Oracle Corporation (NYSE: ORCL) on Monday announced fiscal 2018 Q3 earnings that beat analysts’ estimates. But the stock tumbled after the company provided weak guidance for its could revenue growth.
The company said total revenue rose 6 percent to $9.8 billion in fiscal third quarter, in-line with analysts’ estimate of $9.78 billion, according to Thomson Reuters.
Excluding certain items, the company earned 83 cents per share, beating analysts’ estimate of 72 cents.
“Our Fusion ERP and HCM SaaS applications suite revenues grew 65% in the quarter,” said Oracle CEO, Mark Hurd. “Our Cloud SaaS applications business is rapidly approaching $5 billion …and it’s still early days. Less than 15% of our on-premise applications customers have begun to migrate their applications to the cloud. As the other 85% of our applications customers start to move their applications to the Cloud, we have a huge opportunity in front of us. We expect to more than double the size of our SaaS business very quickly.”
However, the company see its cloud revenue to grow at 19-23 percent in the current quarter, which is below analysts’ projection of 24.3 percent growth.
Cloud revenue, including cloud software, platform and infrastructure, accounted 16 percent of the company’s total quarterly revenue. Cloud revenue is becoming a key growth driver for Oracle.
Oracle share tumbled more than 9 percent to $46.96 in the early trading on Tuesday.