Oracle Corporation 4Q F2017 Earnings Released: Shares Rise

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The Oracle 4Q F2017 earnings report was released after closing bell. The company posted GAAP earnings of 76 cents per share and non-GAAP earnings of 89 cents per share on $10.9 billion in revenue, a 3% year over year increase. Those numbers compare to the consensus estimates of 64 cents per share in GAAP earnings or 78 cents per share in adjusted earnings on $10.46 billion in revenue.

Oracle had guided for adjusted earnings of 78 to 82 cents per share. The company also said it expected sales to be between a 1% decline and a 2% increase year over year from the year-ago quarter’s $10.59 billion.

Oracle 4Q F2017 earnings

Oracle said software-as-a-service cloud revenue rose 67% year over year to $964 million on a GAAP basis and 75% on a non-GAAP basis to $1 billion. Cloud platform-as-a-service plus infrastructure-as-a-service revenues rose 40% on a GAAP basis to $397 million or 42% on a non-GAAP basis to $403 million. Total cloud revenues rose 58% on a GAAP basis to $1.4 billion or 64% on a non-GAAP basis. Cloud revenues were 13% of Oracle’s total revenues.

Hardware revenues fell 13% year over year to $1.1 billion, while services revenues rose 3% to $894 million. Sales of new software licenses fell 5% year over year to $2.6 billion, although they still made up 24% of the company’s total revenues. Services revenues rose 3% year over year to $894 million. On-premise software revenues ticked lower by 1% year over year to $7.5 billion to make up 69% of total revenues.

Short-term deferred revenues rose 8% year over year to $8.2 billion. The company said the strengthening of the U.S. dollar trimmed 2 cents per share off its GAAP earnings and 1 cent per share off its non-GAAP earnings.

AT&T to migrate to Oracle Cloud

Oracle management said after selling $855 million in new annually recurring cloud revenue in the fourth quarter, the company surpassed its goal of $2 billion in annually recurring cloud revenue bookings for fiscal 2017. They also announced that AT&T has agreed to migrate thousands of databases and their associated applications and workloads to Oracle Cloud, and they expect more big customers to migrate their Oracle databases and applications as well.

The company’s stock surged after the Oracle 4Q F2017 earnings report, climbing by as much as 8.4% to $50.22 in after-hours trade.

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