ORACLE  CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except per share data)

Three Months Ended February 28,

% Increase

% Increase

(Decrease)

% of 

% of 

(Decrease)

in Constant

2022

Revenues

2021

Revenues

in US $

Currency (1)

REVENUES

Cloud services and license support 

$           7,637

73%

$           7,252

72%

5%

8%

Cloud license and on-premise license

1,289

12%

1,276

13%

1%

4%

Hardware

798

8%

820

8%

(3%)

1%

Services

789

7%

737

7%

7%

11%

      Total revenues

10,513

100%

10,085

100%

4%

7%

OPERATING EXPENSES

Cloud services and license support 

1,305

13%

1,064

11%

23%

25%

Hardware

244

2%

230

2%

6%

11%

Services

669

7%

621

6%

8%

11%

Sales and marketing

2,004

19%

1,915

19%

5%

7%

Research and development 

1,816

17%

1,621

16%

12%

13%

General and administrative

335

3%

330

3%

2%

3%

Amortization of intangible assets

279

3%

347

4%

(20%)

(19%)

Acquisition related and other

20

0%

13

0%

47%

54%

Restructuring

19

0%

66

1%

(71%)

(70%)

      Total operating expenses 

6,691

6,207

62%

8%

10%

OPERATING INCOME

36%

3,878

38%

(1%)

3%

Interest expense

(667)

(585)

(6%)

14%

14%

Non-operating expenses, net

(315)

(3%)

(17)

0%

*

*

2,840

3,276

32%

(13%)

(8%)

(Provision for) benefit from income taxes

1,745

18%

*

*

NET INCOME

$           2,319

22%

$           5,021

50%

(54%)

(51%)

EARNINGS PER SHARE:

Basic

$              0.87

$              1.72

Diluted

$              0.84

$              1.68

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

2,670

2,913

Diluted

2,754

2,994

(1)

We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2021, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Movements in international currencies relative to the United States dollar during the three months ended February 28, 2022 compared with the corresponding prior year period decreased our total revenues by 3 percentage points, total operating expenses by 2 percentage points and operating income by 4 percentage points.

*

Not meaningful