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Oracle’s foray into the cloud-computing market is starting to bear fruit after last year’s acquisition of electronic medical record company Cerner, which has given it a competitive edge over industry giants like Microsoft and Amazon.com.
The cloud and software company is also enhancing its AI cloud offerings, including a partnership with Nvidia to make the chip company’s AI software and chips available to Oracle customers through cloud services.
Oracle’s fourth-quarter revenue rose about 17 percent to $13.84 billion, beating analyst estimates of $13.74 billion, according to Refinitiv.
Cloud revenue increased 54% to $4.4 billion.
Analysts believe that given the company’s partnership with Nvidia, Oracle Cloud Infrastructure (OCI) could become a leading AI/ML development platform and a new leg of new growth.
“LLM (Large Language Model) development companies such as Mosaic ML, Adept AI, Cohere, and 30 other AI development companies recently signed deals to purchase over $2 billion in capacity in Oracle’s Gen2 Cloud. ,” said Larry, Oracle’s chairman and chief technology officer. Mr Ellison said in a statement:
The company expects total revenue to grow 8-10% in the first quarter. Analysts expected growth of about 8% on average.
Oracle CEO Safra Catz said on a conference call with analysts that he expects cloud revenue excluding Cerner to grow at least as fast in 2024 as in 2023. rice field.
The company’s shares closed at a record high of $116.43 on Monday before rising to $120.53 in extended trading.
(Reporting in Bangalore by Samrita Arnasalam and Raghab Mahobeh, edited by Maju Samuel)
