Oracle announced it is killing off its advertising business, despite the bringing in billions in revenue in 2022.
As recently as 2022, Oracle’s advertising business was reported to be generating as much as $2 billion in revenue. Despite Oracle investing heavily in the division, advertising revenue decreased significantly in the last couple of years, leading the company to exit the business.
The news was revealed in an earnings call (transcript provided by AdWeek):
“Before I discuss my guidance for Q1 and fiscal 2025, I do just want you to have a couple of notes,” said CEO Safra Catz. “The first is that, in Q4, we decided to exit the advertising business, which had declined to about $300 million in revenue in fiscal year ’24.”
Oracle has been making significant headway in the cloud infrastructure market, recently revealing that it cannot keep up with demand. The company has also inked deals with OpenAI and Google Cloud to provide additional cloud infrastructure to those companies.
Despite its successes, it appears the company simply couldn’t compete effectively in the advertising market.
from WebProNews https://ift.tt/nOzA1ge
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