Oracle revenue dips 1 percent to $9.6 bn impacted by Cloud business

Oracle Corporation today announced fiscal 2019 Q3 results.

"I expect the strengthening USA dollar will continue with a currency headwind of 3 percent for Q4 revenue and a $0.03 headwind to earnings per share", Co-Chief Executive Officer Safra Catz said on a conference call.

The disappointing outlook overshadowed the company's better-than-expected third-quarter profit and revenue beat that was driven by growth in its cloud services and licence support unit.

Revenue from Oracle's cloud services and licence support, its biggest, rose 1 percent to $6.66 billion.

GAAP Operating Income was up 3% to $3.4 billion and GAAP Operating Margin was 35%. Non-GAAP Operating Income was up 2% to $4.3 billion and non-GAAP Operating Margin was 44%. The software giant said that it had $0.87 in earnings per share (EPS) and $9.6 billion in revenue, compared with consensus estimates that were calling for $0.84 in EPS and $9.59 billion in revenue. The same period from past year had $0.83 in EPS and $9.78 billion in revenue. Operating Cash Flow was $14.8 billion during the trailing twelve months.

The company posted net income of $2.75 billion, or 76 cents per share, in the three months ended February 28, compared with a net loss of $4.05 billion, or 98 cents per share, a year earlier.

Oracle CEO Safra Catz said: "We continue to grow revenue faster than market and we have an enormous opportunity ahead of us in ERP and HCM. With year-to-date non-GAAP EPS growth rate now at 16% in constant currency, we will comfortably deliver another year of double-digit EPS growth". Total Cloud Services and License Support plus Cloud License and On-Premise License revenues went to USD 7.9 billion, unchanged in USA dollars and up 3 percent in constant currency.

Oracle is the number one enterprise applications vendor in North America based on market share and revenue, surpassing Salesforce.com and SAP, according to IDC's latest annual market share results.

Oracle now has roughly 1,000 customers using the autonomous database products, with 4,000 conducting field trials.

Oracle has raised its quarterly cash dividend to Dollars 0.24 per share, after reporting higher adjusted revenues for its fiscal third quarter. Larry Ellison, Oracle's Chairman of the Board, Chief Technology Officer and largest stockholder, did not participate in the deliberation or the vote on this matter.

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