Buybacks Drive Oracle's Beat

Wide-moat

Total revenue was flat year over year at $9.6 billion, including a currency headwind of $140 million. Cloud and on-premise revenue increased 1% year over year to $7.8 billion. Applications revenue was roughly flat sequentially at $2.8 billion and is now over $11 billion in the trailing 12 months, all at a hearty recurring revenue percentage of 91%. Overall ERP and HCM software-as-a-service revenue has reached a run rate of $2.6 billion, growing in the mid-20s year over year and up roughly 4% sequentially. While gross margins were down slightly year over year at 79% due to investment in the cloud infrastructure, management expects them to go higher as the cloud business scales. Operating margins were up 150 basis points year over year due to a decrease in restructuring costs.

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