Oracle’s shares jumped about 5% in after-hours trading after it beat Wall Street forecasts thanks to an uptick in sales of its cloud-based business planning software. The results for its fiscal second quarter were surprising because Oracle missed its sales target last quarter and some analysts had predicted it would do so again this quarter.
But Oracle, which stopped breaking out cloud revenue two quarters ago, still faces questions around its business of selling basic computing and storage services, which it launched in 2014. Oracle unveiled a revamped version of this cloud offering two years ago, but, as of mid-year, was still struggling to get customers using it, as we reported in September. Given the steep costs associated with building the new cloud, and the fact that Oracle’s newest database product is designed to run on it, this area of Oracle’s business will continue to be closely watched by investors.