Oracle revenue grows 4% to $9.7 bn hurt by Cloud competition

Enterprise software firm Oracle said revenue rose 4 percent to $9.73 billion in its first quarter ended Aug. 31. — hurt by competition in the cloud computing space.
Oracle Cloud for CIOsOracle’s Cloud business rivals include Microsoft’s Azure, Amazon.com’s Amazon Web Services (AWS), Salesforce.com and IBM.

Cloud services and license support revenues were up 6 percent to $7.4 billion. Cloud license and on-premise license revenues were down 8 percent to $813 million, Oracle said.

Oracle CEO Safra Catz said: “Oracle’s two new cloud businesses, IaaS and SaaS, are now over 25 percent of our total revenue with an annual run rate of $10 billion. Taken together, IaaS and SaaS are Oracle’s fastest growing and highest margin new businesses. As these two cloud businesses continue to grow they will help expand our overall profit margins and push earnings per share higher.”

The Austin, Texas-based company expects adjusted earnings per share to be between $1.09 and $1.13.

Oracle has released a sample list of customers which purchased Oracle Cloud services during the quarter.

Oracle, which counts Zoom Video Communications as one of its customers, has been ramping up investment to set up more data centers that can be rented out to clients as they expand and shift operations to the cloud.

Oracle said its two new cloud businesses, software-as-a-service and infrastructure-as-a-service, made up 25 percent of the company’s total revenue with an annual run rate of $10 billion.