Oracle Shares Tumble Following Q1 Earnings Miss

• Q1 adjusted EPS was $0.55 versus estimate of $0.58 
• SaaS division says over 750 new customers joined during quarter
• Shares down over 3 percent after hours

Oracle Corp ORCL reported weaker-than-expected Q1 revenues of $8.60 billion versus estimates for $8.70 billion. Segment revenues in Software and Cloud grew to $798 million, up 77 percent year-over-year in US Dollar term.

Oracle Revenues Vs. Nomalized EPS - Data Through Q4 2016

Total Cloud Revenues, including infrastructure as a service (IaaS), were $969 million, up 59 percent in U.S. dollars and up 61 percent in constant currency. Operating Income was $2.6 billion and Operating Margin was 31percent during Q1 2017.

CEO Mark Hurd said: 

"We believe this will be the second year in a row that Oracle has sold more SaaS and PaaS than any cloud services provider. In the first quarter alone, we added more than 750 new SaaS customers including 344 new SaaS Fusion ERP customers – that's more ERP customers than Workday has sold in the history of their company."

Shares of Oracle closed Thursday regular session up $0.62 or 1.54 percent to $40.87. As a reminder, Oracle's OpenWorld conference begins in three days on September 18 in San Francisco.