Oracle Corporation has announced its financial results for the first quarter of fiscal year 2024, revealing impressive revenue growth and a solid performance in cloud services. The company reported total revenues of $12.5 billion for the quarter, reflecting a 9 percent year-over-year increase.
Oracle, which plays catch-up in a segment dominated by larger rivals such as Amazon Web Services and Microsoft, forecasts second-quarter revenue growth of between 5 percent and 7 percent.
Key highlights from Oracle’s fiscal Q1 2024 results include:
Cloud Services and License Support Revenues Soar: Cloud services and license support revenues demonstrated significant growth, surging by 13 percent to reach $9.5 billion.
Cloud License and On-Premise License Revenues: These revenues experienced a slight decline, down by 10 percent to $0.8 billion.
Strong Operating Income and Margin: Oracle reported a Q1 operating income of $3.3 billion, with an operating margin of 26 percent.
Healthy Net Income: The company’s net income for the quarter was $2.4 billion.
Impressive Growth in Oracle Cloud Infrastructure: Oracle Cloud Infrastructure revenue showed remarkable growth, increasing by 66 percent during the first quarter. This growth outpaced the company’s hyperscale cloud infrastructure competitors.
Total Cloud Services Revenue Surges: The combined revenue from Infrastructure and Applications within Oracle’s cloud services segment grew by 30 percent to reach $4.6 billion in the quarter.
Dominance of Cloud Services: Oracle Cloud Services plus License Support revenue now constitutes a substantial portion, accounting for 77 percent of Oracle’s total revenue.
Larry Ellison, Oracle’s Chairman and CTO, commented on the company’s performance and the significance of Generative AI in the technology landscape, stating, “Is Generative AI the most important new computer technology ever? Maybe! Self-driving cars, molecular drug design, voice user interfaces — billions of dollars are being invested in AI.”
Ellison highlighted that AI development companies have shown substantial interest in Oracle’s Gen2 Cloud, signing contracts worth more than $4 billion in capacity. This figure represents a significant increase from the previous quarter.
Ellison attributed Oracle’s success in attracting AI technology companies to its RDMA interconnected NVIDIA Superclusters, which enable faster AI model training at a lower cost compared to other cloud providers. Oracle’s commitment to providing cutting-edge infrastructure for AI development has positioned it as a preferred choice for leading AI technology companies and startups.
Oracle’s strong performance in cloud services and its growing presence in AI-related sectors demonstrate the company’s resilience and strategic focus on emerging technologies and cloud computing, solidifying its position in the rapidly evolving tech industry.