Financial Apps Fusion and NetSuite Show Strong Growth
Oracle Corporation announced higher-than-expected quarterly revenue, boosted by strong cloud sales and increased corporate IT demand.
According to a release, the company’s shares rose over 10% in extended trading, while revenues surged 5.7 percent to $ 10.4 billion in the second fiscal quarter.
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Oracle, the world’s second-largest software producer by sales, has been struggling for years to build its cloud computing business and bridge the enormous market share gap with Amazon.com Inc. The excellent performance boosts Oracle, which has been struggling for years to build its cloud computing business and reduce the large market share gap with Amazon.com Inc.
The revenue gain marked the company’s sixth consecutive quarter of sales growth over the same period last year. “These exceptional results are driven by our cloud infrastructure and apps, which produce nearly $ 11 billion in yearly revenues,” said Chief Executive Officer Safra Katz in a statement.
Fusion and NetSuite, two enterprise resource planning (ERP) solutions, increased their revenue by 35% and 39%, respectively.
Oracle’s long-term prosperity is dependent on this segment. Most organizations are unlikely to change their ERP system, which consists of complex programs that cover a wide variety of company tasks as well as specialist applications such as HR software.
“They want to keep track of their development in this area. This offers up numerous cross-selling potential for Oracle in other industries.” Trevor White, research manager at Nucleus Research Inc., agreed.
Oracle shares rose to a high of $ 98.70 in extended trading on Thursday after closing at $ 88.77 in New York. The stock has gained by 37% this year. The company recently announced a $ 10 billion increase in its share repurchase authorization.