Database and enterprise software giant Oracle (NYSE: ORCL) On Thursday, reported results for the first quarter of fiscal year 2021. 10. 10. The company posted a modest increase in revenue and a 15% bottom-line jump, returning to growth after a 6% revenue dip in the fourth quarter.
Investors were quick to embrace the Oracle report, with stock prices up 8% in early Friday trading.
Results from Oracle’s first-quarter numbers
|Metric||Q1 2021||Q1 2020||Change||Analyst consent|
|Revenue||$ 9.37 billion||$ 9.22 billion||1.6%||$ 9.2 billion|
|GAAP Net Income (Loss)||2.25 billion dollars||$ 2.14 billion||5.1%||N / A|
|Adjusted income (loss) per diluted share||$ 0.93||$ 0.81||15%||$ 0.86|
Oracle beat Wall Street expectations across the board and exceeded analysts’ current consensus estimates following second-quarter guidance. Software license sales increased 9% year-on-year while support services revenue fell 8%.
How Oracle is winning cloud computing customers today
On the earnings call, Oracle President Larry Ellison mentioned that his company’s cloud computing services are prominent in the market, with industry-leading customer satisfaction ratings and a unique combination of offerings under one roof. In particular, Ellison likes Oracle’s position against the sector leader Adventuress (NASDAQ: AMZN) Web Services.
“Customers are choosing Oracle Cloud Infrastructure and Oracle Autonomous Databases for some very basic and very obvious reasons: better security, much better reliability, better performance, and dramatically lower costs – much lower costs than AWS.” said.
Allison’s favorite customer
Alison’s eye apple is currently a videoconference specialist Zoom video communication (NASDAQ: ZM). The company will begin using Oracle’s cloud services in the fourth quarter of FY 2020. Zoom’s service fees will more than double in Q1 due to exponential growth in the company’s video-meeting platform. Oracle was able to support that furious development without breaking a sweat.
Allison said, “Zoom is a great example because it proves that Oracle Cloud is safe, reliable, high-performance and affordable.”
Ellison is a master at converting earning calls into promotional events, and was a classic example of his skills in that area. Highlighting that particular customer in this earnings report may inspire other future cloud computing customers to take a closer look at Oracle’s solutions. If Oracle Cloud is good enough for the hottest growth company of 2020, perhaps it can beat Amazon and others for other purposes as well.
Editors’ note: This article has been updated to clarify Zoom’s cloud computing relationship.