“We are off to an excellent start with Q1 non-GAAP earnings per share growing 19% in constant currency. That strong earnings per share growth rate increases my confidence that we will deliver on another fiscal year of double-digit non-GAAP earnings per share growth,” said CEO Safra Catz.
Cloud Services and License Support revenues grew 3%, while Cloud License and On-Premise License revenues dropped 3%
Ever since Oracle adopted a new accounting standard last year, merging its SaaS, PaaS and IaaS cloud services with the software license division, there is a lack of clarity over segment-wise revenue performance. There is widespread concern that the transition to more cloud-based services is not picking momentum even after several years.
Though Oracle’s core business remains relevant even in the changed industry scenario, overall performance continues to be dragged by muted revenue growth, which often reflects in its guidance. According to market watchers, the cloud business will face more stringent competition going forward, and the situation might prompt Oracle to invest in acquisitions to ramp up the business segment.
Oracle shares are currently trading broadly at the levels seen at the beginning of the year. The stock hit a peak in mid-March but retreated from the highs in the following weeks. It dropped about 5% in the after-hours trading Monday.