Oracle CEO Safra Catz is giving a keynote address during Oracle OpenWorld 2019 on September 17, 2019 in San Francisco, California. Oracle CEO Safra Catz kicked off the second day of Oracle OpenWorld 2019 with a keynote address. The annual convention runs until September 19th.
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Oracle shares fell as much as 3% in extended trading on Monday after the business software maker reported first-quarter tax revenue that reached analysts ’expectations.
Here’s how the company did it:
- Earnings: $ 1.03 per share, adjusted, compared to 97 cents per share, as analysts expected, according to Refinitiv.
- Income: $ 9.73 billion, up from 9.777 billion as expected by analysts, according to Refinitiv.
Revenue rose 4% year-on-year in the quarter, which ended Aug. 31, according to a statement. In the previous quarter, Oracle’s revenue had increased 8%.
In terms of guidelines, analysts surveyed by Refinitiv expect second-quarter adjusted tax gains of $ 1.08 per share and $ 10.25 billion in revenue, an increase of nearly 5%.
Oracle’s largest business segment, cloud services and licensing support, generated revenue of $ 7.37 million, up 6% and below StreetAccount’s consensus estimate of $ 7.41 million.
The cloud licensing and local licensing segment contributed $ 813 million, down 8% and the $ 859.7 million consensus. Oracle’s hardware unit had revenue of $ 763 million, down 6% and an estimated $ 778.5 million.
Oracle increased its capital expenditures above $ 1 billion, compared to $ 436 million in the previous quarter. The investment comes after executives indicated they wanted to have the infrastructure needed to meet forecast cloud demand. Cloud infrastructure and cloud applications now account for 25% of total revenue, Oracle said in the statement.
In the quarter, Oracle announced a support rewards program designed to encourage customers to adopt its cloud utilities, and S&P Global Ratings downgraded Oracle’s rating and debt to BBB +.
Oracle shares have risen 37% since the beginning of the year, while the S&P 500 index has risen about 19% over the same period.
Executives will discuss the results with analysts and issue guidelines at 5 p.m.
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