Oracle banks on Cerner acquisition for boost in cloud revenue

Oracle banks on Cerner acquisition for boost in cloud revenue

Narrowly misses third-quarter earnings estimates.

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Oracle Corp narrowly missed quarterly revenue estimates on Thursday, but the company remained bullish on demand for its cloud software following the recent acquisition of electronic medical records firm Cerner.

Oracle has been beefing up its offerings with a focus on subscriptions to win large customers and better compete in the booming cloud services market dominated by tech heavyweights Microsoft Corp and Inc.

On a conference call with analysts, company executives said Oracle expects to sign more healthcare customers over the next few quarters.

Cloud revenue jumped 45 percent to US$4.1 billion (S$5.6 billion) in the third quarter.

However, while hybrid work has helped growth, a rally in the US dollar has also hit the bottom lines of multinational firms such as Oracle, with the company's net income in the third quarter falling to US$1.89 billion from US$2.32 billion a year earlier.

Oracle earned US$1.22 per share on revenue of US$12.39 billion in the quarter that ended February 28, while analysts were expecting a profit of US$1.20 per share on revenue of US$12.42 billion, according to Refinitiv data.

The mixed results sent shares down over 3 percent in trading after the bell.

The company forecast fourth-quarter revenue to grow between 15 percent and 17 percent, compared with analysts' estimate of 16.2 percent.

Oracle also expects adjusted profit per share in the range of US$1.56 to US$1.60, above market expectations of US$1.46.

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