(Reuters) – Business software maker Oracle reported a higher-than-expected revenue in the fourth quarter, boosted by a surge in sales from its cloud business.
Shares of the company @oracle (ORCL) were up 2.5% at $39.59 in extended trading on Thursday.
Like its rivals such as SAP, IBM and Microsoft, Oracle has focused on moving its business towards the cloud-computing model, essentially providing services remotely via data centers rather than selling installed software.
Total revenue from company’s cloud-computing software and platform service rose 49.1% to $859 million in the fourth quarter ended May 31.
The company’s total revenue fell 1% to $10.59 billion, beating analysts’ average estimate of $10.47 billion, according to Thomson Reuters I/B/E/S.
Oracle’s net income rose to $2.81 billion, or 66 cents per share, in the quarter ended May 31, from $2.76 billion, or 62 cents per share, a year earlier.
Excluding items, it earned 81 cents per share, meeting average analysts’ estimate.
Up to Thursday’s close, Oracle’s stock had risen 5.8% this year.
Correction (June 16, 2016): An earlier version of this article mistakenly said that Oracle’s income fell. In fact, it rose.
