Oracle shares up on cloud revenue gains

Oracle shares were on the rise Friday after the software giant reported higher-than-expected revenue in its fourth quarter.
The Redwood City, Calif.-based enterprise software provider reported Q4 revenue of $10.59 billion after the markets closed Thursday, surpassing the $10.46 billion forecast by analysts polled by S&P Global Market Intelligence.
Revenue for total cloud computing software and services rose were 49% in U.S. dollars to $859 million, compared to $576 million in the same March-May period a year ago.
Net income of $2.81 billion, or 66 cents a share, fell short of analysts' expectations of $2.85 billion, or 68 cents, according to S&P. Last year, Oracle earned $2.76 billion, or 62 cents per share, on revenue of $10.71 billion.
Oracle (ORCL) shares closed Friday up 2.7% to $39.68. The stock price rose 2% in after-hours trading Thursday, following the company's earnings release.
Total cloud revenues for the fiscal year were up 36% to $2.9 billion and should continue in "hyper-growth" mode "for the next few years,” said Oracle Executive Chairman and Chief Technology Officer Larry Ellison, also the company co-founder. “That gives us a fighting chance to be the first cloud company to reach $10 billion in SaaS (Software as a service) and PaaS (Platform as a service) revenue.”
Oracle's fiscal year revenue of $37.06 billion surpassed analysts' expectations of $36.93; the company posted $38.25 billion in revenue in the previous year.
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