Oracle’s Shares Rise On Strong Cloud Sales

June 16, 2016, 8:17 PM UTC
Key Speakers At The Oracle OpenWorld 2014 Conference
Larry Ellison, chairman of Oracle Corp., speaks during the Oracle OpenWorld 2014 conference in San Francisco, California, U.S., on Tuesday, Sept. 30, 2014. Oracle Corp. joins the cloud wars for commodity services that are being waged between Amazon, Microsoft and Google -- the three largest cloud providers. Photographer: David Paul Morris/Bloomberg via Getty Images
Bloomberg Bloomberg via Getty Images

(Reuters) – Business software maker Oracle reported a higher-than-expected revenue in the fourth quarter, boosted by a surge in sales from its cloud business.

Shares of the company @oracle (ORCL) were up 2.5% at $39.59 in extended trading on Thursday.

Like its rivals such as SAP, IBM and Microsoft, Oracle has focused on moving its business towards the cloud-computing model, essentially providing services remotely via data centers rather than selling installed software.

Total revenue from company’s cloud-computing software and platform service rose 49.1% to $859 million in the fourth quarter ended May 31.

The company’s total revenue fell 1% to $10.59 billion, beating analysts’ average estimate of $10.47 billion, according to Thomson Reuters I/B/E/S.

Oracle’s net income rose to $2.81 billion, or 66 cents per share, in the quarter ended May 31, from $2.76 billion, or 62 cents per share, a year earlier.

Excluding items, it earned 81 cents per share, meeting average analysts’ estimate.

Up to Thursday’s close, Oracle’s stock had risen 5.8% this year.

Correction (June 16, 2016): An earlier version of this article mistakenly said that Oracle’s income fell. In fact, it rose.

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