Oracle Corporation

09/09/2024 | Press release | Distributed by Public on 09/09/2024 14:13

Oracle Announces Fiscal 2025 First Quarter Financial Results

  • Q1 GAAP Earnings per Share up 20% to $1.03, Non-GAAP Earnings per Share up 17% to $1.39
  • Q1 Total Revenue $13.3 billion, up 7% in USD and up 8% in constant currency
  • Q1 Total Remaining Performance Obligations up 53% to $99 billion
  • Q1 Cloud Revenue (IaaS plus SaaS) $5.6 billion, up 21% in USD and up 22% in constant currency
  • Q1 Cloud Infrastructure (IaaS) Revenue $2.2 billion, up 45% in USD and up 46% in constant currency
  • Q1 Cloud Application (SaaS) Revenue $3.5 billion, up 10% in both USD and constant currency
  • Q1 Fusion Cloud ERP (SaaS) Revenue $0.9 billion, up 16% in USD and up 17% in constant currency
  • Q1 NetSuite Cloud ERP (SaaS) Revenue $0.9 billion, up 20% in both USD and constant currency

AUSTIN, Texas, Sept. 9, 2024/PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2025 Q1 results. Total quarterly revenues were up 7% year-over-year in USD, and up 8% in constant currency to $13.3 billion. Cloud services revenues were up 21% year-over-year in USD, and up 22% in constant currency to $5.6 billion. Cloud license and on-premise license revenues were up 7% in USD and up 8% in constant currency to $870 million.

Q1 GAAP operating income was $4.0 billion. Non-GAAP operating income was $5.7 billion, up 13% in USD and up 14% in constant currency. GAAP operating margin was 30%, and non-GAAP operating margin was 43%. GAAP net income was $2.9 billion. Non-GAAP net income was $4.0 billion, up 18% in USD and up 19% in constant currency. Q1 GAAP earnings per share was $1.03, up 20% in USD and up 22% in constant currency, while non-GAAP earnings per share was $1.39, up 17% in USD and up 18% in constant currency.

Short-term deferred revenues were $11.5 billion. Over the last twelve months, operating cash flow was $19.1 billion and free cash flow was $11.3 billion.

"As Cloud Services became Oracle's largest business, both our operating income and earnings per share growth accelerated," said Oracle CEO, Safra Catz. "Non-GAAP operating income was up 14% in constant currency to $5.7 billion, and non-GAAP EPS was up 18% in constant currency to $1.39 in Q1. RPO was up 53% from last year to a record $99 billion. That strong contract backlog will increase revenue growth throughout FY25. But the biggest news of all was signing a MultiCloud agreement with AWS-including our latest technology Exadata hardware and Version 23ai of our database software-embedded into AWS cloud datacenters. AWS customers will get easy and convenient access to the Oracle database when we go live in December later this year."

"Oracle has 162 cloud datacenters in operation and under construction around the world," said Oracle Chairman and CTO, Larry Ellison. "The largest of these datacenters is 800 megawatts and will contain acres of NVIDIA GPU Clusters for training large scale AI models. In Q1, 42 additional cloud GPU contracts were signed for a total of $3 billion. Our database business growth rate is increasing as a result of our MultiCloud agreements with Microsoft and Google. At the end of Q1, 7 Oracle Cloud regions were live at Microsoft with 24 more being built, and 4 Oracle Cloud regions were live at Google with 14 more being built. Our recently signed AWS contract was a milestone in the MultiCloud Era. Soon customers will be able use the latest Oracle database technology from within every Hyperscaler's cloud."

The board of directors declared a quarterly cash dividend of $0.40 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 10, 2024, with a payment date of October 24, 2024.

Earnings Conference Call and Webcast
Oracle will hold a conference call and webcast today to discuss these results at 4:00 p.m. Central. A live and replay webcast will be available on the Oracle Investor Relations website at www.oracle.com/investor/.

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Trademarks
Oracle, Java, MySQL, and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company-ushering in the new era of cloud computing.

"Safe Harbor" Statement: Statements in this press release relating to future plans, expectations, beliefs, intentions and prospects, including the expectations for converting the Remaining Performance Obligations to revenue, the timing and build out of additional datacenters, and future growth as a result of our MultiCloud strategy, are "forward-looking statements" and are subject to material risks and uncertainties. Risks and uncertainties that could affect our current expectations and our actual results, include, among others: our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services, including our AI products; our management of complex cloud and hardware offerings, including the sourcing of technologies and technology components; our ability to secure data center capacity; significant coding, manufacturing or configuration errors in our offerings; risks associated with acquisitions; economic, political and market conditions; information technology system failures, privacy and data security concerns; cybersecurity breaches; unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on the Oracle Investor Relations website at www.oracle.com/investor/. All information set forth in this press release is current as of September 9, 2024. Oracle undertakes no duty to update any statement in light of new information or future events.

ORACLE CORPORATION

Q1 FISCAL 2025 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in millions, except per share data)





Three Months Ended August 31,


% Increase




% Increase

(Decrease)





% of


% of

(Decrease)

in Constant




2024

Revenues

2023

Revenues

in US $

Currency (1)


REVENUES









Cloud services and license support

$ 10,519

79 %

$ 9,547

77 %

10 %

11 %



Cloud license and on-premise license

870

7 %

809

6 %

7 %

8 %



Hardware

655

5 %

714

6 %

(8 %)

(8 %)



Services

1,263

9 %

1,383

11 %

(9 %)

(8 %)



Total revenues

13,307

100 %

12,453

100 %

7 %

8 %


OPERATING EXPENSES









Cloud services and license support

2,597

19 %

2,179

18 %

19 %

20 %



Hardware

162

1 %

219

2 %

(26 %)

(25 %)



Services

1,147

9 %

1,212

10 %

(5 %)

(5 %)



Sales and marketing

2,036

15 %

2,026

16 %

1 %

1 %



Research and development

2,306

17 %

2,216

18 %

4 %

5 %



General and administrative

358

3 %

393

3 %

(9 %)

(8 %)



Amortization of intangible assets

624

5 %

763

6 %

(18 %)

(18 %)



Acquisition related and other

13

0 %

11

0 %

9 %

9 %



Restructuring

73

1 %

138

1 %

(47 %)

(47 %)



Total operating expenses

9,316

70 %

9,157

74 %

2 %

2 %


OPERATING INCOME

3,991

30 %

3,296

26 %

21 %

22 %



Interest expense

(842)

(6 %)

(872)

(7 %)

(3 %)

(3 %)



Non-operating income (expenses), net

20

0 %

(49)

0 %

*

*


INCOME BEFORE INCOME TAXES

3,169

24 %

2,375

19 %

33 %

36 %



(Provision for) benefit from income taxes

(240)

(2 %)

45

0 %

*

*


NET INCOME

$ 2,929

22 %

$ 2,420

19 %

21 %

23 %











EARNINGS PER SHARE:









Basic

$ 1.06


$ 0.89






Diluted

$ 1.03


$ 0.86





WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:









Basic

2,761


2,728






Diluted

2,851


2,823


















































(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations.
To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are
converted into United States dollars at the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the
actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the
three months ended August 31, 2024 compared with the corresponding prior year period decreased our total revenues by 1 percentage point and
operating income by 1 percentage point.


*

Not meaningful

















ORACLE CORPORATION






















Q1 FISCAL 2025 FINANCIAL RESULTS

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

($ in millions, except per share data)

























Three Months Ended August 31,


% Increase
(Decrease)
in US $

% Increase (Decrease)
in Constant Currency
(2)




2024




2024



2023




2023


GAAP

Non-GAAP

GAAP

Non-GAAP





GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP
























TOTAL REVENUES


$ 13,307


$ -


$ 13,307



$ 12,453


$ -


$ 12,453


7 %

7 %

8 %

8 %























TOTAL OPERATING EXPENSES


$ 9,316


$ (1,717)


$ 7,599



$ 9,157


$ (1,761)


$ 7,396


2 %

3 %

2 %

3 %



Stock-based compensation (3)


1,007


(1,007)


-



849


(849)


-


19 %

*

19 %

*



Amortization of intangible assets (4)


624


(624)


-



763


(763)


-


(18 %)

*

(18 %)

*



Acquisition related and other


13


(13)


-



11


(11)


-


9 %

*

9 %

*



Restructuring


73


(73)


-



138


(138)


-


(47 %)

*

(47 %)

*


OPERATING INCOME


$ 3,991


$ 1,717


$ 5,708



$ 3,296


$ 1,761


$ 5,057


21 %

13 %

22 %

14 %


OPERATING MARGIN %


30 %




43 %



26 %




41 %


353 bp.

228 bp.

366 bp.

232 bp.


INCOME TAX EFFECTS (5)


$ (240)


$ (682)


$ (922)



$ 45


$ (823)


$ (778)


*

18 %

*

20 %


NET INCOME


$ 2,929


$ 1,035


$ 3,964



$ 2,420


$ 938


$ 3,358


21 %

18 %

23 %

19 %


DILUTED EARNINGS PER SHARE


$ 1.03




$ 1.39



$ 0.86




$ 1.19


20 %

17 %

22 %

18 %


DILUTED WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING


2,851


-


2,851



2,823


-


2,823


1 %

1 %

1 %

1 %












































(1)

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial
statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material
limitations on the usefulness of these measures, please see Appendix A.























(2)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed
excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at
the exchange rates in effect on May 31, 2024, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.























(3)

Stock-based compensation was included in the following GAAP operating expense categories:


























Three Months Ended



Three Months Ended










August 31, 2024



August 31, 2023










GAAP


Adj.


Non-GAAP



GAAP


Adj.


Non-GAAP








Cloud services and license support


$ 141


$ (141)


$ -



$ 111


$ (111)


$ -








Hardware


6


(6)


-



5


(5)


-








Services


43


(43)


-



34


(34)


-








Sales and marketing


162


(162)


-



135


(135)


-








Research and development


569


(569)


-



484


(484)


-








General and administrative


86


(86)


-



80


(80)


-








Total stock-based compensation


$ 1,007


$ (1,007)


$ -



$ 849


$ (849)


$ -




























(4)

Estimated future annual amortization expense related to intangible assets as of August 31, 2024 was as follows:



Remainder of fiscal 2025


$ 1,683



















Fiscal 2026


1,639



















Fiscal 2027


672



















Fiscal 2028


635



















Fiscal 2029


561



















Fiscal 2030


522



















Thereafter


558



















Total intangible assets, net


$ 6,270







































(5)

Income tax effects were calculated reflecting an effective GAAP tax rate of 7.6% and (1.9%) in the first quarter of fiscal 2025 and 2024, respectively, and an effective non-GAAP tax rate of 18.9% and 18.8% in the first quarter of fiscal 2025
and 2024, respectively. The difference in our GAAP and non-GAAP tax rates in each of the first quarters of fiscal 2025 and 2024 was primarily due to the net tax effects related to stock-based compensation expense; acquisition related and
other items, including the tax effects on amortization of intangible assets; and restructuring expense, partially offset by the net deferred tax effects related to an income tax benefit that was previously recorded due to the partial realignment
of our legal entity structure.


*

Not meaningful




















ORACLE CORPORATION








Q1 FISCAL 2025 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)











August 31,

May 31,




2024

2024

ASSETS





Current Assets:






Cash and cash equivalents

$ 10,616


$ 10,454



Marketable securities

295


207



Trade receivables, net

8,021


7,874



Prepaid expenses and other current assets

4,140


4,019




Total Current Assets

23,072


22,554


Non-Current Assets:






Property, plant and equipment, net

23,094


21,536



Intangible assets, net

6,270


6,890



Goodwill, net

62,249


62,230



Deferred tax assets

12,219


12,273



Other non-current assets

17,310


15,493




Total Non-Current Assets

121,142


118,422


TOTAL ASSETS

$ 144,214


$ 140,976


LIABILITIES AND STOCKHOLDERS' EQUITY





Current Liabilities:






Notes payable and other borrowings, current

$ 9,201


$ 10,605



Accounts payable

2,207


2,357



Accrued compensation and related benefits

1,772


1,916



Deferred revenues

11,455


9,313



Other current liabilities

7,410


7,353




Total Current Liabilities

32,045


31,544


Non-Current Liabilities:






Notes payable and other borrowings, non-current

75,314


76,264



Income taxes payable

11,038


10,817



Deferred tax liabilities

3,442


3,692



Other non-current liabilities

11,106


9,420




Total Non-Current Liabilities

100,900


100,193


Stockholders' Equity

11,269


9,239


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 144,214


$ 140,976









ORACLE CORPORATION







Q1 FISCAL 2025 FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)









Three Months Ended August 31,



2024

2023

Cash Flows From Operating Activities:





Net income

$ 2,929


$ 2,420


Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation

804


712


Amortization of intangible assets

624


763


Deferred income taxes

(151)


(517)


Stock-based compensation

1,007


849


Other, net

130


169


Changes in operating assets and liabilities:





(Increase) decrease in trade receivables, net

(81)


380


Decrease in prepaid expenses and other assets

367


269


Decrease in accounts payable and other liabilities

(531)


(457)


Increase in income taxes payable

24


69


Increase in deferred revenues

2,305


2,317


Net cash provided by operating activities

7,427


6,974


Cash Flows From Investing Activities:





Purchases of marketable securities and other investments

(477)


(333)


Proceeds from sales and maturities of marketable securities and other investments

15


85


Capital expenditures

(2,303)


(1,314)


Net cash used for investing activities

(2,765)


(1,562)


Cash Flows From Financing Activities:





Payments for repurchases of common stock

(150)


(150)


Proceeds from issuances of common stock

179


308


Shares repurchased for tax withholdings upon vesting of restricted stock-based awards

(851)


(1,060)


Payments of dividends to stockholders

(1,103)


(1,091)


Repayments of commercial paper, net

(396)


(562)


Proceeds from issuances of term loan credit agreements

5,627


-


Repayments of senior notes and term loan credit agreements

(7,630)


(1,000)


Other, net

(261)


27


Net cash used for financing activities

(4,585)


(3,528)


Effect of exchange rate changes on cash and cash equivalents

85


(36)


Net increase in cash and cash equivalents

162


1,848


Cash and cash equivalents at beginning of period

10,454


9,765


Cash and cash equivalents at end of period

$ 10,616


$ 11,613








ORACLE CORPORATION

Q1 FISCAL 2025 FINANCIAL RESULTS

FREE CASH FLOW - TRAILING 4-QUARTERS (1)

($ in millions)














Fiscal 2024

Fiscal 2025




Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4












GAAP Operating Cash Flow

$ 17,745

$ 17,039

$ 18,239

$ 18,673

$ 19,126
















Capital Expenditures

(8,290)

(6,935)

(5,981)

(6,866)

(7,855)
















Free Cash Flow

$ 9,455

$ 10,104

$ 12,258

$ 11,807

$ 11,271
















Operating Cash Flow % Growth over prior year

68 %

13 %

18 %

9 %

8 %
















Free Cash Flow % Growth over prior year

76 %

20 %

68 %

39 %

19 %



























GAAP Net Income

$ 9,375

$ 10,137

$ 10,642

$ 10,467

$ 10,976
















Operating Cash Flow as a % of Net Income

189 %

168 %

171 %

178 %

174 %
















Free Cash Flow as a % of Net Income

101 %

100 %

115 %

113 %

103 %



























(1) To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from
operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant
to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity.

















ORACLE CORPORATION


Q1 FISCAL 2025 FINANCIAL RESULTS


SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)


($ in millions)




















Fiscal 2024






Fiscal 2025




Q1

Q2

Q3

Q4

TOTAL


Q1

Q2

Q3

Q4

TOTAL



REVENUES BY OFFERINGS














Cloud services

$ 4,635

$ 4,775

$ 5,054

$ 5,311

$ 19,774


$ 5,623




$ 5,623



License support

4,912

4,864

4,909

4,923

19,609


4,896




4,896



Cloud services and license support

9,547

9,639

9,963

10,234

39,383


10,519




10,519



Cloud license and on-premise license

809

1,178

1,256

1,838

5,081


870




870



Hardware

714

756

754

842

3,066


655




655



Services

1,383

1,368

1,307

1,373

5,431


1,263




1,263



Total revenues

$ 12,453

$ 12,941

$ 13,280

$ 14,287

$ 52,961


$ 13,307




$ 13,307


















AS REPORTED REVENUE GROWTH RATES














Cloud services

30 %

25 %

25 %

20 %

25 %


21 %




21 %



License support

2 %

2 %

1 %

0 %

1 %


0 %




0 %



Cloud services and license support

13 %

12 %

12 %

9 %

12 %


10 %




10 %



Cloud license and on-premise license

(10 %)

(18 %)

(3 %)

(15 %)

(12 %)


7 %




7 %



Hardware

(6 %)

(11 %)

(7 %)

(1 %)

(6 %)


(8 %)




(8 %)



Services

2 %

(2 %)

(5 %)

(6 %)

(3 %)


(9 %)




(9 %)



Total revenues

9 %

5 %

7 %

3 %

6 %


7 %




7 %


















CONSTANT CURRENCY REVENUE GROWTH RATES (2)














Cloud services

29 %

24 %

24 %

20 %

24 %


22 %




22 %



License support

0 %

0 %

1 %

1 %

0 %


0 %




0 %



Cloud services and license support

12 %

11 %

11 %

10 %

11 %


11 %




11 %



Cloud license and on-premise license

(11 %)

(19 %)

(3 %)

(14 %)

(12 %)


8 %




8 %



Hardware

(8 %)

(12 %)

(7 %)

0 %

(7 %)


(8 %)




(8 %)



Services

1 %

(3 %)

(5 %)

(6 %)

(3 %)


(8 %)




(8 %)



Total revenues

8 %

4 %

7 %

4 %

6 %


8 %




8 %


















CLOUD SERVICES AND LICENSE SUPPORT REVENUES















BY ECOSYSTEM














Applications cloud services and license support

$ 4,471

$ 4,474

$ 4,584

$ 4,642

$ 18,172


$ 4,769




$ 4,769



Infrastructure cloud services and license support

5,076

5,165

5,379

5,592

21,211


5,750




5,750



Total cloud services and license support revenues

$ 9,547

$ 9,639

$ 9,963

$ 10,234

$ 39,383


$ 10,519




$ 10,519


















AS REPORTED REVENUE GROWTH RATES














Applications cloud services and license support

11 %

10 %

10 %

6 %

9 %


7 %




7 %



Infrastructure cloud services and license support

15 %

14 %

13 %

12 %

14 %


13 %




13 %



Total cloud services and license support revenues

13 %

12 %

12 %

9 %

12 %


10 %




10 %


















CONSTANT CURRENCY REVENUE GROWTH RATES (2)














Applications cloud services and license support

11 %

9 %

10 %

6 %

9 %


7 %




7 %



Infrastructure cloud services and license support

14 %

12 %

13 %

13 %

13 %


14 %




14 %



Total cloud services and license support revenues

12 %

11 %

11 %

10 %

11 %


11 %




11 %


















GEOGRAPHIC REVENUES














Americas


$ 7,841

$ 8,067

$ 8,270

$ 8,945

$ 33,122


$ 8,372




$ 8,372



Europe/Middle East/Africa


3,005

3,170

3,316

3,539

13,030


3,228




3,228



Asia Pacific


1,607

1,704

1,694

1,803

6,809


1,707




1,707



Total revenues

$ 12,453

$ 12,941

$ 13,280

$ 14,287

$ 52,961


$ 13,307




$ 13,307
































(1) The sum of the quarterly information presented may vary from the year-to-date information presented due to rounding.








(2) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework
for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results
for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2024 and 2023 for the fiscal 2025
and fiscal 2024 constant currency growth rate calculations presented, respectively, rather than the actual exchange rates in effect during the respective periods.

















APPENDIX A

ORACLE CORPORATION
Q1 FISCAL 2025 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

  • Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses, income tax effects and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
  • Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses, income tax effects and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
  • Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses, income tax effects and net income measures. We incurred expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consisted of personnel related costs for transitional and certain other employees, certain business combination adjustments including certain adjustments after the measurement period has ended, and certain other operating items, net. Restructuring expenses consisted of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related and other expenses and restructuring expenses may diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur certain of these expenses in connection with any future acquisitions and/or strategic initiatives.

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SOURCE Oracle