Executive Summary
Oracle reported QQ4 2024 revenue of $14.287 billion, up 3.26% year-over-year and 7.58% quarter-over-quarter, supported by stable gross margins and improving operating leverage. Gross profit reached $9.621 billion with a gross margin of 67.34%, while operating income rose to $4.879 billion, expanding the operating margin to 34.15%. Net income was $3.144 billion, translating to a net margin of 22.01% and EPS (diluted) of $1.11. The company generated $6.081 billion in operating cash flow and delivered free cash flow of $3.283 billion, underscoring robust cash-generation capability despite a heavier debt load. Oracle finished the period with cash and cash equivalents of $10.454 billion and total debt of $94.469 billion, leaving net debt of $84.015 billion. The balance sheet remains asset-heavy with substantial goodwill ($62.23 billion) and intangible assets ($6.89 billion), while equity stands at $8.704 billion, reflecting a negative retained earnings balance of ($22.628) billion.
Key Performance Indicators
Key Insights
Revenue: $14.287B, YoY +3.26%, QoQ +7.58%. Gross Profit: $9.621B, Gross Margin 67.34%, YoY -4.80%, QoQ +2.23%. Operating Income: $4.879B, Operating Margin 34.15%, YoY +13.57%, QoQ +30.11%. Net Income: $3.144B, Net Margin 22.01%, YoY -5.27%, QoQ +30.95%. EPS (diluted): $1.11, EPS (GAAP): $1.14, YoY -7.32%, QoQ +31.03%. Cash Flow: Operating Cash Flow $6.081B, CapEx $2.798B, Free Cash Flow $3.283B, FCF per share $1.193, OCF per share $2.21. Balance Sheet: Total assets $140.976B; Total liabilities $...
Financial Highlights
Revenue: $14.287B, YoY +3.26%, QoQ +7.58%. Gross Profit: $9.621B, Gross Margin 67.34%, YoY -4.80%, QoQ +2.23%. Operating Income: $4.879B, Operating Margin 34.15%, YoY +13.57%, QoQ +30.11%. Net Income: $3.144B, Net Margin 22.01%, YoY -5.27%, QoQ +30.95%. EPS (diluted): $1.11, EPS (GAAP): $1.14, YoY -7.32%, QoQ +31.03%. Cash Flow: Operating Cash Flow $6.081B, CapEx $2.798B, Free Cash Flow $3.283B, FCF per share $1.193, OCF per share $2.21. Balance Sheet: Total assets $140.976B; Total liabilities $131.737B; Total stockholders’ equity $8.704B; Cash & equivalents $10.454B; Total debt $94.469B; Net debt $84.015B. Liquidity: Current ratio 0.715x, Quick ratio 0.704x, Cash ratio 0.331x. Valuation (as of QQ4’24): P/E 25.65x, P/B 37.07x, P/S 22.58x, EV/EBITDA 64.85x; Dividend yield 0.34%. Operating efficiency: DSO 49.6 days, DIO 6.44 days, DPO 45.46 days, CCC 10.58 days. Free cash flow yield relative to revenue ≈ 23%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.29B |
3.26% |
7.58% |
| Gross Profit |
9.62B |
-4.80% |
2.23% |
| Operating Income |
4.88B |
13.57% |
30.11% |
| Net Income |
3.14B |
-5.27% |
30.95% |
| EPS |
1.14 |
-7.32% |
31.03% |
Key Financial Ratios
operatingProfitMargin
34.1%
operatingCashFlowPerShare
$2.21
freeCashFlowPerShare
$1.19
dividendPayoutRatio
35.1%
Management Commentary
Transcript data not provided in the supplied materials. No earnings call quotes or thematic management commentary are available to extract direct quotes or themes by strategy, operations, or market conditions.
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Forward Guidance
No formal full-year forward guidance was included in the supplied QQ4 2024 materials. Therefore, a precise target-based outlook cannot be stated. Investors should monitor: (1) Oracle Cloud revenue growth and mix as a driver of mid-to-high single-digit revenue expansion; (2) cloud gross margins and operating margin progression as Oracle scales Fusion ERP, NetSuite, and Autonomous Database capabilities; (3) capital allocation cadence given a sizable debt load and ongoing share repurchases; (4) balance sheet optimization, including management’s plan for debt levels and potential deleveraging or asset-light initiatives. Industry dynamics such as AI-enabled workloads, multi-cloud adoption, and competitive pressure from hyperscalers will influence the trajectory of Oracle’s cloud engagement and profitability.