Oracle Corporation ORCL is benefiting from increasing adoption of its product portfolio and synergies from strategic buyouts. Moreover, ongoing cloud-based momentum bodes well for the company’s top line.
Strength in Oracle Data Cloud deserves a special mention. Oracle Data Cloud offers marketers the required data and tools to strengthen their end-to-end marketing processes. Moreover, synergies from acquisitions of Moat, Crosswise, AddThis, BlueKai, Datalogix, and Grapeshot have fortified the platform.
In fact, the latest solution introduced by Oracle Data Cloud named Moat Yield Intelligence is already witnessing rapid adoption. Notably, Vox Media, Bloomberg Media Group and Bonnier Corp, are a few publishers to have already opted for the latest solution.
Notably, Oracle strengthened its Moat Analytics offering with Moat Yield Intelligence, which is aimed at assisting publishers in enhancing inventory and data-traffic management. The new solution is loaded with robust features including robust brand safety and view ability measures.
In the words of Chief Revenue Officer at Vox Media, Ryan Pauley, "Moat Yield Intelligence is a tool that allows us to offer deeper intelligence, performance, and optimization of our inventory ultimately resulting in increased return for our marketing partners."
Oracle Corporation Revenue (TTM)
Oracle Corporation Revenue (TTM) | Oracle Corporation Quote
Strength in Portfolio: A Key Catalyst
The next-generation autonomous database launched by Oracle, which is supported by machine learning, is now available. We expect the new database to generate incremental revenues for the company, going ahead. Management believes that the new database will improve Oracle’s competitive position in the cloud against Amazon’s AMZN cloud platform, Amazon Web Services (“AWS”).
Additionally, traction witnessed by Oracle NetSuite bodes well. NetSuite was recently selected by United Arab Emirates (UAE)-based Denaster General Trading LLC. With NetSuite deployment, the retail distributor attempts to expand its business beyond Middle East, particularly in the U.K. and India.
Per ResearchAndMarkets data, global ERP software market is envisioned to grow to $74.2 billion by 2026 from $34.1 billion in 2017 witnessing a CAGR of 9%. We believe robust adoption of NetSuite will aid Oracle to strengthen presence in the ERP market.
Oracle is striving to enhance the functionalities of cloud-based applications, which bode well. The company has inked a deal to acquire DataFox to enhance cloud-based data engine with artificial intelligence (AI) capabilities. We believe DataFox to be a lucrative addition to Oracle’s cloud-based portfolio.
Per Gartner data, the global SaaS market is anticipated to reach $117.1 billion in 2021 at a CAGR of 18.1% from $60.2 billion in 2017. We believe the company is well poised to capitalize on growth opportunities of its domain on the back of its ongoing efforts in the domain.
Consolidating Applications Market Remains a Woe
However, consolidating applications market is fuelling competition in the sector, which is not conducive to the company’s growth prospects at least in the near term. Moreover, stiff competition in the cloud is anticipated to limit margin expansion.
Zacks Rank & Key Picks
Oracle carries a Zacks Rank #3 (Hold).
Upland Software UPLD and SS&C Technologies Holdings, Inc. SSNC are a few stocks worth considering in the broader technology sector. All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Upland Software and SS&C are currently pegged at 20% and 13.5%, respectively.
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