A strong US dollar again weighed on revenue growth at Oracle in its third quarter, taking some gloss off a result that saw the company eke past both sales and earnings expectations.
Revenue fell 1 per cent from a year ago to $9.6bn in the three months to February 28, which was about $280m ahead of the median expectation among analysts surveyed by Refinitiv. Adjusting for foreign exchange moves, though, revenue was 3 per cent higher than a year ago.
Sales for its cloud services and license support, which represents 69 per cent of group revenue, increased 1 per cent from a year earlier, while sales from its cloud license and on-premise license, hardware and services divisions were all down.
Oracle reported net income of $2.8bn compared to a loss of about $4bn last year, while earnings of 76 cents a diluted share topped Wall Street estimates by 11 cents. Adjusted earnings of 87 cents were up 8 per cent from a year ago and were 3 cents ahead of market forecasts.
Safra Catz, chief executive, said she was pleased with the company’s adjusted results. “Our overall operating margin improved to 44 per cent as our lower margin hardware business continued to get smaller while our higher margin cloud business continued to get bigger,” she said in a statement.
“With year-to-date [adjusted] EPS growth rate now at 16 per cent in constant currency, we will comfortably deliver another year of double-digit EPS growth,” Ms Catz added.
Shares were down 0.4 per cent in after-hours trade on Thursday.