Shares of Oracle rose nearly 9% in long-term trading on Monday. After the database software company released fourth-quarter financial results that beat analyst estimates.
Here’s how the company does it:
- Earnings: $1.54 per adjusted share versus $1.37 as analysts expected, according to Refinitiv.
- Revenue: $11.84 billion versus $11.66 billion, according to analyst estimates, according to Refinitiv.
- Revenue was up 5 percent year-on-year, driven by the company’s cloud infrastructure business, which competes with Amazon Web Services and Microsoft Azure.
Oracle said the division increased revenue by 36 percent also total cloud revenue by 19 percent to $2.9 billion. However, according to Synergy Research Group, at the end of last year. Oracle failed to enter the top 5 global cloud infrastructure providers. But the company advertises that it won’t just win old customers for its cloud products but also new ones.
CEO Safra Katz said in a statement that the company had seen a “significant increase in demand” for cloud infrastructure.
“We believe this jump in revenue growth shows that our infrastructure business has entered a hyper-growth phase,” said Katz.
Before the close, Oracle shares were down 27 percent for the year, just ahead of the Nasdaq, down 31 percent.
Oracle’s revenue increase is critical as investors turn their attention to companies that can generate profitability also cash in a downturn.