Due to the change of the business model, Oracle's sales in Europe decreased by 22%
According to the results of the quarter ended, the revenue and profit of Oracle Corporation decreased. This is partly due to the appreciation of the US dollar.
Also, according to representatives of Oracle, the corporation’s income was negatively affected by an increase in the share of their cloud products. However, they consciously took this step and regard its consequences with understanding.
According to Oracle Chairman of the Board of Directors Larry Ellison, over time, the corporation’s revenues from the provision of cloud services will be three times higher than the revenue from software sales to the same customers.
')
In Europe, total corporation sales were down 22% from last year. Quarterly sales of traditional software, adjusted for currency fluctuations, declined by 10%. Total revenue fell 5% to $ 10.7 billion.
Adjusted earnings decreased by 14% to 78 cents per share. Although, according to analysts, she should not have dropped below 87 cents. If it were not for the growth of the dollar, the corporation's income would have increased by 3%, and profits would not have decreased by more than 5%, according to Oracle. Against the background of quarterly results, Oracle shares fell by 7%.
However, in the cloud products segment, there was an increase in sales.
“The negative reaction of Wall Street indicates a healthy skepticism of the market in relation to the new, cloud-based business model. The corporation has taken a bold step, but we have already seen on the example of other companies like Microsoft and Adobe that it pays off, ” told Software Times analyst at Edward Jones software market Bill Kraer.
Quarterly revenues from deliveries under SaaS and PaaS schemes increased by 29% and reached $ 461 million. Although Oracle was counting on $ 300 million. The company's experts predict that sales of its cloud products will grow by 60% in the new fiscal year, which for Oracle began in June.
Also, according to representatives of Oracle, the corporation’s income was negatively affected by an increase in the share of their cloud products. However, they consciously took this step and regard its consequences with understanding.
According to Oracle Chairman of the Board of Directors Larry Ellison, over time, the corporation’s revenues from the provision of cloud services will be three times higher than the revenue from software sales to the same customers.
')
In Europe, total corporation sales were down 22% from last year. Quarterly sales of traditional software, adjusted for currency fluctuations, declined by 10%. Total revenue fell 5% to $ 10.7 billion.
Adjusted earnings decreased by 14% to 78 cents per share. Although, according to analysts, she should not have dropped below 87 cents. If it were not for the growth of the dollar, the corporation's income would have increased by 3%, and profits would not have decreased by more than 5%, according to Oracle. Against the background of quarterly results, Oracle shares fell by 7%.
However, in the cloud products segment, there was an increase in sales.
“The negative reaction of Wall Street indicates a healthy skepticism of the market in relation to the new, cloud-based business model. The corporation has taken a bold step, but we have already seen on the example of other companies like Microsoft and Adobe that it pays off, ” told Software Times analyst at Edward Jones software market Bill Kraer.
Quarterly revenues from deliveries under SaaS and PaaS schemes increased by 29% and reached $ 461 million. Although Oracle was counting on $ 300 million. The company's experts predict that sales of its cloud products will grow by 60% in the new fiscal year, which for Oracle began in June.
Source: https://habr.com/ru/post/291764/
All Articles