Oracle (ORCL) Q2 FY2025 Earnings Breakdown

Key Highlights:

• Cloud and License Business Continues to Drive Growth: The cloud and license business remained the primary revenue driver, representing 85% of total revenues on a trailing 4-quarter basis.
• Growth in cloud services revenues was particularly strong, driven by both new customer acquisitions and renewals.
• "Excluding the unfavorable effects of foreign currency rate fluctuations ... the increase in our cloud and license business revenues was primarily due to growth in our cloud services revenues as customers purchased our applications and infrastructure technologies and also renewed their related cloud contracts to continue to gain access to the latest versions of our technologies."
• Hardware Business Decline: The hardware business faced challenges, with revenues declining by 4% in reported currency and 3% in constant currency.
• This decline is attributed to the company's focus on cloud-based infrastructure technologies.
• Services Business Decline: Similar to the hardware business, the services business also saw a decline in revenues, decreasing by 3% in both reported and constant currency.
• This decline was attributed to decreases across all primary service offerings.
• Investment in Ampere: Oracle continues its investment in Ampere Computing Holdings LLC, with a total carrying value of $1.5 billion as of November 30, 2024.
• While Ampere is currently generating net losses, Oracle remains confident in its long-term potential.
• Significant R&D Investments: Oracle continues to invest heavily in research and development, deeming it essential for maintaining its competitive position.