Overnight, the fourth largest cloud computing service provider in the United States is $Oracle (ORCL.US)$The announced fourth quarter results for the 24th fiscal year fell short of expectations with revenue of 14.29 billion US dollars, lower than the expected 14.55 billion US dollars, and the growth rate also slowed down compared to the previous quarter's 7%. The revenue of the cloud computing service department, which was highly anticipated by the market, also fell short of expectations.
However, despite the disappointing performance, during the earnings call, Oracle executives expressed to analysts that the demand for cloud computing services was still strong and expected to further increase Oracle's sales and RPO (reflecting the scale of order reserves and future potential revenue). The company also announced partnerships with Microsoft, OpenAI, and Google Cloud, and is confident in the prospects for performance.
At the time of publication, Oracle's pre-market trading on the US stock market rose nearly 9%.
During the earnings call, Oracle announced its collaboration with Microsoft and OpenAI, integrating Azure into Oracle's cloud infrastructure to provide additional computing power to support large-scale AI model training.
Google will also collaborate with Oracle to enable Google Cloud customers to access Oracle's database services. Oracle CEO Safra Catz said that the Oracle database on the Google Cloud will be launched in September, and customers can directly access Oracle's database services deployed on the Google Cloud. The company will operate 12 Oracle databases on the Google Cloud site this year.
Oracle founder and CTO Larry Ellison said that the company is building a "very, very large data center" with "a large number of Nvidia chips" for artificial intelligence model training. He pointed out that large-scale data centers are necessary for complex AI training, especially with the expansion of model capabilities.
Ellison said that in addition to Microsoft, OpenAI, and Google, customers using Oracle's cloud infrastructure and data centers include Nvidia and Musk's xAI and other companies.
Amazon's AWS is not among Oracle's major cloud computing customers, but Ellison told analysts that Oracle is "very happy" to work with AWS, as it does with Microsoft and Google.
Catz emphasized that with the drive for advanced data centers and cloud capacity required by advanced AI models, revenue will continue to grow.
She pointed out that the growth rate of cloud infrastructure services in fiscal year 2025 will exceed that of fiscal year 2024.
Catz also emphasized that what sets Oracle apart from its competitors is its ability to provide comprehensive data center services for customers.
Competitors cannot provide the complete service suite that Oracle can provide, although they may have some unique characteristics in some respects, but they are not as comprehensive as Oracle in terms of comprehensive service capabilities:
She also said that for governments and some customers, data sovereignty "may be very important," and Oracle is very competitive in terms of data security and can stand out among a group of cloud service providers. There are risks in the market, and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are applicable to their specific situation. Investing based on this is at your own risk.
Edited by Jeffrey