Oracle Corporation (NYSE:ORCL) has reported fourth-quarter results that beat expectations, sending its shares higher in pre-market trade.
The company attributed record annual revenue of $50 billion for 2023 to its cloud applications and infrastructure business, saying the two strategic cloud businesses are getting bigger — and growing faster — boding well for another strong year ahead.
After gaining 6% on Monday, its shares were 4.5% higher at $121.67 ahead of Tuesday’s market open.
“Our infrastructure growth rate has been accelerating—with 63% growth for the full year, and 77% growth in the fourth quarter. Our cloud applications growth rate also accelerated in FY23,” CEO Safra Catz said in a statement.
Total revenue for the quarter ended May 30, 2023, jumped 17% to $13.8 billion, beating the $13.7 billion expected by Wall Street and taking full-year 2023 revenue 18% higher to $50 billion.
Underlying (non-GAAP) earnings per share EPS for the quarter rose 8.4% to $1.67, ahead of the $1.58 expected by the Street. For FY23, underlying EPS rose 4.5% to $5.12.
“Oracle's Gen2 Cloud has quickly become the number 1 choice for running Generative AI workloads," commented Oracle chairman and chief technology officer Larry Ellison.
"Why? Because Oracle has the highest performance, lowest cost GPU (graphics processing unit) cluster technology in the world. NVIDIA themselves are using our clusters, including one with more than 4,000 GPUs, for their AI infrastructure.”
The company declared a quarterly cash dividend of $0.40 per share.
Contact the author at stephen.gunnion@proactiveinvestors.com