Oracle reports mixed Q4 as customers feel the impact of COVID-19

June 16, 2020

Oracle on Tuesday reported mixed fourth quarter financial results, noting that customers in certain industries greatly impacted by the COVID-19 pandemic, such as hospitality and retail, are postponing purchases.

Oracle’s non-GAAP net income for the fourth quarter was $3.8 billion, while non-GAAP earnings per share was up 3 percent year-over-year to $1.20. Total quarterly revenues were $10.4 billion, down 6 percent year-over-year.

Analysts were expecting earnings of $1.16 on revenue of $10.67 billion.

For the full fiscal year, Oracle’s non-GAAP net income was $12.7 billion, while non-GAAP earnings per share was up 9 percent to $3.85. Total revenues were $39.1 billion, down 1 percent year-over-year.

The strong quarterly earnings were driven by strong performances in both cloud infrastructure and cloud applications sales, CEO Safra Catz said in a statement. Oracle’s Fusion Cloud ERP Suite grew 35 percent in constant currency in Q4, while the Fusion Cloud HCM Suite grew 29 percent in constant currency.

“Our overall business did remarkably well considering the pandemic, but our results would have been even better except for customers in the hardest-hit industries that we serve such as hospitality, retail, and transportation postponing some of their purchases,” Catz said. “Still, for the third year in a row, we delivered double-digit constant currency earnings per share growth in FY20.”

In Q4, cloud services and license support revenues were $6.8 billion, up 1 percent year-over-year. Cloud license and on-premise license revenues were nearly $2 billion, down 22 percent.

For the full year, cloud services and license support revenues were $27.4 billion, up 3 percent. Cloud license and on-premise license revenues were $5.1 billion.

Article source: https://www.zdnet.com/article/oracle-reports-mixed-q4-as-customers-feel-the-impact-of-covid-19/#ftag=RSSbaffb68