Oracle’s fourth-quarter 2014 results show 25% growth in cloud revenues to $322m and total annual revenue of $38.3bn, up 3% year-on-year.
The supplier reported its cloud revenue separately for the first time. It represents 3% of sales.
Larry Ellison (pictured), Oracle’s CEO, talked up the company’s cloud revenue in a statement. “Oracle is now the second largest SaaS [software as a service] company in the world [behind Salesforce],” he said. “In IaaS [infrastructure as a service], we are larger and more profitable than Rackspace. We have by far the most complete portfolio of modern SaaS and PaaS [platform as a service] products in the industry: CRM: sales, service and marketing; HCM: HR, payroll and talent; ERP: accounting, procurement, supply chain. All these SaaS products run on the world’s most powerful PaaS: the Oracle in-memory multi-tenant database and Java.”
By submitting your email address, you agree to receive emails regarding relevant topic offers from TechTarget and its partners. You can withdraw your consent at any time. Contact TechTarget at 275 Grove Street, Newton, MA.
For the quarter, software and cloud revenues were up 4% to $8.9bn. GAAP (generally accepted accounting principles) cloud SaaS and PaaS revenues were up 25% to $322m, while non-GAAP SaaS and PaaS revenues were up 23% to $327m. Cloud IaaS revenues were up 13% to $128m.
For more enterprise IT supplier results
New software licence revenues were unchanged at $3.8bn, while software licence updates and product support revenues were up 7% to $4.7bn.
Hardware systems revenues were up 2% to $1.5bn with hardware systems products up 2% to $870m and hardware systems support up 2% to $596m.
However, GAAP net income was down 4% to $3.6bn, and GAAP operating profit was down 2% to $4.9bn.
For the entire 2014 fiscal year, total revenues were up 3% at $38.3bn, while GAAP software and cloud revenues were up 5%. Cloud SaaS and PaaS revenues were up 23% to $1.1bn while cloud IaaS revenues were up $456m.
For the year, new software licence revenues were unchanged at $9.4bn, while software licence updates and product support revenues were up 6% to $18.2bn.
Total hardware system revenues were flat at $5.4bn.
GAAP operating income was up 1% to $14.8bn, and GAAP operating margin was 39%.
Oracle president and CFO Safra Catz said a transition to an ‘as a service’ model is necessarily softening software sales in the short run. “Our cloud subscription business is now approaching a run rate of $2bn a year,” she said. “As our business has transitioned, more software revenues are being recognised over the life of a subscription, rather than upfront.”
On the hardware front, Oracle president Mark Hurd said: “We have transformed Sun’s commodity hardware business into a profitable and growing engineered systems business. Our overall hardware business grew 2% in constant currency this year.”