Oracle's 3Q Results Beat Projections, Raises Share Repurchase Authorization
March 10 2021 - 4:49PM
Dow Jones News
By Maria Armental
Oracle Corp.'s revenue topped $10 billion in the most recent
quarter, putting the software giant on track for a record revenue
year, and the board raised the authorization for share repurchases
by $20 billion.
Company officials have pointed to accelerating revenue trends,
partly tied to the pandemic, and noted that Oracle's Generation 2
Cloud Infrastructure demand, for example, was blowing out internal
forecasts and hastening expansion plans.
Oracle Gen2 cloud infrastructure revenue again more than doubled
in the third quarter from the year earlier, Larry Ellison, Oracle's
chairman and chief technology officer, said in a statement.
Oracle shares dropped 2.7% to $70.16 in after-hours trading.
"We are opening new regions as fast as we can to support our
rapidly growing multi-billion dollar infrastructure business," Mr.
Ellison said.
Overall, third-quarter profit surged to $5.02 billion from $2.57
billion a year earlier. On a per-share basis, profit was $1.68, or
$1.16 as adjusted.
Revenue rose to $10.09 billion from $9.8 billion a year
earlier.
Analysts surveyed by FactSet expected a profit of 86 cents a
share, or $1.11 a share as adjusted, and $10.07 billion in
revenue.
The business software giant and its founder, Mr. Ellison, have
been pillars of the Bay Area, moved corporate headquarters to Texas
in December, saying the move would offer more flexibility to
employees on where and how they work.
Oracle said it would maintain major hubs, including in Redwood
City, Calif., where it was previously based, and that depending on
their job, employees would be able to choose office location as
well as continue to work remotely part time or full time.
"By implementing a more modern approach to work, we expect to
further improve our employees' quality of life and quality of
output," the company said in a securities filing.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
March 10, 2021 16:34 ET (21:34 GMT)
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