Oracle reports growth, mainly through cloud subscriptions

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Oracle announced that it had the best quarterly results in nearly two years. The announcement resulted in a 3 percent increase in the value of Oracle shares.

Revenues increased by nearly 2 percent, to about 9.79 billion dollars, compared to a year ago. Profits fell slightly, to 2.57 billion dollars, or 79 cents per share. However, the earnings for investors rose to about 97 cents per share. Investors applauded the figures, in any case.

Oracle‘s growth has recently slowed down somewhat; it was previously announced that probably, 1,300 employees in Europe will have to be laid off. The new figures show that the new share price has not been set for nothing. According to SiliconAngle, cloud revenues accounted for 72 percent of total sales in the last quarter, compared to 70 percent a year earlier. Chairman and CTO Larry Ellison stated that most of the revenue comes from subscriptions. Those subscriptions accounted for 71 percent of total sales in the quarter.

“We expect the cloud ERP segment to be two to three times larger than the on-premises market,” she said. The company says that it now has 7,000 Fusion ERP customers and 21,000 NetSuite customers.

No noticeable effect of corona virus yet

Catz said that so far, there has been no real impact of the corona virus on sales, but that this might be the case because Oracle is somewhat isolated by its business model. “It’s not yet clear what the effect of the virus will be on our customers and suppliers and, as a result, on our business in Q4,” Catz said. “We’re largely conducting business as usual.”