Business software maker Oracle Corp’s cloud division reported quarterly revenue that missed analysts’ estimates, on increased competition from Amazon.com Inc and Microsoft Corp for cloud services due to remote working.
The company’s shares fell 2.6% to $70.25 in extended trading on Wednesday.
With the shift to remote work, many businesses were pushed to shift operations to the cloud resulting in an increase in demand for offerings by Oracle, Microsoft’s Azure and Amazon Web Services.
Revenue from Oracle’s cloud services and licenses support unit, its largest by revenue, rose 5% to $7.25 billion in the reported quarter, compared with estimates of $7.27 billion, according to IBES data from Refinitiv.
“We are opening new regions as fast as we can to support our rapidly growing multi-billion dollar infrastructure business,” Oracle Chairman Larry Ellison said.
To compete with cloud services provided by Amazon and Microsoft, Oracle has been setting up more data centers.
The company’s revenue rose 3% to $10.09 billion for the third quarter ended Feb. 28, edging past analysts’ estimates of $10.07 billion.
On an adjusted basis, Oracle earned $1.16 per share beating estimates of $1.11.