Riding on new customer wins in both Cloud applications and infrastructure businesses, Oracle has posted better than expected results for its FY21 first quarter results, generating $9.4 billion in revenue which was up 2 per cent compared to the same period last year.
In Q1, cloud services and license support revenues were up 2 per cent, reaching $6.9 billion.
Within that category, applications cloud services and license support brought in $2.8 billion, up 4 per cent while infrastructure cloud services and license support brought in $4.13 billion, up 1 per cent.
“Q1 was fantastic with total revenue beating guidance by more than $150 million, and non-GAAP earnings per share beating guidance by $0.07,” Oracle CEO Safra Catz said in a statement on Thursday.
The Cloud applications businesses continued their rapid revenue growth with Fusion ERP up 33 per cent and NetSuite ERP up 23 per cent.
Oracle now has 7,300 Fusion ERP customers and 23,000 NetSuite ERP customers in the Oracle Cloud.
“Our infrastructure businesses are also growing rapidly as revenue from Zoom more than doubled from Q4 last year to Q1 in this year. I have a high level of confidence that our revenue will accelerate as we move on past COVID-19,” Catz said.
Oracle won some key customers like McDonald’s, Albertsons Companies and Humana Inc in the reporting period.
Oracle, which is reportedly in the race to acquire the US operations of TikTok, saw its stock rose as much as 6 per cent in extended trading on Thursday on positive results.
“I believe that the Oracle Cloud offers better Infrastructure-as-a-Service (IaaS) technology than any other cloud vendor,” said Larry Ellison, Oracle Chairman and CTO.
Oracle’s non-GAAP net income for the first quarter was up 4 per cent to $2.9 billion, while non-GAAP earnings per share were up 15 per cent to 93 cents.
“Our Fusion SaaS momentum is very strong. We’re seeing the success of Autonomous Database, which will continue to get even better now that we have Autonomous Database available on Cloud at Customer,” Catz said.