Oracle has released its Q2 financial results for the fiscal year 2024, ending in November. The company reported revenues of $12.941 billion, representing a 5% increase compared to the same quarter of the previous year. Net profit stood at $2.503 billion, reflecting a significant 44% growth.
The revenue from cloud services and support saw a notable 12% increase, reaching $9.639 billion. However, revenue from cloud and on-premises software declined by 18% to $1.178 billion. Hardware revenue also experienced a decline, amounting to $756 million. Services revenue stood at $1.368 billion.
During the earnings call, Oracle’s CEO and founder, Larry Ellison, provided insights into the company’s performance. He mentioned that Oracle’s cloud infrastructure services had clients such as Elon Musk’s xAI start-up. Furthermore, Oracle faced challenges due to the increasing demand for AI processing chips, which outstripped the current supply.
In the previous quarter, Oracle announced a collaboration with Microsoft, where Microsoft would leverage Oracle’s cloud to enhance AI processing capabilities for Bing. This partnership underscored the high demand for AI on cloud platforms.
TLDR: Oracle reported a 5% increase in revenue and a substantial 44% growth in net profit for Q2 FY2024. The company experienced increases in cloud services and support revenue, while cloud and on-premises software revenue declined. Oracle faced challenges due to the demand for AI processing chips, and it partnered with Microsoft to enhance AI capabilities for Bing using Oracle’s cloud infrastructure.
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