Oracle Corp\u2019s streak of revenue gains continued for a fifth straight quarter, buoyed by corporate demand for cloud-based software.<\/p>\n
Adjusted sales rose 7% to $9.21 billion in the fiscal first quarter, exceeding analysts\u2019 estimates, as sales of cloud-based products continued to make up a bigger portion of the total. Profit also topped average projections, helped by holding down growth in operating expenses.<\/p>\n
Oracle executives are investing in new products and hiring more salespeople to add revenue from cloud-related products, which let businesses access software and services via the internet instead of running the programs from their own systems.<\/p>\n
Cloud-based sales jumped 51% during the quarter ended Aug 31, the company said Thursday in a statement.<\/p>\n
Oracle already counts many of the largest corporations in the world as customers, and has been increasingly pushing to switch these clients\u2019 business-software purchases to the cloud.<\/p>\n
\u201cThey\u2019re leveraging their existing relationships to sell a lot more cloud stuff,\u201d said Patrick Walravens, an analyst at JMP Securities. \u201cIt\u2019s been working so far.\u201d<\/p>\n
Shares of Redwood City, California-based Oracle rose as much as 2.2% in extended trading after the report. Investors have been encouraged by the company\u2019s success in selling cloud-based software this year, sending the shares up 37% to records.<\/p>\n
New software licenses, a measure that\u2019s tied to the company\u2019s traditional installed on-premise software offerings, declined 6.2%. That compares with a drop of 5% in the prior period.<\/p>\n
Revenue from cloud-based applications, including programs that help companies handle finance and human resources tasks – climbed 62%. The other part of the cloud business – which includes databases and access to raw computing power – rose 28%.<\/p>\n
Revenue, adjusted for items such as contract terms, was $9.21 billion compared with analysts\u2019 projection of $9.03 billion, according to data compiled by Bloomberg. Profit excluding certain costs was 62 cents a share, topping the average estimate of 60 cents.<\/p>\n
Oracle has propped up growth by adding employees and making acquisitions. The company is hiring 5,000 employees for its internet-based software business in the U.S., on top of more than 4,000 already brought on this year. The software maker also has been adding workers in Europe and other regions.<\/p>\n
Last year, the company acquired NetSuite, a provider of cloud-based financial services, for about $9 billion, one of its largest deals ever.<\/p>\n