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  1. #1
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    [EN] Oracle: 51% jump in cloud revenues, to $1.5bn

    Richard Waters
    2017-09-14

    Oracle has rewarded Wall Street’s growing confidence in the growth potential of its cloud software business, turning in quarterly revenue and earnings numbers that topped market expectations after the market closed on Thursday.

    The latest figures were buoyed by a 51 per cent jump in cloud revenues, to $1.5bn. Thanks in part to the last year’s acquisition of NetSuite, cloud applications revenue rose 62 per cent, to $1.067bn, while the platform and infrastructure businesses were up 28 per cent.

    The US business-software company’s shares had already risen by 37 per cent this year ahead of the earnings announcement, thanks to signs that the growth in cloud sales was finally starting to more than make up for declining sales of traditional software. Revenue from new software licences – once the key indicator of the underlying health of the company – fell 6 per cent in the latest period, to $966m.

    Oracle’s shares climbed nearly 2 per cent higher in after-market trading ahead of an analyst call to discuss the numbers. Overall revenues for the quarter — the first of Oracle’s fiscal year — rose 7 per cent to $9.2bn, compared to expectations of $9bn. Pro-forma earnings per share of 62 cents were up 12 per cent, and 2 cents ahead of most analysts’ predictions.

    https://www.ft.com/content/f7e8b0d0-...a-073f169ca898

  2. #2
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    ICYMI: Oracle’s cloudy cash dash could fall flat, insiders warn

    Staff say they’re in the (Big) Red after sales teams push customers into the fluffy stuff

    Rebecca Hill
    25 Aug 2017

    Boardroom high-fives at Oracle over bumper cloud sales haven’t spread across the entire business, with staff lower down the food chain telling The Register that their bonuses have tanked.

    Customer success managers (CSMs) have claimed aggressive commercial tactics used to drag customers onto the cloud have resulted in fewer contract renewals.

    These managers advise clients on how to get the best out of Oracle’s products - they don’t get involved in the sales side, but do earn a large chunk of their overall annual income from bonuses based on whether their customers refresh or extend agreements.

    Normally, these bonuses - typically weighted 70:30 in favour of renewals - make up as much as 40 per cent of their overall annual income. They might not expect to pocket it all but rely on taking home a fair chunk.

    However in Oracle's last full fiscal year ended 31 May, when it reported a 60 per cent year-on-year rise in cloud sales to $4.6bn, UK-based CSMs said their compensation had fallen significantly.

    One insider, who spoke to The Register on condition of anonymity, calculated that in fiscal ’17, CSMs’ bonuses were between £20,000 and £35,000 less than in previous years.

    CSMs believe the unexpected, and large, drop is because of an increase in the number of so-called one-time deals sold to customers, deals where prices were heavily discounted and cloud versions included as part of the total package, even though the SaaS element might not be used.

    Similar practices have been reported at various vendors, with IBM being called out some years back. Resellers previously told us IBM was booking software sales as cloud revenue, even though customers did not explicitly sign up to use the cloud version of its wares.

    The source acknowledged that this isn't unusual in software firms, but said that Oracle's recent push for the cloud - with sales teams under pressure to sign up customers and Big Red competeting with smaller, more nimble rivals like Workday - may have led to instances of sellers overpromising and under-delivering.

    “The sales teams can win great deals and they do a good job of it - but when they struggle they start to pull on resources they don’t have,” the insider said.

    “I think the sales guys tried to mimic competitors’ capabilities, but we can’t because there are too many moving parts - loads of acronyms and lots of people. They try to dress it up in a way a customer will understand, but when it gets closer to procurement, it gets more and more complicated… Then the sales guys just try and get anything in.”

    Oracle CSMs’ main complaint is that they were unable to influence the deals and so should have had any non-renewals as a result of one-time deals removed from their bonus calculations.

    The advocates have expressed frustration at the way the situation has been handled by Big Red. CSMs argued that the terms of CSM compensation plans don’t specify that one-time deals were included in renewals calculations, and that repeated requests for clarification have been ignored.

    Emails seen by The Reg, which date back some months, show staff repeatedly questioned Oracle about the terms and calculations for their bonuses, how many non-renewals were as a result of one-time deals and asked for their bonuses to be “retargeted” excluding the one-time deals.

    The emails confirmed Oracle has escalated the matter to the corporate level and its Global Incentive Compensation team, but as yet the CSMs have not received a response to any of their questions.

    Disgruntled staff have now begun to raise grievances against Oracle - our source said that around 10 have done so, with another 15 to 20 expected to add their names to the list. There are 45 UK-based customer services managers, and a total of 270 across EMEA.

    Revenues floating away?

    The unrest comes as Oracle continues its years-long drive to reshape itself as a cloud business. Back in 2015, The Reg revealed sales teams were bagging bonus packages up to seven times larger than their salaries in return for flogging products under a services contract.

    A number of sources have claimed the one-time, or sweetener deals, include discounts of on-prem renewals and offers to write-off non-compliance payments after audits - assuming the customer also takes the cloud.

    But, our contacts said, unless Oracle can get its customers using and renewing the cloud services, the move might not pay off in the long-run. Microsoft channel sellers are now targeted on customers’ consumption of their cloud deployments in a bid to justify a customer's investment and boost the chances of renewal.

    “Most customers we’re dealing with are not renewing their cloud purchases with Oracle,” said Nathan Biggs, CEO of consultancy House of Brick Technologies.

    “This is largely because public cloud for Oracle software doesn’t yet fit in with their enterprise strategy. Many customers purchase Oracle cloud credits simply in order to avoid negative audit findings, with no intent to actually move their systems to the cloud. If they’re not using it, they’re not going to renew.”

    Biggs added that Oracle's revenue growth "seems to be outpacing actual cloud usage", and that this would be a "huge issue" unless customers start consuming its software-as-a-service.

    “There’s no doubt that cloud adoption - including Oracle’s - will continue to grow. Because many customers seem to be making Oracle cloud purchases with no intention of actually implementing those solutions, it appears that the cloud growth that Oracle is reporting may be on a shaky foundation".

    Oracle, which is also hiring 1,000 fresh-faced cloud sellers in EMEA who are due to start in January 2018, declined to comment on either the drop in customer success managers’ annual bonuses or concerns about sustainability of cloud revenues.

    https://www.theregister.co.uk/2017/0...insiders_warn/

  3. #3
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    Última edição por 5ms; 14-09-2017 às 21:55.

  4. #4
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    Oracle’s Larry Ellison promises "world's first fully autonomous database"

    Oracle's CEOs Safra Catz and Mark Hurd on Q1 2018 Results - Earnings Call Transcript

    Q1 2018 Earnings Conference Call
    September 14, 2017

    ...

    Larry Ellison

    On October 1 at Oracle OpenWorld, we'll announce the next generation of the Oracle database. When we deliver it by the end of this calendar year Oracle will become the world's first fully autonomous database. Based on machine learning this new version of Oracle is totally automated self driving system that does not require a human being either to manage the database or tune the database.

    Using artificial intelligence to eliminate most sources of human error enables Oracle to deliver unprecedented reliability in the Cloud. We will be offering public Cloud SLAs, service level agreements for the Oracle database that guarantee 99.995% systems availability time. 99.995% availability means less than 30 minutes of planned or unplanned downtime per year.

    To achieve that level of reliability, Oracle has to automatically tune, patch, and upgrade itself, while the system is running. AWS can't do any of this stuff, but perhaps the most interesting aspect of autonomous systems like self driving cars on our new self driving database are the economics that surround total automation. Self-driving cars eliminate the labor cost of driving, plus the high cost associated with human driving errors.

    Self driving database eliminates the labor cost of tuning, managing, and upgrading the database plus avoiding all of the costly downtime associated with human error. Self driving taxis are much cheaper to operate then taxis with human drivers. Running Oracle's autonomous database is much, much cheaper than running traditional human driven databases like Amazon's Redshift.

    Customers moving from Amazon's Redshift to Oracle's autonomous databases can expect to cut their cost in half or more and Oracle will be providing SLAs that guarantee those cost settings to customers that move.

    ...

    (continua)

  5. #5
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    Question-and-Answer Session

    ...

    Sarah Hindlian (Macquarie)

    All right great thank you very much. Thanks for taking my questions and congrats on the quarter. The on-premises business is definitely doing better, but we are obviously seeing and hearing more about very large marquee customer wins across your Cloud portfolio and now your app business is actually growing 17% constant currency, which implies you're taking market share, so I’m wondering what you’re seeing in terms of momentum in that Cloud portfolio and where are you see that heading and if there’s really any benefit coming in from these large reference customers?

    ...

    Larry Ellison

    Yeah, I will just add. If you look at the growth rate of our applications business in the Cloud, in excess of 60%, and you compare that to either Workday or Salesforce, the two other major players - application players in the Cloud, they are not even close. So we’re much bigger than Workday in applications and we’re growing faster, must be taking share. And then our primary competitor in both HCM and ERP Salesforce has been at it for 15, 16, 17, 18 years they’ve been at it for a very, very long time, but we sell more new applications customer then they do every year and that may be clear. We sell double what Salesforce sells in absolute dollars. We did it last year and we will do more than that this year, and we are growing - and we're catching them very, very fast. So, to just reinforce what Mark said, we are taking share. We’re taking share across the entire applications ecosystem and we’re taking share from our Cloud, primary Cloud customers - of Cloud competitors as well.

    Kash Rangan (Bank of America)

    Hi, congratulations. One question for Mark and maybe one for Safra. Mark can you talk about the new disclosure that came out in 8-K, you talked about some really ambitious plans for your SaaS business at $10 billion in revenue, PaaS and IaaS at $10 billion as well, can you talk about - what kind of timeframe are you likely to achieve this and how much of this is from acquisitions versus organic? And question for you Safra, if you're able to achieve these ambitious targets laid out, how should we think about the margin structure of the company? That's it from me. Thank you

    Larry Ellison

    Kash let me just jump in here and say that we also have an $80 share of stock price target that’s part of the comp plan. We also have a target that says we will be double the market cap of IBM, double the market cap of SAP. I mean there are a lot of targets here. In terms of margin, we have a Cloud margin target that I think is 80%.

    So, actually we are well on our way to achieving in SaaS - SaaS Cloud margin target, so we expect the margins in our businesses to go up, the stock price to go up for us to distance ourselves from our, if you will, our legacy competitors and join the ranks of the new generation of the Tech companies like, as Microsoft has done and smaller companies like Salesforce and Workday. That's where we position ourselves.

    So we think these are stretched targets and it will take several years to achieve them, but we think we are well on our way. We obviously believe they are achievable, but it will require sustaining the kind of performance we have delivered over the last several quarters.

    Kash Rangan

    And acquisitions Larry in this forecast, are they material or is it all [indiscernible]?

    Larry Ellison

    There is no one left to buy. And it's not like there are a lot of obvious, as we focus on the Cloud, there are a bunch of obvious targets, we can go out and buy. So we’re seeing our best growth in technology that we have developed internally, our fusion ERP, fusion HCM which is the midmarket and the high end of the ERP and middle market and high-end of HCM. These are all internally developed systems. They are - HCM and ERP I think, our blended rate is growing triple digits.

    The size of these markets are enormous and we think we will be able to ride that horse, pursue that organic growth and meet our targets. So, I think it’s going to primarily come from internally developed technologies, the growth of those technologies and us gaining dramatic amounts of share and applications in the Cloud, and with our new autonomous database also in Platform-as-a-Service and infrastructure as a service. We have to get all cylinders firing, but the bulk of our technologies will determine our success. Things like our database and our fusion applications we all organically internally developed.

    ...

    Phil Winslow (Wells Fargo)

    Hi, thanks guys and congrats on a great start to the year. I just wanted to focus on the platform and infrastructure side in particular and as you look over the overall numbers, you are still putting up very healthy growth rates here, both obviously in the Cloud with the PaaS offering, but also on premise. Mark or Safra why don't you just double click on just what you are seeing on premise side even as that PaaS is ramping that’s keeping that business growing and question to Larry, obviously we’re excited to hear about the new features of coming at OpenWorld, but when you think about the Oracle PaaS offering versus other infrastructure service plus DBMS out there, why is it that the Oracle Cloud can lower cost more than these competitors and therefore make it gain share there?

    Mark Hurd

    Okay, they are pointing to me, I guess they want me to go first. The reason we can lower cost is we just automate more. There is a big difference between, what Amazon basically does, what they pioneered was this notion of, we will rank you based on what you use, compute, and storage and you can kind of bring whatever - and they offer a couple of databases, they offer Aurora, which is MySQL, their version of MySQL and they offer Redshift, which is another - their version of an open source database. They have made some changes to it, it is no longer Open Source. It's from Amazon for queries and OLTP.

    But these are technologies that are not automated. These are if you will old fashion technologies and a new fangled Cloud data centre, and available for record. So it’s kind of an interesting new business model, but their database technologies are not very advanced at all. They have just picked them up at Open Source. And our database, our - especially the latest generation of database totally automates everything. So you don't - you push a button and load your data and you’re done.

    You don't have lots of tuning parameters and lots of things to set up like you do with Amazon. Amazon requires a lot of labor to set up an online transaction processing system based on Aurora. That’s a lot of labor, it is MySQL, it is a code that we maintain. We know it very, very well, very different than Oracle. You press a button, load your data, run your analytics. It tunes itself, it backs itself up, it patches itself, it never goes down, and it’s much, much faster.

    Like you are saying it’s much, much, much faster and then someone will say, we don't need that speed. Let me translate. If it’s much, much, much faster and if it does in an hour what Redshift does in 10 hours it is one-tenth of the cost of running at Amazon because we charge the same amount for Aurora. So we take out the labor cost and because we consume less CPU and we compress the data and we consume less storage it is much - we are much more frugal about using compute and storage resources, and we eliminate the labor cost and the associate, the cost associated with human error. So we are not even trying to do the same thing as Amazon.

    Larry Ellison

    To your other question Phil, listen I think there is a strong interest across the board. I mean listen, we have got obviously new features that come with release 12, you know that all those with multitenant within memory, etcetera, obviously our security options are very important given the world that we live in today. We have a desire for many of our customers to get out of all this work, to get out of patching to look at to modernizing their infrastructure.

    You may have heard what AT&T talked about, there will also be an Oracle OpenWorld and you will hear a lot more directly from them. But the need to not just consolidate not just get the new features to modernize those applications, but to get out of all this work to the point that Larry has described you know about now the fact that I can’t deal with the amount of time it takes to patch all these hybrid environments that I have got. Now somebody - Oracle is going to do that for me, and then we are going to modernize the database, and now they are going to give me all these features, but you're not going to take all that work off my shoulders.

    So there’s a tremendous amount of this. Now to Larry's other point, remember most of our customers stick with some somebody like AT&T. They have over 10,000 Oracle databases in that company, 10,000. So you're going to have a handful of those big ones move to the Cloud. There is still going to be up quite a few of those that stay on premise for a period of time. So that work is just a lot of work for us to help and this is the beginning of a whole string of customers. They are going to go through this process to modernize those database environments.

    ...

    (continua)

  6. #6
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    John DiFucci (Jefferies)

    It is great to see the model work in the SaaS business with scale driving leverage here and I know you’re going to say, we’re also going to hit leverage in the PaaS and infrastructure as a service business or scale. Again I know there is a lot of variables here, but can you help us when we’re looking at, when we might see this happen, when we might see this turn either the timing in next year or the year after or even the scale when the business hits approximately what scale?

    Safra Catz

    Okay. So it’s a little bit complicated because there is a mix between IaaS and PaaS. PaaS in particular is extremely, extremely, extremely profitable and however there’s really a question of when the revenues get recognized and how much investing I have to do and how we line those up. So, we are just like you signed SaaS I know that it’s a time, it seemed absolutely impossible that we would have the kind of margins we now have an SaaS, it seemed impossible and yet they came and now we’re closing in on hitting, so much so that I actually went ahead and gave you some time next year for that hitting.

    PaaS and IaaS are very much at least at this point in the expansion period. We expect this to be a very large business that we remain very conscious of the margins, and so we’re trying not to invest too much ahead of revenue recognition, but as you see in this quarter alone we have a law that has yet to be deployed, fully deployed even though it’s fully provisioned even though the equipment is all bought and being capitalized.

    So this is really, I can’t give you an exact time because we’re going to be very much monitoring demand and reacting to that. And for us it is much more important that we expand quickly, of course mindful of margin dollars. Sometimes not as mindful necessarily of any intra-quarter margin percentages. So, I don't know if you want to add anything to that.

    Mark Hurd

    I think there is no mystery to this, right. This is just like the SaaS business, you have to build out some initial infrastructure to get started. You have to build it, and unfortunately you have to put it at online before you can sell it, and that’s what this is. There is a start-up cost to getting in these businesses. We are PaaS that in SaaS. We are deployed in now virtually all of the critical geographies and we now have scale in most of the critical geographies. And so you see it just show up in the margin rate as it has.

    We’re going through that same process in infrastructure. The great news for us now, we know how this works. We know how to get it done, we know to measure it, we know how to get from here to there, and so you will see the same results. So it’s just a factor of time and scale in bookings in Safra's last point, the ability then for us to get a provision so we can then recognize the revenue. So this is going to happen John.

    John DiFucci

    Okay, thank you. That all makes sense, but should we expect that we might need more scale? I mean would it develop similarly how PaaS SaaS did or would we expect to hit certain margins we would have to get even greater scale in this business?

    Mark Hurd

    No. I don't think there’s any material difference in the context of scale. There is the same fundamental that’s what I was trying to go through. You’ve got to start up cost, you got to get a data centre, you got unused capacity to get started, and then the increments of capacity to bookings comes at a very attractive margin rate. So think of it, you have a baseline of acts. And then I get, and then I have a little bit of capacity per booking so to speak.

    It’s not exactly how it works, but for the sake of your analytics how it works, and we know what that increment of capacity is for that booking, and then it is just a question of scale from there. So you take the unused space and then for each booking you get so - a couple of few cents on the dollar that you have to add internal capacity, and it just becomes the time it takes to get to scale. That's it.

    Raimo Lenschow (Barclays)

    Thank you. Maybe in anticipation of the Analyst Day, so I would like give a more broader question, Larry you started to use kind of, AI to kind of come up with the autonomous database, can you talk a little bit about like what more or how are you kind of see this whole thing evolving? Because there's obviously a lot of noise, a lot of hype around it. Some of the other competitors of you has come up with fancy names here, how do you guys see this play out for you guys? Thank you.

    Larry Ellison

    We are using machine learning all over the place. I mean everything from the very highest level to - in our HR systems, our recruiting systems to look at a bunch of candidates. And it is kind of inspect the data of people that this company has hired that had been very successful and people have been less successful. So we can actually start to bucket the candidates. You know this group, you have got 200 people you are looking at hiring, 50 over here look very much like the 50 people that you hired over the last five years that have been enormously successful for the company.

    And that’s the matter machine learning, using machine learning to just look at the profiles of individuals, companies hired over a period of time and make recommendations of how to prioritize candidates that they’re looking at making offers to. All the way from that level to our new security systems, which are going in now, where we are doing a log inspection, where we’re looking at people and the logs we look at unlike anybody else, we are in the applications business, we are in the database business, and we’re in the Cloud infrastructure business looking at network logs and operating system logs, and storage hardware logs, we’re also looking at database logs, we're looking at people trying to log on to application systems and the passwords they are reducing.

    We have all of these logs. And we are processing all of these logs in our Cloud to for example trying to find people who are going to attack a database and steal passwords, and steal data. And we think we do this better than anybody because we look at more data. We look at application data, in other words we certainly know that you're CFO is in the Ukraine trying to log on 50,000 times in the middle of the night. Maybe you're CFO is not vacationing in Ukraine and that’s not her, and there could be a problem someone is trying to break in.

    We look at that level of data all the way down to IP addresses. There are strange IP addresses trying to figure out, we look at strange SQL terms, anyway we do - we look at 10 times more log information then someone like Splunk, who has been inspecting IP addresses, but not log in information. So, we get a much better picture of all the activity of what’s going on inside your data centre and use machine learning to inspect this vast amount of data and see if someone is in their reconnaissance base of prior to an attack where we can shut them off while they are just looking around before they actually attack anything and then start stealing passwords and start stealing data.

    Again, that’s also all machine learning. We’re offering that technology - again in OpenWorld we’re offering, the customers can ship their logs from their data centre and into our Cloud and we will do all of that security reconnaissance and security work for them. And the more of this information we have the better equipped we are to find a malware. You find malware showing up let’s say Germany, and we know what it looks like and suddenly we have worldwide alerts because - worldwide alerts to recognize that the malware that should show up in California or at a - and as we know there is a lot of securities getting more and more important these days.

    The events at Equifax, very unfortunate. Events at Equifax is not going to be an isolated incident. You are going to see more and more things like this. You saw at the government's office of personal management, which was disastrous for our intelligence community. We’ve got to do a better job, we got to do a better job of securing not only our Cloud, but our customer's data centers getting all of that log data using machine learning to - and basically what is a cyber war that’s going to be on going for a long, long time.

    So everything from helping companies using AI to help companies hire the right people to helping data centers both private data centers and public data centers protect against intrusions. It’s an important new technology and it’s the centre of what we are doing with database automation, security and our applications.

    https://seekingalpha.com/article/410...all-transcript

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    Cloud rains profit for Oracle

    Oracle’s push into cloud gathers more momentum on sales growth

    Brian Womack
    Sep 15, 2017

    (Bloomberg) -- Oracle Corp.’s streak of revenue gains continued for a fifth straight quarter, buoyed by corporate demand for cloud-based software.

    Adjusted sales rose 7 percent to $9.21 billion in the fiscal first quarter, exceeding analysts’ estimates, as sales of cloud-based products continued to make up a bigger portion of the total. Profit also topped average projections, helped by holding down growth in operating expenses.

    Oracle executives are investing in new products and hiring more salespeople to add revenue from cloud-related products, which let businesses access software and services via the internet instead of running the programs from their own systems. Cloud-based sales jumped 51 percent during the quarter ended Aug. 31, the company said Thursday in a statement. Oracle already counts many of the largest corporations in the world as customers, and has been increasingly pushing to switch these clients’ business-software purchases to the cloud.

    “They’re leveraging their existing relationships to sell a lot more cloud stuff,” said Patrick Walravens, an analyst at JMP Securities. “It’s been working so far.”

    Shares of Redwood City, California-based Oracle rose as much as 2.2 percent in extended trading after the report. Investors have been encouraged by the company’s success in selling cloud-based software this year, sending the shares up 37 percent to records.

    New software licenses, a measure that’s tied to the company’s traditional installed on-premise software offerings, declined 6.2 percent. That compares with a drop of 5 percent in the prior period.

    Revenue from cloud-based applications, including programs that help companies handle finance and human resources tasks -- climbed 62 percent. The other part of the cloud business -- which includes databases and access to raw computing power -- rose 28 percent.

    Revenue, adjusted for items such as contract terms, was $9.21 billion compared with analysts’ projection of $9.03 billion, according to data compiled by Bloomberg. Profit excluding certain costs was 62 cents a share, topping the average estimate of 60 cents.

    Oracle has propped up growth by adding employees and making acquisitions. The company is hiring 5,000 employees for its internet-based software business in the U.S., on top of more than 4,000 already brought on this year. The software maker also has been adding workers in Europe and other regions.

    Last year, the company acquired NetSuite Inc., a provider of cloud-based financial services, for about $9 billion, one of its largest deals ever.

    http://washpost.bloomberg.com/Story?...O46RM7B05HEQS0

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    Oracle shares have worst day in 4 years, but analysts still love it



    Earnings outlook makes Oracle the S&P 500’s worst performer Friday, but analysts still increase price targets


    Wallace Witkowski
    Sept 15, 2017

    Oracle Corp. shares had their roughest day in more than four years Friday following the company’s earnings report, but that did little to dent analyst optimism ahead of the enterprise software giant’s OpenWorld conference in October.

    Even though Oracle topped Wall Street estimates for its fiscal first quarter late Thursday, a weaker-than-expected outlook for the second quarter kicked the legs out of Oracle’s recent string of record prices. Oracle was the worst performing stock on the S&P 500 index dropping 7.7% to close at $48.74 with 65 million shares trading, well above the 52-week daily average volume of 12.7 million shares. It was the worst one-day percentage drop for the stock since June 2013.

    Oracle’s forecast called for fiscal second-quarter earnings of 64 cents to 68 cents a share on revenue of $9.25 billion to $9.43 billion. Analysts surveyed by FactSet had estimated second-quarter earnings of 68 cents a share on revenue of $9.56 billion.

    Many analysts disregarded the outlook and price drop and raised their price targets.

    Stifel analyst Brad Reback, who has a “Buy” rating, raised his price target to $53 from $52, noting that Oracle planned to unveil a new log-analysis tool that could pose a challenge to data analysis company Splunk Inc.

    Reback said:

    The next major catalyst for Oracle will be OpenWorld 2017, Oracle’s annual user conference that runs 10/1-10/5 in San Francisco, CA. In addition to the aforementioned new log analysis tool, Oracle highlighted it plans to unveil a new version of its cloud database service that will be fully autonomous. While we will hear a lot more details in less than a month, Oracle commented that this service relies heavily on machine learning and requires minimal human intervention to manage or tune the database. This will reduce costs, improve speed, and guarantee 99.995% uptime (less than 30 minutes of planned and unplanned downtime, annually). Oracle states it will be priced cheaper than [Amazon Web Services] and we look forward to hearing a lot more on product timing, availability, and pricing at OpenWorld.

    Jefferies analyst John DiFucci, with a “Buy,” raised his price target to $61 from $60, but trimmed his full-year earnings estimate to $2.93 from $3.10 a share. He dismissed reaction to light second-quarter forecasts for cloud revenue as being a seasonal component.

    “There will always be seasonally weak sequential Cloud revenue growth in F2Q,” DiFucci noted. “This has to do with the seasonality of bookings.”

    He continued:

    We thought this quarter’s results might force naysayers to notice and buy the stock, and while the Cloud guidance and EPS reduction might delay that, we believe patient investors will continue to be significantly rewarded. We’d be aggressive buyers on weakness, as we believe 2H Cloud revenue and F18 EPS estimates are now prudently conservative.

    Cowen analyst J. Derrick Wood, with an “Outperform” rating, raised his price target to $57 from $55, noting that Oracle has made meaningful strides into the cloud after years of reluctance to make the move and endure shrinking margins.

    We continue to see levers in the model that should favor ORCL over the next several quarters including 1) greater scale of its Cloud businesses leading to accelerating overall growth; and 2) incremental operating leverage as ORCL shifts to a lower cost and more efficient sales model. We also note that ORCL announced it has a new Machine Learning controlled database that will be hitting the market soon, which could be an interesting new product catalyst.

    “The cloud growth guidance, even adjusting for currency, was a bit less than some hoped,” said Canaccord analyst Richard Davis in a note. With a “Buy” rating, Davis raised his price target to $57 from $56.

    “Our view remains unchanged, which is that Oracle is a logical and relatively safer port in a storm that some fear will arrive,” Davis said.

    Of the 36 analysts that cover Oracle, 26 have “Overweight” or “Buy” ratings, 9 have “Hold” ratings, and one has a sell rating.

    JMP analyst Patrick Walravens—in the minority of his fellow analysts with a “Market Perform” rating and no price target—said Oracle implied cloud revenue growth would also come in below expectations for the second quarter, at $1.53 billion to $1.58 billion compared with the consensus of $1.61 billion.

    In a note, Walravens trimmed his full-year earnings estimate to $2.96 from $3.01 a share “in part because the F2Q18 guidance suggests that our prior cloud growth assumptions were too optimistic.” Analysts surveyed by FactSet, on average, expect full-year earnings of $2.93 a share.

    http://www.marketwatch.com/story/ora...-it-2017-09-15
    Última edição por 5ms; 15-09-2017 às 19:36.

  9. #9
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010
    Posts
    18,556
    "Oracle’s forecast called for fiscal second-quarter earnings of 64 cents to 68 cents a share on revenue of $9.25 billion to $9.43 billion. Analysts surveyed by FactSet had estimated second-quarter earnings of 68 cents a share on revenue of $9.56 billion."

    No post #2, funcionários da Oracle alegam que a empresa está empurrando software desnecessário em pacotes com descontos agressivos na contratação fabricando um "sucesso de vendas" mas na renovação a estória tem sido bem outra. Como todo vendedor sabe, a primeira venda para um cliente é "fácil" -- dificil é obter vendas posteriores. Voce oferecer um pacote completo por uma mixaria e sair garganteando o uso de todos os produtos, como muitos fazem, é enganar a si próprio e taprear os investidores.

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