Oracle (ORCL 50.91, -1.88) has slid 3.6% in pre-market as cautious guidance for the second quarter outweighs better than expected first quarter results.
The established software company reported above-consensus first quarter earnings of $0.62 per share on a 7.0% year-over-year increase in revenue to $9.21 billion, which was also better than expected.
Despite the earnings beat, the market has focused on the company's second quarter guidance, which was conservative compared to analyst estimates. Oracle expects second quarter earnings between $0.64 and $0.68 per share on revenue between $9.215 billion and $9.396 billion.
Returning to first quarter results, Cloud Software as a Service revenue grew 62.0% to $1.10 billion while Cloud Platform as a Service plus infrastructure as a service revenue grew 28.0% to $400 million. Software revenue increased 9.0% to $7.40 billion.
The company's CEO noted that the Cloud Software as a Service growth rate outpaced that of Salesforce.com (CRM 95.30, -0.31). The company now has 5,000 Fusion ERP customers and 12,000 NetSuite ERP customers in the Oracle cloud.
Oracle will present its first fully autonomous database cloud service in upcoming weeks.
Looking at the regional revenue breakdown, Americas software revenue grew 9.8% to $3.88 billion while hardware revenue decreased 7.8% to $526 million. Europe, Middle East, and Africa software revenue increased 6.1% to $2.02 billion while hardware revenue declined 1.5% to $271 million. Asia Pacific software revenue climbed 9.6% to $1.11 billion while hardware revenue declined 4.1% to $195 million.