Award-winning event and venue technology executive brings four decades of leadership experience to Ungerboeck’s new Worldwide Innovation Lab
One of the most competitive, publicized, and future-facing in the market revolves around data, and what to do with it. One acronym that has been put out there is MAD, or Machine Learning, Artificial Intelligence, and Data Infrastructure. This industry revolves around storing, accessing, and analyzing the endless amount of data that is now being generated by nearly all entities around the world. Due to the sheer size and relatively young age of the industry, there are not many public companies that exist, but the ones that target this industry are fierce competitors.
For this analysis, I will use the twelve companies outlined in a recently published Houlihan Lokey insight report on the industry. They cover just a tiny fraction of the entire market, but are keenly focused MAD. Remember, names like Amazon’s AWS (AMZN), Microsoft’s Azure (MSFT), and Google’s Cloud (GOOG) are all major entities in the field as well, but the investments are far broader in scope. However, Oracle (NYSE:ORCL) now fits the bill as the best investment for wide exposure to the industry.
While there are certainly merits to diversification of your investments, this article will instead focus directly on the industry. Feel free to discuss your other favorite public, or still private, companies in the comments. I, for one, am waiting for the MariaDB IPO (POND). Anyway, the companies are as follows, in ascending EV/2022E Sales multiple:
Sumo Logic (SUMO)
As you can see, the list of companies are all quite different in terms of size, valuation, growth, and capabilities. Some are focused on the data side of the equation, while others focus on the analytics and visualization. However, Oracle is one of the most diversified entities across the sector with capabilities in providing data management services, integrated software suites (so users can access the many other companies in the industry), search analytics, and nearly every area. The image below highlights just simple coverage of the complex industry, and I highlighted the companies this research will address.
While we could spend weeks discussing the qualitative intricacies of every company and how they have the potential for further value, we can see there are some patterns that are noticeable from financial statements. Recently, valuations in the industry were primarily determined by revenue growth and outlook, although the effect is lessening in 2022. As in the two charts below, we can see that ultra-growth peer Snowflake continues to hold on to the highest EV/Sales multiple, but 40% revenue growth rate Alteryx is closing in on the same valuation as Oracle who is expected to have 10% growth in 2022.
The data is clear, investors are now applying increased valuation to companies with high profitability as economic uncertainty weighs on the outlook of unprofitable companies. This change in valuation leadership, led by Oracle, is one of the key factors that allow Oracle to remain the best choice moving into far weaker economic conditions over the coming quarters or years. However, it is important to note that other fairly profitable firms such as Teradata, Palantir, Splunk, or Informatica, may seem to offer a better growth to value proposition, but I will highlight how that may be a mistake to rely on.
The tradeoff between growth and profitability is a difficult area to tread, and management in the past have had to choose either one or the other. Then, starting the mid-part of the 2010s, investors began using a new metric to value companies: the Rule of 40. I am sure my readers are familiar with this modern metric, but I will provide a summary by the consultants Bain:
The Rule of 40—the principle that a software company’s combined growth rate and profit margin should exceed 40%—has gained momentum as a high-level gauge of performance for software businesses in recent years, especially in the realms of venture capital and growth equity. Increasingly, software industry executives are embracing the Rule of 40 as an important metric to help measure the trade-offs of balancing growth and profitability.
Management at software firms are now able to prove to investors that there is some value in low profitability, as long as growth is elevated enough. Although, growth rates can change in a flash and lead to sharp declines in valuation. At the same time, slow growers like Oracle can also meet the rule but offer far less volatility.
The two charts below highlight the power of the Rule of 40 when measured for our select group of companies. When valuing the group from only a revenue growth to value standpoint, Oracle looks extremely weak, but when looking from the Rule of 40, Oracle is the clear winner. Perhaps a bargain for the price. The only other companies meeting the Rule of 40 are Snowflake, Alteryx, and Palantir, so we will now narrow our focus moving forward.
The above charts are quite interesting because they allow investors to easily assess relative valuations. In the case of Snowflake, they may beat the Rule of 40, but fail to provide a reason to support a 4- to 5-fold increase in valuation compared to the other peers who meet the Rule of 40. This is important because apart from business growth, valuation will play an important role in the future returns. As Snowflake is not yet profitable, any slowdown in growth will cause them to no longer pass the rule, and this is quite possible as shown in data provided by Bain.
As stated, it is hard for a company to revive growth to high levels, and it is unknown whether Snowflake can increase profitability in-turn. Therefore, I believe that while Snowflake does dominate the industry, offers a compelling package and opportunity, and is growing at a supremely fast rate, the current valuation leaves little room for weak economic conditions.
For Oracle, the Rule of 40 has provided significant returns for investors even as growth is nearly flat over the past decade. Slow and steady wins the race, and Oracle is slightly less expensive right now than their historical average valuation. As such, the opportunity is clear, despite continued worries about growth or competition. For others such as Alteryx and Palantir, the story is a bit less clear as AYX faces volatile growth and Palantir faces intense scrutiny by the market. However, both of their opportunities may be greater than Snow due to the current valuations.
To conclude, I will highlight the primary reason why Oracle may continue their dominance moving forward: profitability is the key to mature growth. There are multiple issues that excess profitability can solve, including R&D spending, bolt-on acquisitions, and investing in shareholder returns. Some recent examples include the development of MySQL to out-compete Amazon Redshift/Aurora and Snowflake, while at the same time being integrated into AWS. Also, there was the acquisition of Cerner to expand further into healthcare data services.
After that there is still plenty of money being put into dividends and share buybacks, one of the reasons for the strong price performance over the past decade, regardless of revenue growth. Will Snowflake be able to survive the same weakness? Just look at the price chart of Splunk to see what high revenue growth (30%+ per year CAGR), but perpetually falling valuation can result for shareholders.
As the market continues to expect pain moving forward, I believe that extremely profitable Oracle will be able to survive. More speculative and overvalued names such as Snowflake may have inertia, but will face severe drops in valuation if growth slows down slightly. As such, I suppose investors will fare better accumulating Oracle over time, and if the weight in your portfolio gets high enough, use your profits to take a gamble on a speculative name, but when the opportunity looks far more favorable than right now.
Depending on how things turn out over the next few months, perhaps speculative names are beat up enough to find some value, but keeping money in a more safe option like Oracle until then may be best. I hope this article highlights the opportunity, but the decisions remain with you.
Thanks for reading. Feel free to share your insights below.
If you want to know who really controls Oracle Corporation (NYSE:ORCL), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 43% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
So, insiders of Oracle have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.
Let's delve deeper into each type of owner of Oracle, beginning with the chart below.
See our latest analysis for Oracle
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Oracle. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Oracle's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Oracle. From our data, we infer that the largest shareholder is Lawrence Ellison (who also holds the title of Top Key Executive) with 42% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. For context, the second largest shareholder holds about 5.1% of the shares outstanding, followed by an ownership of 4.3% by the third-largest shareholder.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 52% stake.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in Oracle Corporation. It is very interesting to see that insiders have a meaningful US$74b stake in this US$173b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Oracle. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It's always worth thinking about the different groups who own shares in a company. But to understand Oracle better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Oracle (of which 2 don't sit too well with us!) you should know about.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
Oracle (NYSE:ORCL) is an American computer technology company that is mainly known for their cloud systems and database management systems in the Systems Software Industry. We can see that year-to-date, ORCL stock is underperforming the broader market and they have lost as much as 27.43% of market value while SPY declined by 23.62%.
After first analyzing the company’s financial performance, I do not believe this is an optimal buying opportunity for ORCL right now with reasons such as mediocre financial growth, valuation providing minimal upsides, and more. Investors, in my opinion, should "Hold" and wait for a better buying opportunity in this stock. Let's begin with an overview of what has occurred so far in the company activity analysis.
Oracle recently released fiscal 2023 Q1 on September 12th, and it has some mixed financial results. In case you missed it, here is a quote from their filings page that I found helpful in recapping the company’s performances thus far:
Total quarterly revenues were up 18% year-over-year in USD and up 23% in constant currency to $11.4 billion. Cloud services and license support revenues were up 14% in USD and up 20% in constant currency to $8.4 billion. Cloud license and on-premise license revenues were up 11% in USD and up 19% in constant currency to $0.9 billion. For the first quarter of fiscal 2023, Cerner contributed $1.4 billion to total revenues.
I then looked into Oracle’s Financials section and compiled the history of 2 important metrics: Normalized Diluted EPS and EBITDA. Oracle is a mature company and they have steadily grown EPS at a moderate 10-year 4.77% CAGR (calculations from May 2013 to May 2022). I also calculated the 10-year CAGR on EBITDA from the same time period to result in a meager 1.39% CAGR. These growth rates are mediocre for a company in a growing industry, and I am unsure if Oracle will keep pace with the industry. For example, if we take a look at the top companies in the Systems Software Industry, we can see Oracle hovering around the 14th to 15th position in growth, performance, etc. To further put this into perspective, Oracle has lagged behind the System Software Industry's growth rates. According to NYU Stern's historical data, the broader Software System & Application Industry has grown at a 23.04% 5-year CAGR with regards to net income which is far below Oracle’s growth rates mentioned above.
In addition to slow growth, there has been significant insider selling activity within the past 4 years. Insiders have bought $3.18 million while they sold nearly $1.48 billion in the time frame mentioned above. This is somewhat troubling and I believe that this could signal poor insider confidence within the company.
But, there are positives to note here. In Oracle's Q1 10Q, I noticed that management has been repurchasing shares in the past months and has a large buyback program of nearly ~$9 billion. Investors would be pleased to note their commitment to shareholder value, which would ultimately provide some support for the stock price. Here is a quote below on more details of these stock buybacks below from the 10Q:
Our Board of Directors has approved a program for us to repurchase shares of our common stock. As of August 31, 2022, approximately $8.9 billion remained available for stock repurchases pursuant to our stock repurchase program. We repurchased 7.5 million shares for $559 million during the three months ended August 31, 2022 (including 0.3 million shares for $26 million that were repurchased but not settled) and 94.0 million shares for $8.0 billion during the three months ended August 31, 2021, under the stock repurchase program.
Currently, Oracle has an annual dividend of $1.28 per share at a 1.79% annual yield. This yield is higher than SPY’s 1.70% but under the industry average of 2.21%. The company’s dividend program means the company falls short of the top 75% of dividend-paying corporations in the United States. Additionally, the company's EPS of $2.66 is more than enough to cover the annual dividend per share, leading to a sustainable payout ratio of 48.12% (derived by dividing annual dividend per share over EPS). Dividend yield rates additionally have seen recovery from the 2015 value and have grown back at a 15% 7-year CAGR since, providing investors with constant dividend growth for the last decade.
Oracle offers stable dividend payouts compared to its lumpy Free Cash Flow metric; thus, I valued the stock using conservative assumptions for the Gordon Growth Model ('GGM'). The GGM valuation approach works by assuming a constant sustainable dividend growth rate and discounting it back into the current stock price with a required rate of return. This is all summed up into this equation: "value of the stock" = "dividend per share" divided by "discount rate - dividend growth rate". It is worth noting that GGM frequently undervalues stock prices in general since dividend growth is conservatively expected to remain constant.
Knowing this, I first based my model on an annualized $1.28 dividend per share calculated by adding the preceding four quarters' $0.32 dividends (price history via Seeking Alpha). Then, I reasonably derived a discount rate of 5.9% from the cost of equity based on a 3-year levered-beta of 0.5. I estimated that dividends will grow in-line with inflation to be conservative, which I estimate from the 10-year treasury yield chart below. Plugging these three key values into the equation above, I found that the model yielded an intrinsic value of $63.68 per share, reflecting a minimal 0.6% upside over the current price of $63.68.
The biggest risks that stand out for Oracle are the rising competitive landscape within the Software Industry and the harsh effects of the Federal Reserve's Monetary policy. We have been observing more and more well-known technology companies significantly investing in sectors where Oracle was dominating in, and, as a result, Oracle was unable to maintain its competitive positioning. It is evident that the other companies above the company all together can cut losses and cause the company to spend more cash. Here is a graph and a quote from an article from Ibisworld summing up the recent activities:
“There are 16,431 Software Publishing businesses in the US as of 2022, an increase of 10.4% from 2021”
In addition, the overall macroeconomic landscape caused by the Federal Reserve’s attempts to taper down the inflation rates still makes it difficult for companies especially like Oracle to operate in. Inflationary rates have been leveling out to roughly 8.3%, but these rates still are the highest it has been in the past 5 years.
The last part of my thesis revolves around Oracle's competitive positioning and its comparison with competitors in the Systems Software Industry. I created a simple table below to compare Oracle’s financial performances (with data from Yahoo Finance) to similar competitors that income investors may seek out as an alternative such as Microsoft (MSFT), Adobe (ADBE), and more.
As a result, this table of P/E, P/S, and EBITDA yielded moderate results to say the least. When compared to industry giants like Adobe and Google (GOOGL) (GOOG), Oracle has a far cheaper P/S and P/E valuation. Not to mention, ironSource Ltd. (IS) (the top-ranked stock in the Systems Software Industry on Seeking Alpha) still has a higher P/S and P/E ratio. But, Oracle’s EBITDA is comparable to its competitors as they provide a higher EBITDA than Adobe, ironSource Ltd, SAP (SAP), and more. Overall though, competition in the industry is fierce and similar companies have the possibility to pressure and cut Oracle’s market share. With all of this, though Oracle is cheaply valued relative to peers in the industry, competitive pressures are still a concern to note.
Cisco Systems Inc
Again, I do not believe that ORCL Stock is an optimal purchase right now. Oracle historically has been growing at below industry average rates—this is reflected in EPS 4.77% 10-year CAGR and EBITDA 1.39% CAGR compared to the Software System & Application Industry 23.04% 5-year CAGR. My conservative Gordon Growth Dividend model resulted in a valuation price of $63.68 which is only a slight 0.6% upside from its current market price. I also think that competitive pressures and inflationary risks all together can be a serious headwind for Oracle. I will reassess my thesis following Oracle’s 2023 fiscal year Q2 earnings announcements or when the macroeconomic environment improves, but for now, with all the reasons discussed above, I recommend a “HOLD” on ORCL stock.
As Operations Coordinator, LeJeune Will Work Alongside the Company’s Marketing, Sales, and Warehouse Teams to Help Manage Their Day-to-Day Operational Needs
METAIRIE, LA, Oct. 17, 2022 – Oracle Lighting (www.oraclelights.com), the market leader in creating high quality lighting products and innovative LED solutions for the automotive aftermarket, is proud to announce it has added Grant LeJeune to its Operations team.
“As Oracle Lighting continues to advance, we decided to add new talent in the form of an Operations Coordinator to assist in managing our growth and expansion,” said Sandy Crespo-Mossi, Oracle Lighting Director of Operations. “Grant has the education and work experience to be a successful and integral part of helping Oracle Lighting’s marketing, sales, and warehouse teams with their operational needs as we continue to develop and grow as a company.”
LeJeune has a B.S. degree in business administration, management, and marketing from Spring Hill College.
“I am thrilled to be a part of the Oracle Lighting team during these exciting times,” said LeJeune. “With the recent growth in the market sector and shortages still being experienced from the COVID-19 pandemic, I must ensure everything operates as smoothly as possible. At Oracle Lighting, I get to work in the thriving automotive industry, a dream of mine since I was a kid. I am excited to be working at one of the industry’s most groundbreaking automotive companies, which happens to be in my hometown of New Orleans.”
Louisiana-based Oracle Lighting has been designing innovative lighting products and technologies for the automotive/12Volt, powersports, motorcycle, and marine markets since 1999. Oracle’s philosophy is this: in today’s world of fly-by-night vendors, we think it is important to partner with businesses that you can trust to be there for you today, tomorrow, and for years to come.
For more information on Oracle Lighting and its full product line, please visit www.oraclelights.com, call (800) 407-5776, or email [email protected].
About Oracle Lighting
Metairie, Louisiana-based Oracle Lighting has been designing innovative lighting products and technologies for the automotive/12Volt, powersports, motorcycle, and marine markets since 1999. Oracle’s philosophy is this: in today’s world of fly-by-night vendors, we think it is important to partner with businesses that you can trust to be there for you today, tomorrow, and for years to come. Oracle Lighting uses only premium-level LEDs, and we are committed to exceeding our customers’ expectations and staying on the cutting edge of lighting technology. We achieve this though constant innovation as well as first class customer care.
Located just outside New Orleans, Oracle Lighting has received accolades from numerous organizations for our business practices, including being listed on the Inc500 list of the Fastest Growing Businesses in the USA for multiple years, being awarded SEMA’s Manufacturer of the Year in 2021 and SEMA’s YEN Vanguard Award in 2021 for outstanding contribution to the automotive industry, winning the 2012 Bronze Stevie Award for Consumer Products Company of the Year, and being named The Small Business Administration’s Exporter of the Year and a Small Business Champion by the U.S. Senate Small Business and Entrepreneurship Committee. In 2012, Oracle was named the Jefferson Parish Small Business of the Year by JEDCO. New Orleans CityBusiness Magazine also named ORACLE Lighting a Top Private Company in the Greater New Orleans Area in 2012, 2013, 2014, 2015, 2016 and 2017.
# # #
With Oracle CloudWorld in Las Vegas kicking off, the on-going battle with third party support provider Rimini Street is once again making the news. On October 10th Oracle said it had informed the court that it is prepared to proceed with a bench trial “because it is the most efficient path to ending Rimini’s illegal conduct, including its longstanding and continuing violations of Oracle’s copyrights.”
Oracle offers three support stages for its enterprise software, tools and databases: Premier Support, Extended Support, and Sustaining Support. In Oracle’s words, these “deliver maximum value by providing you with rights to major product releases so you can take full advantage of technology and product enhancements.”
Premier Support provides a standard five-year support policy for Oracle Technology products; Extended Support provides for an additional three years, and Sustaining Support is indefinite technical support.
In its Magic Quadrant report for cloud database management products, Gartner warned that Oracle’s on-premises products are often perceived to be expensive and difficult to manage, and customers continue to raise concerns about contract negotiations. In fact, Oracle recently increased maintenance charge from 5% to 8% of the original contract value.
Fixes, updates, and critical patch updates created during Premier Support and Extended Support are the only fixes available when the product reaches Sustaining Support. One needs to question why people continue to buy support, if the only patches they are entitled to are the ones that have already been published.
The challenge for many IT leaders is that while they may wish to continue running Oracle, especially if it is part of a core system of record, such as the Oracle relational database, they are being encouraged, or worse, coerced, into upgrading. One of the big benefits of third-party support contracts is that they separate software from maintenance and support.
But Oracle contracts stipulate that technical support may not be discontinued for a single program module within a custom application bundle. In effect, buying the best Oracle deal bundle will mean the customer remains tied in to paying full maintenance fees on all products in that bundle, even if some are replaced with non-Oracle products or third party support is used.
Rimini Street originally ended up on the wrong side of Oracle IP (intellectual Property) in 2010 and in October 2015, a jury found that Rimini Street infringed 93 copyrights.
While Oracle claims Rimini downloaded its IP illegally, customers paying Oracle for maintenance have every right to get fixes, patches and documentation, so long as these things remain on their own systems. What Oracle’s latest actions show is that it remains deadly serious about putting the knife into third party maintenance and support.
Award-winning event and venue technology executive brings four decades of leadership experience to Ungerboeck’s new Worldwide Innovation Lab
ST. LOUIS, October 5, 2022 -- Ungerboeck, the global leader in event and venue management software, is delighted to announce the appointment of Steve Mackenzie as Chief Innovation Officer. In this newly created role, Mackenzie will advance Ungerboeck’s innovation pipeline and build on the company’s rich history of developing the world’s best and most versatile event management solutions. Mackenzie will also lead Ungerboeck’s newly launched Worldwide Innovation Lab, which focuses on designing next generation event management capabilities.
Mackenzie brings decades of industry expertise to this role; he most recently served as executive vice president at Ungerboeck following its recently announced merger with EventBooking, where he served as President. Prior to this, Mackenzie has held leadership roles in event tech companies such as Oracle (Micros-Fidelio) and Aventri (etouches). Mackenzie is a Certified Venue Executive, serves as Adjunct Professor for Event Technology Management at Florida International University, and in 2022 was awarded the Outstanding Contribution Award at Event Tech Live Awards and inducted to their Hall of Fame. Over the past 20+ years, Mackenzie has spoken in over 25 countries on syllabus related to the industry, with a focus on technology.
“We strive to make events easier, safer, and more profitable, and innovation plays a fundamental role in how we deliver that value on a global scale,” says Mackenzie. “I am thrilled to assume this new role and to formalize the launch of the Worldwide Innovation Lab as we write the next chapter of event management.”
Under Mackenzie’s stewardship, the Worldwide Innovation Lab will be Ungerboeck’s testbed for innovation to remain at the forefront of the event management industry by exploring, testing, and scaling future-ready products and technology for the event management market. Marquee venues around the globe trust Ungerboeck to deliver the world’s most reliable and advanced solutions; Mackenzie’s mandate will serve to strengthen, coordinate and accelerate this brand promise.
“At Ungerboeck, we believe the best way to lead an industry is not only to set the bar, but to relentlessly raise it,” says Vic Chynoweth, interim CEO at Ungerboeck. “As venues and in-person events evolve and continue to transform digitally, our investment in innovation will open a new realm of possibilities, fueling the next wave of growth. With the combination of Steve’s industry leadership position and the Ungerboeck product engine, we are in the best possible hands to push the edges of innovation and architect the future of our industry.”
Click here for more information about the Innovation Lab.
Ungerboeck provides industry-leading event and venue management software to over 50,000 users in more than 50 countries, empowering the people that bring people together. Its comprehensive platform offers event professionals powerful Software as a Service (SaaS) technology that provides a 360-view of their business, allowing them to cut costs, save time, and increase revenue. Founded in 1985, Ungerboeck is headquartered in the United States, with regional presence in Germany, France, England, Australia, Hong Kong, and Singapore. ungerboeck.com
Error! There was a problem with reporting this article.
As your business grows, you may invest in a greater number of software solutions to keep your operations moving forward. Businesses that reach this point often find it’s easiest to streamline all of their systems ‒ including accounting and financial management ‒ into one convenient enterprise resource planning (ERP) platform like Oracle NetSuite.
|Invoicing and bill pay||2.0/2.0|
As part of its robust ERP offering, Oracle NetSuite offers an intuitive cloud financial management solution that allows businesses to track their financial data and automate many essential accounting functions. Like any highly-rated accounting software, it offers reporting, planning, and billing features and easily integrates with other software, including Oracle’s suite of business solutions. It can also be used seamlessly with multiple currencies, so it’s a great option for growing companies with a global customer base.
If your business wants to expedite its accounts receivable and payable, accelerate deal closings, and keep up with financial compliance obligations, while taking advantage of a full suite of powerful business management features, Oracle NetSuite is an ideal accounting solution within an ERP platform.
|Base price||$999 per month|
|Invoicing and payments||Yes|
|No. of clients supported||Unlimited|
Because they can perform a wide range of complex business management functions, ERP platforms are typically priced on a custom basis. Factors such as business size, annual revenue and desired features all affect the cost of the software. Oracle NetSuite is no different, and to get an accurate price estimate, you’ll need to contact an Oracle sales representative. The sales rep will walk you through all the available features of the platform, including inventory management, financial management, point of sale, customer relationship management (CRM) and human capital management software
Based on our research, Oracle NetSuite pricing includes a $999 monthly licensing fee, plus a per-user fee that starts at $99 a month. While this base price can be used as an estimate, your costs may vary significantly depending on your specific business needs.
Because of its high price point, Oracle NetSuite is likely not well suited for a smaller business with simple accounting and bookkeeping needs. However, if your business is growing internationally and you anticipate needing an ERP platform to manage everything, this can be an excellent accounting solution that sets you up for financial success as your company grows. Thanks to NetSuite’s integrated ecosystem, you can save time and money that would otherwise be spent managing multiple software solutions from different vendors.
Key takeaway: Oracle NetSuite’s price varies depending on the different software modules required, the size of your business, its annual revenue and the number of orders your company processes.
Oracle NetSuite’s financial management solution offers a wide range of useful accounting features. Here’s more about how NetSuite can help growing businesses:
With Oracle NetSuite, your business can seamlessly combine its core finance and accounting functions with strong compliance management. This ERP’s financial management solution offers real-time access to your financial data to help you drill into important details, resolve delays, and generate compliance statements and disclosures for your stakeholders.
NetSuite provides the following basic accounting functions to streamline and simplify your financial processes:
Whether your business operates on a transaction, subscription, usage-based or hybrid model, Oracle NetSuite can help you manage your billing operations. It fully integrates into the platform’s advanced revenue management and compliance functions.
Businesses with financial reporting obligations can use NetSuite to easily comply with accounting standards, including ASC 605, 606 and IFRS 15. Using the platform’s rule-based event-handling framework, you can easily automate numerous revenue management and reporting functions, such as forecasting, allocation, recognition, reclassification and auditing.
NetSuite’s planning, budgeting and forecasting functions allow your business to plot out its financial future based on real-time analytics. Use your business data to forecast revenue, plot out what-if scenarios and develop accurate budgets. Oracle’s powerful reporting and analytics tools also allow you to gain a more complete picture of your business at any time to make better informed decisions about your finances.
If your business plans to expand its borders and go global, you need a financial management solution that helps you manage your international transactions and compliance obligations. Oracle NetSuite’s powerful financial engine gives you maximum transparency and visibility into your business across countries and in real time so you can manage your operations at the local and global level.
To make it easier to run an international business, NetSuite offers a variety of language interfaces to overcome language barriers and a multicurrency management system that supports over 190 different forms of currencies and automatically accounts for the current exchange rate for real-time conversion.
With Oracle NetSuite, your business will always be audit-ready. This ERP platform supports your company’s governance, risk, and compliance (GRC) programs so you can handle increasingly complex regulatory, operational, and compliance challenges as you scale.
The platform can also establish a sustainable risk management and compliance process for your company so you can anticipate major risks before they happen.
Oracle NetSuite offers seamless integration with all its ERP solutions and integrates with many leading business software providers. If you use other vendors to manage your operations, you can use NetSuite’s open APIs to introduce new integrations.
To take advantage of these integrations, businesses can hire a NetSuite dedicated implementation team for an additional fee. The team not only helps set up the ERP platform itself, but also assists with any additional integrations and project management planning.
Want to use Oracle NetSuite as part of a larger ERP solution? Your financial management processes will integrate seamlessly with Oracle’s full suite of products. This is helpful if you’re trying to gain a more holistic view of your business’s financial transactions, budgets and forecasts.
Here are a few additional useful functions you’ll find within Oracle NetSuite.
Stay on top of your warehouse ordering. This solution helps you ensure ideal quantities of each item you sell by automatically analyzing historical sales and logistics data. NetSuite can determine the best reordering time frame for each product and replenish stock to an optimal threshold when it runs low.
NetSuite helps companies with every sales or work order while providing real-time visibility into every step of the production process. This ERP’s end-to-end manufacturing software solution can help you run your entire business and make better-informed decisions.
NetSuite helps you seamlessly manage each point in your supply chain, regardless of where your physical product is manufactured or stored.
NetSuite helps businesses with inbound logistics, outbound logistics, and inventory management, streamlining your warehousing operations and helping you minimize costs for on-time delivery. The built-in warehouse management solution enables you to manage your distribution operations using customized user-defined strategies and advanced real-time updates and integrations.
With Oracle NetSuite, it’s easy to purchase goods and services for your business quickly and at the best prices. Real-time information helps you better understand your company spend and vendor performance while automation and workflow integrations deliver a more accurate procure-to-pay process.
Manage your team and your human resources processes with NetSuite’s HCM solution, SuitePeople. This solution allows you to streamline employee onboarding and information collection for new hires while also giving visibility into your workforce operations.
Did you know? Oracle NetSuite offers several key tools that are critical for financial management, including basic accounting functions, billing, revenue recognition, planning and reporting, GRC, and more.
For growing international businesses, Oracle NetSuite offers a robust, all-in-one ERP solution that puts your most valuable business data into a single platform. NetSuite’s full product suite allows your organization’s various departments and systems to operate harmoniously and in real time so every person in your company is always up to date.
Key takeaway: Oracle NetSuite provides just about every feature you could want in an ERP, allowing for a seamless single solution for managing all your operations.
In terms of accounting software, NetSuite may be prohibitively expensive for smaller businesses. Additionally, it may offer far more functionality than your business needs at this point in its growth, and you don’t want to pay for features you’ll never use.
Ultimately, NetSuite is ideal for midsize and large businesses operating a complex operation, as this ERP solution performs best when all of the modules are used in conjunction with one another.
Tip:The high price tag of Oracle NetSuite may be too much for small businesses with less complex financial management needs.
Oracle NetSuite delivers top-notch customer service across its entire ERP platform, including its financial management solution. The company’s educational resources supply users the opportunity to learn about NetSuite’s full range of products and stay updated on any new features or capabilities.
NetSuite offers 24/7, real-time support for industries via phone, email and a built-in chatbot on its website. The automated chat functionality can answer simple FAQs or connect you with a customer service representative.
Key takeaway: Oracle NetSuite’s customer service is on a par with what you would expect from a world-class ERP solution, so you can count on being able to find answers to your questions and concerns.
Oracle VM VirtualBox 7, the latest release of the company’s open source, cross-platform virtualization software, integrates with Oracle Cloud Infrastructure (OCI) for remote control of cloud-hosted VMs, adds support for fully encrypted VMs, enhances 3D video support, and features an automated virtual machine builder.
The upgrade was unveiled October 12. VirtualBox 7 is intended to help devops engineers and distributed teams increase productivity, easing the creation and management of VMs and removing the complexity of configuring them for the cloud. Management of multiple physical systems is also addressed in the new release.
Oracle Cloud Infrastructure integration in VirtualBox 7 enables users to centrally manage development and production VMs running either on-premises or on OCI instances using any VirtualBox-supported operating system, such as Linux, Windows, and MacOS. With a single command or button push, users can export a VM from an on-premises host and run it on OCI, or import a VM from OCI to the user’s local computer.
Oracle VM VirtualBox is downloadable from oracle.com. Other capabilities in VirtualBox 7:
Oracle is providing a developer preview of an installer package for macOS/Arm64 systems using an Apple Silicon CPU to run some guest operating systems for Intel/AMD x86 CPUs in emulation. The preview is a work in progress and provides early access to unsupported software features. VirtualBox 6.0 arrived in December 2018.
Copyright © 2022 IDG Communications, Inc.