Following the software company’s release of fiscal second-quarter revenue that fell short of Wall Street projections, Oracle shares saw a more than 9% decline in extended trading on Monday.
Here’s how the business performed in comparison to LSEG’s (previously Refinitiv) consensus estimates:
Dividends per share: $1.34 (adjusted) vs $1.32 predicted
Revenue: $12.94% vs the estimated $13.05 billion
A statement released after the quarter concluded on November 30th stated that revenue increased by 5% annually. After reaching $1.74 billion, or 63 cents per share, a year earlier, net income shot up 44% to $2.5 billion, or 89 cents per share.
Over $9.64 billion, or 12% more, than the StreetAccount consensus of $9.71 billion, was Oracle’s revenue from cloud services and licence maintenance.
On-premises and cloud licence revenue dropped 18% to $1.18 billion, which was just less than the $1.21 billion StreetAccount estimate.
The revenue from services, at $1.37 billion, was less than the $1.40 billion estimate that was anticipated.
Oracle reported a 52% increase in cloud infrastructure revenue to $1.6 billion during the same period. Customers included Samsung, Halliburton, and Elon Musk’s artificial intelligence startup, xAI.
Oracle declared that it had acquired cloud business from bigger competitor Microsoft during the quarter and that its database software will be accessible on Microsoft’s Azure public cloud. Oracle co-founder Larry Ellison stated in the statement that the company will activate 20 data centres linked to Azure in the coming months.
Additionally during the quarter, Australian field service software maker Next Technik was acquired by Oracle’s NetSuite business for an unknown sum.
This year, Oracle shares have gained almost 41%, outpacing the 20% increase made by the S&P 500 index in the same time frame.
Source (CNBC)
