Oracle shares moved 9% higher in extended trading on Tuesday after the company announced cloud deals with Google and OpenAI, despite fourth-quarter results that fell short of Wall Street expectations.
Here’s how the company did compared with LSEG consensus:
Earnings per share: $1.63 adjusted vs. $1.65 expected
Revenue: $14.29 billion, vs. $14.55 billion expected
Oracle’s revenue increased 3% year over year during the quarter, which ended on May 31, according to a statement. Net income, at $3.14 billion, or $1.11 per share, was down from $3.32 billion, or $1.19 per share, in the year-ago quarter.
The cloud services and license support segment generated $10.23 billion in revenue, up 9% and slightly below the StreetAccount consensus of $10.29 billion.
The company’s cloud and on-premises licenses business contributed $1.84 billion in revenue. That’s down 15% and lower than the $2.09 billion StreetAccount consensus.
Cloud infrastructure revenue came to $2.0 billion, up 42%, which was a deceleration from the 49% growth rate in the prior quarter. The cloud business remains smaller than rivals Amazon Web Services and Microsoft Azure but is growing faster.
Oracle said in a statement on Tuesday that it would bring its database to Google’s cloud, with availability coming in November. In an additional statement, Oracle said OpenAI has selected the Oracle public cloud to extend Microsoft’s AI infrastructure.
During the quarter, Oracle said its database software would be available in five additional Microsoft Azure data center regions, bringing the total to 15. Oracle also announced generative artificial intelligence features coming to its Fusion cloud applications for supply chain and human resources.
Notwithstanding the after-hours move, Oracle stock has gained 18% so far this year, while the S&P 500 index is up about 13% over the same period.
Source: https://www.cnbc.com/2024/06/11/oracle-orcl-q4-earnings-report-2024.html
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