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Oracle’s revenue rose 4% in the last quarter.
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Oracle
shares have fallen at the end of trading on Monday, despite the business software giant’s quarterly results being in line with or above indications on most measures.
For the quarter ended August 31, Oracle (ticker: ORCL) reported revenue of $ 9.73 billion, 4% more than the previous quarter, or 2% more adjusted for foreign exchange. This is in line with the company’s guidelines for 3% to 5% or 1% to 3% growth in constant currency.
Adjusted non-GAAP earnings were $ 1.03 per share, ahead of Oracle’s targeting range of 94 to 98 cents per share; according to GAAP, or generally accepted accounting principles, the company earned 86 cents a share, slightly below the targeting range of 91 to 95 cents a share.
Oracle said revenue from cloud services and licensing support (a measure of the company’s recurring revenue) was $ 7.4 billion, up 6% or 5% adjusted for the currency. Income from the legacy software licensing business was $ 813 million, 8% less, or 9% adjusted for currency, while hardware revenue was $ 763 million, 6% or a 7% depending on the currency.
Revenue from Fusion ERP, the cloud-based version of Oracle’s enterprise enterprise resource planning software, increased 32%, while NetSuite ERP, a similar software for smaller enterprises, went increase by 28%. Oracle said its infrastructure as a service (or IaaS) and software as a service (SaaS) companies combined were $ 2.5 billion, or nearly a quarter of global revenue.
“First-quarter results were excellent,” Safra Catz, Oracle’s CEO, said in a statement. “Together, IaaS and SaaS are the new Oracle companies with the most growth and highest margin. As these two cloud businesses continue to grow, they will help broaden our overall profit margins and increase earnings per share. ”
In a post-earnings conference call with investors, Catz said Oracle expects revenue growth of between 3% and 5% in the November quarter. Catz posted non-GAAP earnings in the quarter ranging from $ 1.09 to $ 1.13 per share, slightly ahead of the street, with $ 1.08 per share.
Catz said Oracle expects November quarter growth of more than 5% for cloud service and licensing support, with growth higher than the second half of the year.
The company forecasts revenue growth in “average digits” for the full fiscal year, with operating margins above or above prepandemic levels. Catz said Oracle ended the quarter with outstanding yield obligations of $ 38.7 billion, up 10% in constant currency, with 60% of those in the next 12 months.
Catz said the company repurchased $ 8 billion of its common stock during the quarter and has now reduced its shareholding percentage by 46% in the past ten years.
Oracle shares have fallen just over 1% in late trading.
Write to Eric J. Savitz at [email protected]