Bulletin: Oracle Corp.'s Cloud Gains Contribute To 2% Revenue Growth In Third Quarter

SAN FRANCISCO (S&P Global Ratings) March 16, 2017--S&P Global Ratings said today that Oracle Corp.'s (AA-/Stable/A-1+) revenues rose 2% year over year in the third quarter to $9.2 billion as cloud software-as-a-service and platform-as-a-service grew 73% year over year, partly aided by inclusion of NetSuite, which it acquired in November 2016. New software license revenues continued to decline, falling 16% year over year, but we note that $454 million growth in total cloud revenues more than offset this $266 million decline. On a trailing-12-month basis, revenues rose 0.7% to $37.4 billion and adjusted EBITDA margin fell to 44%, reflecting the lower cloud margin as Oracle continues to build out the business. Free operating cash flow fell by $1 billion to

...SAN FRANCISCO (S&P Global Ratings) March 16, 2017--S&P Global Ratings said today that Oracle Corp.'s (##-/Stable/A-1+) revenues rose 2% year over year in the third quarter to $9.2 billion as cloud software-as-a-service and platform-as-a-service grew 73% year over year, partly aided by inclusion of NetSuite, which it acquired in November 2016. New software license revenues continued to decline, falling 16% year over year, but we note that $454 million growth in total cloud revenues more than offset this $266 million decline. On a trailing-12-month basis, revenues rose 0.7% to $37.4 billion and adjusted EBITDA margin fell to 44%, reflecting the lower cloud margin as Oracle continues to build out the business. Free operating cash flow fell by $1 billion to about $12 billion over the same period. Oracle's cash and investments reached $59 billion but its debt outstanding is also significant at $54 billion, due in part to the $9 billion NetSuite acquisition, which it effectively funded with debt....

Bulletin