Oracle Corporation
CEO : Ms. Safra Ada Catz
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q3 | 17.9% YoY | -12.2% | -19.5% | 2023-03-09 |
Safra Catz says,
Cloud Revenue Growth
- Total cloud revenue, including SaaS and IaaS, was $4.1 billion, up 48% in constant currency.
- Excluding Cerner, total cloud revenue was up 28% in constant currency at $3.5 billion.
- SaaS revenue was $2.9 billion, up 44% in constant currency.
- IaaS revenue was $1.2 billion, up 57% in constant currency.
- Infrastructure cloud services revenue grew 65% when excluding legacy hosting services, with annualized revenue of $4.4 billion.
Cloud Services and License Support Revenue
- Total cloud services and license support revenue, including Cerner, was $8.9 billion, up 20% in constant currency.
- Application subscription revenues, including support, were $4.2 billion, up 33% in constant currency.
- Infrastructure subscription revenues, including support, were $4.8 billion, up 10% in constant currency.
RPO and Operating Cash Flow
- The remaining performance obligation (RPO) balance is $62.3 billion, up 66% in constant currency.
- Organic RPO growth rate was 26% in constant currency.
- Operating cash flow for the quarter was up 11% at $4.3 billion.
Guidance for Q4
- Total revenues for Q4, including Cerner, are expected to grow from 17% to 19% in constant currency.
- Total cloud growth, including Cerner, is expected to grow from 51% to 53% in constant currency.
- I expect total cloud growth for Q4, excluding Cerner, will be above 30% in constant currency.
- Non-GAAP EPS is expected to grow between 3% and 5% and between $1.59 and $1.63 in constant currency.
Acquisitions, Stock Repurchases, and Dividend
- The company repurchased 1.8 million shares for a total of $150 million and paid out dividends of $863 million in the quarter.
- The Board of Directors increased the quarterly dividend 25% from $0.32 to $0.40 per share.
Larry Ellison says,
Healthcare Contracts Accelerating
- Health care contract base increased by $5 billion since acquiring Cerner in June 2022
- New and expanding domestic and international customers, including U.S. Department of Defense, U.S. Department of Veterans Affairs, hospital groups in a dozen U.S. states, multiple hospitals in the United Kingdom, multiple provinces in Canada, the Australian Defense Forces, multiple hospitals in Puerto Rico and multiple countries in the Middle East
- Expect signing of new healthcare contracts to accelerate over the next few quarters
Cerner Business Highlights
- Booking billions of dollars in Millennium Clinical and electronic health record systems for hundreds of hospitals and ambulatory clinics
- Cerner business is part of the broader Oracle Healthcare application portfolio, covering virtually the entire health care ecosystem
- Hospitals are buying Oracle Fusion ERP system to manage their revenue cycle and medical supply chain from ordering to inventory
- Pharmaceutical companies are buying Oracle Clinical One to manage clinical trials
- Government health organizations are using aggregated EHR data to monitor infectious disease and respond to outbreaks
Cerner Wins Since Its Acquisition
- Labcorp and Ascension Health win to deploy a single lab information system domain for 96 separate hospital-based labs across 10 states
- Auxilio Mutuo win in Puerto Rico for an all-new electronic health record footprint to deploy in a 600-plus bed academic private hospital, replacing Altera, Paragon with Cerner Millennium
- Vandalia Health consolidated all their EMRs into a single unified domain and added four new hospitals
- UHS modernized their revenue cycle, migrated to CareAware with the CareAware Cloud for their hospitals and ambulatory clinics
- Banner Health implemented a complete revenue cycle management for their health business
- VA deployed the unified electronic health record system to 19 additional sites
- Department of Defense deployed Oracle Cerner EHR to all the OCONUS locations in the Department of Defense
- Sheffield Teaching Hospital deployed the full suite of Cerner applications across three additional sites and Princess Alexandra Hospital in the UK added the full Cerner suite
- Mubadala Health was the first Cerner Millennium client to move from the Cerner data center directly now to the OCI Cloud
- Deployed the full EHR footprint to four Sheikh Khalifa Hospitals in the U.A.E
- Delivered acute care capabilities to all Australian Defense hospitals and field hospitals
- Deployed a one-patient, one-record EHR system across the province for the citizens of Nova Scotia and a new HR footprint to support delivery of care for 450,000 citizens in Niagara Health, Canada
Cerner Business Highlights
- Oracle ERP used by Cleveland Clinic, Mayo Clinic, Mount Sinai Hospital, Providence St. Joseph Health, Adventist Health, Kaiser Permanente, NHS in the UK, UnitedHealthcare, BlueCross BlueShield, Humana, Highmark Health, and Health Care Service Corporation
- Oracle HCM used by Cleveland Clinic, Mayo Clinic, Mount Sinai Hospital, Providence St. Joseph Health, Adventist Health, Kaiser Permanente, University of Texas Health in San Antonio, Labcorp, ICU Medical, Dexcom, and Sitel
- Oracle Clinical One used by pharmaceutical companies to manage clinical trials
- Major wins at Ascension Health buying ERP, HCM, SCM and HCM and at Labcorp buying ERP and HCM
- Specific features to manage the health care workforce are being added to HCM product, making Oracle more successful in selling HCM within the health care ecosystem
Q & A sessions,
Oracle’s Gen 2 Cloud Advantage in AI
- Oracle’s RDMA network is faster than competitors, allowing for dynamic grouping of NVIDIA GPU clusters to run large AI problems efficiently and economically
- Oracle has partnered with MD Anderson Hospital and an independent software vendor to build disease-specific AI modules that reduce hospital admissions and readmissions by 30%
- The Oracle Autonomous Database is self-driving and uses AI to handle all administrative tasks
One Patient, One Record Architecture
- Oracle’s standard system is one patient, one record in the database, making all patient data accessible in one place for better information sharing, better outcomes, and cost efficiency
- This architecture is attracting attention and winning contracts, including a bid for a huge contract for the NHS
Strong Customer Commitments to Oracle’s Cloud Services
- Oracle has many enterprise customers, including phone companies, banks, and governments, who make long-term commitments to its cloud services
- The SaaS revenue is fully committed, and many customers make commitments to ensure Oracle has available capacity for their critical workloads
No bad stock 