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$ORCL nears halfway to achieving its annual cloud revenue target of $10Bil, as it posted revenue of $4.5Bil for FY17. The software giant had earlier proclaimed it will challenge $CRM in a race to $10Bil in annual cloud-software revenue. For 4Q17, the company posted 58% rise in its cloud revenue to $1.4Bil.
Making up of 16% of the company's overall revenue, $ORCL's cloud revenue came in at $1.5Bil, up 44% YoY. Of that sum, $1.1Bil was attributed to Software as a Service and $396MM to Platform- and Infrastructure-as-a-Service, up 55% and 21%, respectively.
Profit of $ORCL grew 10% YoY in the second quarter of fiscal 2018 as the tech giant continues to focus on growing its could computing business. For the quarter, the company reported earnings of $2.23Bil, or $0.52 per share, on revenue of $9.6Bil, which is up 6%. Excluding certain items, the company's earnings were $0.70 per share, up 14% YoY.
With customers like $BAC and $T, $ORCL is confident of taking market share across the applications ecosystem. Oracle's app business grew 17% in 1Q18 with large marquee customer wins across Cloud portfolio. Oracle said its app business growth rate in the Cloud is higher than other players and sells double of what $CRM sells in absolute dollars.
$ORCL will become the world's first fully autonomous database when it delivers its next generation of the Oracle database by the end of this calendar year. Customers moving from Amazon's Redshift to Oracle's autonomous databases can expect to cut their cost in half or more, said the company.
$ORCL saw expanded gross margin for its SaaS business during 1Q18 as the business continues to scale and grow dramatically. The gross margin for SaaS was 67%; up from 59% last Q1. The company said it is committed to its goal of 80% SaaS gross margin, possibly as soon as sometime in FY19.
$ORCL, in its 1Q18 conference, said the customer adoption of its cloud products and services continue to be very, very strong and on-premise business remains very resilient. But the software giant continues to lose momentum in its new software licenses and hardware businesses, which saw revenue decline 6% and 5%, respectively, during the quarter.
$ORCL’s cloud revenue for 2Q18 grew 51% YoY, but it still makes up only 16% of overall revenue of $9.2Bil. Cloud software-as-a-service, the largest category within cloud computing business, saw revenue growing 62%. "With SaaS revenue up 62%, our cloud applications business continues to grow more than twice as fast as Salesforce.com," said Oracle.
Profit of $ORCL grew in the first quarter of fiscal 2018 as the enterprise software maker gains momentum with its cloud-computing expansion. For the quarter, the company reported a 21% YoY growth in earnings to $2.2Bil, or $0.52 per share. Excluding certain items, the company's earnings were $0.62 per share.
$ORCL sees revenue for 1Q18 to grow in 4% to 6% range with cloud revenue, inducing SaaS, PaaS and IaaS, growing between 48% and 52%. Non-GAAP EPS on constant currency is expected to be between $0.59 and $0.61 for 1Q18, up from $0.55 last year, said the company.
$ORCL saw an annual profit growth for the first time since FY14. The company posted earnings of $2.21 per share for the fiscal 2017, nearly 7% increase compared to 2016. Revenue also grew 2% to $37.7Bil, as the company's cloud SaaS revenue rose 61% and Cloud PaaS and IaaS revenue rose 60%.