Oracle Q2 Earnings: Past Bookings Boost Cloud Revenues; No Respite for On-Premise Business

The company's cloud business achieved strong revenue growth as past bookings began translating to revenue in the second quarter. In the legacy on-premise software licenses business, update and support revenue grew nominally, helped along by high attach and renewal rates. However, sale of new software licenses continued to decline. Unless Oracle is able to prop up sales of new software licenses, it is unclear how long the growth of update and support revenues can sustain growth.