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UPDATE 2-Oracle's cloud business miss sends shares lower

(Adds analysts comments, background)

Dec 14 (Reuters) - Oracle Corp missed analysts' estimate for cloud revenue in its second quarter, sending the company's shares about 7 percent lower in extended trading and raising worries over the pace of the business maker's transition.

The company's shares, up nearly 31 percent this year, were trading at $46.94 on Thursday.

Revenue in the company's cloud-based business rose 44 percent to $1.52 billion in the second quarter, but fell short of the $1.56 billion analysts had expected, according to Thomson Reuters data.

"Oracle has largely made the transition on SaaS but still have a lot of work ahead on transitioning the database business to the cloud," said Wedbush analyst Steve Koenig.

A late entrant into the rapidly growing cloud-based software business, Oracle has aggressively stepped up efforts to bridge the gap with rivals such as Amazon.com Inc, Microsoft Corp and Salesforce.com Inc.

Oracle is also building up its cloud business through acquisitions such as its purchase of NetSuite Inc for $9.3 billion last year.

"This continues to be a cloud turnaround story which is in the middle innings of a transition," said Daniel Ives of research firm GBH Insights.

Revenue in Oracle's traditional software licensing business, by far still its largest, rose 3 percent to $6.31 billion.

The company's net income rose to $2.23 billion, or 52 cents per share, in the second quarter ended Nov. 30, from $2.03 billion, or 48 cents per share, a year earlier.

Total adjusted revenue rose 6.2 percent to $9.63 billion, beating expectations of $9.57 billion, according to Thomson Reuters I/B/E/S.

On an adjusted basis, Oracle earned 70 cents per share, beating analysts' estimate of a profit of 68 cents.

Revenue rose to $9.62 billion from $9.04 billion.

(Reporting by Sonam Rai in Bengaluru and Salvador Rodriguez in x; Editing by Sriraj Kalluvila)