Database software giant Oracle Corporation (NYSE:ORCL) was wanted this morning after topping expectations with its quarterly numbers.
The shares were up 7.4% at US$46.20, hitting levels not seen since the year 2000, as underlying earnings per share (i.e. excluding one-off items) clocked in at 69 cents for the lumbering tech leviathan’s fiscal third quarter.
Wall Street had expected earnings per share of 62 cents.
Sales of US$9.3bn were up from US$9bn in the corresponding period a year earlier, in line with expectations.
Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were US$1.0 billion, up 73% year-on-year.
Total Cloud Revenues, including infrastructure as a service (IaaS), were US$1.2 billion, up 62% on a year earlier
Total Cloud and On-Premise Software Revenues were US$7.4 billion, up 4% from the year before.
"The hyper-growth we continue to experience in the cloud has rapidly driven both our SaaS and PaaS businesses to scale," said Oracle’s joint chief executive officer, Safra Catz.
"On an annualized non-GAAP basis, our total cloud business has reached the $5 billion mark, and our SaaS and PaaS businesses grew at the astonishing rate of 85% in Q3. That growth and the resulting scale enabled our SaaS and PaaS businesses to increase non-GAAP gross margins to 65%,” Catz continued.
“Our new, large, fast growing, high-margin cloud businesses are driving Oracle's total revenue and earnings up and improving nearly every important non-GAAP business metric you care to inspect; total revenue is up, margins are up, operating income is up, net income is up, EPS is up. Take a look. Q3 was a very strong quarter," Cats advised – and Wall Street agreed.
The company has hiked its quarterly dividend from 15 cents to 19 cents.