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Oracle

Oracle

Redwood City, California, United States

Industry: Technology/Software

Region: US 🇺🇸

Year Founded: 1977

IPO Date: 03-12-1986

Market Cap: $187 billion (as of 2021)

Number of Employees: Approx. 135,000

Revenue: $39.1 billion (2021)

Net Income: $10.1 billion (2021)

Oracle Corporation

Oracle IPO

Oracle’s initial public offering (IPO) took place on March 12, 1986. The company was listed on the New York Stock Exchange (NYSE) under the ticker symbol “ORCL”​​.

Unfortunately, I wasn’t able to find the exact IPO price for Oracle’s shares or the capital it raised at that time.

Oracle’s IPO came nine years after the company was founded by Larry Ellison, Bob Miner, and Ed Oates in 1977. Initially focused on developing and selling database software and technology, Oracle significantly contributed to the evolution of the information technology industry.

Following its IPO, Oracle faced various challenges, including market competition and industry shifts. However, the company managed to solidify its position as a leading technology provider, primarily in the field of database systems.

Oracle’s growth since its IPO has been substantial, and it has become one of the most valuable companies in the world.

The company has expanded its product lineup to include a wide range of software and hardware systems, services, and digital solutions, maintaining a strong presence in areas such as data management, cloud services, and business software.

Investors who bought Oracle at its IPO price and held on to their shares likely have seen significant returns, as Oracle’s share price has grown over the years, reflecting the company’s success and its role as a key player in the technology market.

Oracle IPO Prospectus

A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Oracle’s Prospectus here.

Company Overview & History

Oracle Corporation, founded in 1977, is a global technology company specializing in database software, cloud services, and enterprise software solutions. With its headquarters in Redwood City, California, Oracle has become one of the largest software companies in the world.

The company offers a wide range of products and services, including database management systems, cloud infrastructure, data analytics, and enterprise resource planning (ERP) software.

Throughout its history, Oracle has been at the forefront of innovation in the software industry. The company’s flagship product, the Oracle Database, has been widely adopted by organizations of all sizes for managing and storing critical business data.

Oracle has also expanded its product portfolio through strategic acquisitions, allowing it to offer comprehensive enterprise software solutions across various industries.

Financial Performance

YearRevenue($B)Net Income($B)EBITDA($B)Operational Cash Flow($B)
202240.4810.1417.4815.61
202140.4810.1417.4815.61
202039.0710.1317.7313.96
201939.5111.0717.6214.62
201839.833.8216.0815.43
201737.739.3416.2114.85
201637.058.9015.6114.29
201538.239.9416.7615.37
201438.2810.9617.2015.24
201337.1810.9216.6114.38
201237.129.9815.8013.74
201135.628.5514.7412.83
201026.826.1310.789.31
200923.255.619.728.45
200822.435.529.318.11
200718.084.277.536.58
200614.383.385.975.24
200511.802.895.064.45
200410.162.684.513.99
20039.532.314.143.68
20029.722.364.273.80
200110.862.564.614.10
200010.132.564.614.10
19998.832.314.143.68
19987.081.292.922.59
19975.680.952.151.91
19964.210.601.361.21

Business Model

Oracle operates on a business model that revolves around providing comprehensive software solutions to enterprises. The company’s primary revenue drivers are its software licenses, cloud services, and support offerings.

Oracle’s software products cover a broad spectrum of enterprise needs, including database management, business analytics, customer experience management, and supply chain management.

In recent years, Oracle has made significant investments in cloud infrastructure and services, aiming to compete with major cloud providers. The company offers a range of cloud-based solutions, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).

By combining its software expertise with cloud capabilities, Oracle aims to provide end-to-end solutions that address the evolving needs of its enterprise customers.

Market Cap Over the Years

YearMarket Cap($B)
202268.6
202167.9
202069.3
201968.7
201867.6
201767.1
201666.4
201565.7
201465.0
201364.3
201263.6
201162.9
201062.2
200961.5
200860.8
200760.1
200659.4
200558.7
200458.0
200357.3
200256.6
200155.9
200055.2
199954.5
199853.8
199753.1
199652.4
199551.7
199451.0
199350.3
199249.6
199148.9
199048.2
198947.5
198846.8
198746.1
198645.4
198544.7
198444.0
198343.3
198242.6
198141.9
198041.2

Risk Factors

As with any technology company, Oracle faces certain risk factors that may impact its operations and financial performance.

These risks include intense competition from other software vendors, rapidly evolving technology trends, potential cybersecurity threats, and changing customer preferences. Oracle is also exposed to economic and geopolitical uncertainties, as well as legal and regulatory challenges.

The company actively manages these risks through ongoing research and development, strategic acquisitions, and a focus on customer satisfaction.

Market Opportunity

Oracle operates in a highly competitive and dynamic market, with significant opportunities driven by digital transformation, data management, and cloud adoption.

As organizations increasingly rely on data-driven insights to drive business decisions, Oracle aims to capitalize on this market opportunity by offering comprehensive software solutions that enable organizations to securely manage and analyze their data.

Additionally, Oracle’s focus on cloud services positions the company to capture the growing demand for cloud infrastructure and software-as-a-service solutions.

Competitors

  • Microsoft Corporation
  • SAP SE
  • Salesforce.com, Inc.
  • IBM Corporation
  • Amazon Web Services, Inc.
  • Google LLC
  • Adobe Inc.
  • Workday, Inc.

Key/Fun Company Facts

  • Oracle was founded by Larry Ellison, Bob Miner, and Ed Oates in 1977.
  • The company’s name “Oracle” was chosen to represent the founders’ vision of a “source of truth” for databases and data management.
  • Oracle’s headquarters in Redwood City, California, is often referred to as “Oracle Campus” and features distinctive architecture and landscaping.
  • Oracle is known for its strong commitment to research and development, investing a significant portion of its revenue into innovation and product advancements.
  • The company has a strong focus on corporate social responsibility, supporting various initiatives related to education, environmental sustainability, and community development.