Oracle 2013 Annual Report Download - page 59

Table of Contents
products. Cloud software subscriptions include revenues from our cloud software-as-a-service and platform-as-a-service offerings, which grant
customers access to a broad range of our software offerings on a subscription basis in a secure, standards-based, cloud computing environment
that includes access, hosting, infrastructure management, the use of software updates, and support. We continue to place significant emphasis,
both domestically and internationally, on direct sales through our own sales force. We also continue to market our products through indirect
channels. Costs associated with our new software licenses and cloud software subscriptions segment are included in sales and marketing
expenses, cloud software-as-a-service and platform-as-a-
service expenses and amortization of intangible assets. These costs are largely personnel
related and include commissions earned by our sales force for the sale of our software offerings, marketing program costs, the cost of providing
our cloud software-as-a-service and platform-as-a-service offerings and amortization of intangible assets.
Fiscal 2014 Compared to Fiscal 2013: Excluding the effect of unfavorable currency rate fluctuations, total new software licenses and cloud
software subscriptions revenues increased by 3% during fiscal 2014 primarily due to incremental revenues from our cloud SaaS and PaaS
offerings resulting from our recent acquisitions. In constant currency, total new software licenses and cloud software subscriptions revenues
growth in the Americas and EMEA region was partially offset by a decline in revenues in the Asia Pacific region.
In constant currency, our new software license revenues increased by 1% in fiscal 2014 and our SaaS and PaaS revenues increased by 24% in
fiscal 2014, both primarily due to incremental revenues from our recent acquisitions.
As a result of our acquisitions, we recorded adjustments to reduce assumed cloud SaaS and PaaS obligations to their estimated fair values at the
acquisition dates. Due to our application of business combination accounting rules, cloud SaaS and PaaS revenues in the amounts of $17 million,
$45 million and $22 million that would have been otherwise recorded by our acquired businesses as independent entities were not recognized in
fiscal 2014,
55
Year Ended May 31,
Percent Change
Percent Change
(Dollars in millions)
2014
Actual
Constant
2013
Actual
Constant
2012
New Software Licenses and Cloud Software Subscriptions Revenues:
Americas
$
5,544
1%
3%
$
5,465
7%
8%
$
5,107
EMEA
3,249
10%
6%
2,959
3%
5%
2,884
Asia Pacific
1,744
-
8%
-
2%
1,897
-
1%
3%
1,915
Total revenues
10,537
2%
3%
10,321
4%
6%
9,906
Expenses:
Cloud software
-
as
-
a
-
service and platform
-
as
-
a
-
service
447
41%
42%
317
58%
58%
202
Sales and marketing
6,350
7%
8%
5,935
4%
6%
5,697
Stock
-
based compensation
166
17%
17%
142
19%
19%
120
Amortization of intangible assets
977
-
1%
-
1%
986
20%
20%
822
Total expenses
7,940
8%
8%
7,380
8%
10%
6,841
Total Margin
$
2,597
-
12%
-
11%
$
2,941
-
4%
-
3%
$
3,065
Total Margin %
25%
28%
31%
% Revenues by Geography:
Americas
53%
53%
52%
EMEA
31%
29%
29%
Asia Pacific
16%
18%
19%
Revenues by Software Offerings:
New software licenses
$
9,416
0%
1%
$
9,411
0%
1%
$
9,451
Cloud software
-
as
-
a
-
service and platform
-
as
-
a
-
service
1,121
23%
24%
910
100%
100%
455
Total new software licenses and cloud software subscriptions revenues
$
10,537
2%
3%
$
10,321
4%
6%
$
9,906
% Revenues by Software Offerings:
New software licenses
89%
91%
95%
Cloud software
-
as
-
a
-
service and platform
-
as
-
a
-
service
11%
9%
5%
Excluding stock
-
based compensation
Included as a component of
‘
Amortization of Intangible Assets
’
in our consolidated statements of operations
(1)
(1)
(2)
(1)
(2)