TEL AVIV (Reuters) - Oracle Corp co-CEO Safra Catz said on Monday she expects an acceleration in the company’s cloud business after the software maker last month reported sales from its cloud business that fell short of Wall Street expectations.
Catz told reporters in Tel Aviv that the company’s cloud business was impacted by a new model made available to customers three quarters ago that resulted in much higher than projected license growth.
“That makes the appearance of a lower number (for the cloud business) even though money is actually coming in to another bucket,” Catz said.
“As this evens out I think we are going to start seeing cloud acceleration again that is very significant but I don’t want to time that right now.”
Oracle last month said its quarterly cloud business revenue rose 31.7 percent to $1.57 billion, but fell short of the average analysts’ estimate of $1.59 billion, according to Thomson Reuters I/B/E/S.
Reporting by Tova Cohen; Editing by Steven Scheer