Oracle Corp. signalled a recovery in client spending as remote work spurred demand for cloud services as well as traditional licensing business, helping it beat expectations for first-quarter results and sending its shares up 5 per cent on Thursday.
The COVID-19 pandemic has led to a rapid shift to remote work with companies looking to extend it till the next year, benefiting cloud companies that support this move.
It comes at a time when Oracle has been pushing into the cloud business that helps companies save cost by renting data centres rather than owning them.
Revenue from its largest the unit, that includes its cloud services, rose 2.1 per cent to US$6.95-billion.
Total revenue rose 1.6 per cent to US$9.37-billion, beating analysts' average estimate of US$9.19-billion, according to IBES data from Refinitiv.
The company’s net income rose to US$2.25-billion, or 72 US cents a share, in the first quarter ended Aug. 31, from $2.14-billion, or 63 US cents a share, a year earlier.
On an adjusted basis, Oracle earned 93 US cents a share, above market expectation of 86 US cents a share.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.