Database outfit Oracle reported better than expected quarterly profit and Adjusted Revenue as the business software maker benefits from its transition to cloud-based products.
Sales of the company’s cloud-computing software and platform service rose nearly 62 percent to $1.19 billion.
However, it was not all plain sailing because its software licensing business fell nearly 16 percent. This is being seen by some analysts that Oracle has managed to move to the cloud to tackle the shrinking licensing business.
Safra Catz, Oracle chief executive, said during the earnings call that growth in Revenue from its cloud business has overtaken new software licenses.
She said adjusted revenue from its Software as a Service (SaaS) and Platform as a Service (PaaS) unit rose 86 percent to $1.1 billion on a constant currency basis, which was at the high end of its previous guidance.
Oracle’s net income rose to $2.24 billion in the third quarter ended 28 February, from $2.14 billion last year.
Oracle’s total adjusted revenue rose nearly three percent to $9.27 billion, marginally beating estimates.
The company revenue to grow between negative one percent and positive two percent.