Oracle reported better than expected quarterly profit and adjusted revenue as the business software maker benefits from its transition to cloud-based products. 

Sales of the company's cloud-computing software and platform service rose nearly 62% to $1.19 billion, while its software licensing business fell nearly 16%.

The company's shift to cloud-based products to tackle the shrinking licensing business was strengthened with its $9.3 billion NetSuite acquisition in July. 

The deal helped the company to take on nimbler rivals such as Workday and 

"The growth in revenue from our cloud business has overtaken new software license declines on an annual basis," Safra Catz, Oracle chief executive said during the company's earnings call. 

The California-based company said adjusted revenue from its Software as a Service (SaaS) and Platform as a Service (PaaS) unit rose 86% to $1.1 billion on a constant currency basis.

This was at the high end of its previous guidance. 

Oracles said its net income rose to $2.24 billion, or 53 cents per share, in the third quarter ended February 28, from $2.14 billion, or 50 cents per share, a year earlier. 

Excluding items, the company earned 69 cents per share beating the average analysts' estimate of 62 cents per share, according to Thomson Reuters I/B/E/S. 

The company's provision for income taxes in the latest quarter fell 22% to $459m. 

Oracle's total adjusted revenue rose nearly 3% to $9.27 billion, marginally beating estimates.