Oracle Stock Falls Flat After Lower Q1 Results

Christina Clarke
September 14, 2021
Oracle stock falls flat after lower Q1 results

Table of Contents

The low quarterly result of Oracle witnessed the stock losing 2 per cent of its total market on Tuesday during the premarket trading. Notably, the Q1 revenues of the software company appeared below expectations and estimates.

The on-premise license business and cloud license shocked the company, which gave a revenue loss of USD 813 million (8 per cent fall). However, the total quarterly revenue reached $9.7 billion, up by 4 per cent year-on-year (YoY). However, it shied away from the expectations. As a result, it saw a steep drop from the last session or the previous quarter. Also, it was the worst performance of the year.

As per analysts, the scale and the pace of customer acquisition were not supporting the revenue growth expected over ten per cent.

Interestingly, the company noted Telefonica Brasil, Pernod Ricard, and Deutsche Bank signed the Cloud infrastructure business last quarter.

Thirty-two cents per share was declared as the quarterly cash dividend by the Board. The per-share earnings of USD 1.03 were slightly below the expectations. Notably, Oracle had stated that revenue was projected around $10.19 billion at the range’s centre, while the current quarter earning would be around USD 1.11 per share. Thus, it would have equated to 1 per cent YOY growth. However, it did not happen.

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