Oracle Q1 Results Trump Street On Cloud Growth

Business software giant Oracle Corp. (ORCL), Thursday reported a first-quarter profit and revenues that trumped Wall Street estimates, a work-from-home climate has increased demand for cloud services and other softwares.

Redwood Shores, California-based Oracle reported first-quarter profit of $2.25 billion or $0.0.72 per share, compared to $2.48 billion or $0.63 per share last year.

On an adjusted basis, earnings for the quarter were $2.9 billion or $0.93 per share for the period. Analysts polled by Thomson Reuters expected earnings of $0.86 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 2% to $9.34 billion from $9.22 billion last year. Analysts had a consensus revenue estimate of $9.19 billion.

Cloud services and license support revenues were up 2% to $6.9 billion, while Cloud license and on-premise license revenues were up 9% to $886 million.

Oracle CEO Safra Catz said, "Our cloud applications businesses continued their rapid revenue growth with Fusion ERP up 33% and NetSuite ERP up 23%. We now have 7,300 Fusion ERP customers and 23,000 NetSuite ERP customers in the Oracle Cloud. Our infrastructure businesses are also growing rapidly as revenue from Zoom more than doubled from Q4 last year to Q1 in this year. I have a high level of confidence that our revenue will accelerate as we move on past COVID-19."

Further, board declared a quarterly dividend of $0.24 per share, payable to stockholders as of October 8, 2020 with a payment date of October 22, 2020.

ORCL closed Thursday's trading at $57.33, up $0.38 or 0.67%, on the Nasdaq. The stock further gained $2.59 or 4.56% in the after-hours trade.

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