Oracle results (Image credit pixabay/Geralt) issued its second quarter financial results with total revenue rising by 18% in US Dollars and 25% in constant currency to $12.3 billion. This was consistent growth after a similar rise in the first quarter of the year. The results helped the shares rise from $79.87 at the close on Friday to spike up to $84.97 on Tuesday before falling again to close at $80.56, still slightly up from the previous week.

IaaS and SaaS performed well with

  • Q2 Cloud Infrastructure (IaaS) Revenue $1.0 billion, up 53% in USD, up 59% in constant currency
  • Q2 Cloud Application (SaaS) Revenue $2.8 billion, up 40% in USD, up 45% in constant currency
  • Q2 Fusion Cloud ERP (SaaS) Revenue $0.6 billion, up 23% in USD, up 28% in constant currency
  • Q2 NetSuite Cloud ERP (SaaS) Revenue $0.6 billion, up 25% in USD, up 29% in constant currency
  • Cerner’s revenue was $1.5 billion, up from $1.4 billion in Q1
Safra Catz, CEO at Oracle Image source
Safra Catz, CEO at Oracle

As Safra Catz, Oracle CEO, commented, “each and every one of our strategic businesses delivered solid revenue growth in the quarter.”

Catz put the success down to three factors, “First, more and more customers are recognizing our second-generation infrastructure cloud as being fundamentally better architected for higher performance, better security, and unmatched reliability versus the older first-generation hyperscale cloud providers.

“Second, customers appreciate the flexibility of our service and business model that enables them to deploy our technologies where it serves them best, whether that be in the public cloud, in dedicated regions around the world, or in a true Cloud@Customer implementation.

“And third, customers recognize the value of an end-to-end integrated stack of applications, both horizontal, like ERP and HCM and supply chain, and industry-specific applications that focus on their industries.” (Source: The Motley Fool)

Oracle Chairman and CTO Larry Ellison added, “Since the acquisition, Cerner has contributed to Oracle’s growth — and Oracle has helped Cerner improve its technology. But we are just beginning our mission to modernize healthcare information systems. In the wake of the COVID pandemic, there is a worldwide sense of urgency to transform and improve national healthcare systems. Our goals are ambitious: fully automate clinical trials to shorten the time it takes to deliver lifesaving new drugs to patients, enable doctors to easily access better information leading to better patient outcomes, and provide public health professionals with an early warning system that locates and identifies new pathogens in time to prevent the next pandemic. The scale of this opportunity is unprecedented — and so is the responsibility that goes along with it.”

More big customers

Customer wins during the last quarter included well-known brands from different industries and geographies. OCI continued to win existing customers as they sought to migrate from legacy solutions to Oracle Cloud. Success for Exadata continued with several organisations moving to the autonomous database, including AUSIEX, Bread Financial, Mehsana Urban Co-op Bank Ltd, MEO, Nespresso, Crédit Agricole, Permanent TSB, Fibabanka, IDS and the University of North Carolina System Office.

There was also success for Oracle Fusion and Oracle NetSuite. NetSuite was chosen by Raymour & Flanagan and Mack Weldon, both in the retail sector. Oracle Fusion won major companies such as Airbnb, Trane Technologies, Contorion, Duracell, Whitbread and Legal and General. In the public sector, there were wins at Bakersfield, Ada County and the Austin Transit Partnership, both in the US and in education, Oracle also found success at St. Olaf College.

There were other wins in the quarter, which Ellison announced as well. They included Emirates Health Services, a competitive win against SAP and Cross Country Health Services, and another competitive win against SAP and Workday. It is perhaps surprising that there were no more competitive wins over the quarter, and not surprisingly, no competitive losses were announced. It will be interesting to see whether either of the other two vendors mention some of these.

Enterprise Times: What does this mean

The success of OCI appears to be driven by the cheaper cost and higher performance of its high-performance computing services. On the applications side, many of the wins, Catz put down to migrations from legacy E-Business Suite, PeopleSoft and JD Edwards customers, but some are also from SAP customers.

Catz also reminded analysts that its exit from Russia caused a loss of 1% in growth. Is this an indication that the European results are not as strong as the Americas? Looking deeper into the results, there are potentially a couple of concerns. Oracle appears to be moving towards a more US-centric organisation. However, it is hard to tell what these numbers actually are without the detail of the impact of currency exchange rates. Q2 Fiscal 2023 revenues in Europe were US$2,895 million, down from $2,953 million in Q2 Fiscal 2022. A  similar small fall is seen in Asia, with Q2 fiscal revenues falling from $1,671 million in Q2 2022 to $1,594 million in Q2 fiscal 2023. In comparison, America’s revenues rose from $5,736 million to $7,786 million in the same period. No analyst called this out, but Oracle seems to be growing strongly in the Americas, its heartland, perhaps less strongly elsewhere.


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