Oracle Corporation (NYSE: ORCL) on Thursday reported fiscal first quarter revenue and earnings that beat analysts’ estimates. But the company see slower growth in its cloud business, sending the company stock down over 6 percent.
The software maker said first quarter revenue rose 7 percent to $9.21 billion, beating analysts’ estimates of $9.02 billion, according to Thomson Reuters. Excluding certain items, the company earned 62 cents per share in the quarter ended August 31. Analysts polled by Thomson Reuters had forecasted earnings of 60 cents.
The better-than-expected earnings results are due to strong growth in its cloud business. Total cloud business revenue rose 51 percent to $1.47 billion in the fiscal first quarter. But it still accounted a small portion of the company’s total revenue.
Oracle faces strong competition in the cloud industry. Big rivals include Amazon.com Inc. and Microsoft Corp.
Oracle now expected revenue to increase 2-4 percent to the range of $9.25 billion and $9.4 in the second quarter of the 2018 fiscal year, with 39-42 percent cloud revenue growth. The company also forecast the earnings of between $0.64 and $0.68 per share.
Analysts have estimated 68 cents in earnings per share on $9.49 billion in revenue, according to Thomson Reuters.