Larry Ellison, co-founder and CEO of Oracle Corp., speaks during the Oracle OpenWorld conference in San Francisco on October 22, 2018.

David Paul Morris | Bloomberg | Getty Images

Oracle shares fell more than 9% in extended trading Monday after the software company reported fiscal second-quarter revenue and quarterly guidance that fell short of Wall Street expectations.

Here’s how the company compared to consensus estimates from LSEG, formerly known as Refinitiv:

  • Earnings per share: $1.34 per share, adjusted, versus $1.32 per share expected
  • Revenue: $12.94 billion versus the expected $13.05 billion

Sales rose 5% year-over-year in the quarter ended Nov. 30, according to a statement. Net income rose 44% to $2.5 billion, or 89 cents per share, compared with $1.74 billion, or 63 cents per share, a year earlier.

In terms of guidance, Oracle forecast fiscal third-quarter adjusted net income of $1.35 to $1.39 per share and revenue growth of 6% to 8%. Analysts surveyed by LSEG had forecast adjusted earnings per share of $1.37 and revenue of $13.34 billion, representing sales growth of 7.6%.

Oracle’s cloud services and license support revenue totaled $9.64 billion, up 12% and below the StreetAccount consensus of $9.71 billion.

Cloud and on-premise license revenue fell 18% to $1.18 billion, slightly below the StreetAccount consensus of $1.21 billion.

Services revenue of $1.37 billion also fell short of the consensus of $1.40 billion.

According to Oracle, cloud infrastructure revenue reached $1.6 billion during the period, up 52%. Customers included Elon Musk’s artificial intelligence startup xAI, Halliburton and Samsung.

The Musk company wanted significantly more AI chips than Oracle could deliver, Oracle co-founder Larry Ellison said in a conference call with analysts. Nvidia’s graphics processors are in short supply across the board, and the chipmaker is working to address the shortage.

“We did not build as much capacity as we could have used last quarter,” Oracle CEO Safra Catz said on the conference call. The company had to decide whether to build something small and book revenue in the quarter or move forward with a larger buildout and wait for capacity to become available, she said.

During the quarter, Oracle announced that it had acquired the cloud business from larger rival Microsoft and announced that its database software would be available on Microsoft’s Azure public cloud. The company will launch 20 Azure-connected data centers in the next few months, Oracle co-founder Larry Ellison said in the statement.

“I expect the OCI growth rate to be over 50% for a few years,” Ellison said on the call. OCI is Oracle Cloud Infrastructure, the company’s answer to Microsoft Azure and market-leading Amazon Web Services.

Also in the quarter, Oracle’s NetSuite division bought Australian field service software company Next Technik for undisclosed terms.

Oracle shares are up about 41% so far this year, outperforming the S&P 500 index, which has gained 20% over the same period.

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