ORCL Oracle

Ken Bond SVP
Larry Ellison Chairman and Chief Technology Officer
Safra Catz CEO
Mark Hurd CEO
Brad Zelnick Credit Suisse
Sarah Hindlian Macquarie
Phil Winslow Wells Fargo
Heather Bellini Goldman Sachs and Company
Raimo Lenschow Barclays
Michael Turits Raymond James
John DiFucci Jefferies and Company
Call transcript
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Welcome to Oracle's Fourth Quarter 2018 Earnings Conference Call.

Now, I'd like to turn the call over to Ken Bond, Senior Vice President. Sir, you may begin.

Ken Bond

Thank you. Good afternoon, everyone, and welcome to Oracle's fourth quarter and fiscal year 2018 earnings conference call. from press non-GAAP financial financial reconciliation be and the the which information, of website. viewed to Relations GAAP and downloaded copy release tables, and includes can A Investor our other supplemental

On the Chief Larry Hurd. and Ellison; Mark Chairman Safra and Technology Catz Officer, CEOs, today call are and

factors information business, will we considered materially be forward-looking. uncertainties from may statements today's discussion, today's results As statements, actual these These predictions, might a discussion forward-looking reminder, today. to our expectations, may that also forward-looking that including present relating some potentially affect statements important will differ cause forward-looking and which subject include estimates to or other statements. risks to Throughout made are

these our price or any we you of other revisions risks that and to complete As future a new result, release these recent we or revoke publicly may forward-looking market most any caution obligating or a and you not XX-K statements we on applicable to revise affect stock. results encourage events. forward-looking and review against discussion information or ourselves factors including of our reliance reports, our placing or XX-Q amendments the finally, and are And in of of light statements future these our undue

we'll to Safra. questions, prepared remarks. to over call And a taking begin Before few like with the with that, turn I'd

Safra Catz

number of high of guidance. per above the earnings afternoon, We point of my above quarter in everyone. a had wins Good $X.XX the and Ken. tremendous with terrific share guidance Thanks, end growth my total a Cloud high the one end revenue and

makes BYOL, only to it to we've the to licenses so our as new since License, better if support existing financial initiatives to customers. like customers those Before which introduced cost Cloud in also to buy to further licenses I'd reporting is used so QX Bring discussing the pay Own effective to comment licenses, the our to for allows license Your our going we as customers are licenses. on business be to describe they updates their BYOL Cloud. continue our BYOL made for Oracle on-premise even move long those results,

licenses customers Cloud. in them our are of deploying buying new some and immediately So the

in fact, largest customers, release, been is Cloud for continuing a to Cloud quarter support. Support have they was our In licenses, moving licenses license excuse that like Cloud sale the license. existing own me, the the the their in support. Other moving Cloud existing are to their to AT&T licenses pay moved while

of is our a license revenue new new result, As a and now on-premise new combination Cloud licenses. licenses

on-premise we support. business, is reflect plus into licenses Our software Cloud license Cloud support support license have these combination revenue license To services and support we’ve and license, Cloud on-premise and and combined Cloud and license revenue Cloud updates and new changes of SaaS plus now as now license support in product labeled a revenue. PaaS software our IaaS

database database as those been all isn’t. licenses So in customers those its which Cloud. into of to other on-premise, say are would on-premise, related counted contracts revenue license clearly entirely database to large where deployed are entering Previously, another it are way, have it licenses and support of while be some used the

it revenue previously Again, are database that Cloud in In of which the addition, all to on-premise. of isn’t. had counted customers the as existing their support process licenses moving their

updates as our these in expense We well. have revenue reflected reporting reporting

and for across our based new teams improved efficiencies. infrastructure our asset economies technologies and a margins. and offerings allows software giving across consolidated in has Our all bare and gross effect on-premise. functions are PaaS the SaaS, IaaS, single We’ve operating on the of Cloud there data and center expenses us operations also on into with metal Cloud our moving centers are unified second-generation scale utilization Services SaaS support team. IaaS shared and a Sharing PaaS our positive and different other our most Data across

business, dollar our built success. our team management measures we’ve rapidly-growing financial to Cloud judge two is that principal Now on focused a multibillion

growth First, we a Cloud rate to because and expect becoming percentage accelerate our our growing larger is total revenue. overall revenue revenue our larger of

any revenue we this expect quarter’s one our While and rate results increase may beyond. to vary, growth year

the we that growth expect deliver for we Second, again year. EPS once double-digit will


fiscal back to over to comments. Turning call over turn their first, guidance. my I’ll Mark on year XXXX results, moving recap go QX for before the to our I’ll and then and Larry

unless results our using non-GAAP As rate, otherwise. in I’ll quarters, growth say dollar constant I prior review

and currency exceeded on positive tailwind were I U.S. reporting This $X.XX which billion. $X.XX approximately constant billion, our than which guidance in X% was million of base X% than customers quarter, currency movements previously $X.X impact given, when X% of movements we the the was license we in Cloud Under $X.X total EPS, a non-GAAP in services what were revenues quarter was the which resulted revenue, Regardless, to cannot revenues Total installed the stress our guided enough in had ranges. growth dollars. cloud up of and currency, QX, support called less $XXX quarter-after-quarter. and $X.XX I both prior to. less a structure, for high-end stability

the others This to and use has. whether have doing performance, portability that’s maintaining things just on-premise, that our licensed Oracle do, because via features security, capable their of or largely expanding are or is products the customers scalability in autonomous because database our software hybrid Our they can’t Cloud are our environments environments. only

was or technologies, our to is accelerate. this As quarter and Total were Cloud in X% starting up base overall support The XX% is non-GAAP income year. tax as last up and to licenses Non-GAAP we from which scale last grow, for growth year. USD, the EPS higher. and and tax XX% even X% operating was I up billion, The $X.X expect constant for continue The $X.XX and revenues up via was for our constant the X% margin and $XX.X up from tax rate the up will XX% last in base and services from gross license X% billion, GAAP go was our adopt that and EPS growing, rate customers Cloud customer below whether slightly was X% $X.XX XX.X%, in was year and was at up operating XX% margin in quarter currency. GAAP rate XX% was USD, services, XX.X% our currency. of

year is fiscal in in currency This driven billion. in full Cloud was full our XX% this the in the Non-GAAP up in to acceleration constant EPS growing and in year margin X% which to for support was on which USD. constant license Total up the up moving by $XX.X XX% operating mirrored X%. up XX% Total services and for revenue year. company grew $XX.X to was revenues X% $X.XX USD, was billion, in largely was from last year. the growth operating X% year currency. This XX% USD, income Now

flow $X.X Capital balance securities. our $XX.X is business. from billion have reminder, XX% USD. in short-term year in debt, full we coming XX% in a expect greater in margin a quarters flow four operating constant billion record I billion, approximately and $X.X will billion, currency. We marketable the Net we last the accelerates the X% total $XX.X cash $XX.X last our $X.X up that deferred best-ever billion. up and our free cash quarters were cash The four and now approximately scale was USD. over Operating expenditures the revenue years and cash benefit surpass year X% for revenue of over our billion, in was As in up was growth position as is

As a innovation, we’ve acquisitions, dividend. our of returning we’re shareholders stock through and said strategic prudent to value repurchases, use debt before, committed to technical

shares repurchased we million of for quarter total billion. XXX a This X

XX-months, XXXX, the of billion. repurchased for we reduced XXX million last purchase share the XX%. more have we a up shares the than when shares Over program, by FY we have Since outstanding XX.X total ramped

In and dividend again addition, Board $X.XX the we of a paid the of over declared $X.X have Directors share. XX-months dividends last per quarterly of out billion

the guidance. Now to

accounting XXX standard a ASC be First of QX. full with we retrospective the all, starting view will adopting in new

provide you compare We the prior-year that will can also so results with XXX reflecting ASC you it.

base FY XX%. a both and EPS rate Secondly, assumes QX guidance of my for XXXX tax

events tax rate our tax to tax expect vary actual our for around I rates onetime given average rate, these cause quarter base any for onetime events, but for will from fiscal could that XXXX. However, XX% in normalizing year

last guidance, That impacts time in rates Importantly, I move, to being the $X.XX. It guidance. have in X% which exchange $XXX million. tailwind now to moved revenue a revenue gave X% regard EPS by from impacts by headwind QX about also negative negatively X% a is QX a from

is USD EPS XX%. constant is the to expected you, $X.XX grow XX% math, in guidance, X% EPS So, and, and that’s X% grow expected between in $X.XX. non-GAAP to for in doing X% for are to I’ll constant to to non-GAAP And between that’s expected my currency, $X.XX. the XX%, and and total again, math do $X.XX between currency grow revenues

his have again to on For is double-digit to rate than turn and revenue XXXX over be CapEx a $X.X depending little I’ll XXXX higher it With FY to we could to expected of deliver for Total XXXX’s expect growth. be for a but growth year, the similar EPS bookings. full once FY that, Mark non-GAAP CapEx billion, it FY higher comments.

Mark Hurd

just start by for off Thanks, wins a Safra. QX. thought I’d listing I in change Cloud

ERP. with start Let’s

run Inc., These cases, some these of Johnson can Capital SAP. University, Ricard, in Marsh Health Auto O’Lakes, Management, Communication, Sinai Dynamics, Scholastic Intel, BEA, & System, for Department Kohl’s Land Parts, McLennan, just through Time In Stores, Cerberus Parcel. Cleveland Pernod Genuine be United Danaher, brands. me Corporation, we’re Siemens, replacing modules. ConEd, Clinic, Johnson, General Mount many Facebook, Let Baylor Cox &

base. the user just volume, ERP Some cases quality but upgrading brands. And a not in the of our was fantastic This quarter.

turn to me Let HCM.

is go let University. stop. AT&T, win full I versus Baylor say every Before Workday, me details, into Akamai, just

tell, win. ERP As can that dual was HCM a you

Lab, Dental, Industries, Health Providence St. hear Joseph of sort if wins. Technologies. just Again, those. Rand, Sherwin-Williams, City have win, I Motor, National Delta of Mount time. Toyota It Grupo of Juniper, few Zebra Ingersoll Group, Energy, quarter of Jacksonville, ConEd, Inc., a more, Lawrence Berkeley University I Time us. don’t Sinai First Noble for will. Health, You’ll multi-dual of A a Sumitomo lot And was Data, System. Wisconsin, you Heavy that have Manpower Televisa,

significant world production one platform, to in And commitments gone breadth beat AT&T, data course, of We services is give on these of price, live There’s nonproduction a you have largest of to our networking Cloud. terabytes thought us. performance mention on two workloads ISVs live in thousands very made relates I now little of moving As of with Industries. for head-to-head the ISVs AT&T. production One, the bit I’d are of and AT&T. it and Manhattan significant that update have on AWS wins. Cloud. an to of the

begun thousands have We we migrate speak. to databases as of these

We dataset. the centers Cloud, the Oracle expect to this data fiscal all year the within have to migrating connected massive AT&T

We progress importance of noted. sign of to to this, a of the expect in but couple that ISVs, of the course, to we’ve the mentioned QX. I started be many first be the is

a apps now It’s bigger than numbers is better ecosystem trailing ecosystem, the I a ago, In and grow that revenue a think close of apps year-over-year, mentioned double-digits. up. Just roughly that. expected recurring. $XX than apps did. I did now our billion. XX% our is XX-month little to The up It as few to I year XX% It ecosystem

these of not all of We’re our list and list faster user I the growing these wins, from that base. are most than market, coming wins while I

in base, not now still is a heavily our and very Larry the week of bulk announcement Cloud pipeline - that represented us. is opportunity but our - had of in while is last ahead yet Our what it user important

Some organically, for XX% numbers was Fusion XX% say and to on ERP the up XX% $X.X Fusion SaaS. was this HCM Apps, for revenue the I the year. Overall for year. the make number year. ago This HCM back of quarter that in began the This year. was ERP NetSuite Fusion the up want were in billion half constant-currency. for XX% itself I we’ve up to will in in revenue bookings XX% reflects reflect a investment performance accelerated in we made year that in started year. the lead NetSuite to go-to-market XXXX. the up carefully. sure

to QX ecosystem greater tech the resonating with and exit year, an to is new database. to and the accelerating database database database ecosystem run up up autonomous beginning customers. BYOL QX necessary and billion Our And license revenue of autonomous X%, X%. the database X% is rate key options we’re show in do now revenue now was our are with for growth $XX pipeline. license for X% in up clearly with up than our which pleased is

in the mid-teens quarter. up We’re

just year, growth I’ll and with PaaS in line think growing next-generation close a grew billion. well revenue we’re both what top of on $X.X pipeline X% I and XX% With in the Larry. database revenue for into be executing growth is XXXX. will growth it by forward turn again. over now and total To now FY for that, than with XXXX, higher XXXX to XX% Our FY apps autonomous saying double-digits FY is Safra’s I’ll EPS year point, expected looking EPS the to grow

Larry Ellison

share standard Thank you, Cloud Services, allows while our bare each of Cloud consolidation into center Services This alongside of just all access us metal other economies three run PaaS data of SaaS, to about our centers. categories IaaS in and PaaS a We’ve us new significant single of scale. Mark. finished enabling IaaS, data to and giving SaaS, second-generation all

of we to it our a SaaS, latest and data SaaS same But IaaS easier just have capabilities. important, for to technologies IaaS expect As Cloud result, customers PaaS continued in as using PaaS our center our extend and and margin. those applications Fusion the expansion makes

learning of developed new how voice with all and our and we demonstrated an so could system our machine service, learning, for our used mobile service Fusion example, machine our HCM these service service, As and our to next voice our of of putting PaaS interfaces one systems, Cloud those voice customers. ERP voice-enable our mobile requests voice our putting chat interface We’ve Cloud technologies, Fusion extend a Alexa Amazon for recently to the vacation vacation we approvals. voice mobile, an of customers learning those our to as ERP HCM. voice, we box, machine technologies The to all combination voice use as we’re HCM in we’re Fusion our add are driven, available Fusion generation and and UI services interfaces and the applications, that Cloud Fusion Cloud

want first our place. are or IaaS and could PaaS SaaS, only. questions. data key tools think something same they the it open on differentiator guess So between all in up having add using and to do a deal. ERP Oracle together Cloud the center whom we or most think on primarily to Fusion IaaS With same build is the integrated if for big We to the SaaS use there’s focused it competitors, I primarily the only in of that, HCM they we We applications that’s

Ken Bond

Thank Thank you, Operator, if start Larry. please preparing audience the you’ll for Q&A. you.


with first Our Instructions] Suisse. [Operator Credit question comes from Brad Zelnick

Brad Zelnick

Mark, autonomous to ecosystem right very a is much, by without QX. growth available you it’s license very QX, everyone’s I make think Thank and overall database in sure quarter. on database heard in this and to the fair want just even say nice I that growth congrats database and surprised fully yet. I accelerated X% that

consider? buying much ahead the how question, factors and there should my other we into purchasing just roadmap So of customers strategic or are is this

Mark Hurd

autonomous numbers enable in I those options And digits. The I quarter that And to or the it’s the quickly, to Cloud number. we’ve back that point in right. in the means all the mid-double the to numbers license whether And shows we I key think, Brad, that The necessary again, represents the good across-the-board. option a acceleration said revenue. I back was them database had I to so did was and got number again, relatively of revenue quarter I’m up all, you’ve us other make, of fact that’s, number. went this option And through think and of see to it’s right of the tried demand point above. because and sort First glad the

start it to both see up show in numbers. You

win really quarter we to at had a just example, I out ran in of For time the that cool mention Ford.

it autonomous Ford time. I reported in prepared a again, at Cloud my license the BYOL BYOL beginning of the historically mentioned of see a Cloud deal customer in And literally revenue a database. or you’re have comments, same deal transaction as was context of the beginning Brad, we way to combination in would the the just, was and sense Cloud

really about talking been beginning it, we data QX. the we’ve with autonomous of warehouse in database, While went GA

in beginning pipeline. just to show it’s So up our

of literally progress all pipelines see the the show out. in QX your numerically that now we to and So technology in rolling begin certainly numbers to our points, now what the is

and in hundreds of of of We’re stage those of beginning hundreds proof-of-concepts are, this. trials and and course, the all

numbers So is the encouraging up yes, certainly it showed we’re well. in pretty QX encouraged and as fact

Brad Zelnick

Safra, there, that are buyback? remind just your you. for it’s table see follow XXXX. you quick double-digit get up a you what Can EPS the to just particularly for assumptions Safra. us growth great on Thank back fiscal And on the

Safra Catz

give as lately. as we view buyback, the but very I we’ve it where been in inexpensive something the on stock usually our of guidance we don’t view range and


comes Hindlian question next with of the Our from Sarah Macquarie. line

Sarah Hindlian

bit is better talking XXXX for clearly I’d is just and like patterns or rolling out. too, the one annual customer little starting database better If large understand to demand can bit about little actually - question to My how and any the more what like a a be change to that more also versus want of But regular something customer thinking Larry. trends historically I updates understand see adoption would I Larry, to I’d thing we’re it monolithic that’s about. you’re about but if and to hear and software-buying consider, upgrades.

Larry Ellison

Well, see. let’s

buying. something the when to ago where you release release database we let’s expect came that I and say X.X Clearly, think years database every of a out, - have major often few new like was certain years, cycle. a - could used a a degree spurred that

out release periodically, of features going lot a - added of Cloud in to out because the comes and very we major autonomous still bit out more are being the coming but database it’s now, mind, frequently, it come rapidly. a keep Now, a have

we autonomous beginning we at out, example, and - of the with I Mark - For QX. came database GA out pointed went guess, GA as

We next we of month, high-performance, high-reliability have out. or will OLTP will and integrated have our the simple to after so. transactional in coming system a warehouse a going the data system, OLTP trends combination OLTP And months that, call we’re – autonomous or then, couple out coming

primarily are rapid answers of that have features hope I out more of a at a than the the delivered the rate. more the at features database. in are Cloud mature your some than question, at Those coming some be autonomous So aimed are rate higher features going historically. to that we


question Phil of the next Our comes line from with Winslow Fargo. Wells

Phil Winslow

to team here. Just a question the

more On call, the QX business. about products. And, give on hoping you QX call, then, the your talked you versus IaaS seeing and newer sort you fast legacy front. obviously, just IaaS and trends sort are SaaS legacy ones And legacy enough IaaS the the some of crisscross a color just newer talked about business enough to keep businesses growing remarks. you’re little Mark, the newer prepared you’re whatever the detail, in new the how get of points the that the versus gave of on us you’d SaaS, the SaaS new thinking there with that on growing there legacy quickly and big sort you’re versus called of about offset seeing sort But

Safra Catz

for Mark? me or for Is that

Phil Winslow

ball. Jump

Mark Hurd

I’m But you Phil. so it listen. Well, think I I’ll mean, taller, hit I start. right,

That’s big Manhattan networking company. new running Oracle, I I example, used the that’s and Oracle app Oracle, to well brand App app wasn’t start the ISV the Cloud. with give think Oracle. I that. as a term Cloud. to an to We named wins new you it gave to me new. Remember brand Oracle two Brand Just to moved a new you on let I

you’re There’s would the top the the legacy in of of So POCs, you in we even Yeah. the showing April. this. traditional numbers here. that database up dynamics you as we’re all what of a some couple have first but here. stuff think reporting inning To point, seeing that Larry’s use, of trials have not released we Autonomous and and in It’s different in

to addition new to getting We’re to our are in just net-new existing that Oracle bringing customers ISV wins Oracle.

start the PaaS XX% law it, mentioned, that for and embryonic statistic the entire I the stage, products tremendous here, company obviously our gave the are now at and I next-gen beginning of got that’s start the revenue, of generation because to upside us of and year, trials ISVs, you numbers yet start just to POCs. with just just Cloud small again, The to that’s The of So, we’re getting wins you here, for – has relative you next on in the in work to a customers as produce in their Phil, to the begun have moved the rate market. has this. a example they’ve And and key thing these but to really the these very of Infrastructure move of moving production. growth Manhattan the of the then couple in the business our next-gen And, been fact, part to already this. Oracle

the the phase soon relatively of So early this, very cross, we’re and here. lines at will obviously,


Bellini comes with of line Heather Our next from Sachs question and Company. Goldman the

Heather Bellini

particular, I can ask Cloud sense using this ahead? the in BYOL And about curve I do give you in in of momentum on these little guess a bit a adoption I Cloud, And Larry, and prepared infrastructure. the wanted BYOL? how you of technology Mark accounts slope see remarks, know we you you the us of a little give the where your your a us to but touched in guys are bit Oracle look can this you migration sense rights enterprise and within and as to

Larry Ellison

customer, and maybe was in deploy it deal XXX% of interesting intent again, the Cloud was fact know terms in in a largest of the particular the immediately. the most quarter purchase of to new license intent the very was think, this our we I Well,

their an Cloud. into times as the the on of you AT&T example But one of mentioned an call seeing, they’re now data the really an to we’ve has we’re intent that example. of So guess our majority largest Oracle know, XX move I customers

Cloud such database that’s just a is such large on-premise move gigantic has – so AT&T but many Oracle of License. and license large what now our many Oracle from BYOL, for support That’s our very interested they’re paying on unusual we have a for cost their a that it in a just and pay large process. But the – customers, of infrastructure and customers, that our attractive see that’s numbers other our becomes largest proposition we into they because customers migration basically databases. they So incremental continue Cloud a value very beginning can one,


next from Our the comes line question of Raimo Lenschow with Barclays.

Raimo Lenschow

on comps Can quarter, kind had strong again? licenses last – on the year so I know double-click I You licenses, delays the tough on of because some apps was vertical you side. about QX and on last apps talked

little like out Bring bit So a but to number the Thank Licenses can on there apps the you. you Your that between how side? Own also now talk got we how played have it we about

Mark Hurd

quarter was a be And to enable good at said. a the Well, have were in strong But honest wound opening quarter – looked you’re the We I mean, that, warehouse that tough sold for was the really options the you Obviously, – quarter. give to the currency. if We went really on really within flavor. strong every so combination QX quarter of across without the more got the right. at us beating what us, in you only tell a it will, to don’t the hurt sounding it I options accelerated line. was you if and ecosystem exactly with trite, solid Raimo, that think more. was of top statement us get quarter. strong, comp. X end, particularly up Database I any, the in points. within discrete for was, thing and we income growth expecting context just X stories to we last database We data in a comments, you clearly, to we a Safra’s those you mean, autonomous of year quarter. points. database very it’s just the strong I And was so

Our quarter. apps license did decline the in

license the than you expected that, frankly, expected better that if so that We was our will, still sense. I but if actually user relatively is apps but of it because that stable, is, scale makes the decline context a base decline, it the within – was

quality as booking. income so obviously want of it brands see it show up it all don’t was statement, through. on And unexpected, say – side, to the don’t I was the it want which NetSuite for just us. was has just hoped, is the such revenue up job. to The the just just in been NetSuite because in the acquisition numerically showed the booking, The to it up And bookings double-click on a in pleasant bookings invested, that’ll fabulous what while in we see great come it’s actually done – to it’s a team so great go the We’ve we and and forward show it XXXX. I

wanted perspective, I and and from Maybe our you expense We’ve the your than quarter. in Raimo. a haven’t question, So through very just it – got we of leverage there lines just lot structure. quarter solid so as more I well, the go a look through was operating as mentioned as an

Raimo Lenschow

you. Thank

Safra Catz

Cloud - of this Well, and very launched in really add, end up able them. let for also, the It’s opened to to we at BYOL and me who in ULAs Raimo, we of just our are particularly value the customers deploy interested QX, on-premise. and of a being very lot PULAs

it shows is dollars quarters, QX. and showed in it and shows in very And customers, so And up are but after many, in really there billions all widespread it really the literally agreements it’s up BYOL, up QX. many these in involved course of of


with next ISI. Materne of from question Our Evercore comes the Kirk line

Safra Catz


Mark Hurd

you. hear can’t we Kirk,

Ken Bond

Twice. once. going Kirk, Operator, question, next please.


comes with James. Raymond the question Turits Our Michael next line from of

Michael Turits

database think I for BYOL database is a little you by choosing a not is both for Can about or working the either customer workloads for or probably whether workloads service? evolving for talk existing new how a Mark for or bit in balance demand is they’re and as Larry. out this and Cloud how question the

Larry Ellison

early new and of it’s - workloads. because because world’s been shifting Well, around they’re existing days are mean, It’s BYOL - BYOL majority overwhelmingly overwhelmingly quarters. Oracle least a for databases again, - the databases. couple for a of Oracle has workloads - has only at I

We’re larger more have than they databases all and have have to of a bigger and than IBM third that. we and are and Microsoft second much who combined and we - lot

actually a of databases to there’s own information inventory customers as of - want commitment huge for these and these in I it all options move customers additional the Cloud move we moving, to take licenses they all move mean, so into services. stuff at AT&T once. relatively this have rapidly. made buying are with a short-term. So of can of just Other and existing advantage - autonomous of licenses their and of it - has And they all huge inside not but move for they that not are and a

me So explain me let let the situation. –

your from have you database. Cloud want application you the use So that to cluster on-premise option real the Well – autonomous and database into databases the multi-tenant option. requires of XX% want to autonomous and you want move the you the

have database you have those licensed might might licenses, options. you So might have some but not database - you

license or large these and agreements. into you So one PULA, ahead ULA go a enter of

use Cloud. those You options autonomous you services. And into and database you maybe you the licenses. if your autonomous additional advantage can move want have add But for take then our makes options, to services, you that database then to when possible you don’t the database these additional still of - additional it

security and there’s are the at very about opportunity You features. no don’t mischief labor. error, pilot improves secondly, there’s by taking get lowers for reliability once autonomous the the most excited out because autonomous just features people labor and because it no costs But dramatically

by you have a Again, much only not do So the no much of labor. more secure lot mischief. money and you system. eliminating save reliable a pilot more No error,

for So they’re and they’re at licenses options then entering they’re this We’ve into buying very, their moving these ULAs, a additional long time. very been over.

workloads. New

we’ve that small – any the workloads the since years inventory data to for in of is that of of All XX this new business. compared XX, of accumulated we’ve been year given

services. to-database Overwhelmingly, databases, workloads. existing BYOL overwhelmingly So new again, opposed as not

lot some workloads. There start-ups to me we’re after Don’t getting cool and customers. mentioned Cloud are customers exciting lots those are a lot and a earlier new in workloads existing new are our aggressively of very The know of important Mark us. we’re wrong. of a going very not we’re of customers that get getting those. Now, new - Oracle I the lot our

the So, obviously, database reusing They’re and majority additional is majority we’re Cloud. the is licenses. a base. the our it of to Oracle in install inside where it? But The said workloads, those. new those it buying lot are They’re They’re their getting you of Autonomous options. of existing moving of


with final comes of Jefferies the from question Company. line and DiFucci Our John

John DiFucci

And my fit question, I think, is probably Safra. for best

So, Safra, your with gets Cloud of separation flexibility we allow understand the blurred with you sort of and how sales on-premise the customers BYOL.

a have anticipate numbers, you I’m looks level, we we know you it not understand do stock, also I out, - but a just when the below looking be revenue it high the is all I at don’t get why you that questions at actually with when changed know obfuscating we investors hit put Cloud to a from report. stock popped, not So weakness? headline and to be the the deferred it may were think deferred - I how came little Especially, the trying tomorrow. And, any going looking details you for. But your bit dropped. mean, and minute-by-minute. I way you was then, what long-term But frankly, I revenue, looking I’m look this comfortable when

think that might anyway. the reasons of I So be one

Safra Catz


So everything. let’s cover

no of you billion. first So there Cloud told number, X.X I the hiding. all, is

the math. do can You

we we billings Nice well. Margins doing and business strong. are is Cloud where shows said surprises. strong. see right be. No up we’d You sequentially

that. hear can You

what can about. we’re hear it talking You from

actually As as are X%. gross deferrals, net far deferrals up

So this and is just timing, that a quarter-to-quarter, collections thing with see QX. QX from especially you’ll

We So bad here. surprise this have nothing news. is any don’t

supported business the In simply would what deploying in we’re on-premise. and that to that you telling is with understand fact, fact on-premise many calling It it’s we them are when support - that not especially are were and counting way they be taking licenses in fact that our so better, not licenses customers so.

want support. in that’s, both customers and and are licenses designed that understanding they about. you as see excited using and fact, the we that’s sure recorded of for, of which understand They’re to what frankly, what currently business so, explain have make using our have, buying to to they licenses and course, you were enough on-premise in being are something those, the we’re and Cloud, very And

So, next between a that we quarter of the quite all I think, superb quarter. we’re and information same clear the given I’ve had you, expecting it’s

John DiFucci

to could than we more gross is I revenue. if deferred in But your that you, when that probably just any you us versus deferrals. you Oracle, remind you deferrals great. think I that’d And cover be could, of quickly, refer know But net conservative reporting if hit company

Safra Catz

gross what a the which do QX. end Think about obviously, uncollected, big at it. very of mean, is, I subtract is Yes, the we from number we the deferrals,

on So that’s there. that’s all going

Mark Hurd

no gross is Mark. in right telling burger, There’s on a were just mean, I’m we thought. short-term I John, deferrals here. just that the deferral. just there nothing To and story this the gross add, nothing is you where

Ken Bond

of to us will this available questions you, issued with today. in Dial-in Thank Please you to John. Release Press you. speaking closing. this the can replay A conference telephonic and hours. be found it with department Relations XX follow-up turn And that, the for Thank call Investor call, for from today. information operator earlier I’ll forward joining call look back with the for we any be


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