Oracle Q1 revenues rise to USD 8.6 bln on strong SaaS, PaaS

Friday 16 September 2016 | 09:20 CET | News

Oracle said revenues for its fiscal first quarter of 2017 reached USD 8.6 billion, up 2 percent in US dollars and advancing 3 percent in constant currency. The operating profit went to USD 2.6 billion, with an operating margin at 31 percent, while the net profit reached 2.3 billion and earnings per share lifted 10 percent to USD 0.43.

Revenue from Cloud plus On-Premise Software went to USD 6.8 billion, 5 percent higher in US dollars and up 6 percent in constant currency. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues amounted to USD 798 million, lifting 77 percent in US dollars and jumping 79 percent in constant currency. Total Cloud revenue, including infrastructure as a service (IaaS), was at USD 969 million, up 59 percent in US dollars and 61 percent higher in constant currency.

CEO Safra Catz noted the strength at the company’s SaaS and PaaS operations, pushing total revenues over expectations. Catz said that as SaaS and PaaS revenues continue to grow, gross margins will advance from the 62 percent recorded this quarter towards Oracle’s 80 percent target. The company is on track to sell over USD 2 billion of SaaS and PaaS this year and every year. Oracled added more than 750 new SaaS customers in the quarter, including 344 new SaaS Fusion ERP customers. Finally, the company declared a quarterly cash dividend of USD 0.15 per share.

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