Oracle (ORCL.US) shares are declining over 12% after the company published its quarterly report. The company posted an earning of $1.19 per share, slightly surpassing the analysts' expectation of $1.15 per share. However, the revenue stood at $12.45 billion, slightly below the forecast of $12.47 billion. Oracle's cloud services and license support segment did well, with a revenue increase of 13% YoY, standing at $9.55 billion, higher than the expected $9.44 billion. Despite announcing new database hardware and artificial intelligence features during the quarter, the company experienced a decline in other segments; the cloud license and on-premises license sector saw a 10% decrease in revenue, and hardware revenue fell by 6% YoY.
Sudden decline in share price is mainly caused by the lower guidance and forecasts for this year. Oracle predicts a 5-7% revenue growth for the fiscal second quarter, which is less than the 8% anticipated by analysts.
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Create account Try a demo Download mobile app Download mobile appIn a detailed breakdown of the company’s performance, Oracle’s CEO Safra Catz highlighted the ongoing “accelerated transition” of Cerner, a recently acquired electronic health record software company, to the cloud — a move causing "near-term headwinds" to its growth rate as customers shift from licensed purchases to cloud subscriptions.
Highlights:
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Total Revenue: $12.5 billion, up 9% in USD (YoY), and up 8% in constant currency
- Cloud Revenue (IaaS + SaaS): $4.6 billion, up 30% in USD (YoY), and up 29% in constant currency
- Cloud Infrastructure (IaaS) Revenue: $1.5 billion, up 66% in USD (YoY), and up 64% in constant currency
- Cloud Application (SaaS) Revenue: $3.1 billion, up 17% in USD and constant currency (YoY)
- Fusion Cloud ERP (SaaS) Revenue: $0.8 billion, up 21% in USD (YoY), and up 20% in constant currency
- NetSuite Cloud ERP (SaaS) Revenue: $0.7 billion, up 21% in USD and constant currency (YoY)
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EPS: $1.19, up 16% in USD (YoY)
Source: xStation 5
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