[Music] welcome to drill down earnings we have the latest quarterly results from Oracle Corporation the stock market loves them I love them I'm the chief Market strategist Corey Johnson this is a business story behind One stock and I'm moving it I'm biased on this one I own this stock um I'm very excited about these results because wall Street's very excited about the results and this stock has been on sale over and over again in the last two years I don't give stock advice and I'm not doing it here but I'm happy all right or first quarter fiscal 2025 numbers uh Wall Street likes a beat or a miss and this was a beat uh Wall Street was looking for 13.2 billion in revenues was better than that 13.3 billion um uh it also beat an earnings per share but we want to dig into the business here understand what really happened here with these numbers so um 7% rise in revenues is really good and Improvement upon uh the increases that we saw last quarter kind of back where we'd been in in recent quarters before that and fantastically profitable I'm not talking about GRS margins operating margins of 30% on a very big business that's doing you know like I said 13 billion in revenues every quarter here and yeah it's driven by AI they're seeing fantastic growth in AI now when we think of Oracle what are we talking about here because the business has changed a lot over the years yeah there's some Hardware that's not doing great their services business is doing pretty well cloud services Cloud license support at 79% of their business and their Cloud growth has returned now 8% in the most recent quarter of the biggest increase in revenues in that sector that they've seen in in two years or so so that's really strong here we look a little bit deeper uh they've been building Cloud databases 162 Cloud databases in operation under construction all over the world um and these are some of the you know some of these are really big 800 megawatts they've also got some tiny ones or smaller ones at least um and what are they powered by you got it Nvidia gpus these guys are spending Fortunes in this they uh they say they've signed $3 billion worth of GPU contracts um uh which is going to grow their Pro you know their business and data centers uh exactly where customers want them um and also so right so uh there was a couple things also that really just jumped out here with these numbers but um one of them is is their rpos uh their back orders grew at a fantastic rate 53% growth in their orders their rpos um when you compare that to the 7% Revenue growth rate it's just it's great it's a really strong contract backlog but it means that Revenue growth is going to keep ticking up uh for the remainder of this fiscal year that they're just reporting here at the very least um and then they announced this big deal with AWS Amazon and Oracle hate each other this is Hell freezing over this is the Hope For Humanity here if these guys can get along and yeah oracle's uh latest including their exod dat Hardware um their their uh their database software uh version 23 AI um all offered on the Amazon Cloud on AWS that's just an amazing development Amazon used to write white papers telling people how to get rid of Oracle Larry Ellison the CEO and founder of Oracle former CEO and founder of Oracle the chief technology officer who will he from in a moment used to talk about how lousy the Amazon databases that were competing with Oracle are now they're all lovey-dovey how do they like it who cares how does the stock market like it the stocks up 9% and after hour was trading after riding uh 10% on a year-over-year basis but as you can see this stock is sold as low as $100 actually below $100 right around Christmas time now and after I was trading trading uh over a152 uh just a fantastic move in this stock and yes I'm biased I'm very excited about it but again that RPO surge uh is the number that really jumped out of me that 53% increase in rpos last quarter 44% seemed amazing lots of customer orders as they're rapidly building out these data centers as they're throwing off tons of free cash over 100% free cash flow uh to net income for this company so very profitable uh lots of order growth what's it all about well here's founder and CTO Larry Ellison every Oracle data center from the largest to the smallest are identical in features and functions they only vary by scale that means we have one Suite of automation software that automates all of this nobody else does this no one has that level of automation that level of autonomy it allows us to get much better margins in our database business and our SAS business and the rest of our Cloud business our clouds are more automated so we have very low labor costs our networks are much more effic efficient the RDMA networks run so much faster if you run twice as fast uh you know our costs go down by half uh and our networks are much faster than the other clouds uh so we think uh uh our potential as we scale our potential to deliver much better margins than we're currently delivering are very real so there you have it the always excitable Larry Ellison got to love them all right what's it all mean with's your big drill down earnings takeaway and once one number that tells us a whole lot the drill down earnings bite I will have that for you right after this the drill down is brought to you by fud cherum group where analysts researchers advisers content creators and marketing experts help Business Leaders anticipate and understand shifts in their Industries and build strategies to leverage disruptive innovation with deep analysis futurum group's extensive industry experience delivers reliable research and data thought leadership and actionable advice to help you with your strategy and go to market efforts futurum group so oracles just reported fiscal 2025 first quarter earnings and they were good I am biased because I own the stock as I mentioned but look here's an essential summary your drill on earnings takeaway um 13.3 billion in revenues up 7% in a year-over-year Bas basis and very profitable revenues at that but the one number that jumps out the mystery number of course is how much they're going to make with their new Amazon web services deal hell freezing over that's great for Oracle and for Amazon and Amazon web service customers but the drill down earnings bite the one number that tells us a whole lot 53% growth in remaining performance obligations in orders combined with 7% Revenue growth that's great news for the rest of the year for Oracle all right thanks for listening to drill down earnings I'm Corey Johnson and check me out at X Cory TV uh leave some comments for us on Instagram or Tik Tok at drill downod tell us what you think we'd love to hear from you see how we can make these offerings even more what you're looking for