Shares in Oracle Corporation hit an all-time high this week after reporting strong earnings especially on cloud revenues. Oracle stock was up 0.65 on Friday to close at $50.95. The company has a market capitalization of $227 billion.
The company said that fourth quarter SaaS (Software as a Service) cloud revenues were up 67% to $964 million. Cloud PaaS (Platform as a Service) plus IaaS (Infrastructure as a Service) revenues were up 40% to $397 million in the quarter.
Cloud plus on-premise software revenues were up 5% to $8.9 billion. Total revenues were up 3% to $10.9 billion. Net income for the fourth quarter was $3.23 billion, up 15%.
For fiscal 2017, Cloud SaaS revenues were up 61% to $3.2 billion compared to fiscal 2016. Total company revenues for all of fiscal 2017 were $37.7 billion, up 2%.
“Our fourth quarter results were very strong as revenue growth and earnings per share both substantially exceeded the high end of guidance,” said Oracle CEO, Safra Catz. “We continue to experience rapid adoption of the Oracle Cloud led by the 75% growth in our SaaS business in Q4. This cloud hyper-growth is expanding our operating margins, and we expect earnings per share growth to accelerate in fiscal 2018.”
“We sold $855 million of new annually recurring cloud revenue (ARR) in Q4, putting us over our $2 billion ARR bookings goal for fiscal year 2017,” said Oracle’s other CEO, Mark Hurd. “We also delivered over $1 billion in quarterly SaaS revenue for the first time. Next year is going to be even better. We expect to sell a lot more than $2 billion in new cloud ARR in fiscal year 2018.”
“AT&T has agreed to migrate thousands of existing Oracle databases containing petabytes of data plus their associated applications workloads to the Oracle Cloud,” said Oracle Chairman and CTO, Larry Ellison. “In the coming year, I expect more of our big customers to migrate their Oracle databases and database applications to the Oracle Cloud. These large-scale migrations will dramatically increase the size of both our PaaS and IaaS cloud businesses.
Ellison, founder of Oracle, holds more than 1.1 billion shares of stock in Oracle, giving him a net worth of nearly $59 billion.