Oracle Corporation has announced its fiscal 2018 second quarter (Q2) results which sees earnings increase in Q2 due to increased sale in cloud businesses.
The report reveals that total cloud revenues were up 44 percent to $1.5 billion and total revenues went up 6 percent to $9.6 billion, compared to Q2 last year.
Cloud plus On-Premise Software Revenues were up 9 percent to $7.8 billion while Cloud Software as a Service (SaaS) revenues were up 55 percent to $1.1 billion and Cloud Platform as a Service (PaaS) plus Infrastructure as a Service (IaaS) revenues were up 21 percent to $396 million.
Experts say that this is a clear indication that more organisations are adopting cloud services.
“Our success in the quarter was based on the increasing scale and the gathering momentum in our cloud business. I expect the business to continue to grow and strengthen over the coming quarters,” said Safra Catz, Oracle CEO.
The company’s generally accepted accounting principles (GAAP) operating income was up 1 percent to $3.1 billion and GAAP operating margin was 32 percent while its Non-GAAP operating income was up 10 percent to $4.2 billion and non-GAAP operating margin was 44 percent.
The results also show an increase in GAAP net income, which was up 10 percent to $2.2 billion, while non-GAAP net income was up 16 percent to $3.0 billion.
According to the report, GAAP earnings per share only went up about 8 percent to $0.52, while non-GAAP earnings per share was up 14 percent to $0.70.
Short-term deferred revenues were up 9 percent to $8.1 billion while operating cash flow on a trailing twelve-month basis was up 2 percent to $14.6 billion.
“Overall cloud revenue growth of 44 percent drove our quarterly revenue and earnings higher,” said Safra Catz. “With non-GAAP Cloud SaaS Applications growth of 49 percent leading the way, Oracle delivered 14 percent non-GAAP earnings per share growth and 6 percent overall revenue growth. Our success in the quarter was based on the increasing scale and the gathering momentum in our cloud business. I expect the business to continue to grow and strengthen over the coming quarters,” Catz said.
Oracle continues to invest heavily is cloud services and digitization, even as Larry Ellisson, Chief Technology Officer (CTO), Oracle says that the company “will soon deliver the world’s first autonomous “self-driving” database.”
Ellison said; “the new artificially intelligent Oracle database is fully automated and requires no human labor for administration. If a security vulnerability is detected, the database immediately patches itself while running. No other system can do anything like this. Best of all, we guarantee the price of running the Oracle Autonomous Database in the Oracle Cloud is less than half the cost of running a database in the Amazon Cloud.”
Oracle Board of Directors increased the authorisation for share repurchases by $12 billion. The Board of Directors also declared a quarterly cash dividend of $0.19 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 10, 2018, with a payment date of January 24, 2018.
Jumoke Akiyode Lawanson
