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Oracle quarterly results beat on its own strength in the cloud business

FILE PHOTO: People gather prior to the start of a keynote speech at the All Things Oracle OpenWorld Summit in San Francisco, California on September 24, 2013. REUTERS/Jana Asenbrennerova/File Photo

(Reuters) – Business software maker Oracle Corp beat Wall Street estimates for quarterly results on Monday, as it looks more and more customers to the cloud services and the license for the support of the business community, sending the shares up almost 4 percent in the extended trade.

The turnover of the unit, the largest, rose 2.7 percent to $6.64 billion, as more companies shift to cloud computing from traditional on-premise model to save costs.

Analysts on average were expecting a revenue of $6.62 billion, according to the IBES data of Refinitiv.

Oracle, a late entrant to the fast-growing cloud-based software business, has aggressively stepped up its efforts to catch up with rivals such as Amazon.com Inc, Microsoft Corp and Salesforce.com Inc.

The net profit rose to $2.33 billion, or 61 cents per share, in the second quarter that ended Nov. 30, from $2.21 billion, or 52 cents per share, a year earlier.

Excluding items, the company earned 80 cents per share, beating the average analyst estimate of 78 cents per share.

The total revenue decreased to $9.56 billion from $9.59 billion, but beat analyst expectations of $9.52 billion.

Shares of Oracle, which lost almost 4 percent this year, rose to $47.35 in after-market trading.

Reporting by Vibhuti Sharma in Bengaluru; Editing by Arun Koyyur

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