Oracle announced revenues of $9.8 billion (+6 percent) – fuelled by 8 percent growth in Cloud and On-Premise software revenues of $8 billion in fiscal 2018 Q3.
Oracle generated $1.2 billion (+33 percent) from Cloud Software as a Service (SaaS) and $415 million (+28 percent) from Cloud Platform as a Service (PaaS) plus Infrastructure as a Service (IaaS).
Oracle’s total Cloud revenues rose 32 percent to $1.6 billion, representing 16 percent of total revenues. Oracle’s software revenues represent 66 percent of total revenues.
Operating income rose 15 percent to $3.4 billion with operating margin of 35 percent.
“Our Fusion ERP and HCM SaaS applications suite revenues grew 65 percent in the quarter. Our Cloud SaaS applications business is approaching $5 billion,” said Oracle CEO, Mark Hurd.
Oracle said less than 15 percent of its on-premise applications customers have started 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. We expect to more than double the size of our SaaS business very quickly,” Mark Hurd said.
Oracle posted a net loss of nearly $4 billion in Q3.
TBR senior analyst Meaghan McGrath said Oracle reported another quarter of moderate growth that was fuelled almost exclusively by growth in its SaaS and software maintenance businesses.
Oracle executives noted that the strong growth in the SaaS business is largely rooted in Fusion ERP and Fusion HCM growth outside of its traditional install base, as less than 15 percent of Oracle’s traditional applications customers have begun using cloud alternatives.
Meaghan McGrath said more growth opportunity will become evident as Oracle unveils more artificial intelligence-driven autonomous cloud platform services across analytics, mobility, application development and integration services.