Tue, Mar. 17, 5:31 PM
- With a strong dollar having a big impact on near-term sales (as it is for peers), Oracle (NYSE:ORCL) has once provided all of its guidance (CC webcast) in constant currency.
- In constant currency, the enterprise software giant expects 1%-6% Y/Y FQ4 revenue growth and EPS of $0.90-$0.96; consensus (in actual dollars) is for 0.9% revenue growth and EPS of $0.94.
- Software/cloud revenue is expected to grow 1%-6% in CC; hardware systems guidance is once more at -2% to +8%. SaaS/PaaS growth is expected to be at 26%-30%, and IaaS growth at 29%-33%.
- Co-CEO Safra Catz asserts near-term sales are being impacted by a faster-than-expected transition to cloud subscriptions from up-front licenses. Though hardware system product revenue fell 3% Y/Y thanks to ongoing declines in SPARC/UNIX server sales, engineered systems revenue rose by double digit; Oracle claims it's taking high-end server share from IBM and HP.
- Shares have risen to $44.00 AH. The 52-week high is $46.71.
- FQ3 results, details, PR
Tue, Mar. 17, 4:21 PM
- Oracle (NYSE:ORCL) uses its FQ3 report to state it's hiking its quarterly dividend by $0.03 to $0.15/share; that's good for a 1.4% yield at current levels. The next dividend will be paid on April 28 to shareholders on record as of April 7.
- Software/cloud revenue rose 1% Y/Y in FQ3 to $7.1B, and 7% in constant currency; guidance was for 5%-8% constant currency growth. Hardware system revenue fell 2% to $1.3B, and rose 5% in constant currency; guidance at CC was -2% to +8%.
- Traditional software license revenue (hurt by cloud software adoption) fell 7% to $1.98B, a bigger decline than FQ2's 4%. Cloud app and app platform (SaaS/PaaS) revenue rose 30% to $372M, and cloud infrastructure (IaaS) revenue 28% to $155M. Software license/product support revenue (fairly stable) rose 2% to $4.66B, and other services revenue fell 3% to $858M.
- Cost controls helped EPS meet estimates in spite of the revenue miss: GAAP operating expenses rose 4% to $5.94B. R&D rose 6% to $1.37B, and sales/marketing just 1% to $1.84B; G&A was flat at $252M. Also boosting EPS: $2B was spent on buybacks.
- With forex acting as a headwind, Asia-Pac revenue fell 19% to $1.38B, and EMEA revenue 4% to $2.81B. Americas revenue rose 4% to $5.13B.
- ORCL +0.9% AH to $43.25. CC at 5PM, guidance will be provided.
- FQ3 results, PR
Tue, Mar. 17, 4:02 PM
Mon, Mar. 16, 5:35 PM
Sat, Mar. 7, 3:26 PM
- With Intel's (NASDAQ:INTC) Grantley Xeon CPU launch and Web data center investments offsetting weak high-end server demand, IDC estimates global server revenue rose 1.9% Y/Y in Q4 to $14.5B, and Gartner estimates it rose 2.2% to $14B; those figures compares with Q3 growth estimates of 4.8% and 1.7%, respectively.
- Likewise, IDC estimates global enterprise storage revenue rose 7.2% Y/Y in Q4, aided by Web investments and healthy demand for mid-range systems featuring integrated flash. Q3 growth was pegged at 5.1%.
- IBM had a rough time its both the server and storage markets: IDC believes its storage share fell to 9% (tied for #3) from 12.7% a year earlier, and Gartner estimates its server revenue fell 14% if one excludes Big Blue's x86 server unit, which was just sold to Lenovo. After accounting for the x86 sale, IDC estimates IBM's server share was at 13.7% (#3) vs. 26.8% a year ago.
- HP (NYSE:HPQ) fared a little better: IDC has its server share falling fractionally to 26.8% (still #1 overall), and its storage share falling to 13.8% (#2) from 14.1%. The company's x86 server unit has been gaining ground against IBM's former business, but its high-end server sales remain weak.
- Cisco's (NASDAQ:CSCO) UCS server line (recently refreshed) continues to gain ground: Its share rose to 5.3% (#5) from 4.5%, with full-year revenue pegged at $2.9B. With the help of aggressive pricing and x86 growth, Dell's server share rose to 16.7% (#2) from 15.2%, while its storage share slipped to 9% (tied for #3) from 9.2%. Lenovo (OTCPK:LNVGY) claimed a 7.6% server share (#4) thanks to the IBM deal, kicking Oracle (NYSE:ORCL) out of the top-5 along the way.
- EMC, whose high-end storage sales have been pressured (mid-range/flash demand has been better), saw its storage share drop to 22.2% (still #1) from 23.1%. NetApp (NASDAQ:NTAP), which posted an FQ3 miss and light guidance last month amid tough mid-range competition from EMC and others, saw its share drop to 7.2% (#5) from 8%.
- Not surprisingly, the white-label hardware beloved by Google, Facebook, Amazon, etc. continued to take share. IDC estimates such hardware, referred to as ODM Direct, claimed server and storage shares of 8.2% and 12.8% vs. 6.4% and 9.9% a year ago.
- Sales of x86 servers, the lion's share of which run on Intel CPUs, rose 7.1% to $11.5B. Sales of non-x86 servers fell 14% to $3B, thanks to declining demand for both mainframes and UNIX servers running proprietary RISC CPUs. "Early-stage revenue" was seen for ARM (NASDAQ:ARMH) servers, largely via HP's Moonshot line.
- Other companies with strong server and/or storage exposure: STX, WDC, SMCI, MLNX, AVGO, QLGC, RHT
Wed, Feb. 11, 2:43 PM
- "While it is still early days in the cloud, our discussions in the field point to Oracle's (ORCL -1.7%) ability to provide a comprehensive cloud foundation as a key determinant for customers signing on the dotted line, and we believe this ‘one-stop shop' approach will continue to support healthy cloud revenue growth," writes FBR's Daniel Ives in a recent note, reiterating an Outperform and $48 target.
- Ives adds recent checks leave him "incrementally positive as data points indicate deal momentum so far in F3Q15 (February) has slightly picked up" for cloud sales, in spite of forex headwinds.
- Oracle's various cloud software, app platform, and infrastructure offerings collectively saw 45% Y/Y revenue growth in the November quarter, helping offset a 4% drop in traditional software license sales (still a much larger business, especially after related license update/product support revenue is factored).
- The software giant is counting on its soup-to-nuts cloud approach to fend off established/still-rapidly-growing cloud software giants such as Salesforce and Workday, as well as a slew of startups and the cloud efforts of SAP, Microsoft, and IBM. Oracle recently struck a deal to buy ad data provider Datalogix (for a reported $1.2B+) to further its cloud marketing/analytics efforts.
Tue, Jan. 6, 9:50 AM
- Stating its latest CIO survey indicated Oracle's (ORCL +0.8%) cloud businesses are likely to benefit from higher IT spending, Piper has upgraded the enterprise software giant to Overweight, and hiked its target by $5 to $49.
- Oracle's SaaS/PaaS/IaaS revenue rose 45% Y/Y in the November quarter to $516M. However, traditional license revenue fell 4% to $2.05B, thanks to the adoption of cloud services (both Oracle's and those of third parties) and the reliance of many Web/cloud service providers on non-Oracle databases.
- Not counting forex pressures, Oracle has guided for 30%-35% Feb. quarter SaaS/Paas growth, 29%-33% IaaS growth, and 5%-8% total software/cloud growth.
Dec. 22, 2014, 9:27 AM
- Oracle (NYSE:ORCL) is buying Datalogix, a top provider of data used to link online ad campaigns with offline purchases. Terms are undisclosed, but the price is likely substantial - Datalogix has raised over $85M over its lifetime, and was reportedly weighing an IPO earlier this year.
- Datalogix's audience analysis solutions provide anonymized demographic data about the consumers targeted through an online ad campaign, and its campaign analysis solutions provide data about the offline purchases yielded by online ads (still more an art than a science).
- Google, Facebook, and Twitter are among the online ad giants to have hired Datalogix. Its 650+ customers also include 82 of the top 100 U.S. advertisers, such as Ford and Kraft.
- The acquisition follows Oracle's purchases of cloud marketing data management platform BlueKai, cloud marketing automation software vendors Eloqua and Responsys, and cloud social media marketing tool providers Vitrue and Collective Intellect.
- Like Salesforce, Adobe, and IBM, Oracle is trying to provide a broad set of online/mobile ad tools for marketers, as more and more ad spend shifts to digital channels and CMOs direct a larger portion of corporate IT spend.
- Datalogix rival Acxiom (NASDAQ:ACXM) is up 0.7% premarket.
Dec. 18, 2014, 2:04 PM
- With the help of stronger-than-expected hardware sales, Oracle (ORCL +9.2%) beat FQ2 estimates in spite of a 400 bps forex headwind (twice what was originally expected). FQ3 guidance was conservative after taking forex pressures into account.
- The numbers have been good enough for Oracle to surge to new highs and receive a slew of target hikes, and to lead many enterprise tech names to outperform amid a big market rally. The Nasdaq is up 1.9%.
- Microsoft (MSFT +3.2%), Cisco (CSCO +2.3%), EMC (EMC +3.7%), VMware (VMW +5.1%), and beaten-down IBM (IBM +2.8%) are among the enterprise tech names outperforming today. Others: SPLK +4.6%. CA +3.5%. RHT +3.4%. VRNS +6.3%. PCTY +5.8%. JIVE +4.6%. VMEM +5.2%. SAAS +4.7%. BRCD +3.8%.
- Oracle's healthy cloud software numbers are drawing attention: While traditional software license revenue fell 4% Y/Y, its SaaS/PaaS revenue rose 41%. SaaS/PaaS bookings totaled $170M, and are expected to be "well over" $1B in FY16 (ends May '16). Fusion cloud app bookings rose over 100%.
- On the CC (transcript), Oracle performed its customary trash-talking of cloud app rivals. "We are clearly growing faster than Salesforce (CRM +4%) and were more than three times the size of Workday (WDAY +3.2%)." Both firms are posting solid gains.
- Oracle's numbers come as Bloomberg reports the Chinese government is looking to "purge most foreign technology from banks, the military, state-owned enterprises and key government agencies by 2020." IBM, Cisco, and other U.S. firms have already seen their Chinese sales fall sharply following last year's NSA spying uproar.
Dec. 17, 2014, 5:40 PM
Dec. 17, 2014, 5:26 PM
- Oracle (NYSE:ORCL) has declined to provide guidance in absolute dollars on its FQ2 CC. In constant currency, the company expects FQ3 revenue to be up 4%-8% Y/Y, and EPS to be in a range of $0.69-$0.74. Consensus (based on absolute dollars, naturally) is for 4% revenue growth and EPS of $0.73.
- If exchange rates remain where they are, forex is expected to have 4%+ impact on absolute dollar revenue growth, and a $0.04 impact on EPS.
- In constant currency, software/cloud revenue is expected to be up 5%-8% Y/Y (~1%-4% in absolute dollars, at current exchange rates). Within cloud, SaaS/PaaS and IaaS revenue is respectively forecast to grow 30%-34% and 29%-33%; total cloud revenue was up 45% in FQ2. Hardware system growth guidance is set at -2% to +8%.
- ORCL +5.5% AH. Morgan Stanley's pre-earnings upgrade is looking good.
- FQ2 results, PR
Dec. 17, 2014, 4:18 PM
- Oracle's (NYSE:ORCL) total software/cloud revenue rose 5% Y/Y in FQ2 to $7.3B, in-line with guidance for 3%-6% growth. However, hardware system revenue grew 1% to $1.3B, beating guidance for flat to -10% growth.
- SaaS, (cloud app), PaaS (cloud app platform), and IaaS (cloud infrastructure) revenue collectively rose 45% to $516M; guidance was for 39%-44% SaaS/PaaS growth and 39%-43% IaaS growth.
- On the other hand, traditional software license revenue remains pressured by the cloud migration, it fell 4% to $2.05B. Services revenue fell 3% to $935M. License update/product support revenue (50% of revenue, driven by past deals) rose 6% to $4.8B.
- GAAP opex +3% Y/Y to $6.06B, even with revenue growth. Sales/marketing spend only rose 1% to $19B; R&D rose 9% to $1.39B.
- Americas revenue +5% Y/Y to $5.2B; EMEA +3% to $2.9B; Asia-Pac roughly flat at $1.5B (an improvement from recent quarters).
- $2.1B was spent on buybacks, up slightly from FQ1's $2B. Forex had a 400 bps impact on revenue.
- ORCL +2.7% AH. CC at 5PM ET, guidance should be provided.
- FQ2 results, PR.
Dec. 17, 2014, 4:02 PM
Dec. 16, 2014, 5:35 PM
Dec. 15, 2014, 9:33 AM
- Citing "improving results in secularly important portions of the business" against a backdrop of "very low expectations and weak sentiment," Morgan Stanley has upgraded Oracle (NYSE:ORCL) ahead of Wednesday's FQ2 report, and hiked its target by $5 to $50.
- Oracle's performance nearly matches the Nasdaq's this year. Shares go for 11x estimated FY16 (ends May '16) EPS exc. net cash.
Dec. 4, 2014, 7:04 PM
- With a corporate upgrade cycle and Web/cloud demand boosting sales, IDC estimates global server revenue rose 4.8% Y/Y in Q3 to $12.7B, an improvement from Q2's 2.5% growth and Q1's 2.2% decline. Gartner is more conservative, estimating revenue only rose 1.7%.
- "IDC has seen increasing market influence from Greater China, hyperscale datacenters, ODMs and native Chinese OEMs, all of which grew sharply in the third quarter," says VP Matt Eastwood. Like others, IDC expects Intel's recent Grantley Xeon CPU launch, together with the pending end of Windows Server 2003 support, to keep demand healthy.
- Thanks to weak demand for its high-end, Itanium-based, Integrity servers, market leader H-P's (NYSE:HPQ) share fell 140 bps Y/Y to 26.5%, after having risen 40 bps in Q2. H-P just rolled out Integrity servers running (x86-based) Intel Xeon CPUs in an attempt to stop the bleeding.
- #2 IBM's share fell 500 bps to 18.2%, thanks to both high-end (mainframe/Power) and x86 weakness. The sale of IBM's x86 server unit to Lenovo closed early in Q4. #3 Dell's share rose 80 bps to 17.8%.
- Cisco (NASDAQ:CSCO) passed Oracle (NYSE:ORCL) to take the #4 slot: Cisco's share rose 130 bps to 6.2% on the back of 31% revenue growth, while Oracle's was flat at 4.1% (3.4% revenue growth). Today, Cisco and IBM announced a converged hardware solution that pairs the former's UCS servers with the latter's Storwize storage arrays.
- As expected, white-label servers sold to Internet giants (called ODM Direct by IDC) continued gaining ground: Their share rose 250 bps to 8.9%. Everyone else saw their share collectively rise 210 bps to 18.4%.
- Related tickers: SMCI, MLNX, QLGC, ELX
Oracle Corporation develops, manufactures, markets, hosts and supports database and middleware software, application software, cloud infrastructure, hardware system including computer server, storage and networking products and related services.
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