Oracle (ORCL) Misses Q4 EPS by 9c

June 17, 2015 4:00 PM EDT
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Price: $87.63 +0.52%

EPS Growth %: +28.3%

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Total revenues: 8.6B

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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 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; 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.

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