Oracle beats Q3 estimates, adds around 4,000 Autonomous Database trials
Oracle published its third quarter financial results on Thursday, beating market expectations and touting the expansion of its autonomoius database technology.
Non-GAAP net income in Q3 was down 8 percent to $3.2 billion while non-GAAP earnings per share was up 8 percent to 87 cents. Revenues were $9.6 billion, down 1 percent in US dollars and up 3 percent in constant currency compared to Q3 last year.
Analysts were expecting non-GAAP earnings of 84 cents per share on revenue of $9.59 billion.
"I'm pleased with Q3 non-GAAP results as revenues grew 3%, operating income increased 5% and EPS grew 12% in constant currency," CEO Safra Catz said in a statement. "Our overall operating margin improved to 44% as our lower margin hardware business continued to get smaller while our higher margin cloud business continued to get bigger. 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."
Cloud Services and License Support revenues were $6.7 billion, while Cloud License and On-Premise License revenues were $1.3 billion.
Oracle's Fusion HCM, ERP, Supply Chain and Manufacturing Cloud applications revenue in total grew 32 percent in Q3. Revenue from Oracle's NetSuite ERP Cloud applications grew 30 percent.
In a statement, CTO Larry Ellison noted that by the end of Q3, Oracle had nearly 1,000 paying Autonomous Database customers. The company also added around 4,000 new Autonomous Database trials during the quarter.
"By It's early days, but this is the most successful introduction of a new product in Oracle's forty year history," Ellison said. "The future of Oracle's Cloud Infrastructure business rests upon our highly-secure Gen2 Cloud Infrastructure featuring the world's first and only Autonomous Database."
At the end of the second quarter, Ellison said that Oracle will not only hold onto its 50 percent relational database market share but will expand it, thanks to the combination of Oracle's new Generation 2 Cloud infrastructure and its autonomoius database technology.
Oracle on Thursday also announced that its Board of Directors declared a quarterly cash dividend of 24 cents per share of outstanding common stock.