What's going great for Oracle? Cloud. What's not great? Just about everything else

Hardware, services all down at the House of Larry

Oracle is shaking off falling revenues in hardware and services by pointing to soaring cloud numbers in the three months to March.

House Larry says that its Q3 FY2018 figures show its focus on cloud and SaaS paying off:

  • Revenues of $9.8bn were earned in the last three months, up 6 per cent from the year-ago quarter.
  • Net loss was $4bn, as Oracle wrote down a $6.9bn one-time tax hit from President Trump's new tax plan.
  • Operating income was $3.4bn – up 13 per cent from $3bn in Q3 2017.
  • Earnings per share [non-GAAP] took out the tax hit and the total of $0.83 topped analyst forecasts of $0.72 . In reality [GAAP], loss per share added up to $0.98.
  • Cloud revenues of $1.6bn were up to the tune of 32 per cent from the year-ago quarter. Cloud accounts for about 16 per cent of total revenues.
  • Software revenues of $6.41bn were up 4 per cent from Q3 2017. New software licenses totalled 1.4bn, down 2 per cent.
  • Hardware revenues were $994m, down 3 per cent from last year's quarter.
  • Services revenues was $796m, down 2 per cent from the year-ago quarter.

Not surprisingly, Oracle brass was quick to talk up the surge in cloud revenues. Co-CEO Mark Hurd said that just 15 per cent of Oracle's software base had begun moving into its cloud services, telling analysts "the bulk of our [cloud] revenue today is not in our user base."

"That 15 per cent was those who have just started," noted co-CEO Safra Katz. "There is a ton of room here, a ton."

Founder and CTO Larry Ellison was also quick to talk up the company's pet project: the Autonomous Database.

"During this calendar year we expect to deliver Autonomous Analytics, Autonomous Mobility, Autonomous Application Development and Autonomous Integration services," Ellison said.

"Oracle’s new suite of Autonomous PaaS services delivers an unprecedented level of automation and cost savings to our customers."

Wall Street wasn't as optimistic. Oracle shares were down 6.8 per cent at $48.40 in after-hours trading after analysts branded the financial results lackluster. ®

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