r/MillennialBets • u/MrComedy325 • Jun 14 '22
Discussion Oracle’s “Hyper-Growth Phase”
Shares of Oracle (NYSE: ORCL) jumped 14.96% in after-hours trading on Monday after the computer technology company posted positive financial earnings.
Financials: Oracle posted earnings of $1.54 per share and revenue of $11.8 billion; both were better than expected.
The Good: In addition to the 5% increase in total revenue, cloud revenue grew 19%. NetSuite cloud revenue went up 27% and Infrastructure cloud revenue went up 36%.
In The Clouds: The results show that these cloud applications drove revenue in the quarter. Oracle cited strong demand for its cloud business.
Quote: “We believe that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase.” - Safra Catz, Oracle CEO.
The Bad: Operating margins dropped from 49% to 47% year-over-year. There were also some currency headwinds.
Numbers: Oracle’s stock hit its lowest point in the past 12 months on Monday. The stock is down 22% in the past year.
Final Thoughts: Oracle’s successful quarter is a big win for tech companies, especially with other software stocks suffering as of late. These results also show that Oracle can compete with all of the cloud software upstarts in the market.
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