(Bloomberg) -- Oracle Corp. is on track for its biggest rise since December 2021 after reporting a spike in bookings in its cloud computing business, showing...
-- Oracle Corp. is on track for its biggest rise since December 2021 after reporting a spike in bookings in its cloud computing business, showing progress in its bid to capture more of the competitive market.Remaining performance obligation — a measure of Oracle’s sales backlog — was $80 billion at the end of the quarter ended in February. That was significantly ahead of the $59 billion expected by analysts.
Cloud revenue jumped 25% to $5.1 billion in the period that ended in February, the company said, just ahead of Wall Street’s $5.06 billion estimate. Of that, $1.8 billion came from renting out computing power and storage over the internet and $3.3 billion from applications.The results were “certainly better than feared,” said Jefferies analyst Brent Thill in an interview on Bloomberg TV, noting that other cloud vendors like Amazon and Microsoft have similarly reported strong results recently.
After acquiring Cerner, the electronic health records company, Oracle has been focused on modernizing the legacy software business. It finished moving “the majority of Cerner customers” to Oracle cloud infrastructure in the quarter, Chairman Larry Ellison said. Further updates over the coming year, such as a new suite of applications, will transform Cerner and Oracle’s health operations into “a high-growth business for years to come,” he added.