Q1 FY18 GAAP EPS UP 19% TO $0.52 and NON-GAAP EPS UP 12% TO $0.62

REDWOOD SHORES, Calif., Sept. 14, 2017 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced fiscal 2018 Q1 results. Total Revenues were up 7% from the prior year to $9.2 billion. Cloud plus On-Premise Software Revenues were up 9% to $7.4 billion. Cloud Software as a Service (SaaS) revenues were up 62% to $1.1 billion. Cloud Platform as a Service (PaaS) plus Infrastructure as a Service (IaaS) revenues were up 28% to $400 million. Total Cloud Revenues were up 51% to $1.5 billion.

GAAP Operating Income was up 7% to $2.8 billion and Operating Margin was 31%. Non-GAAP Operating Income was up 11% to $3.8 billion and non-GAAP Operating Margin was 41%. GAAP Net Income was up 21% to $2.2 billion, while non-GAAP Net Income was up 14% to $2.7 billion. GAAP Earnings Per Share was up 19% to $0.52, while non-GAAP Earnings Per Share was up 12% to $0.62.

Short-term deferred revenues were up 9% compared with a year ago to $10.3 billion. Operating cash flow on a trailing twelve-month basis was up 8% to $14.8 billion.

"The sustained hyper-growth in our multi-billion dollar cloud business continues to drive Oracle's overall revenue and earnings higher and higher," said Oracle CEO, Safra Catz. "In Q1, total revenues were up 7%, GAAP EPS was up 19%, and non-GAAP EPS was up 12%. Oracle is off to a very, very strong start in FY18."

"With SaaS revenue up 62%, our cloud applications business continues to grow more than twice as fast as Salesforce.com," said Oracle CEO, Mark Hurd. "ERP is our largest and most important cloud applications business. We now have about 5,000 Fusion ERP customers plus 12,000 NetSuite ERP customers in the Oracle Cloud. That's 30 times more ERP customers than Workday."

"In a couple of weeks, we will announce the world's first fully autonomous database cloud service," said Oracle Chairman and CTO, Larry Ellison. "Based on machine learning, the latest version of Oracle is a totally automated "self-driving" system that does not require human beings to manage or tune the database. Using AI to eliminate most sources of human error enables Oracle to offer database SLA's that guarantee 99.995% reliability while charging much less than AWS."

The Board of Directors also declared a quarterly cash dividend of $0.19 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on October 11, 2017, with a payment date of October 25, 2017.

Q1 Fiscal 2018 Earnings Conference Call and Webcast

Oracle will hold a conference call and webcast today to discuss these results at 2:00 p.m. Pacific. You may listen to the call by dialing (816) 287-5563, Passcode: 425392. To access the live webcast, please visit the Oracle Investor Relations website at http://www.oracle.com/investor. In addition, Oracle's Q1 results and Fiscal 2018 financial tables are available on the Oracle Investor Relations website.

A replay of the conference call will also be available by dialing (855) 859-2056 or (404) 537-3406, Passcode: 82330974.

About Oracle

Oracle offers a comprehensive and fully integrated stack of cloud applications and platform services. For more information about Oracle (NYSE: ORCL), visit www.oracle.com/investor or contact Investor Relations at investor_us@oracle.com or (650) 506-4073.

Trademarks

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

"Safe Harbor" Statement: Statements in this press release relating to Oracle's future plans, expectations, beliefs, intentions and prospects, including statements regarding the growth of our cloud applications business compared to competitors and the announcement regarding our new autonomous database cloud service, are all "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Our cloud computing strategy, including our Oracle Cloud SaaS, PaaS, IaaS and data as a service offerings, may not be successful. (2) If we are unable to develop new or sufficiently differentiated products and services, or to enhance and improve our products and support services in a timely manner or to position and/or price our products and services to meet market demand, customers may not buy new software licenses, cloud software subscriptions or hardware systems products or purchase or renew support contracts. (3) If the security measures for our products and services are compromised or if our products and services contain significant coding, manufacturing or configuration errors, we may experience reputational harm, legal claims and reduced sales. (4) We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, fluctuations in currency exchange rates, delays in delivery of new products or releases or a decline in our renewal rates for support contracts. (5) Our international sales and operations subject us to additional risks that can adversely affect our operating results, including risks relating to foreign currency gains and losses. (6) Economic, geopolitical and market conditions can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. (7) We have an active acquisition program and our acquisitions may not be successful, may involve unanticipated costs or other integration issues or may disrupt our existing operations. A detailed discussion of these factors and other risks that affect our business is contained in our U.S. Securities and Exchange Commission (SEC) filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or by contacting Oracle Corporation's Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle's Investor Relations website at http://www.oracle.com/investor. All information set forth in this press release is current as of September 14, 2017. Oracle undertakes no duty to update any statement in light of new information or future events.


                                                                           ORACLE  CORPORATION


                                                                     Q1 FISCAL 2018 FINANCIAL RESULTS

                                                             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                  ($ in millions, except per share data)


                                                                                    Three Months Ended August 31,                                     % Increase

                                                                                                                     % Increase                (Decrease)



                                                                                         % of                               % of            (Decrease)    in Constant

                                                                               2017     Revenues           2016             Revenues            in US $     Currency (1)
                                                                               ----     --------           ----             --------            -------     -----------

    REVENUES

                                                Cloud software as a service               $1,067            12%                        $657            8%            62%   62%

                                                 Cloud platform as a service and
                                                 infrastructure as a service                 400             4%                         312            3%            28%   27%
                                                                                           ---            ---                          ---           ---

                                                Total cloud revenues                       1,467            16%                         969           11%            51%   51%
                                                                                         -----            ---                          ---           ---

                                                New software licenses                        966            11%                       1,030           12%           (6%)  (7%)

                                                 Software license updates and
                                                 product support                           4,951            54%                       4,792           56%             3%    2%
                                                                                         -----            ---                          ---           ---

                                                Total on-premise software revenues         5,917            65%                       5,822           68%             2%    1%
                                                                                         -----            ---                          ---           ---

                                                     Total cloud and on-premise
                                                      software revenues                    7,384            81%                       6,791           79%             9%    8%
                                                                                         -----            ---                          ---           ---

                                                Hardware revenues                            943            10%                         996           12%           (5%)  (6%)

                                                Services revenues                            860             9%                         808            9%             6%    5%
                                                                                           ---            ---                          ---           ---

                                                         Total revenues                    9,187           100%                       8,595          100%             7%    6%
                                                                                         -----           ----                          ---          ----

    OPERATING EXPENSES

                                                Cloud software as a service                  374             4%                         283            3%            33%   32%

                                                 Cloud platform as a service and
                                                 infrastructure as a service                 227             2%                         132            2%            70%   69%

                                                 Software license updates and
                                                 product support                             257             3%                         275            3%           (6%)  (7%)

                                                Hardware                                     373             4%                         391            5%           (4%)  (5%)

                                                Services                                     702             8%                         695            8%             1%    0%

                                                Sales and marketing                        1,992            22%                       1,919           22%             4%    3%

                                                Research and development                   1,574            17%                       1,520           17%             4%    3%

                                                General and administrative                   320             3%                         315            4%             2%    1%

                                                Amortization of intangible assets            411             5%                         311            4%            32%   32%

                                                Acquisition related and other                 12             0%                          14            0%          (17%) (17%)

                                                Restructuring                                124             1%                          99            1%            25%   22%
                                                                                           ---            ---                          ---           ---

                                                         Total operating expenses          6,366            69%                       5,954           69%             7%    6%
                                                                                         -----            ---                          ---           ---

    OPERATING INCOME                                                                     2,821            31%                       2,641           31%             7%    6%
                                                                                         -----            ---                        -----           ---

                                                Interest expense                           (469)          (5%)                       (416)         (5%)            13%   13%

                                                Non-operating income, net                    233             2%                         148            2%            57%   57%
                                                                                           ---            ---                          ---           ---

    INCOME BEFORE PROVISION FOR INCOME
     TAXES                                                                               2,585            28%                       2,373           28%             9%    8%
                                                                                         -----            ---                        -----           ---

                                                Provision for income taxes                   375             4%                         541            7%          (31%) (31%)
                                                                                           ---            ---                          ---           ---

    NET INCOME                                                                          $2,210            24%                      $1,832           21%            21%   19%
                                                                                        ======            ===                       ======           ===


    EARNINGS PER SHARE:

                                                Basic                                      $0.53                                      $0.44

                                                Diluted                                    $0.52                                      $0.43

    WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

                                                Basic                                      4,156                                      4,119

                                                Diluted                                    4,284                                      4,221






                                            (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, 2017, 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 August 31, 2017 compared with the
                                                 corresponding prior year period increased our revenues by 1 percentage point,
                                                 operating expenses by 1 percentage point and operating income by 1 percentage
                                                 point.


                                                                                                                                                                                                ORACLE  CORPORATION


                                                                                                                                                                                         Q1 FISCAL 2018 FINANCIAL RESULTS

                                                                                                                                                                         RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

                                                                                                                                                                                      ($ in millions, except per share data)


                                                                                                                                                                                                                                       Three Months Ended August 31,                                           % Increase (Decrease)     % Increase (Decrease) in
                                                                                                                                                                                                                                                                                                                      in US $             Constant Currency (2)
                                                                                                                                                                                                                                                                                                                      -------              --------------------

                                                                                                                                                                                                 2017                                                  2017                                         2016                                             2016                          GAAP        Non-GAAP        GAAP         Non-GAAP
                                                                                                                                                                                                                                                                                                                                                                               ----        --------        ----         --------

                                                                                                                                                                                           GAAP                          Adj.                    Non-GAAP                                      GAAP                  Adj.                    Non-GAAP
                                                                                                                                                                                           ----                          ----                    --------                                      ----                  ----                    --------


    TOTAL REVENUES                                                                                                                                                        $9,187                                $25                     $9,212                                       $8,595                    $18                     $8,613                               7%            7%            6%             6%

    TOTAL CLOUD AND ON-PREMISE SOFTWARE REVENUES                                                                                                                                                          7,384                         25                            7,409                              6,791                         18                            6,809                           9%             9%            8%       8%

    TOTAL CLOUD REVENUES                                                                                                                                                                                  1,467                         25                            1,492                                969                         17                              986                          51%            51%           51%      51%

                                                                          Cloud software as a service                                                                                                        1,067                         22                            1,089                                657                         17                              674                          62%            62%           62%      61%

                                                                          Cloud platform as a service and infrastructure as a service                                                                          400                          3                              403                                312                          -                             312                          28%            29%           27%      28%

                                                                          Software license updates and product support                                                                                       4,951                          -                           4,951                              4,792                          1                            4,793                           3%             3%            2%       2%


    TOTAL OPERATING EXPENSES                                                                                                                                              $6,366                             $(938)                    $5,428                                       $5,954                 $(743)                    $5,211                               7%            4%            6%             3%

                                                                          Cloud software as a service (4)                                                                                                      374                        (9)                             365                                283                        (5)                             278                          33%            32%           32%      31%

                                                                          Cloud platform as a service and infrastructure as a service (4)                                                                      227                        (2)                             225                                132                        (1)                             131                          70%            70%           69%      69%

                                                                          Sales and marketing (3)                                                                                                            1,992                       (78)                           1,914                              1,919                       (63)                           1,856                           4%             3%            3%       2%

                                                                          Stock-based compensation (4)                                                                                                         302                      (302)                               -                               250                      (250)                               -                         21%         *                21%     *

                                                                          Amortization of intangible assets (5)                                                                                                411                      (411)                               -                               311                      (311)                               -                         32%         *                32%     *

                                                                          Acquisition related and other                                                                                                         12                       (12)                               -                                14                       (14)                               -                       (17%)         *              (17%)     *

                                                                          Restructuring                                                                                                                        124                      (124)                               -                                99                       (99)                               -                         25%         *                22%     *

    CLOUD SOFTWARE AS A SERVICE MARGIN %                                                                                                                                   65%                                                         67%                                         57%                                             59%                      779 bp.        757 bp.       788 bp.        766 bp.

    CLOUD PLATFORM AS A SERVICE AND INFRASTRUCTURE AS A SERVICE MARGIN %                                                                                                   43%                                                         44%                                         58%                                             58%                   (1,401) bp.     (1,343) bp.   (1,407) bp.   (1,348) bp.

    OPERATING INCOME                                                                                                                                                      $2,821                               $963                     $3,784                                       $2,641                   $761                     $3,402                               7%           11%            6%            10%

    OPERATING MARGIN %                                                                                                                                                     31%                                                         41%                                         31%                                             39%                 (2) bp.             158 bp.       (5) bp.        161 bp.

    INCOME TAX EFFECTS (6)                                                                                                                                                  $375                               $512                       $887                                         $541                   $258                       $799                            (31%)           11%         (31%)            10%

    NET INCOME                                                                                                                                                            $2,210                               $451                     $2,661                                       $1,832                   $503                     $2,335                              21%           14%           19%            13%

    DILUTED EARNINGS PER SHARE                                                                                                                                             $0.52                                                        $0.62                                        $0.43                                            $0.55                              19%           12%           18%            11%

    DILUTED WEIGHTED AVERAGE COMMON                                                                                                                                        4,284                                  -                     4,284                                        4,221                      -                     4,221                               1%            1%            1%             1%
    SHARES OUTSTANDING



                                                                     (1)  This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in
                                                                           conjunction with our consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management
                                                                           uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.


                                                                     (2)  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, 2017, which was the last day of our prior fiscal year, rather than
                                                                           the actual exchange rates in effect during the respective periods.


                                                                     (3) Non-GAAP adjustments to sales and marketing expenses were as follows:

                                                                                                                                                                                   Three Months Ended

                                                                                                                                                                                       August 31,
                                                                                                                                                                                       ----------

                                                                                                                                                                                                 2017                        2016
                                                                                                                                                                                                 ----                        ----

                                                                               Stock-based compensation (4)                                                                                                  $(89)                     $(63)

                                                                               Acquired deferred sales commissions amortization                                                                                 11                          -


                                                                                   Total non-GAAP sales and marketing adjustments                                                                            $(78)                     $(63)



                                                                     (4) Stock-based compensation was included in the following GAAP operating expense categories:


                                                                                                                                                                                                             Three Months Ended                                                Three Months Ended

                                                                                                                                                                                                               August 31, 2017                                                   August 31, 2016
                                                                                                                                                                                                               ---------------                                                   ---------------

                                                                                                                                                                                           GAAP                          Adj.                    Non-GAAP                                      GAAP                  Adj.                    Non-GAAP
                                                                                                                                                                                           ----                          ----                    --------                                      ----                  ----                    --------

                                                                               Software license updates and product support                                                                                     $7                       $(7)                 $             -                                $6                       $(6)                 $             -

                                                                               Hardware                                                                                                                          3                        (3)                               -                                 3                        (3)                               -

                                                                               Services                                                                                                                         14                       (14)                               -                                 8                        (8)                               -

                                                                               Research and development                                                                                                        234                      (234)                               -                               195                      (195)                               -

                                                                               General and administrative                                                                                                       44                       (44)                               -                                38                       (38)                               -


                                                                                     Subtotal                                                                                                                  302                      (302)                               -                               250                      (250)                               -


                                                                               Cloud software as a service                                                                                                       9                        (9)                               -                                 5                        (5)                               -

                                                                               Cloud platform as a service and infrastructure as a service                                                                       2                        (2)                               -                                 1                        (1)                               -

                                                                               Sales and marketing                                                                                                              89                       (89)                               -                                63                       (63)                               -

                                                                               Acquisition related and other                                                                                                     1                        (1)                               -                                 -                         -                               -


                                                                                     Total stock-based compensation                                                                                           $403                     $(403)                 $             -                              $319                     $(319)                 $             -



                                                                     (5) Estimated future annual amortization expense related to intangible assets as of August 31, 2017 was as follows:

                                                                          Remainder of fiscal 2018                                                                                                          $1,179

                                                                          Fiscal 2019                                                                                                                        1,408

                                                                          Fiscal 2020                                                                                                                        1,207

                                                                          Fiscal 2021                                                                                                                        1,021

                                                                          Fiscal 2022                                                                                                                          918

                                                                          Fiscal 2023                                                                                                                          567

                                                                          Thereafter                                                                                                                           886


                                                                          Total intangible assets, net                                                                                                      $7,186



                                                                     (6)  Income tax effects were calculated reflecting an effective GAAP tax rate of 14.5% and 22.8% in the first quarter of fiscal 2018 and 2017, respectively, and an effective non-GAAP tax rate of 25.0%
                                                                           and 25.5% in the first quarter of fiscal 2018 and 2017, respectively. The difference between our GAAP and non-GAAP tax rates in the first quarters of fiscal 2018 and 2017 were primarily due to
                                                                           the net tax effects on stock-based compensation expense and acquisition related items, including the tax effects of amortization of intangible assets.


    *                                                                     Not meaningful


                                                           ORACLE  CORPORATION


                                                     Q1 FISCAL 2018 FINANCIAL RESULTS

                                                  CONDENSED CONSOLIDATED BALANCE SHEETS

                                                             ($ in millions)


                                                                      August 31,        May 31,

                                                                                   2017      2017
                                                                                   ----      ----

    ASSETS

    Current Assets:

                           Cash and cash
                           equivalents                                          $21,321              $21,784

                           Marketable
                           securities                                            45,576               44,294

                           Trade
                           receivables,
                           net                                                    3,591                5,300

                          Inventories                                               312                  300

                           Prepaid expenses
                           and other
                           current assets                                         2,535                2,837
                          ----------

                          Total Current Assets                                   73,335               74,515

    Non-Current Assets:

                             Property, plant
                              and equipment,
                              net                                                 5,586                5,315

                             Intangible
                              assets, net                                         7,186                7,679

                             Goodwill, net                                       43,020               43,045

                             Deferred tax
                              assets                                              1,181                1,143

                             Other assets                                         3,289                3,294
                          ----------

                          Total Non-Current Assets                               60,262               60,476
                                                                                 ------               ------

    TOTAL ASSETS                                                             $133,597             $134,991
                                                                             ========             ========

    LIABILITIES AND EQUITY

    Current Liabilities:

                           Notes payable
                           and other
                           borrowings,
                           current                                               $4,998               $9,797

                          Accounts payable                                          593                  599

                           Accrued
                           compensation
                           and related
                           benefits                                               1,517                1,966

                           Deferred
                           revenues                                              10,269                8,233

                           Other current
                           liabilities                                            2,849                3,583
                          ----------

                          Total Current Liabilities                              20,226               24,178

    Non-Current Liabilities:

                           Notes payable
                           and other
                           borrowings,
                           non-current                                           48,293               48,112

                           Income taxes
                           payable                                                5,891                5,681

                           Other non-
                           current
                           liabilities                                            2,821                2,774
                          ----------

                          Total Non-Current Liabilities                          57,005               56,567

    Equity                                                                     56,366               54,246
                                                                               ------               ------

    TOTAL LIABILITIES AND EQUITY                                             $133,597             $134,991
                                                                             ========             ========


                                                                   ORACLE  CORPORATION


                                                             Q1 FISCAL 2018 FINANCIAL RESULTS

                                                     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                     ($ in millions)


                                                                Three Months Ended August 31,
                                                                -----------------------------

                                                                                          2017       2016
                                                                                          ----       ----

    Cash Flows From Operating Activities:

    Net income                                                                          $2,210              $1,832

    Adjustments to reconcile net income to net cash provided by operating
     activities:

    Depreciation                                                                           285                 222

    Amortization of intangible assets                                                      411                 311

    Deferred income taxes                                                                  159                 145

    Stock-based compensation                                                               403                 319

    Other, net                                                                              47                  39

    Changes in operating assets and liabilities, net of effects from
     acquisitions:

    Decrease in trade receivables, net                                                   1,752               1,993

    Increase in inventories                                                               (11)               (75)

    Decrease in prepaid expenses and other
     assets                                                                                555                 435

    Decrease in accounts payable and other
     liabilities                                                                       (1,062)            (1,013)

    Increase (decrease) in income taxes
     payable                                                                                32                (94)

    Increase in deferred revenues                                                        1,785               1,761

    Net cash provided by operating
     activities                                                                          6,566               5,875
                                                                                         -----               -----

    Cash Flows From Investing Activities:

    Purchases of marketable securities and
     other investments                                                                 (7,671)            (5,513)

    Proceeds from maturities and sales of
     marketable securities and other
     investments                                                                         6,326               1,752

    Acquisitions, net of cash acquired                                                       -            (1,143)

    Capital expenditures                                                                 (473)              (299)

    Net cash used for investing activities                                             (1,818)            (5,203)
                                                                                        ------              ------

    Cash Flows From Financing Activities:

    Payments for repurchases of common stock                                             (502)            (2,002)

    Proceeds from issuances of common stock                                              1,014                 487

    Shares repurchased for tax withholdings
     upon vesting of restricted stock-based
     awards                                                                              (331)              (170)

    Payments of dividends to stockholders                                                (788)              (618)

    Proceeds from borrowings, net of
     issuance costs                                                                          -             13,932

    Repayments of borrowings                                                           (4,800)            (3,750)

    Distributions to noncontrolling
     interests                                                                            (34)              (167)

    Net cash (used for) provided by
     financing activities                                                              (5,441)              7,712
                                                                                        ------               -----

    Effect of exchange rate changes on cash
     and cash equivalents                                                                  230                  78
                                                                                           ---                 ---

    Net (decrease) increase in cash and cash
     equivalents                                                                         (463)              8,462

    Cash and cash equivalents at beginning
     of period                                                                          21,784              20,152
                                                                                        ------              ------

    Cash and cash equivalents at end of
     period                                                                            $21,321             $28,614
                                                                                       =======             =======


                                                                                                   ORACLE  CORPORATION


                                                                                             Q1 FISCAL 2018 FINANCIAL RESULTS

                                                                                         FREE CASH FLOW - TRAILING 4-QUARTERS (1)

                                                                                                     ($ in millions)


                                      Fiscal 2017                  Fiscal 2018
                                      -----------                  -----------

                                           Q1                           Q2                           Q3                           Q4             Q1              Q2  Q3  Q4
                                                                                                                                                ---             --- --- ---


    GAAP Operating Cash
     Flow                                        $13,679                       $14,249                       $13,453                    $14,126         $14,817


    Capital Expenditures                         (1,042)                      (1,604)                      (1,676)                   (2,021)        (2,195)
                                                  ------                        ------                        ------                     ------          ------


    Free Cash Flow                               $12,637                       $12,645                       $11,777                    $12,105         $12,622
                                                 =======                       =======                       =======                    =======         =======


    % Growth over prior
     year                                             5%                          10%                         (7%)                      (3%)             0%



    GAAP Net Income                               $8,986                        $8,820                        $8,917                     $9,335          $9,713


    Free Cash Flow as a %
     of Net Income                                  141%                         143%                         132%                      130%           130%



                          (1) To supplement our statements of cash flows presented on a GAAP basis, we use
                               non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze
                               cash flow generated from operations. We believe free cash flow is also
                               useful as one of the bases for comparing our performance with our
                               competitors. The presentation of non-GAAP free cash flow is not meant to be
                               considered in isolation or as an alternative to net income as an indicator
                               of our performance, or as an alternative to cash flows from operating
                               activities as a measure of liquidity.


                                                                                                                                      ORACLE  CORPORATION


                                                                                                                                Q1 FISCAL 2018 FINANCIAL RESULTS

                                                                                                                           SUPPLEMENTAL ANALYSIS OF GAAP REVENUES (1)

                                                                                                                                        ($ in millions)


                                            Fiscal 2017                                                                                                                             Fiscal 2018
                                           -----------                                                                                                                              -----------

     Q1              Q2                         Q3                          Q4                             TOTAL                             Q1                        Q2                Q3                Q4  TOTAL
     --             ---                        ---                         ---                            -----                             ---                       ---               ---               --- -----

        REVENUES
        --------

         Cloud software as a
          service                                        $657                         $725                                 $865                           $964               $3,211                $1,067                $1,067

         Cloud platform as a
          service and
          infrastrucure as a
          service                                         312                          328                                  324                            397                1,360                   400                   400
                                                        ---                          ---                                  ---                            ---                  ---                   ---

        Total cloud revenues                              969                        1,053                                1,189                          1,361                4,571                 1,467                 1,467
                                                          ---                        -----                                -----                          -----                -----                 -----                 -----

         New software
          licenses                                      1,030                        1,347                                1,414                          2,626                6,418                   966                   966

         Software license
          updates and
          product support                               4,792                        4,777                                4,762                          4,897               19,229                 4,951                 4,951
                                                      -----                        -----                                -----                          -----                -----                 -----

         Total on-premise software
         revenues                                       5,822                        6,124                                6,176                          7,523               25,647                 5,917                 5,917
                                                        -----                        -----                                -----                          -----               ------                 -----                 -----

         Total cloud and on-premise
          software revenues                             6,791                        7,177                                7,365                          8,884               30,218                 7,384                 7,384
                                                        -----                        -----                                -----                          -----               ------                 -----                 -----


         Total hardware revenues                          996                        1,014                                1,028                          1,114                4,152                   943                   943


         Total services revenues                          808                          844                                  812                            894                3,358                   860                   860


         Total revenues                                $8,595                       $9,035                               $9,205                        $10,892              $37,728                $9,187                $9,187
                                                       ======                       ======                               ======                        =======              =======                ======                ======


         AS REPORTED REVENUE
         GROWTH RATES

         Cloud software as a
          service                                         50%                         57%                                 64%                           67%                 61%                  62%                  62%

         Cloud platform as a
          service and
          infrastrucure as a
          service                                         80%                         75%                                 55%                           40%                 60%                  28%                  28%

        Total cloud revenues                              59%                         62%                                 62%                           58%                 60%                  51%                  51%

         New software
          licenses                                      (11%)                       (20%)                               (16%)                          (5%)               (12%)                 (6%)                 (6%)

         Software license
          updates and
          product support                                  2%                          2%                                  2%                            2%                  2%                   3%                   3%

         Total on-premise software
         revenues                                          0%                        (4%)                                (3%)                          (1%)                (2%)                   2%                   2%

         Total cloud and on-premise
          software revenues                                5%                          2%                                  4%                            5%                  4%                   9%                   9%


         Total hardware revenues                        (12%)                       (10%)                                (9%)                         (13%)               (11%)                 (5%)                 (5%)


         Total services revenues                         (6%)                        (2%)                                  2%                            3%                (1%)                   6%                   6%


         Total revenues                                    2%                          0%                                  2%                            3%                  2%                   7%                   7%


         CONSTANT CURRENCY
         GROWTH RATES (2)

         Cloud software as a
          service                                         52%                         59%                                 65%                           69%                 62%                  62%                  62%

         Cloud platform as a
          service and
          infrastrucure as a
          service                                         84%                         78%                                 57%                           42%                 62%                  27%                  27%

        Total cloud revenues                              61%                         64%                                 63%                           60%                 62%                  51%                  51%

         New software
          licenses                                      (10%)                       (19%)                               (15%)                          (4%)               (11%)                 (7%)                 (7%)

         Software license
          updates and
          product support                                  3%                          3%                                  3%                            3%                  3%                   2%                   2%

         Total on-premise software
         revenues                                          1%                        (3%)                                (2%)                            0%                (1%)                   1%                   1%

         Total cloud and on-premise
          software revenues                                6%                          3%                                  5%                            6%                  5%                   8%                   8%


         Total hardware revenues                        (11%)                        (9%)                                (9%)                         (12%)               (10%)                 (6%)                 (6%)


         Total services revenues                         (5%)                          0%                                  3%                            4%                  1%                   5%                   5%


         Total revenues                                    3%                          1%                                  3%                            4%                  3%                   6%                   6%



                                (1)  The sum of the quarterly information presented may vary from the
                                     year-to-date information presented due to rounding.


                               (2)  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, 2017 and 2016 for the fiscal 2018
                                     and fiscal 2017 constant currency growth rate calculations presented, respectively, rather than the actual
                                     exchange rates in effect during the respective periods.


                                                                                                                           ORACLE  CORPORATION


                                                                                                                     Q1 FISCAL 2018 FINANCIAL RESULTS

                                                                                                            SUPPLEMENTAL GEOGRAPHIC GAAP REVENUES ANALYSIS (1)

                                                                                                                             ($ in millions)


                                                                                       Fiscal 2017                                                                                          Fiscal 2018
                                                                                      -----------                                                                                          -----------

                                 Q1                         Q2                             Q3                              Q4                        TOTAL                Q1            Q2      Q3       Q4  TOTAL
                                ---                        ---                            ---                             ---                        -----               ---           ---     ---      --- -----


     AMERICAS
     --------

     Total cloud
       and on-
       premise
       software
       revenues                        $3,876                      $4,000                               $4,280                      $5,076                       $17,231        $4,256                                 $4,256
     =========                         ======                      ======                               ======                      ======                       =======

      Total
       hardware
       revenues                          $526                        $510                                 $511                        $542                        $2,089          $485                                   $485
     ==========                          ====                        ====                                 ====                        ====                        ======


      AS REPORTED
      GROWTH RATES

     Total cloud
       and on-
       premise
       software
       revenues                            5%                         2%                                  8%                         6%                           5%          10%                                   10%

      Total
       hardware
       revenues                         (11%)                      (14%)                               (11%)                      (17%)                        (13%)         (8%)                                  (8%)


      CONSTANT
      CURRENCY
      GROWTH RATES
      (2)

     Total cloud
       and on-
       premise
       software
       revenues                            6%                         2%                                  7%                         6%                           5%           9%                                    9%

      Total
       hardware
       revenues                         (10%)                      (14%)                               (11%)                      (17%)                        (13%)         (8%)                                  (8%)



      EUROPE /
      MIDDLE EAST
      /AFRICA
     ------------

     Total cloud
       and on-
       premise
       software
       revenues                        $1,903                      $2,008                               $2,019                      $2,489                        $8,419        $2,019                                 $2,019
     =========                         ======                      ======                               ======                      ======                        ======

      Total
       hardware
       revenues                          $275                        $294                                 $300                        $352                        $1,221          $271                                   $271
     ==========                          ====                        ====                                 ====                        ====                        ======


      AS REPORTED
      GROWTH RATES

     Total cloud
       and on-
       premise
       software
       revenues                            2%                       (3%)                                (2%)                         1%                         (1%)           6%                                    6%

      Total
       hardware
       revenues                         (17%)                       (7%)                               (14%)                       (8%)                        (11%)         (1%)                                  (1%)


      CONSTANT
      CURRENCY
      GROWTH RATES
      (2)

     Total cloud
       and on-
       premise
       software
       revenues                            7%                         2%                                  2%                         5%                           4%           3%                                    3%

      Total
       hardware
       revenues                         (13%)                       (2%)                               (10%)                       (4%)                         (7%)         (4%)                                  (4%)



     ASIA PACIFIC
     ------------

     Total cloud
       and on-
       premise
       software
       revenues                        $1,012                      $1,169                               $1,066                      $1,319                        $4,568        $1,109                                 $1,109
     =========                         ======                      ======                               ======                      ======                        ======

      Total
       hardware
       revenues                          $195                        $210                                 $217                        $220                          $842          $187                                   $187
     ==========                          ====                        ====                                 ====                        ====                          ====


      AS REPORTED
      GROWTH RATES

     Total cloud
       and on-
       premise
       software
       revenues                           12%                        15%                                  2%                         9%                           9%          10%                                   10%

      Total
       hardware
       revenues                          (7%)                       (1%)                                  1%                      (12%)                         (5%)         (4%)                                  (4%)


      CONSTANT
      CURRENCY
      GROWTH RATES
      (2)

     Total cloud
       and on-
       premise
       software
       revenues                            8%                        11%                                  0%                         9%                           7%          10%                                   10%

      Total
       hardware
       revenues                          (9%)                       (3%)                                  0%                      (12%)                         (6%)         (4%)                                  (4%)



     TOTAL COMPANY
     -------------

     Total cloud
       and on-
       premise
       software
       revenues                        $6,791                      $7,177                               $7,365                      $8,884                       $30,218        $7,384                                 $7,384
     =========                         ======                      ======                               ======                      ======                       =======

      Total
       hardware
       revenues                          $996                      $1,014                               $1,028                      $1,114                        $4,152          $943                                   $943
     ==========                          ====                      ======                               ======                      ======                        ======


      AS REPORTED
      GROWTH RATES

     Total cloud
       and on-
       premise
       software
       revenues                            5%                         2%                                  4%                         5%                           4%           9%                                    9%

      Total
       hardware
       revenues                         (12%)                      (10%)                                (9%)                      (13%)                        (11%)         (5%)                                  (5%)


      CONSTANT
      CURRENCY
      GROWTH RATES
      (2)

     Total cloud
       and on-
       premise
       software
       revenues                            6%                         3%                                  5%                         6%                           5%           8%                                    8%

      Total
       hardware
       revenues                         (11%)                       (9%)                                (9%)                      (12%)                        (10%)         (6%)                                  (6%)



                 (1)  The sum of the quarterly information presented may vary from the year-to-
                      date information presented due to rounding.


                (2)  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, 2017 and 2016 for the fiscal 2018 and fiscal 2017 constant currency growth rate
                      calculations presented, respectively, rather than the actual exchange rates in effect during the
                      respective periods.


                                                                                                                         ORACLE  CORPORATION


                                                                                                                   Q1 FISCAL 2018 FINANCIAL RESULTS

                                                                                              SUPPLEMENTAL TOTAL CLOUD AND ON-PREMISE SOFTWARE GAAP REVENUES ANALYSIS (1)

                                                                                                                            ($ in millions)


                                                                                              Fiscal 2017                                                                                          Fiscal 2018
                                                                                             -----------                                                                                          -----------

                                         Q1                        Q2                             Q3                              Q4                        TOTAL                Q1            Q2      Q3       Q4  TOTAL
                                        ---                       ---                            ---                             ---                        -----               ---           ---     ---      --- -----


      APPLICATIONS
      REVENUES
     -------------

      Cloud software as a
       service                                   $657                       $725                                 $865                        $964                        $3,211        $1,067                                 $1,067

      On-premise
       software revenues                        1,584                      1,610                                1,632                       1,898                         6,724         1,579                                  1,579
     ---------                                  -----                      -----                                -----                       -----                         -----

         Total cloud and on-
          premise software
          revenues                             $2,241                     $2,335                               $2,497                      $2,862                        $9,935        $2,646                                 $2,646
     =========                                 ======                     ======                               ======                      ======                        ======


      AS REPORTED GROWTH
      RATES

      Cloud software as a
       service                                    50%                       57%                                 64%                        67%                          61%          62%                                   62%

      On-premise
       software revenues                         (5%)                     (11%)                                (8%)                      (10%)                         (8%)           0%                                    0%

         Total cloud and on-
          premise software
          revenues                                 6%                        3%                                  9%                         7%                           6%          18%                                   18%


      CONSTANT CURRENCY
      GROWTH RATES (2)

      Cloud software as a
       service                                    52%                       59%                                 65%                        69%                          62%          62%                                   62%

      On-premise
       software revenues                         (4%)                      (9%)                                (7%)                       (9%)                         (7%)         (1%)                                  (1%)

         Total cloud and on-
          premise software
          revenues                                 8%                        5%                                  9%                         8%                           8%          17%                                   17%



      PLATFORM AND
      INFRASTRUCTURE
      REVENUES
     ---------------

      Cloud platform as a
       service and
       infrastructure as
       a service                                 $312                       $328                                 $324                        $397                        $1,360          $400                                   $400

      On-premise
       software revenues                        4,238                      4,514                                4,544                       5,625                        18,923         4,338                                  4,338
     ---------                                  -----                      -----                                -----                       -----                        ------

         Total cloud and on-
          premise software
          revenues                             $4,550                     $4,842                               $4,868                      $6,022                       $20,283        $4,738                                 $4,738
     =========                                 ======                     ======                               ======                      ======                       =======


      AS REPORTED GROWTH
      RATES

      Cloud platform as a
       service and
       infrastructure as
       a service                                  80%                       75%                                 55%                        40%                          60%          28%                                   28%

      On-premise
       software revenues                           1%                      (1%)                                (1%)                         3%                           1%           2%                                    2%

         Total cloud and on-
          premise software
          revenues                                 5%                        2%                                  2%                         5%                           3%           4%                                    4%


      CONSTANT CURRENCY
      GROWTH RATES (2)

      Cloud platform as a
       service and
       infrastructure as
       a service                                  84%                       78%                                 57%                        42%                          62%          27%                                   27%

      On-premise
       software revenues                           2%                      (1%)                                  0%                         4%                           1%           1%                                    1%

         Total cloud and on-
          premise software
          revenues                                 5%                        2%                                  2%                         6%                           4%           3%                                    3%



                         (1)  The sum of the quarterly information presented may vary from the year-
                               to-date information presented due to rounding.


                        (2)  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, 2017 and 2016 for the fiscal 2018 and fiscal 2017 constant currency growth rate calculations
                              presented, respectively, rather than the actual exchange rates in effect during the respective periods.

APPENDIX A

ORACLE CORPORATION
Q1 FISCAL 2018 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries and expenses related to acquisitions, as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

-- Cloud software as a service, cloud platform as a service and infrastructure as a service, and software license updates and product support deferred revenues: Business combination accounting rules require us to account for the fair values of cloud-based service contracts and software license updates and product support contracts assumed in connection with our acquisitions. Because these contracts are generally one year in duration, our GAAP revenues generally for the one year period subsequent to our acquisition of a business do not reflect the full amount of revenues on these assumed cloud and support contracts that would have otherwise been recorded by the acquired entity. The non-GAAP adjustment to our cloud software as a service revenues, cloud platform as a service and infrastructure as a service revenues, and software license updates and product support revenues is intended to include, and thus reflect, the full amount of such revenues. We believe the adjustment to these revenues is useful to investors as a measure of the ongoing performance of our business. We have historically experienced high renewal rates on our software license updates and product support contracts and our objective is to increase the renewal rates on acquired and new cloud-based service contracts; however, we cannot be certain that our customers will renew our cloud-based contracts or software license updates and product support contracts.

-- Deferred sales commissions amortization: Certain acquired companies capitalized sales commissions associated with subscription agreements and amortized these amounts over the related contractual terms. Business combination accounting rules generally require us to eliminate these capitalized sales commissions balances as of the acquisition date and our post-combination GAAP sales and marketing expenses generally do not reflect the amortization of these deferred sales commissions balances. The non-GAAP adjustment to increase our sales and marketing expenses is intended to include, and thus reflect, the full amount of amortization related to such balances as though the acquired companies operated independently in the periods presented. We believe this adjustment to sales and marketing expenses is useful to investors as a measure of the ongoing performance of our business. The presentation of this non-GAAP adjustment commenced in the second fiscal quarter of fiscal 2017 as a result of our acquisition of NetSuite. Such adjustment was not material in prior periods.

-- Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

-- Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP operating expenses and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.

-- Acquisition related and other expenses; and restructuring expenses: We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses from our non-GAAP operating expenses and net income measures. We incurred significant expenses in connection with our acquisitions and also incurred certain other operating expenses or income, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition related and other expenses consist of personnel related costs for transitional employees, other acquired employee related costs, stock-based compensation expenses (in addition to the stock-based compensation expenses described above), integration related professional services, certain business combination adjustments including adjustments after the measurement period has ended and certain other operating items, net. Substantially all of the stock-based compensation expenses included in acquisition related and other expenses resulted from unvested stock awards assumed in acquisitions whose vesting was fully accelerated upon termination of the employees pursuant to the original terms of those stock awards. Restructuring expenses consist of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. Although acquisition related expenses and restructuring expenses generally diminish over time with respect to past acquisitions and/or strategic initiatives, we generally will incur these expenses in connection with any future acquisitions and/or strategic initiatives.

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SOURCE Oracle Corporation