Oracle, reach all-time high with AI! Contract balance is at a record high, and new partnership with Amazon! [Summary of financial results]
Software giant $Oracle (ORCL.US)$ announced earnings after the close of trading on September 9th. Stock price in after-hours tradingIncreased by 9%.and exceeded $152.Good performance.andFavorable contract situation.In addition,Signed a multi-cloud contract with Amazon.com.This was well received.
The after-hours trading stock price level exceeded the all-time high of $146.59 set on July 15th. If the same rate of increase occurs during regular trading hours on September 10, the stock price will reach a new all-time high.
![Oracle, reach all-time high with AI! Contract balance is at a record high, and new partnership with Amazon! [Summary of financial results]](https://sgsnsimg.moomoo.com/sns_client_feed/181000001/20240910/1725952812686-12ca782e02.png/big?area=105&is_public=true)
★Earnings Highlights
●Actual results for 1Q (June-August): Above financial estimates.
◇revenue：13.31 billion dollars, up 7% from the same period last year, market expectations are 13.26 billion dollars
◇Adjusted EPS (earnings per share) EPS increased by 19.8% to $1.39, with market estimates at $1.33.
(Note: Market estimates are based on Bloomberg data).
●Actual results for 1Q (June-August): Above financial estimates.
◇revenue：13.31 billion dollars, up 7% from the same period last year, market expectations are 13.26 billion dollars
◇Adjusted EPS (earnings per share) EPS increased by 19.8% to $1.39, with market estimates at $1.33.
(Note: Market estimates are based on Bloomberg data).
Obtained additional contracts related to AI and reached the highest contract balance ever.
◇There is a seasonal tendency for new contracts to decrease in the 1st quarter, but a large number of contracts were signed in the 1st quarter of this fiscal year.
◇In addition, 42 cloud GPU contracts totaling 3 billion dollars were signed in the 1Q.
◇The remaining contract balance reached a record high of $99 billion, an increase of 53% compared to the same period last year.The remaining contract balance reached a record high of $99 billion, an increase of 53% compared to the same period last year.
◇Cloud contracts account for almost three-quarters of the total contract balance.
◇38% of the total contract balance is expected to be recognized as revenue in the next 12 months.
◇There is a seasonal tendency for new contracts to decrease in the 1st quarter, but a large number of contracts were signed in the 1st quarter of this fiscal year.
◇In addition, 42 cloud GPU contracts totaling 3 billion dollars were signed in the 1Q.
◇The remaining contract balance reached a record high of $99 billion, an increase of 53% compared to the same period last year.The remaining contract balance reached a record high of $99 billion, an increase of 53% compared to the same period last year.
◇Cloud contracts account for almost three-quarters of the total contract balance.
◇38% of the total contract balance is expected to be recognized as revenue in the next 12 months.
Amazon.com has also partnered with multi-cloud contracts.
(Multi-cloud refers to combining cloud services from multiple clouds. By incorporating Oracle's unique features, costs, features, and performance can be optimized.)
◇Oracle announced that it has entered into a multi-cloud contract with AWS's cloud service department. Already with Azure's $Amazon (AMZN.US)$ and $Microsoft (MSFT.US)$ as well. $Alphabet-C (GOOG.US)$ It has formed a partnership similar to Google Cloud, a subsidiary of Google.
◇Through this partnership, Oracle's latest technology, Exadata hardware and database software version 23ai, will be integrated into AWS's cloud datacenter. AWS customers will be able to use Oracle's database starting from December this year.
◇"Three hyperscale companiesAs a result, cloud services from these three companies will be conducted through Oracle's database.Revenue from cloud databasesisAlong with OCI and SaaS, it is expected to become the third pillar of revenue growth.The company expects.
◇Through this partnership, Oracle's latest technology, Exadata hardware and database software version 23ai, will be integrated into AWS's cloud datacenter. AWS customers will be able to use Oracle's database starting from December this year.
◇"Three hyperscale companiesAs a result, cloud services from these three companies will be conducted through Oracle's database.Revenue from cloud databasesisAlong with OCI and SaaS, it is expected to become the third pillar of revenue growth.The company expects.
(OCI stands for Oracle Cloud Infrastructure, SaaS is a cloud-based software delivery model. Oracle formed a multi-year partnership with NVIDIA in October 2022, making the entire NVIDIA Accelerated Computing Stack, from GPU to system to software, available on OCI.)
★ Key comments from management:
◇By building a huge datacenter with a high-performance RDMA network and a 32,000-node NVIDIA GPU cluster, the AI training business is maintaining strong performance.
◇Oracle has achieved great success in the database business because of its motto of portability. For example, $IBM Corp (IBM.US)$
◇As cloud services became Oracle's largest business, our operating profit and EPS growth accelerated in the first quarter.
◇Revenue for the full year ending May 2025 is expected to grow by double digits (exceeding the market's forecasted 9% increase).
◇Amazon.com, Microsoft, and GoogleCloud Partnership We expect the growth of our database business to accelerate over the next several years.
◇By building a huge datacenter with a high-performance RDMA network and a 32,000-node NVIDIA GPU cluster, the AI training business is maintaining strong performance.
◇Oracle has achieved great success in the database business because of its motto of portability. For example, $IBM Corp (IBM.US)$
◇As cloud services became Oracle's largest business, our operating profit and EPS growth accelerated in the first quarter.
◇Revenue for the full year ending May 2025 is expected to grow by double digits (exceeding the market's forecasted 9% increase).
◇Amazon.com, Microsoft, and GoogleCloud Partnership We expect the growth of our database business to accelerate over the next several years.
Positive evaluations from Wall Street are noticeable.
After the earnings announcement, multiple analysts raised their target stock price. According to Bloomberg, Mizuho Securities, which wrote in its preview before the earnings announcement that "Oracle will transform into a One-Stop AI Shop", raised its target stock price from the previous $170 to $185 after the earnings announcement.
After the earnings announcement, multiple analysts raised their target stock price. According to Bloomberg, Mizuho Securities, which wrote in its preview before the earnings announcement that "Oracle will transform into a One-Stop AI Shop", raised its target stock price from the previous $170 to $185 after the earnings announcement.
![Oracle, reach all-time high with AI! Contract balance is at a record high, and new partnership with Amazon! [Summary of financial results]](https://sgsnsimg.moomoo.com/sns_client_feed/181000001/20240910/1725952205081-84a576b51a.png/big?area=105&is_public=true)
![Oracle, reach all-time high with AI! Contract balance is at a record high, and new partnership with Amazon! [Summary of financial results]](https://sgsnsimg.moomoo.com/sns_client_feed/181000001/20240910/1725952598858-8caa2530be.jpeg/big?area=105&is_public=true)
Market analyst Julie, created on September 10, 2024.
Source: Company documents and Bloomberg, compiled by moomoo Securities
Source: Company documents and Bloomberg, compiled by moomoo Securities
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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