Oracle’s push into cloud computing is picking up momentum
Oracle has for many years struggled to get into cloud computing.
And now he company is picking up momentum, sparking a fourth straight quarter of revenue gains for the software maker.
Oracle reported total sales that easily topped analysts’ estimates, according to Bloomberg.
Oracle’s cloud businesses grew 58% in the fiscal fourth quarter. Meanwhile, new software licenses, a measure that’s tied to the company’s traditional on-premise software offerings, declined 5 percent compared with a drop of 16 percent in the previous period.
Oracle benefited in particular with applications that help companies in areas such as human resources, customer relationship management and financials. Sales for that piece of Oracle’s business, which was detailed for the first time in the earnings report, jumped almost 70%.
“Everything looks very, very strong,” said Joel Fishbein, an analyst at BTIG. “Oracle is a legitimate and formidable cloud player.”
“We continue to experience rapid adoption of the Oracle Cloud,” co-CEO Officer Safra Catz said in a statement. “This cloud hyper-growth is expanding our operating margins, and we expect earnings per share growth to accelerate in fiscal 2018.”
Adjusted revenue increased 3 percent to $10.9 billion in the period ended May 31, the company said Wednesday in a statement.
On average, analysts had projected $10.5 billion, according to data compiled by Bloomberg. Profit, excluding some costs, was 89 cents a share, topping the estimate of 78 cents. Net income rose 15% to $3.2 billion.
“Oracle’s finally turned the corner in terms of its cloud momentum,” said Josh Olson, an analyst at Edward Jones. “For years, it’s been kind of struggle. But they’ve, I think, found their footing.”