Oracle Corporation said revenues rose 17 percent to $13.8 billion in fiscal 2023 Q4.
Oracle’s Cloud services and license support revenues grew 23 percent to $9.4 billion. Cloud license and on-premise license revenues fell 15 percent to $2.2 billion. For the fourth quarter of fiscal 2023, Cerner contributed $1.5 billion to total revenues.
Oracle reported Q4 operating income of $4.1 billion with operating margin of 30 percent. Net income was $3.3 billion.
Oracle’s fiscal year 2023 revenues increased 18 percent to $50.0 billion. Cloud services and license support revenues rose 17 percent to $35.3 billion. Cloud license and on-premise license revenues fell 2 percent to $5.8 billion. For fiscal 2023, Cerner contributed $5.9 billion to total revenues.
Fiscal year 2023 operating income was $13.1 billion, and GAAP operating margin was 26 percent. Net income was $8.5 billion.
“Annual revenue growth was led by our cloud applications and infrastructure businesses which grew at a combined rate of 50 percent in constant currency. Our infrastructure growth rate has been accelerating — with 63 percent growth for the full year, and 77 percent growth in the fourth quarter,” said Oracle CEO Safra Catz.
Oracle’s Gen2 Cloud has quickly become the number 1 choice for running Generative AI workloads, said Oracle Chairman and CTO, Larry Ellison, in its earnings report.
“Because Oracle has the highest performance, lowest cost GPU cluster technology in the world. NVIDIA themselves are using our clusters, including one with more than 4,000 GPUs, for their AI infrastructure. Our GPU clusters are built using the highest-bandwidth and lowest-latency RDMA network—and scale up to 32,000 GPUs.”
Companies doing LLM development such as Mosaic ML, Adept AI, Cohere plus 30 other AI development companies have recently signed contracts to purchase more than $2 billion of capacity in Oracle’s Gen2 Cloud.
Oracle forecast its total revenue to rise 8 percent to 10 percent in the first quarter, driven by growing demand for its cloud offerings from companies deploying AI.
Oracle expects cloud revenue, excluding Cerner, to grow at least at similar rates in fiscal 2024 as in 2023, Safra Catz said on a conference call with analysts.
The cloud and software company has boosted its AI cloud offerings, including its deal with Nvidia to make the chip company’s AI software and chips available to Oracle customers via its cloud services.