Oracle, whose charismatic chief Larry Ellison relinquished his CEO role to become the company’s chief technology officer, has announced that its first-quarter 2014-15 revenues were up by 3% to $8.6bn, but GAAP net profit was flat at $2.2bn, while the non-GAAP figure was up by 2% at $2.8bn.
The company’s stock price slipped by 2% as it missed analyst revenue expectations.
In the strategically competitive cloud sector, software-as-a-service (SaaS) and platform-as-a-service (PaaS) cloud revenue was up by 32% to $337m. Infrastructure-as-a-service (IaaS) cloud revenue was up by 26% to $138m. Total cloud services revenue was 5.5% of first-quarter takings, compared with 3% of sales for the fourth quarter 2013-14.
Rival SAP announced on the same day that it has acquired cloud-based expenses management company Concur for $8.3bn. SAP’s cloud revenue for its last quarter stood at 5.8% of overall revenue.
New joint Oracle CEO Safra Catz said the company was increasing its cloud services growth rate while simultaneously delivering record levels of cash flow.
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“In the first quarter, our overall cloud services business grew by more than 30% to $475m in revenue,” she said
“At the same time, we delivered an all-time record operating cash flow, up 7% to $6.7bn. We are laser-focused on two goals: growing our cloud business and growing our cash flow. We're off to a good start in the 2015 financial year.”
Fellow CEO Mark Hurd (pictured) said: “Our internally developed Fusion cloud applications business grew at a rate of nearly 200% in the quarter. Our cloud business is already three times the size of [HR cloud firm] Workday.”
CTO Ellison said: “Next week, at Oracle Open World, we will be rolling out our database cloud service. Database is our largest software business, and database will be our largest cloud service. With our new multi-tenant database-as-a-service offering, our customers and ISVs can move any of their existing Oracle databases and applications to the Oracle Cloud.”