Oracle Beats Quarterly Revenue Expectations As It Closes Cloud Deal With Xactly

Oracle announced its first-quarter fiscal 2021 results, revealing that total quarterly revenues were up 2% year-over-year to $9.4 billion compared to the same period last year. The company’s shares rose to 6% after it revealed its earnings and quarterly guidance exceeded analysts’ expectations.

Become a Subscriber

Please purchase a subscription to continue reading this article.

Subscribe Now

Oracle CEO, Safra Catz said, "Our cloud applications businesses continued their rapid revenue growth with Fusion ERP up 33% and NetSuite ERP up 23%. We now have 7,300 Fusion ERP customers and 23,000 NetSuite ERP customers in the Oracle Cloud. Our infrastructure businesses are also growing rapidly as revenue from Zoom more than doubled from Q4 last year to Q1 in this year. I have a high level of confidence that our revenue will accelerate as we move on past COVID-19."

The company's quarterly results followed another announcement from Oracle, which revealed a multi-year deal with software solutions provider, Xactly.

Xactly has selected Oracle Cloud to host its Incent SaaS suite, which is set to enhance customer experience and operational efficiency. The San Jose-based company offers compensation management, sales planning, and territory and quota management software to 1,600 major clients globally. The company notably helps to automate incentive compensation programs to wipe out payout inaccuracies and increase visibility into commissions.

While the details of the deal were not disclosed, Xactly CEO Chris Cabrera revealed it would be the “majority” of the company’s computing work. This includes some smaller products that run on clouds at Amazon and Salesforce, which will remain on those clouds.

This is a notable example of a cloud-native company turning to Oracle to transform its business. The sales performance management market grew 14% to $1 billion in 2019 as companies look to gain insights into valuable data across their operations to improve sales execution and operational efficiencies. Meanwhile, Oracle is laying the groundwork to expand its cloud computing business. Its customers, like Zoom, are expanding with data centers in more countries.