Oracle’s (ORCL) “strong finish” to its fiscal 2024, with cloud bookings results exceeding investor expectations, supports future growth, Oppenheimer said in a note to clients Wednesday.
The database management company reported late Tuesday Q4 remaining performance obligation, or RPO, rose 44% year over year to $98 billion, while Infrastructure as a Service, or IaaS grew by 42% year over year.
Oppenheimer said it sees “Oracle as a long-term beneficiary of the software industry secular trends,” which include digital transformation, cloud computing and generative artificial intelligence. These trends are expected to drive “revenue growth and operating leverage for the company,” it added.
Oracle, however, reported earnings per share and revenue that missed analysts’ expectations, likely raising concerns that the company’s fiscal 2025 guidance is “aggressive,” Oppenheimer said.
The company guided its fiscal 2025 revenue to grow double digits and the growth rate to increase each quarter, as well as its IaaS to grow faster than 50% year over year, according to the note.
Oracle’s partnership with Alphabet’s (GOOG, GOOGL) Google to offer customers an option to combine Oracle Cloud Infrastructure and Google Cloud technologies is a “positive” for the database management company, Oppenheimer said.
Oppenheimer maintained its perform rating on Oracle’s stock.
Shares of Oracle were up nearly 13% in recent Wednesday trading.