Published - June 13th, 2023 @10:48 AM (CET)

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Oracle Rises Above Expectations on Cloud Revenue
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On a striking Monday, Oracle Corporation (NYSE:ORCL) , left industry forecasts in the dust as it soared past the fourth-quarter revenue estimates. Thanks to a surge in demand for its cloud services from companies integrating AI into their workflows, the company's shares rose by nearly 4%.

Oracle's Successful Cloud Venture
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Oracle's venture into the cloud computing market is finally paying off. The acquisition of Cerner, an electronic medical records company last year, strengthened Oracle's position, allowing it to give a tough fight to industry titans like Microsoft and Amazon.com.

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AI Cloud Offerings Amplified
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In addition to this, Oracle has stepped up its game by enhancing its AI cloud offerings. Its collaboration with Nvidia (NASDAQ: NVDA) , a leading chip company, has enabled Oracle's customers to access Nvidia's advanced AI software and chips via Oracle's cloud services.

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Fourth-Quarter Revenue: A Leap Forward
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For the fourth quarter, Oracle's revenue experienced a substantial leap of about 17%, reaching $13.84 billion. This figure surpassed the analysts' estimates of $13.74 billion. Meanwhile, the cloud revenue saw an impressive rise of 54%, amounting to $4.4 billion.

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Oracle Cloud Infrastructure: A Promising Future
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Analysts have expressed their belief in Oracle's potential, stating that Oracle Cloud Infrastructure (OCI) is set to become a significant AI/ML development platform due to its partnership with Nvidia. This could lead to another wave of growth.

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A Boon for AI Development Companies
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Larry Ellison, Oracle's Chairman and Chief Technology Officer, stated, "Companies doing LLM (large language model) development such as Mosaic ML, Adept AI, Cohere plus 30 other AI development companies have recently signed contracts to purchase more than $2 billion of capacity in Oracle's Gen2 Cloud."

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First-Quarter Revenue Forecast: A Positive Outlook

Oracle projects its total revenue to rise 8% and 10% in the first quarter. This forecast aligns with analysts' expectations of an 8% growth rate.

The Future of Cloud Revenue

Excluding Cerner, Oracle anticipates its cloud revenue to grow at least at similar rates in fiscal 2024 as in 2023, as Chief Executive Safra Catz stated during a conference call with analysts.
Oracle's shares, which closed at their record high of $116.43 on Monday, climbed to $120.53 in extended trading.

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To find more about Oracle's market performance click here

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