Oracle on Wednesday published better-than-expected third quarter financial results, in part driven by solid revenue growth from its cloud ERP businesses.
Oracle’s non-GAAP earnings per share came to $1.16. Total quarterly revenues were $10.09 billion, up 3 percent year-over-year.
Analysts were expecting earnings of $1.11 on revenue of $10.07 billion.
By segment, cloud services and license support revenues in Q3 were up 5 percent, reaching $7.3 billion. Cloud license and on-premise license revenues were up 4 percent to $1.3 billion. Hardware brought in $820 million, down 4 percent. Services brought in $737 million, down 5 percent.
Oracle’s Fusion Cloud ERP product saw its revenue increase by 30 percent year-over-year. Its NetSuite Cloud ERP revenue grew 24 percent.
“We continued to extend our huge lead in the cloud ERP market,” Oracle CEO Safra Catz said in a statement. “Oracle’s rapidly growing highly-profitable, multi-billion dollar cloud ERP businesses helped drive subscription revenue up 5% and operating income up 10% in the quarter. Subscription revenue now accounts for 72% of Oracle’s total revenues, and this highly-predictable recurring revenue-stream along with expense discipline are enabling double-digit increases in non-GAAP earnings per share.”
Oracle co-founder and CTO Larry Ellison noted in a statement that Oracle in Q3 “signed contracts totaling hundreds of millions of dollars to migrate several more large companies from SAP ERP to Oracle Fusion ERP.”
Ellison also touted the growth of Oracle’s cloud infrastructure business. Including Autonomous Database sales, revenue was up over 100 percent.
“We are opening new regions as fast as we can to support our rapidly growing multi-billion dollar infrastructure business,” he said. The company aims to have 36 regions up and running by this summer.
Oracle also announced that its board of directors declared a quarterly cash dividend of 32 cents per share of outstanding common stock.