Bulletin: Oracle Corp.'s Second-Quarter Revenues Rise 6% As Cloud Growth Continues

SAN FRANCISCO (S&P Global Ratings) Dec. 15, 2017--Oracle Corp.'s (AA-/Stable/A-1+) revenues rose 6% year over year in second-quarter 2018 to $9.6 billion as cloud software as a service (SaaS) grew 55% year over year. New software license revenues were more resilient than we expected, with slight growth during the quarter. In all, total cloud and on-premise software revenues rose a healthy 9% year over year, reflecting that healthy cloud revenues are more than offsetting on-premise revenues, the latter of which we expect will continue to decline over time. On a trailing-12-month basis, total revenues rose 4.5% to $39 billion with adjusted EBITDA margin near the 45% area; we expect this to improve modestly over time as Oracle continues to build

...SAN FRANCISCO (S&P Global Ratings) Dec. 15, 2017--Oracle Corp.'s (##-/Stable/A-1+) revenues rose 6% year over year in second-quarter 2018 to $9.6 billion as cloud software as a service (SaaS) grew 55% year over year. New software license revenues were more resilient than we expected, with slight growth during the quarter. In all, total cloud and on-premise software revenues rose a healthy 9% year over year, reflecting that healthy cloud revenues are more than offsetting on-premise revenues, the latter of which we expect will continue to decline over time. On a trailing-12-month basis, total revenues rose 4.5% to $39 billion with adjusted EBITDA margin near the 45% area; we expect this to improve modestly over time as Oracle continues to build out the cloud business. Oracle's cash and investments reached a record $71 billion, but its debt outstanding is also significant at $61 billion, due in part to the $9 billion acquisition of NetSuite in 2016. Oracle curtailed its share repurchase activity...

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