Oracle Announces Fiscal 2020 Third Quarter Results

Oracle last week announced strong results for fiscal 2020 Q3. Total revenues were $9.8 billion, up 2% in USD and 3% in constant currency compared to Q3 last year. Cloud services and license support revenues were $6.9 billion, up 4% in USD and 5% in constant currency. Cloud license and on-premise license revenues were $1.2 billion.

GAAP operating income was up 4% to $3.5 billion, and GAAP operating margin was 36%. Non-GAAP operating income was up 2% to $4.4 billion, and non-GAAP operating margin was 44%. GAAP net income was $2.6 billion, and non-GAAP net income was $3.2 billion. GAAP earnings per share was up 4% to $0.79, while non-GAAP earnings per share was up 11% to $0.97.

"We had an extremely strong quarter with total revenues growing 3% in constant currency,” said Safra Catz, Oracle CEO. “Subscription revenues, made up of cloud services and license support revenues, grew 5% in constant currency. These consistently growing and recurring subscription revenues now account for 71% of total company revenues, thus enabling a sequential increase in our operating margin, and double-digit non-GAAP earnings per share growth in Q3.”

“The Oracle Autonomous Database, the world’s only fully autonomous data management system, can automatically patch security vulnerabilities while running; it keeps your data safe,” said Larry Ellison, Oracle chairman and CTO. “Oracle Autonomous Database is also both serverless and elastic. It’s the only database that can instantaneously scale itself to an optimal level of CPU and IO resources. You only pay for what you use. Security and economy are two fundamental reasons why thousands of customers are now using the revolutionary new Oracle Autonomous Database in our Generation 2 Public Cloud.”

The board of directors increased the authorization for share repurchases by $15.0 billion. The board of directors also declared a quarterly cash dividend of $0.24 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on April 9, 2020, with a payment date of April 23, 2020.

A replay of Oracle conference call discussing Q3 financial results is available by dialing (855) 859-2056 or (404) 537-3406, Passcode: 5995463.