Oracle shares are down 3.8% aftermarket following Q2 results that beat EPS and revenue estimates, even though cloud SaaS revenue of $1.1bn was up +55% yr/yr.
Cloud PaaS plus IaaS was $396m (+21%); total Cloud revenue, $1.5bn (+44% compared to the +39% to +43% guidance). Key metrics: Operating margin, 44%; short-term deferred revenue, $8.1bn (+9%); operating cash flow TTM, $14.6bn (+2%); cash and equivalents, $21.3bn.
Oracle Q3 guidance expects cloud revenue growth from 21% to 25%. Total revenues expected up 2% to 4% or about $9.5bn to $9.6bn (consensus: $9.68B) In an important guidance note, Oracle said foreign currency tailwinds could drive Q3 revenue growth up to the 5% to 7%. But the company also said exchange expectations were lower than predicted.