(Reuters) -Oracle narrowly missed market expectations for first-quarter revenue on Monday, as companies pared back spending on cloud services due to an uncertain economic outlook.

Shares of the company fell 5.5% in trading after the bell. The stock has gained about 55% so far this year.

Companies have been trying to optimize their cloud budgets due to a global economic slowdown after a spurt in spending and adoption during the pandemic. Oracle, which was a laggard in the cloud sector, has played catch-up in a segment dominated by larger rivals such as Amazon Web Services and Microsoft.

Revenue for the quarter stood at $12.45 billion, slightly below analysts' estimates of $12.47 billion, according to LSEG data.

Net income was $2.42 billion for the quarter ended Aug. 31, compared with $1.55 billion a year earlier.

(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)