020+7.2%+4.8%+18.9%
Q2 2020-3.2%-6.2%-3.3%
Q1 2020-2.8%-4.2%+2.6%
Q4 2019+7.7%+7.3%+8.8%
Q3 2019-0.2%+1.8%+2.7%
Q2 2019-1.6%-5.6%+3.1%
Q1 2019-0.4%+3.8%-2.8%
Q4 2018-8.0%-5.2%+4.1%
Q3 2018-10.0%-14.3%-9.9%
Q2 2018-3.5%-4.5%-1.1%
Q1 2018-7.7%-9.0%-7.9%
Q4 2017+9.7%+11.0%+10.8%
Q3 2017+6.9%+5.7%+2.8%
Q2 2017-4.4%-4.6%-4.0%
Q1 2017-3.3%-2.9%-4.6%
Q4 2016+3.2%+4.0%+8.7%
Q3 2016+3.9%
Q2 2016-3.3%
Q1 2016-3.3%
Q4 2015-4.3%
Q3 2015+1.7%
Q2 2015+11.6%
Q1 2015-3.3%
Q4 2014-4.6%
Q3 2014+0.9%
Q2 2014+8.8%
Q1 2014+1.9%
Q4 2013-11.6%
Q3 2013-9.5%
Q2 2013+5.5%
Q1 2013-0.9%
Q4 2012+0.9%
Q3 2012-1.2%
Q2 2012-10.0%
Q1 2012+1.8%
Q4 2011+2.7%
Q3 2011+1.5%
Q2 2011-0.1%
Q1 2011-1.3%
Q4 2010+1.7%
Q4 2008+1.7%
Q3 2010-0.6%
Q3 2009-0.6%
Q2 2010+1.2%
Q2 2009-1.0%
Q1 2010-1.0%
Q1 2009-1.0%
Q4 2009-1.0%

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