Oracle’s Q2 Guidance

From the conference call:

I am going to give you constant currency guidance, but if exchange rates remain the same as they are right now, we expect to see a currency headwind of about 6% on revenue and $0.05 on earnings per share. But again, it could be significantly worse. Maybe if we are lucky, it could be a little bit better. All of my guidance today is on a non-GAAP basis and in constant currency. So, here it goes.

SaaS and PaaS revenue is expected to grow 36% to 40%. Cloud IaaS revenue is expected to grow 5% to 9%. Total cloud and on-premise software is expected to grow from 0% to 2%. Total revenue is expected to range from a negative 2% to a positive 1%. Non-GAAP EPS in constant currency is expected to be somewhere between $0.63 and $0.66. Now, this assumes a non-GAAP tax rate of 25.5%. Of course, if this quarter is any example, it may end up being different. Looking further out, we expect to see a material acceleration in SaaS and PaaS revenue. As a result, I am providing full fiscal year guidance for some key items. As before, my guidance on the full year is in constant currency.

SaaS and PaaS revenue is expected to grow around 50%. On-premise software is expected to grow approximately 1%. Total cloud and on-premise software is expected to grow between 3% and 4%. Finally, SaaS and PaaS gross margins are expected to materially improve in the second half and exit the year at around 60%.

Posted by on September 17th, 2015 at 10:22 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.