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Oracle 2015 Q4 Cloud Revenues Up 28%


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Announcing its fiscal 2015 Q4 results, Oracle said its business was significantly impacted by the strengthening of the U.S. dollar compared to foreign currencies. Oracle reported that total Q4 revenues were $10.7 billion, down 5% but would have been up 3% without the strengthening of the U.S. dollar.

Software and cloud revenues were $8.4 billion, down 6%, but up 2% in constant currency.

Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $416 million, growing 29%, and up 35% in constant currency.

Cloud infrastructure as a service (IaaS) revenues were $160 million, growing 25%, and up 31% in constant currency. 

Total cloud revenues were up 28% but would have been up 34% in constant currency.

Hardware Systems Revenues were $1.4 billion, down 4%, but up 5% in constant currency.

For fiscal year 2015, total revenues were $38.2 billion, essentially unchanged, but up 4% in constant currency. Software and cloud revenues were $29.5 billion, up 1%, and up 5% in constant currency. Cloud SaaS and PaaS revenues were $1.5 billion, up 32%, and up 35% in constant currency. Cloud IaaS revenues were $608 million, up 33%, and up 36% in constant currency. Total hardware system revenues were $5.2 billion, down 3%, but up 2% in constant currency.

Oracle executive chairman and CTO Larry Ellison, as well as Oracle CEOs Safra Catz and Mark Hurd each commented on the quarter results.

“We sold an astonishing $426 million of new SaaS and PaaS annually recurring cloud subscription revenue in Q4,” said Oracle CEO Safra Catz, in a statement released by the company. “We expect our rapidly increasing cloud sales to quickly translate into significantly more revenue and profits for Oracle Corporation. For example, SaaS and PaaS revenues grew at a 34% constant currency rate in our just completed Q4, but we expect that revenue growth rate to jump to around 60% in constant currency this new fiscal year.”

“Coming into Q4, we forecast selling $300 million of new SaaS and PaaS annual recurring revenue,” said Oracle CEO Mark Hurd. “We dramatically beat that forecast by selling a cloud industry all-time-record amount of $426 million of new SaaS and PaaS business. That is a year-over-year bookings growth rate of over 200%. As our multi-billion dollar cloud business gets bigger, our SaaS and PaaS revenue growth rates are on their way up to 60% in constant currency. Compare this to our primary cloud competitors’ whose own revenue growth forecasts are on their way down to 44% and 22%.”

“We expect to book between $1.5 and $2.0 billion of new SaaS and PaaS business this fiscal year,” said Oracle executive chairman and CTO Larry Ellison. “That means Oracle would sell more new SaaS and PaaS business than salesforce.com plans to sell in their current fiscal year – the only remaining question is how much more. Oracle’s planned SaaS and PaaS revenue growth rate is around 60% in constant currency; salesforce.com has a planned growth rate of around 20%. When you contrast those growth rates it becomes clear that Oracle is on its way to becoming the world’s largest enterprise cloud company.”

For more information, go to www.oracle.com.


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