Oracle earnings top estimates as cloud business keeps growing

REDWOOD CITY — Oracle on Wednesday delivered better-than-expected earnings as the Silicon Valley software giant progressed with its transformation toward more cloud-based services and sales.

After the stock market closed, Oracle said that for its fiscal third quarter, its adjusted earnings were 69 cents a share, on $9.21 billion in sales, compared with earnings of 64 cents a share on revenue of $9.01 billion in the same period a year ago.

Analysts surveyed by Thomson Reuters had forecast Oracle’s adjusted earnings would be 62 cents a share on $9.25 billion in revenue.

Faced with challenges from the likes of Salesforce.com, Oracle has recently emphasized its cloud business over its traditional database software and services. Last year, Oracle acquired cloud-based software company NetSuite for more than $9.3 billion to boost its cloud offerings.

Oracle said sales from cloud-based software reached $1.2 billion in the quarter, a 62 percent increase from a year ago. Software-as-a-service and platform-as-a-service cloud sales rose 73 percent from the year-ago period, to $1 billion.

Rob Enderle, director of tech research firm the Enderle Group, said Oracle’s results suggest the company, which had resisted embracing cloud-based software while companies such as Salesforce and Amazon had adopted the concept, can make a go of it when new technologies upend old industries.

“For a company that didn’t seem to get the cloud a few years ago, their

We recommend you visit the following site for more complete information and related topics. Article source: http://www.mercurynews.com/2017/03/15/oracle-earnings-top-estimates-as-cloud-business-keeps-growing/

Comments are closed.