Oracle beats by $0.03, reports revs in-line
- Reports Q2 (Nov) earnings of $0.63 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.60; revenues fell 6.4% year/year to $9 bln vs the $9.06 bln Capital IQ Consensus, unchanged in constant currency vs. -2 to +1% guidance.
- Cloud plus On-Premise Software Revenues were $7.0 billion, down 4% in U.S. dollars and up 2% in constant currency.
- Total Cloud Revenues were $649 million, up 26% in U.S. dollars and up 31% in constant currency.
- "We grew our SaaS and PaaS revenue 38% in constant dollars this past quarter, and we expect that revenue growth rate to accelerate to nearly 50% in Q3 and close to 60% in Q4. This rapid increase in our cloud revenue will help drive our SaaS and PaaS cloud gross margins from 43% in Q2 to approaching 60% in Q4 and drive significant EPS growth in Q4."
- "We are still on-target to sell and book more than $1.5 billion of new SaaS and PaaS business this fiscal year [previously targeted $1.5-2.0 bln]," said Oracle Executive Chairman and CTO Larry Ellison. "That is considerably more SaaS and PaaS new business than any other cloud services provider including salesforce.com."
Guidance:
- Q3: SaaS and PaaS revenue is expected to grow between 49 and 53%. Cloud IAS revenue is expected to grow between 3-7% Total cloud and on premises software is expected to grow 3-4%. Total revenue growth is expected to range from zero to positive three. Q3 Non-GAAP EPS in Constant currency is expected to be $0.63-0.66 may not compare to $0.65 Capital IQ consensus
- Q4: SaaS and pas revenue is expected to grow between 59 -- 65 and 59%. Many cloud IAS revenue is expected to grow 1-5%. Total cloud and on premises software is expected to grow between 2-4%. Total revenue growth is expected to range from 1-3%.