Oracle beat second-quarter earnings forecasts, leading to a 10% rise in shares in extended trading. The strong results were driven by growth in the infrastructure and applications cloud businesses. Oracle reported a profit (before costs like stock compensation) of $1.21 per share, a 14% increase from 2020 numbers.
The revenue came in at $10.4 billion, a 6% increase over last year. Operating income for the quarter reached $4.9 billion, a 6% increase.
The results were better than Wall Street’s forecasts that projected a profit of $1.11 per share on sales of $10.21 billion.
On track to 20B
Oracle’s Cloud ERP business is growing at a rate and pace that should hit $20 billion in the next half-decade, according to Larry Ellison, the co-founder, and CTO, who spoke on a conference call on Thursday.
Ellison asserted that he thinks it could be a lot bigger than that while outlining the business’ roadmap. The increased growth will rely on relationships with strategic partners in various industries, including logistics and finance.
Ellison said that Oracle could work with banking and logistics to add features like invoicing, payments, delivery tracing, and more into cloud ERP systems.
The CTO said that Oracle is poised to bring “an entirely new level of automation to B2B eCommerce to create new B2B procurement flows that have the same level of ease as B2C digital transactions.
According to Ellison, the plan will significantly simplify the procurement and supply chain processes, presenting a “huge new opportunity” for the Cloud ERP systems.
The way Ellison tells it, the key partners needed are in place, customer revenue from both Fusion ERP and NetSuite ERP is growing and new customers continue to join. As he sees it, “that’s all upside.”