REUTERS: Business software maker Oracle Corp reported a better-than-expected quarterly profit and revenue on Tuesday as more customers move towards its high-margin cloud business.
Shares of the company rose as much as 3.7 percent in after-market trading.
Oracle, which has cloud deals with AT&T and Bank of America , is a late entrant to the cloud business and has been trying to catch up with rivals such as Amazon.com , Microsoft and Salesforce.com .
"Initially Oracle dragged their feet on the cloud as it threatened their traditional licensing/maintenance model", said Daniel Morgan Senior Portfolio Manager Synovus Trust Company.
Oracle Chairman Larry Ellison said some of the company’s largest customers have now begun the process of moving their on-premise Oracle databases to the Oracle Cloud.
AT&T is moving thousands of databases and tens of thousands of terabytes of data into the Oracle Cloud, Ellison said.
Revenue from its cloud services and licenses support rose 8.2 percent to US$6.77 billion, as more companies shift to cloud computing from the traditional on-premise model to cut costs.
The company’s net income rose to US$3.41 billion, or 82 cents per share, in the fourth quarter ended May 31, from US$3.23 billion, or 76 cents per share, a year earlier.
Total revenue rose 3.3 percent to US$11.25 billion.
Excluding items, the company earned 99 cents per share.
Analysts were expecting a profit of 94 cents per share and a revenue of US$11.19 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Vibhuti Sharma in Bengaluru; Editing by Shailesh Kuber)