Oracle reported a smaller-than-expected rise in quarterly adjusted revenue as the business software maker’s sales from countries outside the United States were weighed down by a stronger dollar.
Shares of Oracle, which gets little more than half of its revenue from outside the United States, were down 2% in extended trading.
The company’s total adjusted revenue inched up to $9.07 billion in the second quarter ended Nov. 30 from just under $9 billion a year earlier.
Analysts on average were expecting revenue of $9.12 billion, according to Thomson Reuters I/B/E/S.
Sales of Oracle’s cloud software and platform as services rose 81.4% to $878 million, slightly below analysts average estimate of $879.5 million, according to research firm FactSet StreetAccount.
The Redwood City, Calif.-based company has beefed up its cloud business through acquisitions, including that of NetSuite for $9.3 billion, to head off competition from nimbler rivals such as Workday Inc and Salesforce.com Inc.
“Oracle has now passed salesforce.com and become number one in SaaS cloud applications sales to customers with over 1,000 employees,” Oracle CEO Mark Hurd said in a statement, citing market research firm IDC.
Cloud-based software sales account for a small portion of Oracles’ total revenue as they are subscription based, which promise a steady revenue stream but with lower margins.
Oracle’s higher-margin traditional software business continued to suffer, falling a bigger-than-expected 19.7% to $1.35 billion.
Oracle’s total net income fell to $2.03 billion, or 48 cents per share, from $2.20 billion, or 51 cents per share.
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Excluding items, it earned 61 cents per share, one cent above analysts’ estimates.
The company said its adjusted profit per share would have been 2 cents higher, if it were not for the strong dollar and an unforeseen Egyptian currency exchange loss.