https://seekingalpha.com/article/4251066-surface-cracks-oracles-2-growth-pillars
4 replies (most recent on top)
Did anyone ever say that the cloud revenue would replace the lost on-premise revenue? Analysts are just assuming that growth will continue unabated throughout the transition to a cloud services company. Well, I guess LMS are saying that revenues will remain flat or slightly down, I can't remember exactly what the last guidance was. If we stopped on-prem right now, revenues would drop but we'd show commitment to completing the change to a cloud services company and the company would be in a better position for future growth. Hitting a reset button is not without pain. Earnings per share will drop but if there are fewer shares, that will cushion the blow. Maybe buying back if you are going to completely restructure a company is a good idea? Of course this is all just an j educated guess.
Very insightful article. Revenue recognition for cloud in terms of ARR , using simple math, indicates that if a companies Q/Q or Y/Y cloud growth less than 100%, it either means that existing customers are not renewing subscriptions , or , you've not gained new customers at all or somewhere in between.
MSFT's cloud growth number of ~100% some time back , then, simply means that they have managed to retained existing ARR plus add revenue from net new customers as much the year before.
Growth in terms of cloud ARR is a rather difficult concept to grasp as compared to Capex revenue. Pls correct me if my understanding is flawed.
more like gaping self inflicted wounds
From the same site on Oracle stock buybacks.. https://seekingalpha.com/article/4251229-income-investor-view-5-stocks-buying-back-shares