The impact of Oracle on new cloud reports will not deliver results

Oracle expects better results for the first results of this year’s 2019 fiscal year, as cloud revenue reports have changed. The results showed stagnating sales growth, leading to a sharp drop in inventories after hours. What did the Oracle leaders say for themselves?

In this regard, the database specialist announced in June that it would change the release of cloud results every quarter.

There used to be two revenue segments in the cloud: Software as a Service (SaaS) in one, then a combined number for the platform as a service (PaaS) and Infrastructure as a Service (IaaS), a small number – there is only one number: Cloud Services and license support.

Continue reading: Oracle changes the way cloud revenue is reported, what does it hide?

For example, in the first quarter of 2019, the supplier reported that the cloud and support licenses segment only grew 3% year-over-year, compared to 10% in the last quarter of 2018. Revenues increased 1% to $ 9.2 billion -Dollar.

“With sales growth of 1% in Q119, we can expect an increase in cloud growth as local sales continue to fall,” said Angela Eager of Tech Market View. “The growth, combined with the lack of transparency of cloud computing in Q119, has led to a decline in Oracle shares by nearly 5% after normal business hours … pseudo-clouds seem to hover over Oracle.”

KeyBanc Capital Markets analysts have lowered their estimates for Oracle’s next quarters. “The move from Oracle to the cloud takes longer than expected, is consistent with what we’ve heard about the channel, and less disclosure means we’re less aware of the company’s progress,” says CNBC.

In the distribution of profits after yesterday’s results showed co-CEO Safra Catz a brave face.

“Total cloud revenue has increased in all regions and product categories, with a 30% increase in enterprise resource planning, a 40% increase in industries, and an increase of over 20% in public clouds, PaaS and IaaS,” she said. (All quotes from the raffle are made via the transcript Seeking Alpha).

Mark Moerdler of Sanford Bernstein asked why the new combination of cloud services and licensing support underestimated analysts’ expectations. Only Catz and his co-CEO, Mark Hurd, had circumvented the problem by attributing the results to fluctuations in exchange rates.

“Well, I think most things are missing, in fact, there really was only a difference in the currency between the time I gave my lead and the moment and the end result.” Said Catz. “Well, it was twice as bad as expected.” Do what you want.

The problem is that the new reporting model makes Oracle extremely vague about its performance in the cloud, leading to evasive and frustrating responses from executives.

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