Software company Oracle (ORCL) posted revenue of nearly $11.14 billion in the fourth quarter of fiscal 2019. Its revenue not only exceeded analysts’ estimate by 1.9% but also rose 1% YoY (year-over-year) in the quarter, marking its first YoY increase since the first quarter of fiscal 2019. Its revenue was also up 4% on a constant-currency basis. Oracle expects its sales to grow as much as 2% in the upcoming quarter, and it expects higher YoY revenue growth in fiscal 2020 on a constant-currency basis.
In comparison, Oracle’s peer Symantec’s (SYMC) revenue lagged analysts’ estimate by 1.2% in the fourth quarter of fiscal 2019. Its revenue was down 3.2% YoY. Microsoft also reported better-than-expected revenue in its third quarter of fiscal 2019.
Revenue growth drivers
During the fourth quarter, Oracle’s Cloud License and On-Premise License revenue of $2.52 billion topped analysts’ estimate of $2.32 billion and surged 12% YoY, as the company reportedly signed contracts with new customers. The segment also saw a revenue rise of 15% on a constant-currency basis. The company said that revenues in its Fusion and NetSuite cloud application businesses were growing quickly and had been generating huge revenue and margins in fiscal 2019.
Oracle’s largest segment, Cloud Services and License Support, posted flat revenue of $6.80 billion in the fourth quarter of fiscal 2019 but exceeded analysts’ expectation of $6.76 billion. On a constant-currency basis, the segment’s revenue rose 3% YoY. This growth was a result of the company’s focus on its fast-growing cloud computing business.
However, Oracle’s hardware revenue fell 11% YoY to $994 million, and the company’s Services revenue, which doesn’t include cloud services or software support revenue, also fell 7% YoY to $824 million in the quarter.