Oracle Q4 revenue shows weakness in business

Oracle Open World 2015Enterprise IT major Oracle Corporation today announced revenue for Q4 in fiscal 2016 — indicating weak market conditions.

The US-based Oracle said its Q4 Revenues were $10.6 billion (–1 percent). Oracle posted negative growth in all its main businesses excluding Cloud. But Cloud revenue forms only 8 percent of Oracle’s total revenues in the fourth quarter of fiscal 2016.

Oracle generated revenue of $ 5,847 million from Americas, $ 3,120 million from Europe, the Middle East and Africa and $ 1,627 million from Asia Pacific.

Oracle has generated Q4 revenue $859 million (+49 percent) from cloud, $7,580 million (–3 percent) from software, $1,283 million (–9 percent) from hardware and $872 million (–3 percent) from services.

Cloud plus On-Premise Software revenue of Oracle was $8.4 billion (flat).

Cloud software as a service (SaaS) and platform as a service (PaaS) revenues of Oracle were $690 million (+66 percent).

Total Cloud revenues, including infrastructure as a service (IaaS), were $859 million (+49 percent).

For fiscal 2016, Total Revenues were $37.0 billion (–3 percent).

Oracle added more than 1,600 new SaaS customers and more than 2,000 new PaaS customers in Q4. In Fusion ERP alone, it added more than 800 new cloud customers. Oracle has nearly 2,600 Fusion ERP customers in the Oracle Public Cloud — that’s ten-times more cloud ERP customers than Workday.

“We expect that the SaaS and PaaS hyper-growth we experienced in FY16 will continue on for the next few years,” said Oracle Executive Chairman and CTO, Larry Ellison. “That gives us a fighting chance to be the first cloud company to reach $10 billion in SaaS and PaaS revenue.” wants $10 bn from cloud software CEO Mark Benioff aims to garner $10 billion revenue from cloud software.

Oracle’s Larry Ellison said the software company had a fighting chance to beat “We think we’re going to be the first one there,” he said during the Q4 earnings call.

Salesforce is much closer to that goal, however, with total revenue of $6.7 billion in its most recent fiscal year. On Thursday, Oracle reported ended its fiscal year with $2.2 billion in software-as-a-service and platform-as-a-service revenue, less than a third of Salesforce’s total.

Redwood City, California-based Oracle posted $690 million (+66 percent) in SaaS and PaaS revenue in Q4. Safra Catz, co-CEO of Oracle, told analysts that Oracle’s cloud business is projected to grow faster next year, at about 75 percent to 80 percent. Salesforce revenues grew 24 percent last fiscal year, and growth is forecast at 22 percent to 23 percent for the current fiscal year.

Baburajan K