Oracle revenue jumps 17.7% to $11.45 bn thanks to Cerner

Oracle, the US-based enterprise software maker, reported that its revenue rose 17.7 percent to $11.45 billion for the first-quarter.
Oracle Cloud for CIOsOracle forecast revenue would grow between 21 percent and 23 percent in the second quarter.

The revenue growth indicates that the enterprise software maker started to reap the benefits of buying healthcare IT firm Cerner.

Cerner contributed $1.4 billion in the quarter, months after Oracle bought it in a deal that unlocked troves of data from one of the biggest U.S. healthcare IT firms and attracted more clients to its cloud platform.

The boost from Cerner helped cushion the impact from a slowdown in business spending, as companies turned thrifty in the face of high inflation and an advancing U.S. dollar.

Demand for its cloud services also remained strong, driving segment revenue up 45 percent to $3.6 billion, including contribution from Cerner.

With hybrid work gaining traction worldwide, Oracle has been looking to bolster its cloud offerings in a bid to catch up to bigger rivals Microsoft’s Azure and Amazon.com’s Web Services (AWS).

“Oracle’s advantage is their reliability. I see opportunity there for Oracle to preserve its customer base as they move processes to the cloud,” said John Freeman, vice president of equity research at CFRA Research.

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