TLDR:
- Oracle’s Q1 fiscal 2025 earnings beat estimates, with non-GAAP EPS of $1.39
- Cloud services and license support revenues increased 10% year-over-year
- Total cloud revenues grew 22% to $5.6 billion
- Oracle announced a multi-cloud partnership with Amazon Web Services
- The company’s remaining performance obligation (RPO) is over $99 billion, up 52%
Oracle Corporation, a leading provider of enterprise software and cloud services, has reported its first-quarter fiscal 2025 earnings, showcasing strong growth in its cloud business and a new partnership with Amazon Web Services (AWS).
The company’s financial results and strategic moves have positioned it well in the competitive cloud computing market.
For the quarter ending August 31, 2024, Oracle reported non-GAAP earnings of $1.39 per share, surpassing analysts’ expectations by 5.3% and marking a 16.8% increase from the previous year. Total revenues rose 6.9% year-over-year to $13.3 billion, slightly exceeding market estimates.
The company’s cloud services and license support segment, which includes its Oracle Cloud Infrastructure (OCI) business, was a key driver of growth.
Revenues in this category increased 10% year-over-year to $10.51 billion. Total cloud revenues, comprising Software as a Service (SaaS) and Infrastructure as a Service (IaaS), grew by an impressive 22% to reach $5.6 billion.
Oracle’s Cloud Infrastructure (IaaS) revenues showed particularly strong momentum, increasing by 45% to $2.2 billion. The company’s strategic cloud applications, including Fusion Cloud ERP and NetSuite Cloud ERP, also performed well, with revenue growth of 16% and 20% respectively.
Another development during the quarter was Oracle’s announcement of a multi-cloud partnership with Amazon Web Services.
This collaboration will allow customers to access Oracle’s database services, including Oracle Autonomous Database and Oracle Exadata Database Service, directly within the AWS environment. The partnership aims to provide a unified experience for customers using both OCI and AWS, simplifying database administration and offering integrated billing and support.
Oracle’s CEO, Safra Catz, emphasized the company’s focus on AI-driven innovation, stating,
“Our OCI business continues to see strong demand from AI-focused startups and enterprises looking to leverage our advanced cloud capabilities.”
The company’s financial position remains solid, with cash and marketable securities totaling $10.9 billion as of August 31, 2024. Operating cash flow for the trailing twelve months amounted to $19.12 billion, while free cash flow reached $11.27 billion.
Looking ahead, Oracle provided guidance for the second quarter of fiscal 2025. The company expects total revenues to grow between 7% and 9% in constant currency, with total cloud revenues projected to increase by 23% to 25%. Non-GAAP earnings per share are anticipated to grow between 6% and 10% in constant currency.
Oracle’s strong performance in the cloud segment and its strategic partnership with AWS reflect the company’s ongoing efforts to strengthen its position in the competitive cloud computing market.
The company’s focus on AI-driven solutions and its ability to attract both startups and established enterprises to its cloud platform suggest potential for continued growth in the coming quarters.
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