Oracle Earns 63 Cents per Share

Oracle (ORCL) just reported fiscal Q2 earnings of 63 cents per share, three cents more than Wall Street’s consensus. Revenue fell 6% to $9.0 billion, but adjusted for currency, revenue was flat.

“We’re very pleased with our non-GAAP EPS of $0.63, beating the mid-point of guidance by 4 cents despite a stronger than expected currency headwind,” said Oracle CEO, Safra Catz. “We grew our SaaS and PaaS revenue 38% in constant dollars this past quarter, and we expect that revenue growth rate to accelerate to nearly 50% in Q3 and close to 60% in Q4. This rapid increase in our cloud revenue will help drive our SaaS and PaaS cloud gross margins from 43% in Q2 to approaching 60% in Q4 and drive significant EPS growth in Q4.”

“It was a very strong growth quarter for our cloud business, with SaaS and PaaS bookings up 75% in constant currency and billings up 68% in U.S. dollars,” said Oracle CEO, Mark Hurd. “We did 100 Fusion HCM deals and over 300 Fusion ERP deals in the quarter. We now have more than 1,500 ERP customers in the cloud — that’s at least ten times more ERP customers than Workday.”

“We are still on-target to sell and book more than $1.5 billion of new SaaS and PaaS business this fiscal year,” said Oracle Executive Chairman and CTO Larry Ellison. “That is considerably more SaaS and PaaS new business than any other cloud services provider including salesforce.com.”

The shares are up 2.2% in after-hours.

Update: Oracle is now down in the after-hours market. On the conference call, the company gave fiscal Q3 guidance of 63 to 66 cents per share. For Q4, they gave guidance of 83 to 86 cents per share.

Posted by on December 16th, 2015 at 4:40 pm


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