Sign up USA
Proactive Investors - Run By Investors For Investors

Oracle in the clouds after sparkling quarter

"Take a look. Q3 was a very strong quarter," said Oracle's joint CEO, Safra Catz
Plugged into the cloud
GAAP, SaaS, PaaS, IaaS - the statement was a morass of acronyms

Database software giant Oracle Corporation (NYSE:ORCL) was wanted this morning after topping expectations with its quarterly numbers.

The shares were up 7.4% at US$46.20, hitting levels not seen since the year 2000, as underlying earnings per share (i.e. excluding one-off items) clocked in at 69 cents for the lumbering tech leviathan’s fiscal third quarter.

Wall Street had expected earnings per share of 62 cents.

Sales of US$9.3bn were up from US$9bn in the corresponding period a year earlier, in line with expectations.

Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were US$1.0 billion, up 73% year-on-year.

Total Cloud Revenues, including infrastructure as a service (IaaS), were US$1.2 billion, up 62% on a year earlier

Total Cloud and On-Premise Software Revenues were US$7.4 billion, up 4% from the year before.

"The hyper-growth we continue to experience in the cloud has rapidly driven both our SaaS and PaaS businesses to scale," said Oracle’s joint chief executive officer, Safra Catz.

"On an annualized non-GAAP basis, our total cloud business has reached the $5 billion mark, and our SaaS and PaaS businesses grew at the astonishing rate of 85% in Q3. That growth and the resulting scale enabled our SaaS and PaaS businesses to increase non-GAAP gross margins to 65%,” Catz continued. 

“Our new, large, fast growing, high-margin cloud businesses are driving Oracle's total revenue and earnings up and improving nearly every important non-GAAP business metric you care to inspect; total revenue is up, margins are up, operating income is up, net income is up, EPS is up. Take a look. Q3 was a very strong quarter," Cats advised – and Wall Street agreed.

The company has hiked its quarterly dividend from 15 cents to 19 cents.

John-H.jpg


Register here to be notified of future ORCL Company articles
View full ORCL profile

Oracle Timeline

Newswire
April 28 2016

Related Articles

man pointing, spelling out the letters cfd
April 06 2017
Chief executive Asaf Lahav said the results vindicated the company’s decision to diversify its product offering and focus on high growth markets such as Asia.
picture of information chart
Wed
Rosslyn said it will reduce the reliance on large contracts with long sales cycles
Tablet computers
November 22 2016
As smartphones are portable and always connected, consumers are able to respond to stimuli from their environment in real-time
Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use