Oracle (ORCL) Misses Q4 EPS by 9c
- Wall St gains with upbeat earnings and forecasts
- Amazon (AMZN) Tops Q2 EPS by $2.90, Revenue Misses, Q3 Guidance Falls Short of Consensus
- Robinhood (HOOD) IPO Opens Flat
- Didi (DIDI) Gains on WSJ Report It Considers Going Private, Company Denies
- Facebook (FB) Tops Profit and Revenue Estimates, But Shares Lower on Warning of Significant Growth Slowdown, Analyst Still Raises PT to a New 'Street High'
Oracle (NYSE: ORCL) reported Q4 EPS of $0.78, $0.09 worse than the analyst estimate of $0.87. Revenue for the quarter came in at $10.7 billion versus the consensus estimate of $10.95 billion.
"We sold an astonishing $426 million of new SaaS and PaaS annually recurring cloud subscription revenue in Q4," said Oracle CEO, Safra Catz. "We expect our rapidly increasing cloud sales to quickly translate into significantly more revenue and profits for Oracle Corporation. For example, SaaS and PaaS revenues grew at a 34% constant currency rate in our just completed Q4, but we expect that revenue growth rate to jump to around 60% in constant currency this new fiscal year."
"Coming into Q4, we forecast selling $300 million of new SaaS and PaaS annual recurring revenue," said Oracle CEO, Mark Hurd. "We dramatically beat that forecast by selling a cloud industry all-time-record amount of $426 million of new SaaS and PaaS business. That is a year-over-year bookings growth rate of over 200%. As our multi-billion dollar cloud business gets bigger, our SaaS and PaaS revenue growth rates are on their way up to 60% in constant currency. Compare this to our primary cloud competitors' whose own revenue growth forecasts are on their way down to 44% and 22%."
"We expect to book between $1.5 and $2.0 billion of new SaaS and PaaS business this fiscal year," said Oracle Executive Chairman and CTO Larry Ellison. "That means Oracle would sell more new SaaS and PaaS business than salesforce.com plans to sell in their current fiscal year -- the only remaining question is how much more. Oracle's planned SaaS and PaaS revenue growth rate is around 60% in constant currency; salesforce.com has a planned growth rate of around 20%. When you contrast those growth rates it becomes clear that Oracle is on its way to becoming the world's largest enterprise cloud company."
Oracle said it is changing how it gives guidance and is dropping GAAP coverage. The company's forecast will be in constant currency.
Oracle sees Q1 adjusted EPS of $0.56 - $0.59, which may not compare with the consensus calling for EPS of $0.61. The company sees Q1 revenue growth of 5 - 8 percent.
For earnings history and earnings-related data on Oracle (ORCL) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pinterest (PINS) Tops Q2 EPS by 12c, U.S. MAUs Fall 7%, Offers Guidance
- CareDx (CDNA) Tops Q2 EPS by 9c
- Financial Institutions (FISI) Tops Q2 EPS by 45c
Create E-mail Alert Related CategoriesEarnings, Guidance, Hot Earnings, Hot Guidance, Management Comments
Related EntitiesMark Hurd, Larry Ellison, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!