Oracle Corporation (NYSE: ORCL) on Thursday reported its 2018 fiscal year second quarter earnings that topped analysts’ estimates. But the company’s shares tumbled as cloud-computing sales were disappointing.
Total revenue rose 6.2 percent to $9.63 billion, beatings analysts’ estimates of $9.57 billion, according to Thomson Reuters.
Excluding certain items, the company earned 70 cents in the quarter ended Nov.30. Analysts polled by Thomson Reuters had projected earnings of 68 cents per share.
Total cloud revenue rose 44 percent to $1.52 billion, missing analysts’ estimates of $1.56 billion, according to FactSet consensus estimates.
“Overall cloud revenue growth of 44% drove our quarterly revenue and earnings higher,” said Oracle CEO, Safra Catz. “With non-GAAP Cloud SaaS Applications growth of 49% leading the way, Oracle delivered 14% non-GAAP earnings per share growth and 6% overall revenue growth. Our success in the quarter was based on the increasing scale and the gathering momentum in our cloud business. I expect the business to continue to grow and strengthen over the coming quarters.”
Oracle shares fell as much as 4.24 percent to $48.11 in the early trading on Friday. The stock was up 25 percent this year.
“Our Fusion ERP and Fusion HCM SaaS applications suite revenues grew 65% in the quarter,” said Oracle CEO, Mark Hurd. “We are now the clear market leader in enterprise back-office SaaS applications with over 5,000 Fusion customers. And we expect to extend our lead by selling around $2 billion in new enterprise SaaS application cloud subscriptions over the coming four quarters. That’s more new SaaS sales than any of our competitors.”