Oracle beats Q4 expectations as cloud applications gain momentum | ZDNet

Oracle on Tuesday published its fourth quarter financial results, with better-than-expected top and bottom line results. The database giant reported an accelerating growth rate among cloud applications. 

Non-GAAP net income was up 20 percent to $4.5 billion, with non-GAAP earnings per share reaching $1.54. Total quarterly revenues were up 8 percent year-over-year to $11.2 billion.

Analysts were expecting earnings of $1.31 per share on revenue of $11.04 billion. 

For the full fiscal year 2021, non-GAAP earnings per share was up 21 percent to $4.67. Fiscal year 2021 total revenues were up 4 percent year-over-year to $40.5 billion. 

“Our Q4 performance was absolutely outstanding with total revenue beating guidance by nearly $200 million, and non-GAAP earnings per share beating guidance by $0.24,” Oracle CEO Safra Catz said in a statement. “Our multi-billion dollar Fusion and NetSuite cloud applications businesses saw dramatic increases in their already rapid revenue growth rates.”

As Catz noted, Fusion ERP was up 30 percent in Q3 and up 46 percent in Q4. Fusion HCM was up 23 percent in Q3 and up 35 percent in Q4. NetSuite was up 24 percent in Q3 and up 26 percent in Q4. 

In terms of cloud infrastructure revenue in Q4, Gen2 Cloud plus Autonomous Database was up over 100 percent.

“The accelerating growth rates of both our applications and infrastructure cloud businesses this year drove earnings per share growth up to 21 percent in FY21,” Catz said. “That is the fourth consecutive year of double-digit earnings per share growth at Oracle Corporation.” 

By segment, cloud services and license support revenues in Q4 were up 8 percent, reaching $7.4 billion. Within that category, applications cloud services and license support brought in $3.04 billion, up 11 percent, while infrastructure cloud services and license support brought in $4.35 billion, up 6 percent.

For the full year, cloud services and license support revenues were up 5 percent to $28.7 billion. 

Cloud license and on-premise license revenues were up 9 percent to $2.1 billion. Hardware brought in $882 million, down 2 percent. Services brought in $812 million, up 11 percent.

For the full year, cloud license and on-premise license revenues were up 5 percent to $5.4 billion.