September 20, 2021 8:00 AM
 — 
3
 min

Oracle will maintain its leading position

buy

Oracle revenues for the quarter ended August 31 were $ 9.73 billion, up from $ 9.37 billion in the same period last year and a market consensus of $ 9.76 billion. by 6%, to $ 7.4 billion. Oracle increased its net profit by 9.3%, to $ 2.46 billion, or $ 0.86 per share. In the first quarter of the last fiscal year, the company posted net income of $ 2.25 billion, or $ 0.72 per share. Adjusted earnings were $ 1.03 per share, up from $ 0.72 last year, better than the market consensus of $ 0.97. Management said the company expects revenues to rise 3-5% in the next fiscal quarter. Adjusted earnings are forecast at $ 1.09-1.13 per share, slightly above market expectations. In the past quarter, Oracle bought back its own shares for $ 8 billion, while the number of its shares over the past 10 years has decreased by 46%.

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The growth in the volume of structured and unstructured data, as well as the growing need to use analytics to obtain information, are the main drivers of demand for new databases. We believe that, despite the growing competition, Oracle will maintain its leading position in the market for the foreseeable future. Oracle's new product, called a stand-alone database, has the potential to accelerate sales as businesses can more easily move mission-critical applications to the cloud. The company has made significant strides and now has much better opportunities for long-term SaaS growth. Oracle is developing its own cloud solutions platform and implementing automation technologies that we believe can help it grow its market share over time. Oracle may not be known as one of the earliest leaders in cloud computing, but strong growth efforts and a large amount of IT infrastructure provide the company with a unique opportunity to grow.

Founded in 1977 and headquartered in Redwood Shores, CA, Oracle Corporation offers a comprehensive and fully integrated stack of applications, platform services and engineered systems. Gartner estimates that ORCL is the second largest vendor in the Enterprise Software market with 9% market share. It has more than 400,000 customers, including300,000+ customers for its flagship Oracle database offering, deployed across a variety of industries. ORCL has had growing success in pushing into the cloud computing market over the last few years, but the model shift has put pressure on revenue growth and margins.

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