Oracle Corp. missed analyst estimates for fiscal year 2022 first-quarter revenue, but managed to top earnings estimates for the period as its latest cloud businesses showed good growth.
The database giant reported non-GAAP earnings of $1.03 a share on revenue of $9.7 billion.
The company had been expected to report earnings of 97 cents a share on revenue of $9.76 billion, based on a FactSet survey of analysts.
“Oracle's two new cloud businesses, IaaS and SaaS, are now over 25% of our total revenue with an annual run rate of $10 billion,” said Oracle CEO Safra Catz in a statement. “Taken together, IaaS and SaaS are Oracle's fastest growing and highest margin new businesses. As these two cloud businesses continue to grow, they will help expand our overall profit margins and push earnings per share higher.”
TheStreet RecommendsPRESS RELEASESEcopetrol Informs Of The Sanction Imposed By ANLA26 minutes agoPRESS RELEASES”The Unification Church”: Who We Are46 minutes agoPRESS RELEASESAvalo Therapeutics, Inc. Announces Pricing Of $27.5 Million Public Offering Of Common Stock52 minutes ago
Shares of Oracle fell $1.24, or 1.4%, to $87.65 in after-hours trading. In the regular session, the stock fell 0.9%. For the year, the stock is up 37%, almost double the S&P 500’s 19% gain.
With the COVID-19 pandemic accelerating companies’ shift online, Oracle is playing catchup with internet giants Amazon.com, Microsoft and Google in the race to offer more and more cloud services and systems.
Oracle Chairman Larry Ellison used the earnings release to tout a recent article giving the company’s offerings high marks.
“Last week, Cloud Wars published an article entitled 'Oracle Leapfrogs Google in Major Cloud Ranking' summarizing an upcoming Gartner Report that reviews the leading cloud infrastructure companies,” Ellison said in the statement. ”Oracle is delivering some truly innovative infrastructure services.”
