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Oracle Revenue Beats Expectations as Cloud Business Soars

Oracle Revenue Beats Expectations as Cloud Business Soars

By Reuters | Updated: 17 June 2016 09:48 IST

Highlights

Oracle is moving its business towards the cloud-computing model.
The company added more than 1,600 new cloud software.
Total revenue from cloud-computing rose 49.1 percent to $859 million.

Business software maker Oracle Corp reported a higher-than-expected revenue in the fourth quarter, boosted by a surge in sales from its cloud business.

Shares of the company were up 1.7 percent at $39.29 in extended trading on Thursday.

Like its rivals such as SAP SE , IBM Corp and Microsoft Corp, Oracle has focussed on moving its business towards the cloud-computing model, essentially providing services remotely via data centres rather than selling installed software.

Total revenue from company's cloud-computing software and platform service rose 49.1 percent to $859 million in the fourth quarter ended May 31.

The company added more than 1,600 new cloud software as a service (SaaS) customers and more than 2,000 new platform as a service (PaaS) customers in Q4, Oracle Chief Executive Mark Hurd said.

Oracle Chairman Larry Ellison said he expects the "hyper-growth" experienced by the company's cloud business in 2016 will continue for the next few years.

The 39-year old company, a late entrant into the cloud market, recently acquired cloud companies Textura and Opower.

However, Oracle has come under considerable pressure from nimbler companies in the industry such as Salesforce.com Inc , whose chief executive Marc Benioff has constantly taken potshots at the company.

The company's total revenue fell 1 percent to $10.59 billion, beating analysts' average estimate of $10.47 billion, according to Thomson Reuters I/B/E/S.

Oracle's net income rose to $2.81 billion, or 66 cents per share, in the quarter ended May 31, from $2.76 billion, or 62 cents per share, a year earlier.

Excluding items, it earned 81 cents per share, meeting average analysts' estimate.

Up to Thursday's close, Oracle's stock had risen 5.8 percent this year.

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