Oracle released third quarter financial results Monday after the bell. The Redwood Shores, Calif.-based company reported a net income of $3.5 billion.
Non-GAAP earnings were 83 cents per share on revenue of $9.78 billion, up 6 percent from the year prior. Wall Street was expecting Oracle to report third quarter earnings of 72 cents a share on revenue of $9.78 billion.cond
Oracle's cloud business, including infrastructure as a service (IaaS), came to $1.6 billion, up 32 percent. The company's SaaS revenues were up 33 percent to $1.2 billion. Total on-premise revenue was $6.4 billion, and revenue for new software licenses was down 2 percent to $1.388 billion.
In a statement, CEO Mark Hurd specifically pointed to the growth of Oracle's Fusion ERP and HCM SaaS applications suite, which saw revenues increase by 65 percent in the quarter.
"Our Cloud SaaS applications business is rapidly approaching $5 billion...and it's still early days," he said. He noted that less than 15 percent of Oracle's on-premise applications customers have begun to migrate their applications to the cloud.
"As the other 85 percent of our applications customers start to move their applications to the Cloud, we have a huge opportunity in front of us," Hurd said. "We expect to more than double the size of our SaaS business very quickly."
Meanwhile, CTO Larry Ellison highlighted Oracle's autonomous database, which is now available. "There are more autonomous cloud services to come," he said in a statement, pointing to Oracle's upcoming Autonomous Analytics, Autonomous Mobility, Autonomous Application Development and Autonomous Integration services.