Oracle Q2 2015-16 results: Strong US dollar affects revenue growth

Oracle’s Q2 results for the 2016 fiscal year indicate 26% growth in cloud revenue to $649m, 7% of its total revenue

Oracle’s second-quarter results for 2015-16 show growth in cloud revenue, which comprises 7% of its overall revenue.

The strong dollar meant its $9bn sales were down 6%, the company said in a statement.

Cloud revenue was $649m, up 26% on the equivalent quarter last year, but still only 7.2% of the overall figure.

Oracle executive chairman and CTO Larry Ellison (pictured) said: “We are still on target to sell and book more than $1.5bn of new SaaS [software as a service] and PaaS [platform as a service] business this fiscal year. That is considerably more SaaS and PaaS new business than any other cloud services provider, including Salesforce.com.”

At the supplier’s most recent Oracle Open World event in San Francisco, Ellison restated the company’s central strategic option for the cloud, and dismissed competitors’ offerings, including those of SAP and IBM. “We never see them,” he said about competing bids for cloud business.

Oracle’s cloud software as a service and platform as a service revenues were $484m, up 34%. Cloud infrastructure as a service revenues were $165m, up 7%.

Most of Oracle’s revenue still comes from on-premise software installations. Total revenue there was $6.4bn, down 7%.

Hardware revenues were $1.1bn, down 16%, and services revenues were $861m, down 8%.

Operating income was $3bn with a margin of 33%.

Read more enterprise software results

Safra Catz, co-CEO at Oracle, said: “We grew our SaaS and PaaS revenue by 38% in constant [US] dollars this past quarter, and we expect that revenue growth rate to accelerate to nearly 50% in Q3 and close to 60% in Q4.”

Fellow co-CEO Mark Hurd said: “We did 100 Fusion HCM [human capital management] deals and over 300 Fusion ERP [enterprise resource planning] deals in the quarter. We now have more than 1,500 ERP customers in the cloud – that’s at least 10 times more ERP customers than Workday.”

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