Software Giant Sees Growth and Collaboration Pay Off
- Oracle’s stock surges after reporting profit progress
- Partnership with Amazon Web Services announced
- Backlog growth accelerates for the company
- Fiscal first-quarter net income of $2.92 billion
- Adjusted earnings per share at $1.39, beating analyst expectations
- Revenue up to $13.31 billion from $12.45 billion
- Cloud services revenue reaches $10.52 billion, a 7% increase YoY
- Salesforce and Workday also improve profitability
- 53% growth in Oracle’s backlog, up from 44% in Q4
- Oracle to provide AWS customers access to databases in December
Oracle Corp. has reported profit progress, announced a partnership with Amazon Web Services (AWS), and seen accelerating backlog growth in its recent earnings report. The company’s stock surged nearly 9% in the extended session. Oracle posted a fiscal first-quarter net income of $2.92 billion compared to $2.42 billion in the previous year, with adjusted EPS at $1.39, beating analyst expectations. Revenue increased to $13.31 billion from $12.45 billion. Cloud services revenue reached $10.52 billion, a 7% YoY increase. CEO Safra Catz highlighted the ‘strong contract backlog’ that will boost revenue growth this fiscal year. Jefferies analyst Brent Thill noted the 53% backlog growth, up from 44% in Q4. Oracle also announced a multi-cloud partnership with AWS, set to provide easy access to databases for customers starting December.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Oracle’s earnings report, its partnership with Amazon Web Services, and the growth in cloud services revenue. It also includes quotes from the CEO and an analyst’s perspective on the backlog growth. The article is focused on the main topic without any significant digressions or personal opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about Oracle’s earnings report, partnership with Amazon Web Services, and growth in cloud services revenue. It also mentions the company’s accelerating backlog and collaboration with other tech giants like Microsoft and Alphabet. However, it lacks a deep analysis of long-term trends or possibilities, accountability, and actionable insights for readers.
Public Companies: Oracle Corp. (ORCL), Amazon.com Inc. (AMZN), Salesforce Inc. (CRM), Workday Inc. (WDAY), Microsoft Corp. (MSFT), Alphabet Inc. (GOOG)
Key People: Safra Catz (Chief Executive), Brent Thill (Analyst)
Financial Relevance: Yes
Financial Markets Impacted: Oracle’s stock and the software industry
Financial Rating Justification: The article discusses Oracle’s earnings report, a partnership with Amazon Web Services, and its impact on the company’s stock price, as well as the overall profitability of software companies. This directly pertains to financial topics and has an effect on the financial markets and the company itself.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The news focuses on Oracle Corp.’s positive earnings report and partnership with Amazon Web Services, which has led to a surge in their stock price.
Move Size: 9%
Sector: Technology
Direction: Up
Magnitude: Large
Affected Instruments: Stocks
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