Oracle Q2 Earnings And Revenues Surpass Estimates

Infrastructure related revenues (59%) were $4.211 billion, up 4% on a year-over-year basis (up 3% at cc).

Meanwhile, Cloud license and on-premise license revenues (11% of total revenues) declined 3% year over year (down 5% at cc) to $1.092 billion.

Hardware revenues (9% of total revenues) were $844 million, down 3% (down 3% at cc) on a year-over-year basis.

Oracle Corporation Price, Consensus and EPS Surprise

Oracle Corporation Price, Consensus and EPS Surprise

Oracle Corporation price-consensus-eps-surprise-chart | Oracle Corporation Quote

Services revenues (8% of total revenues) declined 7% (down 8% at cc) to $806 million.

Revenues by Geography

Revenues from Americas (representing 54% of total revenues) declined 0.8% year over year to $5.259 billion.

Revenues from Europe/Middle East/Africa (29%) improved 5.8% from the year-ago quarter’s figure to $2.852 billion.

Revenues from Asia Pacific (17%) increased 4.6% from the year-ago quarter level to $1.689 billion.

Expanding Clientele Remains Noteworthy

Strategic back-office applications business improved 26% with surge in retention rates. Management announced that Fusion HCM, NetSuite ERP and Fusion ERP businesses were up 24%, 20% and 33%, respectively, in the fiscal second quarter. Fusion ERP has customer strength of more than 7,500.

Markedly, autonomous database consumption revenues improved 64% and annualized consumption revenues for Oracle Cloud Infrastructure (OCI) services soared 139%.

Additionally, the company is witnessing strong growth in Cloud HCM, which is increasingly being purchased as part of the company’s ERP cloud application suite. Further, the migration of several large-scale SAP customers to Fusion ERP cloud and Fusion HCM remains a tailwind.

Expanding clientele is enabling the company to maintain leading position in cloud ERP market. Management is optimistic on latest Fusion Cloud ERP deal wins from companies including Aegon, Coppel, New Zealand Ministry of Social Development, Astec Industries (ASTE - Free Report), First Solar (FSLR - Free Report), and KPMG Lower Gulf. Key Fusion Cloud HCM wins include Abdul Latif Jameel Enterprises, Home Office (UK), and Federated Co-operatives Limited.

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