Revenue of Oracle rose 1 percent to $11.14 billion in the fourth quarter indicating that the company is yet to strengthen its cloud business.
Revenue from Oracle’s cloud services and license support business, its biggest, increased marginally to $6.80 billion.
Oracle downsized its low-margin hardware business. Revenue from Oracle’s hardware business fell 11 percent to $994 million.
The Redwood, California-based company’s net income rose to $3.74 billion, or $1.07 per share, in the fourth quarter ended May 31, from $3.28 billion, or 79 cents per share, a year earlier.
Oracle announced that it expected first-quarter adjusted profit to be between 80 cents and 82 cents per share.
Oracle has been aggressively pushing into cloud computing to make up for a late entry in the fast-growing business, Reuters reported.
Oracle chairman Lawrence Ellison said the company saw a surge in database license sales and a rapid growth in database options required to run Autonomous Database, a cloud-based technology that automates routine tasks needed to manage Oracle databases.
The company added more than 5,000 customers on a trial basis in the quarter, as it migrates database users to the cloud.
Microsoft and Oracle earlier this month announced an agreement to make their two cloud computing services work together with high-speed links between their data centers, which will help accelerate the transition from on-premise database to the Autonomous Database service, said Oracle co-CEO Safra Catz.
Oracle said the company’s high-margin Fusion and NetSuite cloud applications businesses are growing rapidly. Oracle’s revenue from Fusion ERP and HCM Cloud rose 32 percent in fiscal 2019. Oracle’s NetSuite ERP Cloud revenue surged 32 percent in fiscal 2019.
For fiscal 2019, total revenues were $39.5 billion, slightly higher in USD and up 3 percent in constant currency. Fiscal 2019 operating income was $13.5 billion with operating margin of 34 percent.
The technology company’s shift away from commodity hardware to cloud applications assisted in achieving Q4 non-GAAP operating margin of 47 percent, the highest seen in five years.
Market research agency IDC said Oracle gained the most market share out of all Enterprise Applications SaaS vendors three years running — in CY16, CY17 and CY18.