Safra Catz, then co-chief executive officer of Oracle Corp., speaks throughout the Oracle OpenWorld conference in San Francisco on Sept. 20, 2016.
David Paul Morris | Bloomberg | Getty Images
Oracle shares rose almost 9% in prolonged trading on Monday after the database software company issued fiscal fourth-quarter results that exceeded analysts’ estimates.
Here’s how the corporate did:
- Earnings: $1.54 per share, adjusted, vs. $1.37 as expected by analysts, in accordance with Refinitiv.
- Revenue: $11.84 billion, vs. $11.66 billion as expected by analysts, in accordance with Refinitiv.
Revenue increased 5% from a 12 months earlier, driven by growth in the corporate’s cloud infrastructure business, which competes with Amazon Web Services and Microsoft Azure.
Oracle said that unit increased sales by 36%, lifting total cloud revenue by 19% to $2.9 billion. In keeping with Synergy Research Group, Oracle didn’t crack the highest five global providers of cloud infrastructure as of the top of last 12 months. But the corporate has been touting its ability to not only pull legacy customers over to its cloud products but in addition to draw recent clients.
CEO Safra Catz said in a press release that the corporate saw a “major increase in demand” for cloud infrastructure.
“We consider that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase,” Catz said.
Prior to the after-hours pop, Oracle shares were down 27% for the 12 months, barely outperforming the Nasdaq, which has tumbled 31%.
Oracle’s earnings beat is especially necessary as investors turn their focus to firms that may generate profitability and money during a downturn.
WATCH: Oracle beats estimates