Oracle Beats On Top And Bottom Line, Touts Role In Nvidia's AI Development, Shares Jump

Oracle Corp ORCL shares are trading higher in Monday's after-hours session on the heels of the company's fiscal fourth-quarter results. Here's a rundown of the earnings release.

What Happened: Oracle said fourth-quarter revenue increased 17% year-over-year to $13.8 billion which beat average analyst estimates of $13.73 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $1.67 per share, which beat consensus estimates of $1.58 per share.

Cloud services and license support revenues were up 23% year-over-year, while cloud license and on-premise license revenues fell 15%. 

Cloud infrastructure revenue was up 76% year-over-year, cloud application revenue was up 45%, fusion cloud ERP revenue was up 26% and NetSuite cloud ERP revenue was up 22%.

Check This Out: Trading Strategies For Oracle Stock After Q4 Earnings

"Our infrastructure growth rate has been accelerating—with 63% growth for the full year, and 77% growth in the fourth quarter. Our cloud applications growth rate also accelerated in FY23. So, both of our two strategic cloud businesses are getting bigger—and growing faster. That bodes well for another strong year in FY24," said Safra Catz, CEO of Oracle.

Oracle highlighted the fact that Nvidia Corp NVDA is using the company's clusters for AI infrastructure. Chairman and CTO Larry Ellison noted that Oracle's GPU clusters are built using the highest-bandwidth and lowest-latency RDMA network.

"As a result, cutting edge companies doing LLM development such as Mosaic ML, Adept AI, Cohere plus 30 other AI development companies have recently signed contracts to purchase more than $2 billion of capacity in Oracle's Gen2 Cloud," Ellison said.

Oracle's board declared a quarterly cash dividend of 40 cents per share. 

Management will host a conference call to discuss these results at 5 p.m. ET. The company usually provides guidance on the conference call.

ORCL Price Action: Oracle shares hit new 52-week highs in Monday's regular trading session and continued higher after the bell.

The stock was up 3.84% after hours at $120.82 at the time of writing, according to Benzinga Pro.

Photo: Open Grid Scheduler from Flickr.