Oracle Corporation is one of the world's largest software and cloud services companies. Its development of cloud services is a key driver of its revenue growth. Cloud technologies are becoming increasingly popular among corporate clients as they reduce IT infrastructure costs and improve business process efficiency. Oracle actively invests in cloud solutions and offers customers a wide range of services, contributing to the company's revenue growth.
Additionally, Oracle successfully monetizes license support for its software. The company provides high-quality customer support, increasing loyalty and keeping clients on the Oracle platform.
A significant factor in Oracle's success is its collaboration with major technology companies such as Google and OpenAI. The partnership with Google allows Oracle to integrate its cloud services with the Google Cloud platform, expanding access to its products and increasing its market presence. The cooperation with OpenAI, especially with the recent updates to ChatGPT, enables Oracle to enhance its artificial intelligence and machine learning capabilities, which are increasingly important for corporate clients. This collaboration opens up new opportunities for developing and implementing advanced artificial intelligence technologies across various industries. The companies plan to combine their efforts in machine learning, business process automation, and creating more intelligent solutions for their customers, such as cloud access services or automated trading on exchanges.
Moreover, the cooperation between Oracle, Google, and OpenAI aims to develop new artificial intelligence technologies in healthcare, finance, and other industries. This will allow the creation of innovative solutions that can improve people's lives and increase enterprise efficiency.
On June 13, the company reported its results for the fourth quarter and the entire 2024 fiscal year, which ended May 31, 2024. Oracle's profit and revenue for the quarter were below Wall Street forecasts. Non-GAAP adjusted earnings per share for the third quarter of fiscal 2024 were $1.63 on revenue of $14.3 billion, down 3% from the previous year and below Wall Street estimates of $14.55 billion in revenue and adjusted earnings of $1.65 per share. GAAP net income for the quarter was $3.14 billion, or $1.11 per share, compared to $3.32 billion, or $1.19 per share, in the same quarter of fiscal year 2023.
Meanwhile, equipment sales fell by 1% year-on-year to $842 million. Cloud infrastructure revenue amounted to $2.0 billion, which is 42% higher year-on-year but represents a slowdown in growth compared to the previous quarter, where the growth rate was 49%. In total, Oracle's revenue for the 2024 fiscal year was $52.96 billion, up 6% from the previous year. The company's net profit increased by 23% year-on-year to $10.47 billion. Cloud services and license support brought in $10.23 billion, a 9% increase year-over-year. Revenue from licensing cloud and on-premises products was $1.84 billion, a 15% decrease year-on-year. Service revenue was $1.37 billion, a 6% decline compared to last year.
Overall, Oracle's development prospects are favorable. The company will continue investing in cloud technologies, artificial intelligence, and machine learning, enabling it to maintain its industry leadership and boost profits. In the first quarter of fiscal year 2025, the company expects adjusted earnings of $1.31 to $1.35 per share and revenue growth of 5% to 7%.
Oracle is already making a significant impact in the information technology cloud sector, offering a wide range of services and products for corporate clients. The company sets quality standards in cloud solutions and stimulates market competition. A stock screener can help investors identify Oracle's potential by comparing its financial performance with industry benchmarks.
However, it is important to note that sometimes investor interest in Oracle may exceed the company's actual performance. This can lead to stock overvaluation and increased long-term risks for investors. The price has already reached an all-time high. The primary support level for any correction is $125. The price is in an uptrend, so a breakdown of the trend line would be highly unfavorable for bullish investors.
