Tech

Oracle Sales Top Expectations as Cloud Businesses Thrive

0


Oracle’s cloud revenue rose 45% to $3.6 billion in the latest quarter.



Photo:

David Paul Morris/Bloomberg NEWS

Oracle Corp.


ORCL 1.54%

sales topped expectations in the latest quarter, as its cloud businesses and integration of Cerner Corp. lifted results despite concerns about a slowdown among technology companies in response to economic uncertainty.

The business-software giant said a stronger dollar compared with foreign currencies had a significant impact on its fiscal first-quarter results.

Revenue rose 18% to $11.45 billion, beating analysts’ expectations of $11.33 billion. Cloud revenue grew 45% to $3.6 billion.

Chief Executive

Safra Catz

said the company’s two cloud businesses now account for more than 30% of Oracle’s total revenue.

Cerner contributed $1.4 billion in revenue during the quarter. Oracle announced plans last year to acquire the electronic-medical-records company for $28.3 billion.

Cerner is expected to help revenue and earnings-per-share growth as it is fully integrated into Oracle and benefits from ensuing cost efficiencies. “We expect Cerner to do even better in the coming quarters,” Ms. Catz said.

For the quarter ended Aug. 31, Austin, Texas-based Oracle posted net income of $1.55 billion compared with net income of $2.46 billion in the like period a year earlier. Adjusted for items such as stock-based compensation, Oracle said per-share earnings were $1.03. Analysts polled by FactSet expected adjusted earnings of $1.08 a share.

Oracle said earnings per share and adjusted earnings per share would have been 8 cents higher without the impact of the stronger dollar.

Oracle’s results come as the economic environment remains uncertain. The Federal Reserve may raise interest rates by another 0.75 percentage point this month to rein in inflation, stoking  concerns about a recession. Chairman

Jerome Powell

has pledged to reduce inflation even if it increases unemployment.

The efforts could worsen recent layoffs that have hit the tech industry in particular. Last month, Oracle laid off hundreds of employees as it prioritized its healthcare IT services and cloud businesses, with job cuts primarily hitting staff at its advertising and customer experience group.

Write to Denny Jacob at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the September 13, 2022, print edition as ‘Oracle Sales Increase 18%, Top Forecast.’

routershake

Paramount Pictures to Revive Lindsay Lohan’s Mean Girls in Web3 Avatar, Here’s The Buzz

Previous article

Intel Raptor Lake gaming CPU lineup leaked by Intel

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Tech