- Oracle beat Wall Street’s profit estimates, but fell short on revenue, which the company attributed to the impact of COVID-19.
- “As the quarter progressed, we saw a drop off in deals, especially in industries, most affected by the pandemic,” CEO Safra Catz told analysts on the company’s earnings call. The stock slid about 4%.
- But chairman and founder Larry Ellison touted the tech giant’s in the cloud, pointing to major customer wins against rival Amazon, including video conferencing platforms Zoom and 8X8.
- “As people compare our cloud infrastructure to AWS and Azure and the rest, they’re going to pick our cloud,” Ellison told analysts on the earnings call. “Once they look, we win.”
- Oracle reported a quarterly profit of $3.12 billion, or 99 cents a share, compared to a profit of $3.74 billion, or $1.07 cents a share for the year-earlier period. Revenue slipped 4% to $10.4 billion. Adjusted profit was $1.20 a share. Analysts were expecting a profit of $1.16 a share on revenue of $10.69 billion.
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Oracle posted weaker-than-expected sales during its fourth quarter earnings as the tech giant saw “a drop off in deals” due to the coronavirus crisis.
While the tech giant exceeded Wall Street expectations on the bottom line, the stock still slipped about 4% after-hours.
“As the quarter progressed, we saw a drop off in deals, especially in industries most affected by the pandemic,” CEO Safra Catz told analysts on the company’s earnings call. She cited the hospitality, retail, and transportation industries as some of the hardest hit, and said that some customers were forced to delay their payments.
Oracle reported a fiscal fourth quarter profit of $3.12 billion, or 99 cents a share, compared to a profit of $3.74 billion, or $1.07 cents a share for the year-earlier period. Adjusted profit was $1.20 a share. Revenue slipped from $11.14 billion for the year-earlier-period to $10.44 billion in Q4. Analysts were expecting a profit of $1.16 a share on revenue of $10.69 billion.
While Oracle’s stock sank after-hours, it has rallied recently as the tech market has recovered. Revenue aside, Oracle also boasted about some notable customer wins in the cloud, where it competes with — and lags behind — market leaders Amazon Web Services and Microsoft Azure.
Founder and chairman Larry Ellison used Tuesday’s earnings call to highlight recent gains against its archrivals, including new deals with video conferencing platforms Zoom and 8X8.
“As people compare our cloud infrastructure to AWS and Azure and the rest, they’re going to pick our cloud,” Ellison told analysts on the earnings call. “Once they look, we win.”
But Jefferies analyst Brent Thill was unimpressed with Oracle’s report, telling clients in a note that the company’s overall results — particularly a 22% year-over-year drop in license revenue — suggest it was actually losing share to Amazon and Microsoft.
Valoir analyst Rebecca Wettemann also downplayed the significance of Oracle’s recent customer wins.
“Oracle can’t depend on customers moving to the cloud in general to save it,” she told Business Insider. “Companies are not making big cloud moves right now, but mostly small moves, which aren’t enough to move the needle.”
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