Oracle Corporation's $ORCL results from earlier in the week slightly beat estimates.
Oracle Corporation is a global provider of enterprise cloud computing, offering software-as-a-service, platform-as-a-service, infrastructure-as-a-service and data management-as-a-service solutions to companies of all sizes. The company has 430,000 customers in 175 countries and approximately 25,000 partners worldwide.
Following Monday's market close, Oracle $ORCL reported solid results for the fourth quarter of fiscal year 2023 that beat both revenue and earnings estimates. The software giant predicts a positive first quarter, driven by growing demand for its cloud offerings from companies deploying artificial intelligence. Earnings per share came in at $1.67, beating the Zacks Consensus Estimate of $1.58. Revenues rose 16.6% year over year to $13.8 billion, beating estimates of $13.74 billion. Strong revenue growth was driven by cloud businesses in infrastructure and applications, which grew 76% and 45%, respectively. Both strategic cloud businesses are scaling and growing faster, indicating another strong year in fiscal 2024.
Cloud revenue jumped 54% to $4.4 billion in the fiscal fourth quarter. Revenue from two strategic cloud applications, namely Fusion and NetSuite Cloud ERP applications, grew 26% and 22% during the quarter. Oracle Fusion is the largest cloud ERP enterprise in the world, while Oracle NetSuite is the second largest cloud ERP enterprise.
Given the unprecedented demand for cloud services, particularly AI services, Oracle expects cloud revenue, excluding Cerner, to continue to grow at a rate at least similar to fiscal 2023. For the upcoming quarter, Oracle expects revenue growth of 8-10%.
Oracle $ORCL seeks to heavily integrate AI into its broad portfolio of cloud applications. The goal is to enable complex automation, improve decision making and enhance customer experience. Oracle's extensive AI infrastructure and rich set of cloud applications, combined with Cohere's sophisticated big language models, offer many offerings for enterprises looking to leverage AI.
We're seeing more nice results from companies riding the AI wave. So, of course, I would remain very cautious because the cooling will definitely come, but the future is moving in that direction and it's now up to everyone how they can grasp it. How do you view this company and do you have it represented in your portfolio, if any? 😊
Estimates surpassed, a new peak behind us and many more to come. Nice trend, so see you at the moon🤣
Just over the weekend I was briefly discussing this company with a friend who has worked there for about 10 years and receives shares as benefits. I was quite surprised that he doesn't care much about how the company is doing financially and certainly doesn't feel like a part owner. Sometimes a tribute is needed to an opinion outside this investment social bubble;) Oracle is certainly a quality company, but the valuation is currently uninteresting.
It's a great company that often gets left out of portfolios. The future outlook is clear and so are the results - where's the problem? 😀
Thanks for the summary, I don't have the company in my portfolio but it's on track when I read the results.