Oracle saw strong growth in its cloud offerings, even as investors sold shares because the company missed expectations.
Oracle said that cloud-based software-as-a-service and platform-as-a-service revenues were up 25% year-over-year to $322 million, and cloud infrastructure-as-a-service revenues were up 13%. Cloud has been a source of strength for Oracle in recent quarters, with triple-digit growth in cloud-based platforms reported.
Overall, Oracle’s fiscal fourth quarter net income was down 4% to $3.6 billion, although total revenues were up 3% for the year to $38.3 billion.
For fiscal 2014, software and cloud revenues were up 5%, and cloud SaaS and PaaS grew 23% to $1.1 billion. Oracle’s new software license revenues were flat at $9.4 billion, as was total hardware system revenues at $5.4 billion.
Currency exchange rates changes in Venezuala impacted the company for another quarter.
“Our cloud subscription business is now approaching a run rate of $2 billion a year,” said Oracle President and CFO Safra Catz. “As our business has transitioned, more software revenues are being recognized over the life of a subscription rather than upfront. We’re making this transition to cloud subscriptions and ratable revenue recognition while continuously increasing our top-line revenue and our bottom-line profits year-after-year.”
CEO Larry Ellison said that Oracle is now the second-largest SaaS company in the world, behind only salesforce.com.
Sales of the company spiked above $43 briefly on Thursday, only to fall to around $42.51.
Check out Oracle’s takeaways from the recent TM Forum Live event here.
