Oracle Corporation (NYSE: ORCL) stock lost 4.5% in the after-hours session (as of 7:59PM EDT; Source: Google finance) post their second quarter of 2018 update.

The group reported an overall Revenues rise of 7% to $9.2 billion during the first quarter of 2018 as compared to same period last year. Cloud plus On-Premise Software Revenues surged 9% to $7.4 billion while Cloud Software as a Service (SaaS) revenues surged 62% to $1.1 billion during the period. Cloud Platform as a Service (PaaS) plus Infrastructure as a Service (IaaS) revenues surged 28% to $400 million while overall Cloud Revenues enhanced 51% to $1.5 billion. ERP is the group’s major cloud applications business who currently have about 5,000 Fusion ERP customers plus 12,000 NetSuite ERP customers in the Oracle Cloud. Short-term deferred revenues surged 9% yoy to $10.3 billion during the quarter. Operating cash flow surged 8% to $14.8 billion on a trailing twelve-month basis.

The group’s GAAP Operating Income surged 7% to $2.8 billion while Operating Margin reached 31%. Non-GAAP Operating Income enhanced 11% to $3.8 billion while non-GAAP Operating Margin reached 41%. GAAP Net Income surged 21% to $2.2 billion, while non-GAAP Net Income enhanced 14% to $2.7 billion. GAAP Earnings per Share enhanced 19% to $0.52, while non-GAAP Earnings per Share surged 12% to $0.62.

The group is enhancing their focus on Oracle Internet of Things (IoT) Cloud, which comprises built-in artificial intelligence (AI) and machine learning that powers Digital Twin and Digital Thread capabilities. They launched new industry solutions for digital field service, smart connected factories, and digital fleet management. They recently launched new Oracle IoT Cloud Applications for asset monitoring, connected workforce, fleet monitoring, and production monitoring. The group has more than tripled its IoT application ecosystem of device and systems integration partners. Oracle IoT Cloud offers software-as-a-service (SaaS) applications, as well as platform-as-a-service (PaaS) offerings, enabling a high degree of adaptability for even the most demanding implementations.