Oracle shares were rising in late trading on Thursday after the software giant topped estimates on earnings and revenue.
For its fiscal first quarter, which ended in August, the company reported 2% growth in revenues to $9.4 billion and GAAP EPS of 72 cents per share, up 16%. Analysts were expecting sales of $9.17 billion and GAAP earnings of 67 cents per share.
"Q1 was fantastic with total revenue beating guidance by more than $150 million, and non-GAAP earnings per share beating guidance by $0.07," said Oracle CEO Safra Catz. "Our cloud applications businesses continued their rapid revenue growth with Fusion ERP up 33% and NetSuite ERP up 23%... Our infrastructure businesses are also growing rapidly as revenue from Zoom more than doubled from Q4 last year to Q1 in this year."
Catz added that she has a "high level of confidence" that Oracle's revenue will accelerate post-COVID. In April, Oracle announced that Zoom Video (ZM) - Get Zoom Video Communications (ZM) Report chose Oracle as a partner to expand its cloud capabilities in lieu of competitors such as Amazon's AWS (AMZN) - Get Amazon.com, Inc. Report or Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report Azure.
Oracle's board of directors also declared a quarterly cash dividend of $0.24 per share of outstanding common stock, which will be paid to shareholders on Oct. 22.
The company reported a GAAP operating margin of 34% for the fist quarter, along with short-term deferred revenues of $9.9 billion. Operating cash flow was $13.1 billion during the trailing twelve months.
Oracle shares are up 6% year to date.