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Oracle (ORCL) earnings Q1 2023

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Oracle reported revenue that met expectations on Monday, while earnings and quarterly guidance got here in below analysts’ estimates.

Revenue climbed 18% within the quarter from a yr earlier, due to a contribution from recently acquired software maker Cerner.

Here’s how the corporate did:

  • Earnings: $1.03 per share, adjusted, vs. $1.07 per share as expected by analysts, in line with Refinitiv.
  • Revenue: $11.45 billion vs. $11.45 billion as expected by analysts, in line with Refinitiv.

Revenue growth within the quarter ended Aug. 31 accelerated from the 5% it posted within the prior quarter, in line with a statement.

Oracle received a $1.4 billion contribution from Cerner after the $28 billion acquisition closed through the quarter.

Oracle CEO Safra Catz speaks through the SelectUSA Investment Summit in Oxon Hill, Maryland, on June 19, 2017. The SelectUSA Investment Summit brings together corporations from everywhere in the world, economic development organizations from every corner of the nation and other parties working to facilitate foreign direct investment (FDI) in the USA.

Eric Thayer | Bloomberg | Getty Images

Net income declined to $1.55 billion from $2.46 billion within the year-earlier period. Oracle said it will have seen 8 cents more adjusted earnings per share if it weren’t for unfavorable foreign exchange rates.

Oracle’s cloud services and license-support category generated $8.42 billion in revenue, up 14% and above the StreetAccount consensus of $8.27 billion.

Oracle’s applications and infrastructure cloud businesses now represent over 30% of total revenue, CEO Safra Catz said in a press release. Quarterly revenue from cloud infrastructure jumped 52% to $900 million.

Along with completing the Cerner deal, Oracle announced the supply of its database software through Microsoft’s Azure public cloud which runs on Oracle’s own cloud infrastructure.

With respect to guidance, Oracle said it expects $1.16 to $1.20 in adjusted earnings per share and 15% to 17% revenue growth within the fiscal second quarter. Analysts polled by Refinitiv had been on the lookout for $1.27 per share and $12.17 billion in revenue, implying almost 18% growth.

Catz said she expects exchange rates to have a 5% to six% negative impact on revenue and a success on earnings per share of as much as 7 cents per share in the present quarter.

Larry Ellison, Oracle’s co-founder, chair and technology chief, boasted about additional business coming to the Oracle Cloud Infrastructure, or OCI.

“I personally have been talking to a few of Amazon’s most famous brands which are running at AWS,” he said. “And the AWS bill is getting very large. They usually can save an enormous sum of money by moving to OCI. And I expect next quarter we’ll be announcing some brands, some corporations moving off of Amazon to OCI that can shock you. I’ll stop there.”

Excluding the after-hours move, Oracle shares are down almost 12% yr thus far; the S&P 500 is off about 14% yr thus far.

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