Oracle (NYSE: ORCL) reported its first quarter financial results during extended trading hours on Thursday. The Company topped earnings estimates, but short of revenue expectations, causing shares to tumble by 3% on Friday morning.

For the quarter, Oracle reported earnings of USD 0.90 per share on revenue of USD 9.61 Billion. Refinitiv analysts anticipated earnings of USD 0.88 per share on revenue of USD 9.65 Billion.

Total revenues grew by 1% year-over-year, driven by a 1% growth in Oracle’s cloud services and license support segment. The segment reported total revenues of USD 6.81 Billion compared to USD 6.63 Billion in the same quarter a year ago.

Overall revenue growth was offset by declines in Oracle’s cloud license and on-premise license segment, hardware, and services revenue. Cloud license and on-premise license segment reported revenues of USD 1.12 Billion, decreasing by 7% year-over-year.

Both cloud services and license support and the cloud license and on-premise license segments revenue came short of FactSet’s expectations. FactSet projected revenues of USD 6.82 Billion and USD 1.13 Billion, respectively.

Hardware revenue totaled USD 871 Million, down 2% year-over-year, while services revenue was USD 806 Million, down 1% year-over-year.

Hardware revenue surpassed analysts’ estimates of USD 846.5 Million, while services matched estimates.

"We had another strong quarter in our Fusion and NetSuite cloud applications businesses with Fusion ERP revenues growing 37% and NetSuite ERP revenues growing 29%," said Oracle Chief Executive Officer, Safra Catz. "This consistent rapid growth in the now multibillion dollar ERP segment of our cloud applications business has enabled Oracle to deliver a double-digit EPS growth rate year-after-year. I fully expect we will do that again this year."

During the quarter, Oracle co-Chief Executive Officer Mark Hurd passed away at the age of 62. On the conference call, Oracle Chairman Larry Ellison said the Company does not have plans for having a second Chief Executive Officer to work alongside Catz.