Bulletin: Oracle Corp.'s Fourth-Quarter Revenues Rise 3% On Continued Cloud Growth

SAN FRANCISCO (S&P Global Ratings) June 21, 2017--Oracle Corp.'s (AA-/Stable/A-1+) revenues rose 3% year over year in fourth-quarter 2017 to $10.9 billion as cloud software as a service (SaaS) grew 67% year over year, partly aided by the inclusion of NetSuite, which it acquired in late 2016. New software license revenues continued to decline, falling 5% year over year, but we note that this decline, at $140 million, was more than offset by roughly $500 million growth in total cloud revenues (which includes SaaS, platform as a service, and infrastructure as a service. On a trailing-12-month basis, total revenues rose 1.8% to $37.7 billion with cloud revenues growing 60% to $4.6 billion, but adjusted EBITDA margin remained flat at about

...SAN FRANCISCO (S&P Global Ratings) June 21, 2017--Oracle Corp.'s (##-/Stable/A-1+) revenues rose 3% year over year in fourth-quarter 2017 to $10.9 billion as cloud software as a service (SaaS) grew 67% year over year, partly aided by the inclusion of NetSuite, which it acquired in late 2016. New software license revenues continued to decline, falling 5% year over year, but we note that this decline, at $140 million, was more than offset by roughly $500 million growth in total cloud revenues (which includes SaaS, platform as a service, and infrastructure as a service. On a trailing-12-month basis, total revenues rose 1.8% to $37.7 billion with cloud revenues growing 60% to $4.6 billion, but adjusted EBITDA margin remained flat at about 45%, reflecting the lower cloud margin as Oracle continues to build out the business. Free operating cash flow fell by $300 million to about $12 billion for the same period due to higher cloud-related capital spending. Oracle's cash and investments reached...

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