Oracle Corporation (NYSE:ORCL) stock is struggling after the company reported fiscal third quarter profits that declined year-over-year, even as revenue was in line with the Street's expectations.
The cloud computing company posted revenue of $12.4 billion in the quarter ended February 28, up 18% year-over-year, just short of the Street's expectations of $12.43 billion. Non-Gaap earnings were $1.22 per share, up from $1.13 a year ago and ahead of expectations of $1.20.
However, net income fell to $1.9 billion from $2.3 billion a year earlier.
Shares of Oracles fell almost 5% to $82.60 in after-hours trading.
The biggest driver of revenue growth was cloud services. Fiscal third quarter cloud revenue was $4.1 billion, up 45% year-over-year.
“Our strong quarterly earnings growth was driven by 48% constant currency growth for the total revenue of our two cloud businesses, infrastructure and applications,” CEO Safra Catz said in a statement.
“Oracle’s cloud businesses now exceed $16 billion in annualized revenue. We remain the overwhelming market leader in Cloud ERP with approximately 10,000 Fusion ERP customers and over 34,000 NetSuite (NYSE:N) ERP customers."
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