Oracle Cloud Revenue Bursts 44%

Mitch Wagner
12/14/2017
50%
50%

Oracle reported total cloud revenues up 44% to $1.5 billion for the second quarter of its fiscal 2018. But that wasn't enough for Wall Street, as shares were down 3.43% in after-hours trading.

Oracle Corp. (Nasdaq: ORCL) reported cloud-software-as-a-service (SaaS) revenue was up a whopping 55% to $1.1 billion in the second quarter fiscal 2018, which the company reported Thursday afternoon. Cloud-platform-as-a-service (PaaS) plus infrastructure-as-a-service (IaaS) revenues were up 21% to $396 million.

"Overall cloud revenue growth of 44% drove our quarterly revenue and earnings higher," Oracle CEO Safra Catz said in a statement. "Our success in the quarter was based on the increasing scale and the gathering momentum in our cloud business. I expect the business to continue to grow and strengthen over the coming quarters."

Overall, Oracle reported up 6% to $9.6 billion, up 6% year-over-year. Cloud plus On-Premise Software revenues were up 9% to $78 billion.

Oracle reported non-GAAP net income up 16% to $3.0 billion, with non-GAAP earnings per share up 14% to $0.70.

Oracle traded at $46.89 after hours Thursday.

Cloud revenues lagged analyst estimates; the average analyst estimate was $1.56 billion, actual cloud revenue was $1.52 billion, according to Reuters.

Oracle plans to deliver its "self-driving database" next month, which executives said they expect will drive further cloud migration. The database, announced in October, "is fully automated and requires no human labor for administration. If a security vulnerability is detected, the database immediately patches itself while running. No other system can do anything like this. Best of all, we guarantee the price of running the Oracle Autonomous Database in the Oracle Cloud is less than half the cost of running a database in the Amazon Cloud," Oracle CTO Larry Ellison said in the company's earnings statement. (See Oracle's Ellison: We'll Beat Amazon Cloud Pricing by Half.)

Relaxing during the Oracle OpenWorld conference in October.
Relaxing during the Oracle OpenWorld conference in October.

The autonomous database is "going to be an enormous driver for customers to move their important workloads to the cloud," Catz said on the company's earnings call.

Ellison agreed. "The first big move of Oracle customer databases to the cloud will begin in January," he said on the earnings call. Previously, Oracle's customers haven't moved to the cloud at scale, not even Oracle's own cloud. But the economics of the autonomous database in the cloud will move customers "very, very rapidly," Ellison said.

On the call, Ellison engaged in his traditional competitor trash-talking. Asked by an analyst about reports that enterprises are moving off Oracle, Ellison retorted that Oracle's own competitors are doing business with the company, including Amazon.com Inc. (Nasdaq: AMZN), which signed a $50 million contract, as well as Salesforce.com Inc. , SAP AG (NYSE/Frankfurt: SAP) and SAP Ariba.

For the coming, third quarter, Oracle estimates cloud revenue will see 21% to 25% growth, total revenue 2% to 4%, with non-GAAP earnings per share of $0.68 to $0.70

Related posts:

— Mitch Wagner Follow me on Twitter Visit my LinkedIn profile Visit my blog Follow me on Facebook Editor, Enterprise Cloud News

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Michelle
50%
50%
Michelle,
User Rank: Light Sabre
12/31/2017 | 6:38:52 PM
Pop
Customer's cloud usage is very interesting. They aren't even moving to Oracle's cloud? I'll be interested to see how the quarter ends for them. They expect growth, but anything can happen.
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
12/26/2017 | 5:26:14 PM
Street is King
It doesn't matter how good results look. If you disappoint the Street, even if the Street;s expectations are too high, stock will get hit.
More Blogs from Wagner’s Ring
Equinix is initially testing virtual router and firewall in the US and Europe, with plans to extend into Asia soon, to help make network connections more agile and responsive for enterprise customers.
While networks alone won't deliver enterprise transformation, robust, software-defined networks are needed for enterprises to transform, says Sorabh Saxena, president, business operations for AT&T business solutions.
Telefónica turned to Juniper and Nokia to meet exploding demand in Spain. Upgrade raises network capacity to 10 Tbit/s, with room to grow.
Apple haters have been sounding the alarm for a decade, but this time the bad news is real.
Superior technology isn't enough.
Featured Video
Flash Poll
Upcoming Live Events
September 17-19, 2019, Dallas, Texas
October 1, 2019, New Orleans, Louisiana
October 2-22, 2019, Los Angeles, CA
October 10, 2019, New York, New York
November 5, 2019, London, England
November 7, 2019, London, UK
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
All Upcoming Live Events
Partner Perspectives - content from our sponsors
Transform Beyond Borders to Lead the Innovation
By Ben Zhou, CEO, Whale Cloud
Reject Limits. Build the Future.
By David Wang, Huawei
China Telecom & Huawei Jointly Complete the World's First End-to-End 5G SA Voice & Video Call
By Jay Liu, Senior Marketing Manager, Cloud Core Product Line, Huawei Technologies
All Partner Perspectives