Oracle Corporation (ORCL)

Sector: Technology|Industry: Software - Infrastructure|Market Cap: $521.49B|Employees: 159K


Oracle Corporation provides products and services that address enterprise IT needs, including enterprise applications and infrastructure offerings. These are delivered worldwide through flexible and interoperable IT deployment models, including on-premise, cloud-based, and hybrid deployments, giving customers choice and flexibility. The company holds a strong market position due to its comprehensive offerings and is known for its innovation and customer base.

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  2. Company Profile

Business Summary

Oracle Corporation is a major provider of enterprise information technology products and services, including applications and infrastructure offerings delivered through various deployment models: on-premise, cloud-based, and hybrid. These models offer customers choice and flexibility, facilitating combinations that best suit their needs. Oracle's customer base includes diverse businesses, government agencies, educational institutions, and resellers worldwide. Oracle's technologies empower customers to build, deploy, manage, and support their internal and external operations. Oracle Cloud Software-as-a-Service (SaaS) and Oracle Cloud Infrastructure (OCI) offer comprehensive and integrated applications and infrastructure services, giving customers flexibility in choosing the best fit for their business needs.

Key Statistics

  • Employees: 159,000 (as of May 31, 2024)
  • Geographic Footprint: Operates globally with presence in numerous countries.
  • Headquarters: Austin, Texas
  • Founded: 1977
  • Number of locations/facilities: Owns or leases approximately 28.6 million square feet of facilities globally.
  • Revenue: $52.96 billion (FY2024)
  • Market Cap: $186.23 billion (as of November 30, 2023)
  • Key Subsidiaries/Brands: Oracle Financial Services Software Limited, Oracle Corporation Japan, Cerner Corporation, NetSuite

Leadership

  • CEO: Safra A. Catz
  • CFO: N/A
  • Board Chair: Lawrence J. Ellison
  • Other Key Executives: Jeffrey O. Henley (Vice Chairman of the Board of Directors), Edward Screven (Executive Vice President, Chief Corporate Architect), Stuart Levey (Executive Vice President, Chief Legal Officer), Maria Smith (Executive Vice President, Chief Accounting Officer)

Lawrence J. Ellison, co-founder and CTO, has been Chairman since September 2014 and a Director since 1977. Safra A. Catz has been CEO since September 2014 and a Director since 2001. Jeffrey O. Henley has been Vice Chairman since September 2014 and a Director since 1995.

Key Financial Metrics

  • Annual Revenue: $52.96 billion (FY2024)
  • Net Income: $10.47 billion (FY2024)
  • Market Cap: $186.23 billion (as of November 30, 2023)
  • Total Assets: $141.0 billion (FY2024)
  • Number of Employees: 159,000 (as of May 31, 2024)
  • Key Financial Highlights: Revenue increased 6% in FY2024 compared to FY2023. Cloud services and license support revenue increased 37% of total revenue. Operating margin increased from 26% to 29%.

Products and Services

Oracle offers a comprehensive portfolio of enterprise application and infrastructure technologies, delivered through various deployment models (on-premise, cloud-based, and hybrid). Key offerings include:

  • Applications: Cloud SaaS offerings (e.g., ERP, HCM, SCM, CRM) and license offerings for various industries.
  • Infrastructure: Oracle Database, MySQL Database, Java, middleware, cloud infrastructure (OCI) including compute, storage, networking, and emerging technologies like AI and blockchain.
  • Hardware: Engineered Systems, servers, storage, industry-specific hardware, and related software and support services.
  • Services: Consulting and advanced customer support to maximize customer investments.

Key Business Segments

Oracle operates through three business segments:

  • Cloud and License: 84% of FY2024 revenue. Markets and delivers applications and infrastructure technologies through cloud and license offerings.
  • Hardware: 6% of FY2024 revenue. Provides hardware products and related software and support services.
  • Services: 10% of FY2024 revenue. Offers consulting and advanced customer support services.

Business Strategy

Oracle's strategy focuses on providing customers with choice and flexibility in deploying its technologies. Key elements include:

  • Expanding cloud offerings (SaaS and OCI) to drive growth and facilitate migration of existing customers to the cloud.
  • Investing in research and development to enhance existing offerings and develop new technologies and services.
  • Selective acquisitions to expand product portfolio and market reach.
  • Leveraging the Oracle Partner Network to extend market reach.

Industry Context

Oracle operates in the highly competitive and rapidly evolving information technology industry. Key trends include increasing demand for cloud-based solutions, the rise of emerging technologies like AI and blockchain, and the need for flexible deployment models. Major competitors include companies like Microsoft, Amazon, SAP, Salesforce, and others.

Risk Factors

  • Unsuccessful development and sale of new products and services, integration of acquired offerings, and enhancement of existing products and services.
  • Failure to execute Oracle Cloud strategy, potentially leading to declining revenue and profitability.
  • Inability to secure data center capacity at affordable rates or accurately plan for infrastructure capacity requirements.
  • Significant coding, manufacturing, or configuration errors in offerings.
  • Intense competition and rapidly changing technological landscape.

Last Updated

2024-06-20

(Generated from latest 10-K filing)