Despite narrowly missing expectations, Oracle announced a total Q3 fiscal revenue of $12.4bn, with Oracle Cloud bringing in the lion’s share and heading off a decent quarter of cloud growth. Q3 Cloud Infrastructure brought in the highest revenue jump at 55 percent in USD, 57 percent at constant currency to add $1.2bn of revenue to the pot.
Last June, Oracle acquired healthcare giant Cerner, which added $1.5bn to the Q3 fiscal results and allowed Oracle to increase Cerner’s healthcare contract base by around $5bn.
In the company earnings call, Oracle CEO Safra Catz shared that one of its competitors had coined the phrase ‘the Oracle playbook’, which she fully embraced and said was a reflection of Oracle’s ability to do more while spending less.
“Using our own products and services enables us to increase our investments for growth, while also growing profitability, including through acquisitions as well as during our move to the cloud,” said Catz.
Following what was perceived as mixed earnings results, Oracle’s share price fell as much as 5 percent after the trading bell.
On the results Catz commented: “Our strong quarterly earnings growth was driven by 48 percent constant currency growth for the total revenue of our two cloud businesses, infrastructure and applications.
“Oracle’s cloud businesses now exceed $16bn in annualized revenue. We remain the overwhelming market leader in Cloud ERP with approximately 10,000 Fusion ERP customers and over 34,000 NetSuite ERP customers. Our technically advanced and highly differentiated Gen2 infrastructure business continues to be in a hypergrowth phase – up 65 percent in Q3 in constant currency.”
Oracle chairman and CTO, Larry Ellison, added: “We have signed a diverse set of new and expanding domestic and international customers including: the US Department of Defense, the US Department of Veterans Affairs, Hospital Groups in a dozen US States, multiple hospitals in the United Kingdom, multiple Provinces of Canada, the Australian Defense Forces, multiple hospitals in Puerto Rico and multiple countries in the Middle East.
“While we are pleased with this early success of the Cerner business, we expect the signing of new healthcare contracts to accelerate over the next few quarters.”