Enterprise software maker Oracle Corp forecasted earnings and revenue for the current quarter above market estimates on Thursday after releasing optimistic second-quarter results, helped by higher technology spending from companies looking to support hybrid work.
As the pandemic has pushed more companies to switch to a hybrid work model, spending on cloud technology has increased, benefiting Oracle and other companies such as Salesforce, Amazon.com Inc and Microsoft.
Shares of the company rose about 10.4% to $ 98 on extended trading.
Revenue for Oracle’s largest cloud services and licensing support unit reached $ 7.55 billion in the second quarter, from $ 7.11 billion a year earlier. That figure is expected to grow between 6% and 8% in the third quarter, the company said.
Oracle has stepped up its investments in data centers around the world, especially government-focused ones, CEO Safra Catz said on a conference call with analysts.
About 75% of Oracle Enterprise Resource Planning (ERP) customers have not moved to the cloud, and the company has a very good chance of moving them and increasing its ERP revenue, said Scott Kessler, analyst at Third Bridge.
The company expects earnings for the current quarter of between $ 1.19 per share and $ 1.23 per share, higher than Refinitiv IBES ‘estimate of $ 1.16 per share. It projects revenues of $ 10.7 billion to $ 10.9 billion, according to Reuters calculations, above estimates of $ 10.56 billion.
Oracle said it made a payment for a judgment related to a dispute over the employment of former CEO Mark Hurd, which resulted in a third-quarter loss of $ 1.25 billion to $ 2.44 billion in profit. dollars a year earlier.
On an adjusted basis, the company earned $ 1.21 per share on revenue of $ 10.36 billion. Analysts expected earnings of $ 1.11 per share and revenue of $ 10.21 billion, according to IBES data from Refinitiv.