Oracle reports 18% revenue growth after Cerner deal closes

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  • Oracle came in short in profit, but its revenue met expectations.
  • The company closed its $28 billion acquisition of health data software maker Cerner in the quarter.
  • According to a statement, revenue growth in the quarter ended August 31 accelerated from 5% posted in the previous quarter.

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Oracle reported revenue that met expectations on Monday, while earnings and quarterly guidance came in below analysts’ estimates.

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Revenue climbed 18% in the year-ago quarter due to contributions from recently acquired software maker Cerner.

Here’s how the company did it:

  • Earnings: According to Refinitiv, $1.03 per share, adjusted, versus $1.07 per share as analysts expected.
  • revenue: According to Refinitiv, $11.45 billion versus $11.45 billion expected by analysts.
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Revenue growth for the quarter ended August 31 accelerated from the 5% posted in the prior quarter, a . According to Statement,

Oracle receives $1.4 billion contribution from Cerner after $28 billion acquisition closed during the quarter.

Net income declined to $1.55 billion from $2.46 billion in the year-ago period. Oracle said it would have seen 8 cents higher adjusted earnings per share if it weren’t for unfavorable foreign exchange rates.

Oracle’s cloud services and license-support category generated revenue of $8.42 billion, up 14% and above StreetAccount’s consensus of $8.27 billion.

CEO Safra Katz said in a statement that Oracle’s application and infrastructure cloud businesses now represent more than 30% of total revenue. Quarterly revenue from cloud infrastructure jumped 52% to $900 million.

In addition to completing the Cerner deal, Oracle announced Availability of its database software through Microsoft’s Azure public cloud, which runs on Oracle’s own cloud infrastructure.

With respect to guidance, Oracle said it expects $1.16 to $1.20 in adjusted earnings per share and 15% to 17% revenue growth in the fiscal second quarter. Analysts surveyed by Refinitiv were looking for $1.27 per share and $12.17 billion in revenue, representing growth of about 18%.

Catz said he expects exchange rates to have a 5% to 6% negative impact on revenue in the current quarter and take a hit on earnings per share of up to 7 cents.

Oracle co-founder, president, and technology chief Larry Ellison boasted about additional business coming to Oracle Cloud Infrastructure, or OCI.

“I am personally talking to some of the most well-known brands in Amazon that are running on AWS,” he said. “And the AWS bill is going to be huge. And they can save a huge amount by going to OCI. And I expect some brands to be announced next quarter, some companies are moving from Amazon to OCI that will surprise you. . I’ll stop there.”

Excluding the after-hours move, Oracle’s shares are down about 12% year to date; The S&P 500 is up about 14% year to date.

watch: Guggenheim’s Diffucci reveals what separates good and bad security software companies

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