Oracle Corp (ORCL.N), a cloud and enterprise software company, beat Wall Street expectations for quarterly profit and sales on Monday, as more firms raised their expenditure on cloud services while migrating to a hybrid work environment.
In extended trading, shares of the Austin, Texas-based firm, which had fallen almost 27% so far this year, climbed over 9%.
Oracle’s overall cloud revenue increased 3% to $7.61 billion, which includes its infrastructure-as-a-service and software-as-a-service businesses.
“We believe that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase,” Oracle Chief Executive Officer Safra Catz said in a statement.
The company’s Fusion and NetSuite cloud apps, as well as significant demand for its infrastructure cloud business, contributed to the increase in revenue, according to Catz.
As the demand for cloud computing and corporate software grows, the firm has been expanding its data center operations throughout the world.
To better compete with companies like Microsoft (MSFT.O), Amazon.com (AMZN.O), and Alphabet Inc’s (GOOGL.O) Google, Oracle is working to expand its cloud regions, or geographical locations where customers may obtain speedier access from a local data center.
Except for one-time factors, the firm earned $1.54 per share, topping analysts’ expectations of $1.37 per share.
