Oracle shares fell in after-hours trading on Monday, after the tech giant published mixed first quarter financial results. Oracle failed to meet the market’s revenue expectations. Still, Oracle touted its cloud growth, noting that its IaaS and SaaS businesses brought in 25% of quarterly revenue.
Oracle’s non-GAAP net income was up 2% to $2.9 billion, with non-GAAP earnings per share reaching $1.03. Total quarterly revenues were up 4% year-over-year to $9.7
Analysts were expecting earnings of 97 cents per share on revenue of $9.77 billion.
“Q1 results were excellent as constant currency revenue beat guidance by $100 million with all revenue segments exceeding forecast, and Non-GAAP earnings per share beating guidance by $0.08,” CEO Safra Catz said in a statement. “Oracle’s two new cloud businesses, IaaS and SaaS, are now over 25% of our total revenue with an annual run rate of $10 billion. Taken together, IaaS and SaaS are Oracle’s fastest growing and highest margin new businesses. As these two cloud businesses continue to grow they will help expand our overall profit margins and push earnings per share higher.”
Fusion ERP cloud revenue was up 32%, while NetSuite ERP cloud revenue was up 28%.
By segment, cloud services and license support revenues in Q1 were up 6%, reaching $7.4 billion. Within that category, applications cloud services and license support brought in $3.04 billion, up 8%, while infrastructure cloud services and license support brought in $4.3 billion, up 5%.
Cloud license and on-premise license revenues were down 8% to $813 million. Hardware brought in $763 million, down 6%. Services brought in $781 million, up 8%.
Meanwhile, Oracle’s board of directors declared a quarterly cash dividend of 32 cents per share of outstanding common stock.