Oracle is a well known global company in the software sector. Oracle Corp’s saw a quarterly profit boom and the same was beyond the statistics which Wall Street had estimated. The company was glad that the current-quarter earnings went up due to the transition to the cloud.
The company’s shares which were at 10.6 percent went up, where, $51.25 was after-market trading, (which was held on Wednesday). The company had gained about 20% for the current year.
The report of Oracle’s earnings that seemed to be higher than the speculation was presented by the company on Wednesday.
In the recent time when customers do not wish to put themselves into the ‘high cost licensing model’, Oracle has made varied efforts in order to make sure that its cloud-based services are supported at large. In this context, Oracle signed a deal with the U.S. telecom provider, AT&T Inc. in May under which AT&T agreed to move some of its large-scale databases to Oracle’s cloud platform.
Larry Ellison said, “In the coming year, I expect more of our big customers to migrate their Oracle databases and database applications to the Oracle Cloud.”
At the end of May, the income surged from 58.4 percent to $1.36 billion, which was the fourth quarter.
Feeling delighted by the growth of cloud, Oracle had forecast for the first-quarter (adjusted profit) which was between 59-61 cents, contrast of the view of the analysts who claimed would be 59 cents.
Ellison reiterated “We sold more than $2 billion in cloud annually recurring revenue. This is the second year in a row that we sold more cloud ARR than Salesforce.com.”
Reports say that Oracle is expecting a growth of revenue between 4 percent to 6 percent for the current quarter. The company ‘NetSuite‘ is acquired by Oracle in the process of proving to be competitive in the market.
However, in the field of hardware, Oracle had to see a low profit. This was because the revenue in this sector reduced from 13.2 percent to $1.11 billion. Again, in the latest quarter there was a fall in the new software licenses from 5.1 percent to $2.63 billion.
The net income showed a rise to $3.23 billion or 76 cents per share, during the fourth quarter and from $2.81 billion, or 66 cents per share a year prior to the current year.
The company showed an adjusted revenue of $10.94 billion and leaving out items, the company earned 89 cents per share.
The growth given by the cloud-based services has obviously given a high boost to the company considering the decline in the revenue seen in some of the categories.