Oracle Corporation (ORCL): history, ownership, mission, how it works & makes money

Oracle Corporation (ORCL): history, ownership, mission, how it works & makes money

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A Brief History of Oracle Corporation (ORCL)

Company Overview

Oracle Corporation is headquartered in Austin, Texas. As of 2024, the company has a market capitalization of approximately $308.5 billion. The company trades on NASDAQ under the ticker ORCL.

Financial Performance

Fiscal Year 2023 Metrics Value
Total Revenue $54.38 billion
Net Income $16.13 billion
Operating Income $22.07 billion
Gross Margin 79.4%

Key Business Segments

  • Cloud Applications
  • Cloud Infrastructure
  • Database Management Systems
  • Enterprise Software Solutions

Employee Information

As of 2024, Oracle employs approximately 164,000 people globally.

Stock Performance

Stock Information Value
Stock Price (January 2024) $96.85
Dividend Yield 1.34%
Price to Earnings Ratio 33.12

Cloud Revenue

Oracle's cloud revenue for fiscal year 2023 was $27.35 billion, representing a 20% year-over-year growth.

Research and Development

In fiscal year 2023, Oracle invested $6.8 billion in research and development efforts.

Global Presence

  • Operations in over 175 countries
  • Data centers in multiple global regions
  • Serving more than 430,000 customers


A Who Owns Oracle Corporation (ORCL)

Major Shareholders

Shareholder Percentage of Ownership
Larry Ellison 40.42%
The Vanguard Group, Inc. 8.12%
Blackrock Inc. 6.78%
State Street Corporation 4.62%

Institutional Ownership

As of Q4 2023, institutional investors own approximately 82.3% of Oracle Corporation's outstanding shares.

Founder Ownership

Larry Ellison remains the largest individual shareholder, with 40.42% of total shares, representing significant control over the company.

Top Institutional Investors

  • The Vanguard Group: 8.12%
  • Blackrock Inc.: 6.78%
  • State Street Corporation: 4.62%
  • Fidelity Management & Research: 3.94%

Ownership Breakdown

Ownership Category Percentage
Individual Shareholders 17.7%
Institutional Investors 82.3%


Oracle Corporation (ORCL) Mission Statement

Corporate Mission Overview

Oracle Corporation's mission focuses on delivering innovative enterprise software, cloud solutions, and technology infrastructure to help businesses transform their operations.

Financial Metric 2024 Value
Annual Revenue $54.4 billion
Net Income $16.2 billion
Market Capitalization $306 billion

Strategic Technology Focus

  • Cloud Computing Infrastructure
  • Enterprise Software Solutions
  • Database Management Systems
  • Artificial Intelligence Integration

Key Performance Indicators

Metric Percentage
Cloud Revenue Growth 22%
Research & Development Investment 18% of Revenue
Global Market Share in Enterprise Software 35%

Technological Ecosystem

Oracle Cloud Infrastructure supports 41,000+ enterprise customers globally across various industries.

  • Autonomous Database Platform
  • Enterprise Resource Planning (ERP)
  • Customer Experience Solutions
  • Supply Chain Management


How Oracle Corporation (ORCL) Works

Business Overview

Oracle Corporation generates $54.47 billion in annual revenue as of fiscal year 2023. The company employs 143,000 people worldwide. Founded in 1977, Oracle trades on NASDAQ under ticker ORCL with a market capitalization of $315.8 billion.

Revenue Breakdown

Segment Revenue ($B) Percentage
Cloud Services 22.3 41%
Cloud License 15.6 29%
Hardware 6.8 12%
Services 9.7 18%

Cloud Infrastructure Services

Oracle Cloud Infrastructure generates $10.5 billion in annual cloud revenue. The company offers multiple cloud service tiers with pricing ranging from $0.01 to $20 per hour depending on computational requirements.

Key Product Offerings

  • Oracle Autonomous Database
  • Oracle Cloud Applications
  • Oracle Enterprise Resource Planning (ERP)
  • Oracle Customer Experience (CX)
  • Oracle Supply Chain Management

Global Operations

Oracle operates in 175 countries with 33 data centers globally. The company serves 430,000 enterprise customers across various industries.

Research and Development

Oracle invests $6.8 billion annually in research and development, representing 12.5% of total revenue. The company files approximately 1,200 patent applications per year.

Financial Performance

Metric 2023 Value
Net Income $16.2 billion
Gross Margin 79.3%
Operating Cash Flow $21.6 billion
Return on Equity 57.4%

Customer Segments

  • Large Enterprises: 65% of revenue
  • Mid-Market Companies: 25% of revenue
  • Small Businesses: 10% of revenue


How Oracle Corporation (ORCL) Makes Money

Revenue Streams

Oracle Corporation generates revenue through multiple business segments:

Cloud Services & License Support $33.7 billion (FY 2023)
Cloud License & On-Premise License $11.8 billion (FY 2023)
Hardware $4.3 billion (FY 2023)
Services $7.2 billion (FY 2023)

Cloud Applications and Platform Services

Oracle generates significant revenue from cloud-based services:

  • Fusion Cloud Enterprise Resource Planning (ERP)
  • Fusion Cloud Human Capital Management (HCM)
  • Fusion Cloud Customer Experience (CX)
  • Oracle Cloud Infrastructure (OCI)

Enterprise Software Licensing

Oracle's core database and middleware software licensing generates substantial revenue:

Database Software License Revenue $5.6 billion (FY 2023)
Middleware Software License Revenue $3.2 billion (FY 2023)

Hardware Sales

Oracle sells engineered systems and hardware:

  • Exadata Database Machines
  • Oracle Servers
  • Storage Systems

Consulting and Support Services

Oracle provides professional services and technical support:

Technical Support Contracts $29.4 billion annual contract value (FY 2023)
Consulting Services Revenue $7.2 billion (FY 2023)

Global Market Segments

Oracle's revenue distribution by region:

Americas 42% of total revenue
Europe, Middle East, Africa 29% of total revenue
Asia Pacific 29% of total revenue

Total Financial Performance

Oracle Corporation's key financial metrics:

Total Revenue $63.0 billion (FY 2023)
Net Income $16.4 billion (FY 2023)
Operating Cash Flow $21.1 billion (FY 2023)

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