Oracle has reported the financial results for its first fiscal quarter. The American giant has presented numbers that have exceeded the expectations of the markets. Specifically, it generated $9.2 billion in sales, 7% more than a year ago. The markets expected revenues of $9.03 billion. By divisions, it is noteworthy that the Cloud business of the firm has closed the quarter with a growth of 62% to $1.1 billion. The PaaS arm has grown 28% to $400 million.
Mark Hurd, CEO of Oracle, said SaaS growth is “twice as fast” as Salesforce, a rival Oracle is always comparing. The truth is that the company of Larry Ellison has given a significant boost to the business of the cloud in recent years; in August announced the hiring of 5,000 employees for the division.
Returning to economic results, Ellison himself has revealed that Oracle will announce the first fully autonomous database cloud service within two weeks. It will be the next generation of the giant’s database and will include a layer of artificial intelligence that will improve its reliability without this affecting prices, it has promised.
As for the corporation’s more classic business, on-premise software revenue was $5.92 billion, 2% more than in the first quarter of a year earlier.
The hardware business keeps shrinking. In particular, revenues in this way have fallen by 5% to $943 million.
The net profit during the first quarter of fiscal year 2018 amounted to $2.2 billion, representing an increase of 21% year on year.
Like many other license giants, Oracle has lost sales for a couple of years. But now it seems to have turned. Several major IT vendors who have their roots in the old licensing business have lost sales in recent years. But now it seems that Oracle has broken this negative trend. When the company reported results for its weak fiscal year 2017, they actually noted a small revenue increase, two percent compared to the year before, to $37.7 billion.
So why are shares under pressure?
The stock took a hit after a disappointing second-quarter sales forecast showed growing competition is reducing demand for cloud-based software and services. Product revenue in the cloud will increase by 41 percent to 45 percent in the current period, slowing from the 51 percent advance in the first fiscal quarter, Chief Executive Safra Catz said on Thursday, in a conference call. Total adjusted sales will grow between 4 percent and 6 percent.