Oracle beats on top and bottom lines as cloud revenue jumps
Oracle's Cloud Revenue Soars 23%, Outpacing Competitors and Cementing Market Dominance
13 June 2023
Oracle surpasses market expectations with impressive Q4 results and upbeat revenue guidance, leading to a 5% surge in after-hours trading.
The company witnesses significant growth in cloud services, with a 23% increase in revenue, reaching $9.37 billion, and a remarkable 76% growth in cloud infrastructure.
Oracle announces a forthcoming AI cloud service in partnership with Cohere, enabling enterprise customers to train specialized large-language models while prioritizing data privacy.
Oracle, the esteemed software vendor, has surpassed market expectations by delivering impressive results for its fiscal fourth quarter and providing an optimistic outlook for its revenue. The company's shares surged by 5% during after-hours trading following the announcement, reflecting the positive sentiment of investors. Oracle achieved substantial year-over-year revenue growth of 17%, reaching a net income of $3.32 billion. Safra Catz, the CEO of Oracle, projected robust growth for the upcoming fiscal quarter, highlighting the company's commitment to expanding its market presence and harnessing the potential of artificial intelligence (AI).
Oracle's revenue from cloud services and license support witnessed a remarkable increase of 23%, reaching $9.37 billion. This growth exemplifies the company's success in meeting the evolving needs of its customers and capitalizing on the growing demand for cloud solutions. Moreover, the revenue from cloud infrastructure experienced exceptional growth, with a staggering increase of 76%, surpassing the expansion rates of competitors like Microsoft and Google. Oracle's dedication to expanding its range of cloud offerings, along with its focus on enhancing gross margins, positions the company as a formidable player in the market.
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In addition to excelling in its core business, Oracle is making significant advancements in the field of artificial intelligence. Larry Ellison, the chair and technology chief of Oracle, announced a forthcoming AI cloud service in collaboration with startup Cohere. This service, utilizing Oracle's cloud infrastructure, empowers enterprise customers to train specialized large-language models while ensuring the privacy of their data. By embracing AI technology, Oracle is paving the way for improved customer experiences, enhanced efficiency, and heightened competitiveness.
During the fiscal quarter, Oracle received approvals for its cloud services from prominent U.S. defense and intelligence agencies, solidifying its position as a trusted provider of secure and reliable solutions. These endorsements underscore Oracle's commitment to maintaining the highest standards of data protection and security. Looking ahead, the company projects a revenue growth rate of 8% to 10% for the upcoming fiscal quarter, demonstrating its ongoing confidence in its ability to deliver strong financial results.