# Oracle beats quarterly revenue estimates on cloud services demand
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-06-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Oracle Beats Revenue Estimates with Cloud Services Demand
Meta Description: Oracle exceeded Q4 revenue estimates on cloud services demand, driven by AI growth, Nvidia partnership; Q1 forecast positive
URL: https://financedigest.com/oracle-beats-quarterly-revenue-estimates-on-cloud-services-demandhtml

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# Oracle beats quarterly revenue estimates on cloud services demand

(Reuters) -Oracle on Monday topped fourth-quarter revenue estimates and forecast an upbeat first quarter, driven by growing demand for its cloud offerings from companies deploying AI, sending its shares up nearly 4%.

Oracle’s push into the cloud computing market has started to bear fruit, helped by its acquisition of electronic medical records firm Cerner last year that has helped it better compete with industry giants like Microsoft and Amazon.com.

The cloud and software company has also boosted its AI cloud offerings, including its partnership with Nvidia to make the chip company’s AI software and chips available to Oracle customers via its cloud services.

Oracle’s revenue for the fourth quarter jumped about 17% to $13.84 billion, [beating analysts’ estimates](https://www.financedigest.com/credit-agricole-beats-estimates-on-insurance-consumer-finance.html "Credit Agricole beats estimates on insurance, consumer finance") of $13.74 billion, according to Refinitiv.

Cloud revenue rose 54% to $4.4 billion.

Analysts believe that given the company’s partnership with Nvidia, Oracle Cloud Infrastructure (OCI) is well-positioned to become a major AI/ML development platform, which could be another leg of emerging growth.

Companies doing LLM (large language model) development such as Mosaic ML, Adept AI, Cohere plus 30 other AI development companies have recently signed contracts to purchase more than $2 billion of capacity in Oracle’s Gen2 Cloud,” Oracle Chairman and [Chief Technology Officer](https://www.financedigest.com/cigna-appoints-alison-meckiffe-as-chief-marketing-officer-for-global-ipmi.html "Cigna Appoints Alison Meckiffe as Chief Marketing Officer for Global IPMI") Larry Ellison said in a statement.

The company forecast its total revenue to rise 8% to 10% in the first quarter. Analysts on average were expecting growth of about 8%.

Oracle expects cloud revenue, excluding Cerner, to grow at least at similar rates in fiscal 2024 as in 2023, [Chief Executive](https://www.financedigest.com/growth-street-the-sme-finance-platform-announces-that-founder-greg-carter-has-replaced-james-sherwin-smith-as-chief-executive-officer.html "Growth Street, the SME finance platform, announces that founder Greg Carter has replaced James Sherwin-Smith as Chief Executive Officer") Safra Catz said on a conference call with analysts.

The company’s shares, which closed at their record high of $116.43 on Monday, were up at $120.53 in extended trading.

(Reporting by Samrhitha Arunasalam and Raghav Mahobe in Bengaluru; Editing by Maju Samuel)


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