Oracle Corp. (NYSE: ORCL) announced its third-quarter earnings, with both earnings and revenues beating estimations. According to the company, revenues for the third quarter of 2017 increased 2% in the U.S. dollars and 3% in constant currency to $9.27 billion, surpassing previous estimations of $9.25 billion. The company reported adjusted earnings per share of $0.69 per share, also beating estimates of $0.62 per share.
Oracle said that the increase in sales was contributed by the rise in sales of cloud-based software and platforms, which increased from $538 million from the same period last year to $1 billion in the most recent quarter. The results owing to Oracle’s heavy investment in cloud-based software and platforms, represented by the acquisition of Netsuite in a $9.3 billion deal last year.
“The hyper-growth we continue to experience in the cloud has rapidly driven both our SaaS and PaaS businesses to scale,” Safra Catz, the CEO of Oracle, said in the statement.
“Our new, large, fast growing, high-margin cloud businesses are driving Oracle’s total revenue and earnings up and improving nearly every important non-GAAP business metric you care to inspect; total revenue is up, margins are up, operating income is up, net income is up, EPS is up. Take a look. Q3 was a very strong quarter,” he said.
In the past three month, shares of Oracle increase over 10%. Cloud products now occupied more percentage of total sales to 13% than it did last year, which was 8%.
Mark Hurd, the Oracle’s co-CEO, said in the statement that “If these trends continue, where we are selling more [software-as-a-service] and [product-as-a-service] in absolute dollars AND growing dramatically faster, it’s just a matter of when we catch and pass Salesforce.com in total cloud revenue.”