00:00 Speaker A
s second quarter results. They are just hitting the wires now. Q2 adjusted EPS, I see 226. Consensus there was at 164, so that’s a beat on the bottom line. I’m looking at the top line now. revenue clocks in at 16.06 billion. The estimate on the street was close to 16.21 billion. So that’s a bit light on the top. I’m looking for uh operating margins. There they are right there. Q2 operating operating margins, 42%. The street was at 42.2%.
01:00 Speaker A
Uh, I’m looking for the divisions here, Q2 cloud revenue, 8 billion. The street was at 8.04 billion. Cloud infrastructure revenue, 4.1 billion. The street was at 4.09 billion. Uh RPOs remaining performance obligations. That’s a key metric there of uh future revenue. 50 523 billion uh versus an estimate of around 97 billion uh year over year. That was the uh comparison there 523 versus 97 year over year.
01:46 Speaker A
Remember, this one had been interesting to watch. I don’t see yet uh the estimates for forecast, looking for the guidance there. while I’m still looking of course, this stock had been um a dramatic one. Recall after the last time they reported, it had roared higher. obviously Oracle executives had convinced the street, they were an AI winner, but then you saw the stock get whacked. you had these concerns bubble up about customer concentration risk
02:22 Speaker A
with open AI specifically, you had concerns about debt risk that were were brought up. How exactly was Oracle going to finance this great AI data center build out. Right now, at least initially, we see the stock down about 6% here in the after hours. Uh Dan Haley, I know you’re standing by. you’re watching this print so critical, not just for Oracle, but really the greater AI theme and trend and story. What are your your initial takes here?
02:59 Dan Haley
Yeah, this is Oracle’s become a bellweather just because of the vast investments that it’s making obviously with Open AI that part of that project Stargate. They had that $300 billion agreement. Uh but you know, seeing them beat when it comes to EPS uh and coming in line with that infrastructure is rather interesting. I wonder how the street’s going to respond right now. Uh one thing that I think is worth pointing out is in the actual release. Uh let’s see. We have CFO uh Doug Carrick basically saying that those remaining performance obligations as you pointed out,
03:37 Dan Haley
a key metric just because that shows some of the revenue that hasn’t been realized yet uh from various agreements grew sequentially 68 billion to that $523 billion and they talk about how that highlights new commitments from Meta, Nvidia and others. And so that’s going to be something to watch. Uh you know, obviously this has been a company that with those kind of agreements has uh just kind of shot itself up to the the level of something like a Microsoft or Google or or not exactly Nvidia, but you know,
04:19 Dan Haley
that kind of rank when it comes to watching the AI trade. And so this is going to be a big test, I think going into the after market now and then into tomorrow when we start to see investors really continue to digest this news.
