Oracle has reported a drop in profit for the fiscal second-quarter, despite a slight revenue growth.
Net income fell to $2.03bn, $0.48 per share, in Q2, from $2.19bn or $0.51 per share, in the year-ago period.
Revenues increased 1% to $9.04bn from $8.99bn last year. Operating income was $3bn.
The company’s total cloud and on-premise software revenues increased 2% to $7.17bn, while hardware revenues declined 10% to $1.01bn. Total services revenues fell 2% to $844m.
Cloud software as a service (SaaS) and platform as a service (PaaS) revenues surged 81% to $878m. Revenue from cloud as infrastructure rose 6% to $175m.
The company’s Cloud SaaS & PaaS revenue growth rate has increased for four consecutive quarters.
Oracle’s Database as a Service cloud revenue was $100m for the quarter, driving growth in its overall database business. The company expects its Database as a Service and IaaS businesses to grow even faster than its SaaS business.
Oracle CEO, Safra Catz said: “As we get bigger in the cloud, we grow faster in the cloud.”
Catz compared Oracle’s continued momentum in the cloud, surpassing $1bn in quarterly revenue, to that of Salesforce.com.
“When salesforce.com crossed the billion dollar milestone their SaaS and PaaS subscription growth rate had slowed down to 36 percent, even after you include all their acquisitions,” Catz said.
Oracle CEO Mark Hurd said the company has now passed Salesforce number one in SaaS cloud applications sales.
Hurd said: “We expect to book over $2 billion in new annually recurring cloud business this year alone. And, with the acquisition of NetSuite, we plan on being the #1 cloud applications service provider for companies with less than 1,000 employees as well.”
Oracle agreed to acquire NetSuite on 28 July 2016 in a transaction valued at $9.3bn, or $109.00 per share in cash.
Netsuite, which was formed in 1998, describes itself as the first cloud company.