The overall revenue of the company has decreased by 3% but posted a huge revenue growth in the cloud based offering by more than 68% as compared to Q4 of 2015.
GreatResponder.com The financial results of Oracle Corporation for the fourth quarter of 2016 were announced today with mixed financial picture of the company. The company has recorded a huge growth in the cloud computing offering, such as software as a service (SaaS) and platform as a service (PaaS). According to the posted results, the company earned as much as $859 million during the fourth quarter in the domain of cloud computing products.
The company posted $10.6 billion revenue for the fourth quarter. The share of SaaS and PaaS products stands at about $690 million. The over revenue of cloud computing products during the fourth quarter increased by over 51%.
“Fourth quarter SaaS and PaaS revenue growth accelerated to six percent in constant currency, significantly higher than my guidance,” said joint CEO Safra Catz. “SaaS and PaaS gross margins continued to improve throughout the year. Bookings in the fourth quarter were also very strong, enabling us to raise our guidance for first quarter SaaS and PaaS revenue growth, which we now expect to be between 75% and 80%.” She added further.
The over results fo the company were not so encouraging for the company. It has recorded decline in many sectors as well as in the over revenue. The license sales has declined by more than 12% and stands at $2.77 billion down from the previous revenue of $3.14 billion. The over sale of the license has also decreased substantially by over 15% down from the previous revenue of $8.54 billion to $7.28 billion.
The founder of the company was also very excited about the cloud earnings. He coined a term “idiocy” for the cloud services a few years back, but now he is confident that cloud earning would help the company. He said, “Hyper-growth” of SaaS and PaaS Oracle has experienced in 2016 to continue on for the next few years.” He further said, “That gives us a fighting chance to be the first cloud company to reach $10bn in SaaS and PaaS revenue.”
Meanwhile, the share of the Oracle has sustained a substantial pressure and dipped by over 5% after the announcement of the financial results of the company for year 2016.