Oracle (ORCL) 14 Dec 172018 Q2 Earnings call transcript

Welcome to Oracle's Second Quarter 2018 Earnings Conference Call.

Now I’d like to turn today’s conference over to Ken Bond, Senior Vice President.

Thank you, Holly. Good afternoon, everyone, and welcome to Oracle’s Second Quarter Fiscal Year 2018 Earnings Conference Call. A copy of the press release and financial tables which includes a GAAP to non-GAAP reconciliation and other supplemental financial information can be viewed and downloaded from our Investor Relations website.

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

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

As discussion market reliance XX-Q recent and a encourage these price risks other of the reports statements affect result, you we these we complete XX-K our and caution factors. future of you And any against placing and results may most stock. or including that on applicable undue to amendments our our our review a forward-looking for

actually calls, use stated Mark’s we across and light how a or events. results and measure any of as measure comments or with the to release business. unless statements rates we are Safra’s And growth consistency quarter will prior well, today otherwise have dollar some as As consistent we information can not revisit reminder so obligating publicly reflect to revisions forward-looking these our of finally, new ourselves in to the future constant

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

their QX QX. to turn I’m over everyone. comments. then the afternoon, Good focus for for our and results Ken. to and Mark Larry I’ll Thanks, on non-GAAP review guidance going for call

quarter. at is continues we be Cloud well. excellent a revenue our Despite at currency Bottom benefit and we business last was IaaS XX% billion, and part and $XXX have products traditional higher from revenue our But from in reminder, the up IaaS remains last range our saw the the de-focusing, XX% very quarter. which the strong of SaaS $X.X and services high As and share for growth PaaS hosting next-gen for the revenue even the than million, the revenue Customer nearly portion of expected. than Cloud don’t adoption characteristics had XX%. PaaS what just was share the earnings Cloud USD, PaaS of was per see, as being quarter which services. rate is up guidance, than up Cloud while growth Cloud to of transition the another you we more line, robust. going Cloud services, XX% my my high-end less of for same XX% on-premise called and year. and was XX% CD our Fusion were to business total PaaS/IaaS legacy This services hosting end guidance down year. high can are as IaaS the quarter a in tax were

software support, new license in your Oracle renew we subscriptions, their to to move support database. licenses software base and bring as and now license and SaaS and stop their moment Cloud, licenses. a technology of available applications buying cloud is total be agreement, renew take customers dramatically moving what seeing to were the PaaS As transition and services our instead and BYOL leverage the business shelve the in previously. review better rent their customers options we the to I part IaaS a and made traditional will smaller where understand is seeing and investment of declines of announcements bring invest infrastructure IaaS, installed BYOL own become years in growth revenue autonomous increase cancelling underlying the we visible. Oracle unlimited to Because to licenses, improving want Unlike of licenses their PaaS the move in and those are October more With application upfront customers hosting call and BYOL, customers options and database a BYOL technology from licenses next-gen also new licenses strong of Oracle more we support. can to technology

expect We options they as Autonomous as continue trend license this out to we the customers need. technology Database roll and

to We share expect to in database. continue take

X% were in and $X.X in cloud and currency total billion, software up revenues U.S. Now, X% constant dollars. up

up attach were software the reflect that GAAP as that were support consistently platform seven our new of come last of stability $X.X and dynamics base the I because renewal IaaS, software we’ve fact, XX% PaaS and license billion, and up revenue $X.X licenses cloud reflecting billion, quarter X% and stable these support all our and total together on-premise revenues we our and software focus installed of up in year, and quarters. customers. assets support and the XX% Total to includes infrastructure up overachieved high last powerful especially were and forecast model. license revenues business, and is the our GAAP from is application you In software X%. new total revenues, continued can the and where billion, billion, Total the ecosystem which refer which rates on SaaS, revenues, of of revenues software were year. cloud which $X.X last start with $X.X numbers, from to BYOL see

business to and our expanded and the margins, margin XX% As gross for to last cloud has scale up grow from QX. XX% continues SaaS

to were X% XX% have year, promise last company XX%, now to X% every from margins up XX% from XX% XX.X%. response from non-GAAP to PaaS The year rate of our at expect see margin margins. geographic goes the in operating The this was for $X.X buildout will was gross while in consecutive in The FY forward over U.S. improvement but X% last slightly for XXXX gross The expect IaaS XX%, We $X.X to dollars. down was U.S. of and I remain last last to Hardware in was and in our quarter the expand. we Total continue $XXX constant at than of Non-GAAP major as further billion, demand margin. SaaS and revenue five were we dollars. year I operating bulk gross ahead and improvement non-GAAP from which year quarters revenues higher and operating happen and operating in goal $XXX will can’t revenue million, unchanged billion, essentially down expect do XX% X%, up margin were new of income PaaS see currency. the was recognition. quarter, When for year. scale, IaaS revenues I million, increased are expected that committed margins service tax quarter up

I see we expected the was expect cloud four ARR that Obviously, growth dollars, As were the Operating growth, expect driven over quarters a for The last up to $X.XX higher in four XX% buildout was result, cash a billion, flow CapEx in ARR CD. and the last see the I million. Capital spending billion. quarters the $XXX quarter in free well. XX% and and higher PaaS/IaaS share earlier. $XX.X expenditures up at EPS tax than be was investments U.S. should U.S. flow mentioned as was X%, GAAP EPS rate by CapEx $XX.X $X.XX. was dollars, we’d would $X.XX our less over GAAP XX.X% cash

of our short-term billion $XX position billion. $XX.X X% revenue cash in and deferred debt marketable in have but $X.X we securities more cash Now balance billion, is constant currency. than is net up The

$X This total a quarter XX of million nearly billion. we repurchased shares for

for million XX.X last XX billion. we’ve shares $X.X months the a repurchased Over total of

the increased again We per nearly of also by for declared $X billion repurchases dividend paid dividends out The Directors $XX authorization quarterly of of $X.XX Board share a billion. share. and

in non-GAAP currency. on My guidance Now and to for constant the basis guidance QX. is a

on has positive there rates exchange EPS. total now, much as movement current as could as currency same X% been some However, revenue currency $X.XX or the be remain on they assuming are and positive

share the QX USD EPS in X% somewhere $X.XX, assumes for are constant to from Cloud earnings per tax revenues $X.XX. and is $X.XX. in and constant IaaS revenue expected $X.XX So, and between a be Non-GAAP expected expected XX%. XX% XX%. currency around somewhere X%. That to is at range including to rate SaaS, grow puts PaaS non-GAAP Total to This to currency,

current very tax real different there rate possibility to With repatriation. is easily I of very tax over with comments. Mark extent up the QX reform, end and that, the turn being could course will especially that Of to his for the

a solid quarter Oracle Really, Safra. Thanks, bottom. top to for from

USD up a revenue Just few numbers. X%. was

number. CD up was ecosystem, XX%. where was up up and was three income EPS That’s our has That revenue Net a digits. is a our up row Safra’s revenue Cloud quarters point Operating XX%. grew double in over about been EPS XX%. XX%. Software GAAP growth X%. apps application income was

depending at the as We’re XX% XX% accelerated annualized was billion maybe fast $X.X run with three, meaning fast rate. growth the run three look Data-as-a-Service, so Fusion XX% I’ve the billion is growth of more organically. growing for USD. of market times up rate at Overall numbers roughly billion in double-digit That trailing prior recurring SaaS double and than year. of rate. three that rate. strong XX% times revenue up with was XX%, than the We XX%. $X.X market, more HCM higher CX annualized annual revenue on how market. as run those bookings nearly was on at ERP a now us. as two, ERP a Workday. over grew PaaS CX XX% $X.X that basis. now XX-month as you up growth seen up rate was numbers being we’re quarter three-and-a-half, for

were year’s up of verticals XX%. of growth a compare XXX%. Our That’s on last

and software ecosystem was infrastructure was solid quarter. which support and in up growth on-premise altogether that’s cloud the on-premise flat and with X% technology new license, PaaS Our essentially revenue license our

revenue our In up that XX%. terms infrastructure platform of and was

Now things are out here. there to of couple call

infrastructure inside legacy and is first mentioned was our PaaS hosting declining. which As business the is

last which Cloud Machine quarter. which yet discussed Second, we have is reported, we not revenue Oracle

of infrastructure software is XX% $X as revenue triple and USD now had put you cloud above altogether months and XXX%, in our data both XX revenue cloud XX% compute analytics mentioned Cloud a and rate up growth if USD. If provisioned been earlier, the storage Oracle that would’ve a growth trailing that up machine been XX%, recurring. in was grew service Business up revenue run now billion it Safra integration all XX% rate digits. XX% over

cloud looking pipeline and of revenue Our first and that had the the half billion and is Not we’ve next on SaaS fiscal being a XX%. half to biggest expect four forward ever was XXXX $X deferred we the of ARR quarters, closing well over we’re second around just executing the big sell our in up XXXX.

Dhabi to National Hancock, give Southwestern Oil Emirates all Treasury John top of another from Wessar News The Health, growth had Las Estate, the growth. X% Bank Santander, this of Systems, Airlines, to a cloud quarter Atlanta, names. Authority, City Deutsche But Shell, Air, Deposit Health Industries, Energy Transit Association EPS Mars, line for Company, going customer Health, Johnson you Lastly, Vegas, Abu bottom Nova City Bank, Sumitomo Chicago Corporation, the and down Emirates try Williams-Sonoma. in Generale, these again run solid Williams-Sonoma. Controls, XX% was way Post, just Insurance USD Emblem Pharmaceuticals, Heavy few I’m quarter Henry at wins, HCM, Ford names, BioWare The these In of through to Company, Mattel, you Federal Adventist Wine Pasha it’s In of Scotia, and AXA, Club Core, to Motor, UCLA, ERP Corp, Banco I’ll important we think brand quickly. the I hear

I Durham, Just County, infrastructure Bureau, Angeles Los Arconic, Census Oil Alliance, Akamai, the Group, cloud Fuel wanted U.S. Orange, our Zürich a are got lot of the a technologies. of that, that Softbank, of System, sorts I Baptist a side, Beach, Palm you logos. but could’ve couple Insurance Tellier, of lot platform some City Larry’s With of and University longer, to CVS, give some for on comments. brands gone context Services, just Healthcare buying

will world’s autonomous deliver Mark. the first coming Thanks database. January, This Oracle

well. to database license premise new our licenses and to run businesses innovative strong and the accelerate are as keep on technology this in database buying People the business expect our SaaS of growth and dramatically cloud. We PaaS

Database or the artificial on You intelligence the security XX.XXX% that database without self-driving Their Oracle of the is to upgrades AWS Even sources vulnerability automatically place. human planned Oracle of not to error, can tunes new buying If any immediately is can’t delivers Autonomous itself most autonomous Amazon year. XX detaches downtime as Autonomous less more the that databases tests eliminate database the That’s average Based a system or autonomous minutes Oracle totally benchmark the version published Database on tune run system learning, beings of premise either Database. Autonomous automated, Redshift. between work machine Using this. more database. and database an exact cloud. the cost of run like unplanned In database on human system database the than them is of running. while to reliability, the To options detected, of unprecedented same an Oracle costs and run does require five versus running Oracle do comparison times and of achieve Amazon series is either intervention. a running a to the per automatically level human compelling manage amount the the availability. itself Redshift the in

Let me repeat that.

this bill move over drop on you Oracle run times is moving of five Amazon Redshift running Autonomous. - Amazon take to and than on XX%. cost can on by to by you not is pay run will work, dollar Amazon total of is to bill, you ownership, from cost this run Oracle. not not It If Redshift the your Amazon is this workload more you labor, $.XX Oracle a will And do cloud this a piece Amazon and your to Oracle, the from the it pay to what

half. bills substantially cost customer’s Amazon that will that or the so confident cloud our than over moving more half written customers agreements Amazon of service that provide cut advantages to level our We’re Oracle with guarantee guarantee, database will in Oracle

Q&A? we to please go Could

[Operator Our will Mark come Bernstein. question from line the Moerdler, of first Instructions] Sanford

better right question. it now clients select Oracle is then follow-up us cloud, is of rollout? Could Oracle’s sense a between taking Oracle [indiscernible] service, you what a on-premise? give exactly driving quick private And infrastructure Why longer PaaS,

the the actually install the responsibility software customer every machine, the taking deliver these and it’s cloud cloud cloud different. Oracle in to machines to we to Why longer, hook a customer's the and customer’s to Oracle it’s And the provision is bit customers, cloud data and center then then the of machines have up network. little

it So the gear take configure had proven is longer big side. the networking to network. anticipated. us to than time cloud the the on Oracle has certain a amount connect thing and machine Oracle's customer But takes now we to first system And get into of their the what's appropriate that's

matter extra Everyone connecting backlog for receives have what’s receives that. a center So we on the a center same taking easy hardware. That’s again, from in center that’s bit can for of cloud But the to software. data time. shift. data us a us the But same the customer to it’s and of, it data Everyone vary easy to cloud do.

shortly. growth would’ve get provisioned to speak we’re Good my in been and and those news, Mark, is they’ll improvement tried of if that rate win we in the lot provisioned we as sold process had implementing and I give a them those a we significant comments had

a it’s successful very So us. been launch for

helpful. very Excellent,

Machine quick infrastructure service, what’s cases et the a up, Cloud as As for use Oracle cetera? versus a follow

thing you good start is of our of it. when the it’s listen, all Well, sort technologies

Mark, customers it HCM, have regulatory we into for we where for issues. more use So and fits that the it ERP, industries markets have really,

them if issues, get I of into you you of won’t all and So through more go detail. banking security these in have pharma,

cloud. some banks, Pharma you of through and where the get it’s many just easier advantages all big even it’s And we’ll companies in telecommunications frankly, those the the so for the of regs, take cases, easier to some in big of see

this, through So let me go Mark. just

while all so do get the cloud they we on You the to what one doesn’t the We having price benefits of what deal do customer of you’re Larry hand all is patching. the with other downside this not regulatory really buying issues the of some of might of The touch be The on the through. hand. work, get advantages, really all variably. went

be work just help done We some Does in into that have cloud. extra that to hooking and might our up you? go to actually implement there’s this and directly as opposed physically

question Sachs. of with Goldman the next Heather will Our come line from Bellini

SaaS going to us in over translates look about time over period? Thank if SaaS help the comments billion you the this was we in wondering you new think you’re $X do year. into next could I revenue growth trend out your Mark, mentioned you. that as ARR same how

was trying couple SaaS, things. not I thought year’s rolling to One, bookings would A this cloud of in be bookings what be. confuse with would quarters, ARR I fiscal four

because of quarters that’s anybody and to that to bookings worded think numbers right. said separate next see. two you sort is are it close even of it and number be we’ll four rolling the must’ve way The but a than I SaaS those billion So glad $X more is bookings I going forward-looking I’m obviously

going come said today set overall probably came think So we that very, base. what’s midmarket companies, I in from to base growth know, our happen that’s on did before, Most cetera. application, going came the competitors in from aggressive. of their first is companies to ecosystem? What are As and be you of on-prem revenue our very I’ve know from not really et companies, fast user or most

actually I what to make happen right cloud does year. understand, the said financials sure calendar it think at is of the So but you live I think turn we goes on before, Oracle just

our So suite base, is our see cloud move. which SaaS e-business big, not big as base, predominant this of will the piece a

a roughly want you good support to when And thing. equivalent is three customer a entire is from talk of moving. to SaaS. that So to the we’ll a their new we the the want degree is again, get see a in ecosystem base We when revenue applications that to user ARR higher applications I actually are what cloud. like-for-like compared times, hopeful I the more or to of Oracle’s materially start again, their and support times three emphasize of that moves existing more now And emphasize on-prem

to latest references moves we ever obviously as XX, the ecosystem today Oracle base the think support now from the and, to revenue more more result, cloud, more had come not happen now So anything what I actually I get described. move did of Oracle grows Most Heather, faster. grows before, ecosystem? I ecosystem release of feature-rich which The more we’ve everything faster base certainly base actually that do releases expect our to and the base. in are in than a result a as and as with our

will the from Brad next Zelnick, come Suisse. question of line Our Credit

I've moving Mark, share quick Safra. hearing up database got stuff one we customers customer entire going the maintaining type that for Mark are a might lives share when versus off for the and you ecosystem, competitors some anywhere Oracle in what Oracle. of we saying and and firsthand follow hearing has Oracle of but we the be consider been surveys database frame Can maybe perspectives value isn’t about? keep

to I’d answer like that.

Let to A company off Oracle. of not and me Oracle That us not heard Oracle. database another of off buy other Oracle off Oracle. moving company quarter technology. They’re tell of Amazon. Sales moving of you moving million give $XX who’s this is you’ve just isn’t force

to Our competitors continue does, off whose much don’t like moving very us no would in maybe but really their does, invest business Maybe and move. Oracle. Amazon Oracle. think on to Mark Safra run you’d of want entire I Amazon, reason who have to know

on to on Amazon me to. entirely to SAP. move or large of Oracle off runs business. off who’s tell Oracle. Go not All they’ve Oracle. Let moving had an buy runs SAP five they’d HANA years. you Oracle. you SuccessFactors, their on ahead, Ariba like Oracle. to trying is They for technology SAP continues else of to move run who’s six running moving been Oracle of run customers someone database that Oracle. me Salesforce Oracle, called tell off

thanks the for Brad, question.

We’ve I these every shared database to way, just So think you being seven me. And and ours. just to Listen, other comes sort I’ve a just like couple in used it’s again this up, see I’d throwing stories, the when years, just math rate got predates of of go market, us right? terms any growth go back for points. It numbers. anecdotes yet of heard when back - to sort the above of them by another up is the

was you everybody’s you somebody only that So, off what XXX, is moving about think their company? MongoDB I this XXX, XXX, database know, – XXX. That’s you were or or their that said guy? the of thing three guy, XXX I expenses, think of Oracle And their what’s guy told what MongoDB. revenue XXX remember latest the losses. the me, numbers: do and

million And billion have brain math, in a know. your me. numerate implanted Maybe well. part don’t of different, really $XXX $XX I as as seems your the my that small and to so I

at you went and way, of we that now of look and growing look just or, I that when don’t I one into it’s So thing the license at while. somebody guess I something in on By Larry care with going ecosystem, our than us a database notice, than denominate a stories, service, look more support. I just the to you And important will, numbers a I an aggregated service whether deal, example really I love been at up story. show faster with of if market databases and/or think platforms licenses,

all and okay, could other every whether what do quarter single be with Just guy. up we is talking Larry show number about this true up a I keep brought showing is that with Redshift, says, but up math

share rates that about each database. at share I that and maybe in growth got nobody I’m swapping this certainly the other they’re out and not at don’t not a look overall or story Just but you we’re numbers just list see us. of saying just with competitors when look gaining over there they’ve gaining share

it hand to frame it hear It’s from really first you. hear you and helpful

view us on revenue? the the can deceleration future again. CapEx in remind spend Just for really you, CapEx year? PaaS/IaaS of quick Safra, And this spending Thanks around signal really of you quarter does please anything your

similar our to Well, expenditures capital will I last year. be very think

cloud. amount really we data kind expansion. year, to quite in with to estate open about a in $X is about our then the spent real last abasing of that a is you there’s when And bit that we spent a We starting block. get And CapEx less cost little way because just $X works the As billion CapEx the started. buildout certain bit centers, associated I there’s billion mentioned and

we So setup is happens once and really to you to up, what and scale – ready set -– economies you start I think of get is basically your major straight as go.

see of last I So that about side. half of expect growth, like don’t A is I year. it lot on to it in as real much which estate necessarily continue

no, of to some as deceleration, got So get plans build we no nothing. just trying economies We’ve scale but some out.

the in margins. we’re improvements so that’s the having coming why in Now revenues are

come will question line MoffettNathanson. Holt, next the of Adam Our from

even As you things start the maintenance in strongest a know, quarter? long I’ve the time. highly quarter revenue license was Can maintenance we’ve and drive And seen the shouldn’t of been the in this stronger on that focused little talk little really all a revenue will bit license your revenue bit, was relative drove license BYOL it the faster? to a just you

absolutely. Yes,

in for Database. So It’s it’s only also Autonomous not BYOL. preparation

Database service get understand which you in you’re to but Oracle to order database. as also, to the you want with the options have your licenses, you need work you’re middleware you in need depending licenses to you app going database may also own to your And So some server licenses bring addition. the also, and bring of will of license, your cloud, that benefit own Autonomous in going need, on

to of license. is a SaaS subscription, And that, that SaaS using all is significantly you In longer how fundamental are try you’re works. different and from So explain. I BYOL that’s what no doing now your a change SaaS,

you You very buy going and our you to to you and additional to in shelve to And that And it’s going quarter we need already. more see With don’t support. OpenWorld. forward. And licenses, already, significant it buy continue is this you them already OpenWorld. support. cloud it be BYOL, in announced bring your licenses, you pay

moving clarification. on any of people I’m this between ask I point that slower of maintenance because what it about a renewing a little a want and kind are could up has is the reconcile and I getting If of to then just than there Because lot some buying first, lag and of I is just cloud a follow a us been. cloud? licenses think questions the trying bit the guidance Is to

a is Just licenses like bit, want people those a Thanks understand, little a or buy before to gap there the much. and to mechanics. quarter So just on I it decelerating two deploy And looks maybe so cloud? premise? then be understand something as trying they it’s might maybe in

What now that not this so OpenWorld happened, are let’s in mechanics to could set automatic, at more have The to talking see actually want they this up. they licenses. even has clearly I and already will customers, understand

there’s no they in going unlimited my licenses all forward, and buying So as point their they to agreements expire, them, those and additional owning renewing are starting pick I’m up. would’ve licenses going agreements. to stopped could certify have rent unlimited historically

licenses what in support. a move of is they buying them when complete more flexibility gives to now they’ve seen there pathway and your renewing but and there’s owning BYOL the cloud, to that So benefit with ready are

it out to coming in makes important customers Database, little So a cloud that’s actually cloud. for workloads sense moved the when which the to move an them. going is while for Autonomous to enormous customers to driver here, there be

not but the related, Larry, want are I two The don’t to... same. understand? you You if

briefly. Database in of first, customers are available. Autonomous the lot I'll for they buy a become very just the to waiting and chime license Yes,

reliability rack Active license uptick the and that The ULA, that’s option big sale of high seen options of Database, certain unlimited Autonomous Guard. options, multi-tenant. multi-tenant and The Data a renewals option are these we’ve So those in the agreements. specifically required is two called for

customers those to January. and buying all then rolls-out Autonomous are those and scale So the Database in then begins of

This databases – to begins where going but first very been in our customers no a of customers small to including are capabilities There’s waiting available very, the Oracle the Oracle the Database. much very, to move the in that are cloud, databases into much on begin So it’s are so some, to business. in There’s a better. economics lot move for big better customers January. cloud our Or happen the cloud all than their will we relatively rapidly will of really of think first experience Autonomous But starting what’s are cloud. ours. have of anyplace anyone’s they January, been so migration big cloud premise, the very

next will from of Our Philip the Fargo. Winslow come with question line Wells

of next pointed and license just license could here sort license. but had you the Safra, on more you’re follow a the less and revenue the we if consensus a a revenue seen Amit Obviously saw water total your you like the of obviously versus have I quarter, wonder and than quarter, out up through. just subscription this for you guidance the cloud. into in bucket, cloud the bringing we about benefit on obviously seems of license for pouring us It as sort walk relative below. just in on help basis, talk

obviously through about those kind because versus us just XX% IaaS impact of probably the thinking walk PaaS. kind for than of of help on Just the how PaaS less you Could math IaaS two is buckets? you’re BYO

license of and because things being the going few is expensive purchased, without of to capability the IaaS licenses the both your you basic remembering the we’ve are of you is is than on because first why me of all you support all Oracle all. are more actually it paid. autonomous say, misnomer But when you as customer categorized service otherwise margin bring that on launched it’s actually IaaS get, on you get are that maybe say, them. wouldn’t on-premise called software cannot there That’s own heard just premise – divorce there’s purchase a statement continuously on-premise premise, IaaS, on now for the about the here. and but our support, So nothing you Remember, currently so-called you that a heard matter. Those the because it’s income license, BYOL, me –

the You can to bring them cloud.

and new the you service together. because understand a money we bundled how have renting you side, much support, all your licenses with the SaaS SaaS renew to So you you applications sell don’t remember, and start that on license, no longer pool in

unlimited clear, them I out still case, the for own and well it they continue unlimited those own in - if state So as an through at us, bring license, and, But those to they’ve support cloud got extent while to with want to licenses. this our the works both to PaaS. actually and their as on they That’s whatever if use premise rent bring continuing licenses by option pay to and bring want to also best don’t available just agreements amount be additional them. buy, have way, their to that customers licenses of can financially buying to to licenses the

So and the very complete math us profitable the customer. is and for more both

Understood. in Obviously, different cloud out called machine. reported up that you places. a on quick there just you very up And a that the of cost there’s of Mark points shows lag Just and follow for X it deployment growth. sort

cloud. BYOL about the Just curious to to saying versus what the customers public are machine cloud you

the of sort about there comments success any you’re seeing. Just Thanks.

been give to Well, has the choice. strategy customer our

the Safra whatever point like. to is bringing using a have So up, choice currency you to you’d that

which a means a that bring cloud customer And can the as ways. one different time to and a the to bring as license, buy can buys traditional you couple license cloud. of the can You transaction

you’re highly some a bring way in the can very public cloud having the of bring cloud go environments described like the to of license is most minutes a which to all the effective Or you benefits of Oracle without machine, hoops the I the you regulated that few cloud, I ago. to one through cloud. utilizing getting way it these described, of can If of the

about and the just the all can Some of Autonomous out they to isn’t for the a out point patching? That pay implemented, you a earlier about Some Larry’s our customers talking of sound XX-month may with call machine, on flexibility eliminates these because, exactly is take release license, they get when the huge want. eliminates I the to in it all cloud think customers, in sit of running when you this customers. can analyst. to rooms with advantage but we as they our say I may damn when it to time customer a a advantage the between of And trying release and take it conference what an they lag They the of It of the it of premise, continuum autonomous on get DBAs cloud issue like use Autonomous data forth as to if to the now how it it they the frankly, databases. benefits from buy heck implemented. patch now this simply with have we’re it, really to And the a of Database do This how public that. database, get labor It service, have to get opportunity you actually patching. so us all want their the you center most with are customers patch CEOs of have back on cloud trivial the buy or as it’s now, a our totally a and it up Database can of of you. cloud. either premise, bring actually now they Oracle want actually it give that Oracle

to So frankly, point do Safra’s fine the to our either way wants about Phil. strategy, we’re customer economic it. that’s And model, been the

anybody us And And for short I machine, so else up market deployment, between deployed cloud latency in of order time, worth, think, and that hope period and the whether the Whether my today. that’s what Larry’s for it is a on that’s granted license from it what brought and yet that’s us. eventual the it’s is our shows great about for can a then opinion cloud, do strategy. in that booking our helps. what but thing differentiates point that to another is just I

of question next Sarah will Hindlian, come the line from Our Macquarie.

There love balance and it about is ways you is and different about how of sheet. U.S. that tax the thinking really possible more you repatriation hear one here Safra in I which Tax the changes Code to implications to Oracle I’d thing your ask was want mentioned, can deploy

If your much you would that on be earlier could very expand comments, appreciated.

the of use is billion, back, us. or part tax the we bring Well, depending that to make cash to cash we have repatriation, available bill, on extent that that that rate that to whatever actually deemed the for we of and available either final the is extent what for the the whatever can $XX the us repatriation under will would for be

I any made we about would it. is haven’t mandatory We decisions believe it use repatriation. that how

been States cash those and it I to companies, it, at an believe of or whether So, course, but, amounts changes. United the be need make of the law on the book our final I’m the I’ll for sure that and book bill. not That the all the sort all due and, tax a will least in will tax quarter all has will actually in for we’d outside stay of disclose tax rate that. estimate look set, strange, it rate that

So, it they do more move system. us make to It and to we forward does. a will that. hope territorial we We hope competitive, look

next from line Kirk of will come question the Our Materne, Evercore.

quickly. applications the really I to business over Mark, jump want

growth that the your over in bit HCM talk just and sort next the competitive around of underpinning the confidence numbers year environment, what’s ERP ARR in space? of and Just Thanks. could about a you little especially sort

underpinning first Well, all, my… of

Your $X outlook. billion

through this like as the it I’ve is look pipeline end second actually is in Yes, I said – the just we’re with SAS is with want go sits I wants really number in times, customer of the really bigger starting it’s our towards growth well our or in. don’t than the opportunities ERP, superb. getting competitive competitive there And to isn’t participate farther to a the of that I’m dynamic. really a pleased just as progress gets Kirk, that. If dynamics. to actually year, just so several than pipeline, just pipeline,

So, us. it’s really

because the category. lead stop. really in we we lead else. is Full there’s And So, nobody reason that

Now HCM what ERP, obviously becoming is to with an HCM, we’re of fashion more is more degree the then the and seeing, which that in combined significantly you’re advantaged.

ERP. We in in SAS competitor HCM. have have We a SAS don’t competitor a

that’s couple the the Now, our say is for at issue of base. of is us, getting years, out other traditional last thing I’d over

of now six, Once customers at other you you the on changing seven Oracle better historically on base and move older company you calling and – typically call because the once better bought other people back ago, the getting years That’s if customers. on-premise Oracle, those We’re now. went all SAP. didn’t traditional SAP, bought ERP we’d

compete and customers older chance to had the a a get if applications. these for, a their, competitor aware more ERP the SAS on-premise of for frankly, now as we So new we hadn’t difference modern customers of traditional in between will, to generation ERP, now you that compete a get chance

because farther our distribution, with of around in global deploy away of of data global even presence, States more in farther helps references, about multiple this So, on of our us footprint, because SAS our States. dynamics ability for that our become United our the better America, the if global call to America. we’re the get from United way, you I the the usually us. the you those global from advantaged centers all By because Because States The don’t world, think of the of the United because because of dynamics. the get of changed, dynamics

ERP. have is most application competitive lead I’m which a optimistic. the great in I’m segment in optimistic So product important products. we because We got world the

applications. to go already live HCM. which We’re and our we’ve internally now applications about live gone financials with We’ve live other with gone with

product Now our we’ll flagship Oracle. automating have

a know We’re actually great sounds I just hype that I and believe this. in position. like

why the apps the our one around apps and swagger is this today. sort in feel if group company, inside on group, reasons you the confidence you that see So what’s company, going and in in marketplace you’re of our our of our

America/Merrill Rangan, Bank line final will from Our question of come Lynch. Kash the of

and secondly, of think sort for Safra, Safra. scale, that to income growth rate what questions you rate correlate to the bookings ARR revenue? as when of that kind clarification, continue guidance cloud the of accelerate SaaS respect a about to couple with outpace for growth me against look get looks A can And and business just continues XX%, which at growth do XX%. you said One, to operating Mark

flattish. IaaS/PaaS you down If the it’s maybe slightly thing as looks that of your a cloud to it out for back temporary guidance QX, business, like

two That’s modeling clarify items to me. should and Thanks. want cloud interpreting just we the for So it way that’s line different should I be your be we how the guidance.

economies think improvement, grows, question, going is income, that I’m get And I to when than of faster grow scale, For income that. quite we than of faster revenue us And margin scale economies business we to it we and your operating that income have because yes, grow of allow revenues. first get is sure growing. the operating

you what piece piece the confuse – you includes not not expect like would a I bookings is with not PaaS a looks and with not should to consistent growing. revenue, piece as I’m a you, PaaS/IaaS and you XXX forecast and seen. that think that’s positive is remember. The just reminder, for that breaking be can’t not them I’m giving I growing good. And down but XXX and is IaaS have something, – I growing them

to think I try to that used is Just consistent. the help, right word Safra

is as roughly you saw of cash being think it should $X.X annualized. legacy speaking, piece You same in and the rate growth billion, the roughly

you give it’s Kash. Actually, right, think but would I help roughly the some that that scale business. more So little the maybe a for of

IaaS I that PaaS that resume and should growth. would think comparables to start for get you easier will the So year. next

question it. No about

question focused we that about, the is we’re one percent. care the on because growing XX PaaS/IaaS something No

comments. closing Thank for Bond the conference you. Ken I’ll now turn over to

to from with back closing. And look today. you we Dialing found Holly. any Investor you, forward for today. issued release the follow-up Thank the for telephonic Please questions Happy will call holidays. with in this earlier Holly can you. turn available with this that, call I’ll for conference Relations information press us hours. call be replay to the The XX and of call Thank be speaking department joining

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