On Thursday, Oracle Corporation posted a quarterly earnings report. Although Oracle was able to post an upbeat earnings report, the shares of the company were still down by as much as 7% during Thursday’s after-hours trading due to the report of the company of a weak revenue on its cloud business that missed most analysts estimates.
For the quarter that ended on November 30, cloud revenue of the company has jumped to $1.52 billion which represents a growth of 44% which slightly missed most analyst estimates of $1.55 billion in revenue for their cloud sales.
The company which is known for offering traditional corporate computing software has been exerting its efforts in catching up with other cloud computing services providers such as Amazon Inc and Microsoft Corporation.
Oracle has since then gone on an engineer hiring spree which will build their products and allow customers to rent software and computing power from Oracle as well as include sales reps to transition business into new offerings.
The company whose growth outlook has been mostly positive this year was due to the growing demand for cloud computing services has pushed the shares of the company up by almost 30% this year on the optimism of the company’s efforts regarding its cloud business eventually paying off in the future.
However, Oracle stated recently that its cloud-computing business may decline by around 21% to 25% during the third-quarter compared to the growth of the cloud business by 44% during the previous quarter also down from most analysts estimates.
The overall growth of the company for the quarter was at six percent with Oracle’s revenue coming in at $9.6 billion slightly beating expectations of $9.52 billion while its earnings rising by 14% to 70 cents per share which is 2 cents higher than expectations.
Oracle’s cloud-based applications also boosted the company’s cloud business for the quarter leading to a growth of 55% in revenue to $1.1 billion. Oracle’s growth paled in comparison to Amazon Web Services growth of 21% to $396 million. Revenue of the company on its traditional software licensing business was also up by 3% to $6.31 billion.
The company has increased its share buyback program by $12 billion where its net income has risen by $2.23 billion or 52 cents per share for the quarter that ended in November which is an improvement from their net income of $2.03 billion or 48 cents per share from the same quarter last year.
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