(Reuters) – Business software maker Oracle Corp (ORCL.N) on Monday missed revenue estimates for the first quarter, as sales in its cloud services and license support unit disappointed, sending its shares down 5 percent in extended trading.
FILE PHOTO: The Oracle logo is shown on an office building in Irvine, California, U.S. June 28, 2018. REUTERS/Mike Blake/File Photo
Revenue from the unit, its biggest division by sales, rose 3.2 percent to $6.61 billion, missing the average analyst estimate of $6.71 billion, according to Thomson Reuters I/B/E/S.
In the preceding quarter, Oracle had created new revenue reporting structures, by merging its fast-growing cloud business with its legacy business of selling software licenses.
The company’s net income rose to $2.27 billion, or 57 cents per share, in the first quarter ended Aug. 31 from $2.14 billion, or 50 cents per share, a year earlier.
Excluding items, the company earned 71 cents per share.
Total revenue rose to $9.19 billion from $9.10 billion.
Analysts were expecting an adjusted profit of 69 cents per share on revenue of $9.28 billion.
Reporting by Vibhuti Sharma in Bengaluru; Editing by Anil D’Silva