Oracle’s top executives were in a jovial mood during their fiscal fourth-quarter earnings call, even though the company’s quarterly and annual revenue growth numbers were nearly flat. CTO Larry Ellison and co-CEOs Safra Catz and Mark Hurd pointed to growing sales of Oracle’s newer products, such as database software and back-office management applications, as a promising sign.
Despite arriving late to the cloud, Oracle is now seeing strong demand for its second-generation cloud service and latest “autonomous” database product, said Mr. Ellison. He clarified Oracle’s recent cloud partnership with Microsoft, noting that it is designed for Oracle customers that want to run analytics on the Azure cloud, and is not a step to allow Oracle’s database to run on other cloud providers.
For the quarter ended May 31, Oracle reported a profit of $1.16 per share. Its sales were $11.1 billion, up 1% from last year’s quarter. Both numbers exceeded Wall Street’s forecasts. For its full year, Oracle had $39.5 billion in sales, down less than 1% from the $39.8 billion it reported in fiscal 2018.
Mr. Hurd said while Oracle’s revenue isn’t growing much, its “hot new products” are selling well, making up for slowing sales in older businesses like hardware. Mr. Ellison put it more bluntly: “We have other businesses that are just melting away, and we just don’t care.”