- Oracle's (ORCL) software license/cloud subscription sales (drives future services revenue) fell 1% Y/Y in FQ2 to $2.4B. That represents a reversal from FQ1's 4% growth, but is in-line with guidance of -6% to +4%. Hardware product sales fell 3% Y/Y to $714M, an improvement from FQ1's 14% drop and near the high end of a guidance range of -11% to -1%.
- License update/product support services revenue (49% of total revenue, tends to be fairly stable) rose 6% Y/Y vs. 7% in FQ1. Hardware support sales rose 4%.
- $2.8B was spent on buybacks, down slightly from FQ1's $3B but still doing much to strengthen EPS. Opex rose 4% Y/Y, even with FQ1. Sales/marketing spend +11% to $2B, R&D +6% to $1.3B.
- Americas revenue (54% of total) +4% Y/Y, even with FQ1. EMEA +4%, up from FQ1's +2%. Asia-Pac remains weak, sales -9% vs. -4%. Cisco and others have reported seeing NSA-related challenges in China.
- Larry Ellison says cloud/SaaS software bookings rose 35% Y/Y. That suggests bookings for on-premise software declined meaningfully.
- CC at 5PM ET, guidance should be provided. FQ2 results, PR.