Oracle forecast a strong Q4 revenue as it looks to make a lot of profits from its heavy cloud investments.
Oracle’s forecast for fourth-quarter adjusted profit is between $1.40 and $1.44 per share. This is above analysts’ estimates of $1.38. The company forecast revenue to grow between 6% to 8% on a constant currency basis.
For the third quarter that ended February 28, Oracle earned $1.13 per share missing analysts’ estimates of $1.18. The company however made $10.51 billion in revenue in line with estimates from analysts.
Oracle pointed out that operating expenses were up in the third quarter. This is due to the massive investment the company made in a bid to meet customers’ demand for cloud services.
Total operating expenses were up 8% at $6.69 billion while cloud services and license support costs alone rose 23% during the third quarter.
Oracle will continue to expand its offerings. The company will spend $4 billion in capital expenditure in 2022 as it looks to build more data centers and improve its cloud services.
For more information, read the original story in Reuters.