Oracle Brags About Autonomous Database

Oracle (NYSE: ORCL) recently announced its first-quarter results and the market is not at all impressed. The continued slowdown of revenue growth in the past few quarters coupled with the news that its co-CEO Mark Hurd was taking an indefinite leave of absence due to illness did not go down well with the market. The stock fell nearly 5% following the result announcement.

Oracle’s Financials

Oracle advanced its result announcement by a day and reported revenues for the first quarter at $9.22 billion, a modest 0.3% growth over the year and missing the market’s forecast of $9.29 billion. Oracle attributed the miss in revenues to a sales force reorganization in North America that resulted in a lower than expected software license revenue. EPS of $0.81 was in line with the market expectations.

By segment, cloud services and license support revenues grew 3% to $6.81 billion. Cloud licenses and on-premise license revenues fell 6% annually to $812 million, missing analysts’ expectations of $865 million. Hardware revenues fell 10% to $815 million and the services segment revenues fell 3% to $786 million for the quarter.

Oracle’s total cloud and license revenues grew 2% over the year to $7.62 billion. Applications revenues were up 2% to $2.82 billion and infrastructure-related revenues grew 2% to $4.8 billion.

The board authorized a $15 billion stock repurchase and also announced a payment of a quarterly dividend of $0.24 per share.

For the second quarter, Oracle expects to report an EPS of $0.87–$0.89, compared with the market’s forecast of $0.89.

Oracle Counts on Autonomous Database

Oracle continued to go head-on with Amazon yet again by boasting about its ML-backed Autonomous Database. Earlier last month, there was a hack attack on Capital One that runs on AWS. The attack, which impacted 106 million users, was primarily a result of a configuration issue. Oracle believes that the Autonomous Database is a “game-changer” and is above these errors. It minimizes human intervention and does not allow them to configure the system. Instead, the system configures itself automatically, patches itself while running, backs up data on its own when needed, and encrypts the user’s data automatically.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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