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Oracle Shares Rise After Strong Q4 Results Driven by Cloud Growth
Oracle, the enterprise software company, posted better-than-expected results for Q4 2021, leading to an increase in share prices by 3.5% in after-hours trading and 6.1% in the regular session. Investors had their focus on the outlook for the company’s cloud business, which saw a boost from generative AI companies. Oracle reported revenue of $13.8 billion, up 17% as reported and 18% in constant currency. Non-GAAP profit was $1.67 a share, a dime above Wall Street’s consensus.
Oracle’s Cloud-related Business Sees 54% Revenue Growth in Q4
Oracle’s cloud business saw a revenue growth of 54% in Q4 2021, well above street estimates of around 50%. Cloud-related revenue in the quarter was $1.4 billion, up 76% as reported or 77% adjusted for currency. Cloud applications revenue stood at $3 billion, up 45% in reported currency or 47% adjusting for foreign exchange.
Oracle Recently Signed 30+ AI Development Companies in Gen 2 Cloud
Oracle announced that it had recently signed up with more than 30 AI development companies, collectively committing to purchasing $2 billion of capacity in Oracle’s Gen 2 cloud. Oracle founder Larry Ellison highlighted the new partnership with AI software company Cohere, which helps customers build their own AI models while protecting their data.
Oracle Sees Q1 2022 Revenues up 8%-10% With Cloud Revenue up 28%-30%
Oracle’s guidance for Q1 2022 predicts revenues between an 8%-10% growth. The company sees its cloud-based revenue for the quarter, excluding Cerner, a healthcare systems provider, up by 28% to 30%. CEO Safra Catz also predicts that cloud demand will grow at least the same rate (or more) in 2024 as in 2023, with the company remaining committed to its previous forecast of $65 billion in sales by 2026.
Oracle’s Aggressive Push into Cloud Leads to 70% Stock Rally
Oracle’s aggressive push into the cloud, including the launch of Oracle Cloud, has led to a strong performance, with the stock rallying 70% since October 2020. The company’s edge, according to CEO Safra Catz, is its faster, cheaper, and more secure cloud platform. Additionally, Oracle’s strong customer relationships and partnership with Nvidia, which supplies chips to almost every cloud provider, add to its compelling position in the AI market.
FAQs
1. What is Oracle?
Oracle is an enterprise software company that provides a range of services, including cloud computing, database management, and enterprise resource planning applications.
2. What were Oracle’s Q4 2021 results?
Oracle’s Q4 2021 results saw revenue of $13.8 billion, up 17% as reported and 18% in constant currency. Non-GAAP profit was $1.67 a share, a dime above Wall Street’s consensus.
3. What was Oracle’s cloud-related growth in Q4 2021?
Oracle’s cloud-related revenue in Q4 2021 saw a growth of 54%, well above street estimates of around 50%. Cloud-related revenue in the quarter was $1.4 billion, up 76% as reported or 77% adjusted for currency.
4. How has Oracle’s aggressive push into the cloud impacted its stock?
Oracle’s aggressive push into the cloud has led to a rally in its stock prices by 70% since October 2020. The company’s faster, cheaper, and more secure cloud platform have helped it forge strong customer relationships, and its partnership with Nvidia, which supplies chips to almost every cloud provider, has helped position the company in the AI market.
5. What are Oracle’s predictions for Q1 2022 and beyond?
Oracle predicts Q1 2022 revenues between an 8%-10% growth. The company expects its cloud-based revenue for the quarter, excluding Cerner, a healthcare systems provider, to be up by 28% to 30%. CEO Safra Catz also predicts that cloud demand will grow at least the same rate (or more) in 2024 as in 2023, with the company remaining committed to its previous forecast of $65 billion in sales by 2026.
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