The software maker revealed a program to encourage customers to adopt its public cloud services in Q1 2022
Oracle posted an adjusted EPS of $1.03 compared to the 97 cents per share expected by analysts. Revenue increased 4% year-over-year in the quarter ended August 31. Still, it came short of the $9.77 billion touted at $9.73 billion.
The company’s most prominent business segment – cloud services and license support – generated $7.37 billion, up 6% compared to the previous figures. At the same time, the cloud license and on-premises license segment brought $813 million in revenue, down 8% from the last numbers.
However, Oracle boosted its capital expenditure above $1 billion, compared with $436 million in the year-ago quarter. The move comes after executives wanted to have an infrastructure able to meet expected cloud demand.
Moreover, in June, Oracle announced the Oracle Support Rewards program meant to help customers speed migrations to the cloud while reducing their software license support costs. Through this, customers will earn at least 25 cents for each dollar of Oracle Cloud Infrastructure Universal Credits they purchase and consume.
For fiscal Q2 2022, Oracle expects the EPS to range between $1.09-$1.13 and the revenue to grow by as much as 5%.
Even though the latest quarterly figures came below expectations, impacting the value of its shares, the Oracle share price added 37% since the beginning of the year. USA500 is up about 19% over the same period.
Sources: cnbc.com, prnewswire.com
This information is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of sc.capex.com