Oracle expects half -trillion dollars in reserved cloud requests, the shares rise 27 %

Written by Jobi Babu

(Reuters) – Oracle said on Tuesday that it expects its reserved revenues to exceed at the Oracle Cloud infrastructure company will exceed half a trillion dollars, supported by the increasing demand for relatively low -cost cloud infrastructure services and sending its shares by 27 % after the bell.

The remaining performance obligations of the company, or RPO, the most popular measure of the reserved revenue, jumped 359 % to $ 455 billion in the first quarter, on August 31.

“During the next few months, we expect several billions of additional customers to register billions of dollars and perhaps RPO exceeds half a trillion dollars,” said CEO of Safra Catz.

Oracle, whose shares have increased more than 107 % so far this year, expected OCI revenues by 77 % to $ 18 billion in this fiscal year, to $ 144 billion over the following four years.

“It is clear that the institutions are enthusiastic about costly cloud tools, and Oracle places themselves to capture this request,” said Jacob Born, Emarkter analyst.

Oracle offers integrated cloud techniques along with flexible publishing models, allowing them to meet a set of customer requirements.

“We have contributed to our customers directly connecting all their databases … to the most advanced thinking models in the world-Chatgpt, Gemini, Grok, all of which are uniquely available in Oracle Cloud,” Katz said in a post-profit call.

Although he is a smaller player, the current and expected numbers show that Oracle’s investment in infrastructure continues to pay as large organizations look forward to Oracle Cloud to support artificial intelligence initiatives. “

It has been made deals with Amazon, Alphabet and Microsoft In order for OCI work within its cloud infrastructure. Revenue from these clients grew 1,529 % in the first quarter.

The Chairman of the Board of Directors, Larry Ellison, said: “We expect multiple revenues to grow greatly every quarter for several years, as we offer 37 other data centers to our three super parties, so that the total is 71.”

“By providing integrated solutions across different environments, Oracle not only communicates, but also leads the road in the cloud space. This may attract more companies looking for multi -use cloud options,” said Melissa Auto, the head of research at Alfa Global’s Visible Alpha.

Oracle also said that it had signed four billions of dollars with three different customers in the first quarter, which helped to increase revenue by 12 % to 14.93 billion dollars.

For the second quarter, Oracle expects the total revenue to grow by 12 % to 14 %, while it sees the growth of cloud revenue between 32 % to 36 %.

(Participated in the reports of Jobi Babu in Mexico City; edited by Alan Barona)