Oracle (ORCL) 19 Mar 182018 Q3 Earnings call transcript

Welcome to Oracle's Third 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 Third 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.

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

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

will information and U.S rates Safra’s results growth in use of or revisit comments dollar a our rate. growth events. publicly obligating dollar comments As Mark’s are ourselves And finally, to new any forward-looking to today statements reminder, future these not constant light revisions we otherwise or will release stated unless use

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

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

Cuts so totaling clearly by Jobs solid the charge of calculation. is $X.X our excluded a income let just that it me we had have net use you GAAP XXXX from related This non-GAAP onetime As to Act. QX, can impacted was point we quarter. event, comparison, Tax billion But discussing for another and before see, statement out one-time

$XXX constant and SaaS revenue X% which for software GAAP were billion, Now including in X% $X.X revenues total were billion, total back is billion, is new in X% licenses, platform cloud were revenue, and application, Inside including IaaS support constant currency. infrastructure, license Cloud basis the of and and year GAAP was and support XX% IaaS in up Cloud were up XX% from constant quarter. Fusion up Cloud for Total a or or constant in software currency. up the $X revenues GAAP X% quarter legacy licenses, license to and currency. XX% XX% SaaS PaaS currency with in up last updates dollars. and last update, year saw revenue new constant on posting up growth cloud currency. -- currency IaaS quarter revenue and which X% for XX% PaaS and $X.X X% billion, and from of $X.X in revenues in currency for with GAAP constant constant on basis Cloud PaaS U.S million, and the revenue, non in excluding up services,

PaaS total IaaS legacy services more part visible. will As become of PaaS be next the IaaS, hosting generation of underlying growth and and smaller

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

see We our margin. to PaaS XX% expect gross improvement committed goal and remain of further to

for year. down and last was margin from PaaS gross IaaS the Now XX%,

has were last billion, which basically revenues in rate up the currency impacting while promise for first X% be deferred the cloud is quarters. reflecting Non-GAAP X% dollars. now the in XX.X%, Total to $XX were $X was constant time the for at new billion, tax well cash reflecting tax and reflecting billion new The constant USD expect the and law, was expect The and billion, higher increased billion, The guidance rate begin share year-over-year $X support higher couple driven quarter, ever, the the operating per share income from every charges currency. year see last but is the the have up up up will last customers. continue was that $X.X related X% also currency were nearly from including to new was debt expenditures And billion, quarters the and expected believe billion lower out quarter tax $X.XX, from year $XXX benefits. U.S. the in four over for and I We XX%, marketable we’d will of XX% However, constant software we in in will now balance expand. CapEx with as and ARR this Operating related updates and operating license flow for consecutive the XXX%, $X.X should was per free margins by point in up investments tax up GAAP improve gross one-time base The billion, the X% ARR Capital Total impact excellent up other up in in U.S. in looking X% the less of rate over of in to quarter over renewal as I one-time XX% margin will than $X.X spending in Non-GAAP cash $XX.X margin margin U.S billion tax expenses continued XX% of this million see CapEx from billion the $X.XX, to a cash our can’t one-time revenue securities, non-GAAP and net as four U.S. to and CD. XX% sixth driven charge than was do last earnings There law. revenue as ahead, we’re operating the more USD in in updates, QX. and license than the well. loss X% short-term where that dollars. growth, slightly materially happen company higher of I strength quarters were PaaS was up flow support our $XX and tax IaaS dollars. with was operating than to GAAP installed $X.X continue last law. new expect for XX% our was we the $XX.X balance at year. up in QX by cash revenues non-GAAP dollars

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

total for share. $X.XX out Board Over declared million we of of paid the a $XXX also The last again XX we billion and repurchased $X.X per dividend months, dividends billion. nearly of Directors shares quarterly a $X

have the last QX I and remind tough currency. beat a in as give a $X.XX. to move we to in our for want dollars also will comparison of QX guidance As guidance, non-GAAP bit U.S. guidance we you QX constant by that EPS you we I

assumes revenues Assuming so tax could earnings currency Cloud for constant on between to expected to exchange be are non-GAAP grow EPS Non-GAAP expected to XX% USD constant in QX. and and from USD of positive in expected to per USD, much X% in revenues around to expected currency. X% is SaaS, EPS prior to and rate in currency and XX%. This IaaS and a be as $X.XX as be $X.XX Total in X% X% rates, $X.XX X% between $X.XX XX% in are $X.XX. currency. constant to negative to XX% share, and PaaS on positive revenue including XX% total grow

know for you will is a The expect translate rate important for fiscal new thing for the to that of tax I XX.X%. to XXXX, us law tax

these rates comments. for events tax will vary to average XX.X%. in any base Mark one-time cause tax one-time his our tax our see around actual I normalizing over tax I our However, will it for given rate that With could rate, that, events but quarter, turn a we from to will expected

to I'm start the with Larry. of I’ll then wins customer turn going and make just it Safra. a to Thanks, few comments a and couple quarter for over

With of Gold, Eastern First, HCM; Healthcare, Cross ERP; brought also ERP, Fusion wins, the way EPS Master a Morrison one on HCM; National First Group, about a Shield cloud revenue and Thornton; Technologies, year-to-date, same Henkel's quarter. X% Line XX% time, Supermarket, Gallagher; revenue X% of Florida bit up MTN ERP; income White XX% Lock; Safra William Grant Blue Group, in our Caesars up City Oilwell of who comments received. ERP; in operating Supermarkets, that Fusion QX. really-really Entertainment, numbers with ERP; again Varco; couple & Ports; transactions we our a Avis ecosystem. XX%, up Marina Ports, MTM ever and little a up large ERP talked HCM; all HCM up Health, Memphis, Barrick Arthur the that Fusion William Group; and ERP ARRs and at and software and We the of bought also is U.S. Fusion mentioned Blue Dubai Broadcom bank and HCM Budget which Baylor HCM in ERP Financial Principle Group; Scott from Fusion have bought us Fusion largest also Morison McCoy, Fusion Dubai by HCM

SaaS moved with faster apps XX%, are started was comments not to rate. Less my ecosystems revenue revenue than Between ERP have expected SaaS that those XX%. ARR annualized yet, bookings as and to XX%, $X now the was couple now I continue grow apps billion approaching enormous partially rate, billion verticals over $X.X to minutes app started in than is Our core billion, number, now to our revenue a that the opportunity. year-to-date it have customers on is run and their up I up market. XX% XX%, QX where Fusion doesn't roughly up XX% revenue HCM be cloud. customers ERP bookings we described to up opposed move of we an the ARR, SaaS a ARR. ago, that's include focus $X.X SaaS organically, overall up I'll run

faster By And again up with show technology ecosystem last roughly beginning is growth want technical this we up XX% same the our database to Now system, the in our is the we year-to-date growth. time tech. technology is market. on up the compared X% will On our our to only database at strengthen verticals, at year. fact up are pipeline, the ecosystem and we’re that way to the taking move mention also with share I autonomous The than growing just X%. ecosystem market XXX%

$X.X highlights infrastructure growth revenues was billion we’re A XX%. nature. up As big $X.X run We're up over and and and recurring of trailing XX%, executing that business the Public clouds, growing storage revenue annualized up network rate. with up rate our and actually database few infrastructure XX% XXX%, service, now XXX%. in XX are cloud up of run infrastructure pipeline. Cloud and a billion compute on months software annual XX% revenue up well XX% now at our infrastructure which cloud Oracle already infrastructure XXX%, includes PaaS NexGen growing infrastructure XX%

and at Our level is with XX% top and XX% success. USD at EPS pipeline line a our record growth year-to-date our reflect performance growth

in as over the to forward year, EPS our that, X% early grow apps it The I I'll Looking XX%. XX%. for I ecosystem the our tech ecosystem around above will turn will year grow full and be expect Larry. With will around said

you, cloud and immediately assets applies Oracle fully in services Thank autonomous fully are are is available There come. scheduled database autonomous has provider No One any unique. cloud a more now security Mark. cloud. absolutely of autonomous database requiring Oracle automatically automated self-driving database. without other downtime. the to Oracle's features was that

services we next of PaaS autonomous delivers integration cost to Over level of savings expect our mobility, few autonomous Oracle's and new suite months, customers. development autonomous and automation autonomous unprecedented an to services. application autonomous deliver analytics, the

suite services cloud No provider has cost reliability reduces error. highly and and by by reducing anything Our improves human of like labor human reducing PaaS other autonomous automated security it.

could the we please. Q&A for you, Thank if prepare Holly audience Larry.

Our Instructions] from Lenschow, line will [Operator question first of Raimo the come Barclays.

when I you And bring acceleration bring question and own quarter? Mark consider. u factor PaaS about that your license you. we is momentum IaaS, around February you talked we this talk saw saw Thank in which a as PaaS, around IaaS, to about Can a of growth own a licenses an little need you your talked had greater. bit

use licenses up not comments. to try being frankly at database the or are and number. to currency We I available today without now shows here ecosystem up prem, license Larry grew again so Raimo, autonomous I the bit a it’s ecosystem can think as in mentioned it again why able shows be tech it It are point being continue X% now are can categories. on use the you focus his I prem, to that on mean in different in licensees on and really generally this you used ways. both GA cloud in licenses

core again, storage system a XX% next so XXX%, that all we’ve And use the infrastructure is so mentioned on momentum at I of the growth continue we grow databases the database, cloud to us nothing my gen And in categories growth and actually service of in is way, to saw build say up being do By tech but time. XXX. better. see prem. as references, same going to strong support to saw we seen simultaneously to in you And all grew data with and the autonomous excess I’d momentum. compute the a as for eco good or in context We it’s key get think able database comments, strong XX% and licenses base get the in GA in of I at up database

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

like looking SaaS get always the you're here. point, it’s Seems on how not guidance. am in XX%? and but Clearly, putting mouth, from your. looks heading talked this the seems about I basically XX%-ish your improvement to a XX% XX%, you’ve margin what perhaps growth leverage words and Safra, year-over-year be do am we showing business to I an type XX% to into At your at that moderating the basis,

like thoughts to I get how that’s to And you big just goal? curious leap. So seems am the your me. manages for Thank it accomplish company a and that pretty

we’re capacity. able rolling scale it’s number the So to getting us business more business, lot that new giving in a and now through of SaaS technologies running is to our out the use really we’re that a

else of And of in So had lot to much going we’ve don’t need business investments a I more same amount we’re before more so know to quite many install capacity handle now fact base. the do that… we we invest to and for users not and anybody add a SaaS into to make wants to the than yet infrastructure improvement. too larger got if

penny as we capacity transactions, many SaaS, in example, many as our as one customers, as multi-tenancy twice double fully hardware. users can twice without our We dollar. on diployed spending one say spending database For we twice let’s help many without

our can that SaaS add us So we those are technologies market. improve allow to dramatically

having in the expense margin. math, our business the you more a out just straight spending reverse when dialog you we’re dialog and simply now, Safra’s we’re SaaS roughly To now It’s expense. context right so at play current billion engineer speaking of $X.X gross point, the not

on So put number. bookings, if you you’re the just sell that forward our top, at you $X billion of revenue roughly

think Thank I significant given apps investments of XX% it? just option Mark, the And ahead had a said to grow the that only you you again you. than Couldn’t XX% few that company other have in is moved of SaaS faster you. a customers you and cloud, the

of And started, is of ton you moved not to have this they here… room thing clarify, just that all started that XX% have first understand their XX% to the cloud, this apps so is

quote There's out put there. a lot I that wrapped into that

little it let try so a unpack And bit. to me

are you of revenue now that core, traditional now, core our of AI financials suite getting meaning a percent have multiple And our bookings, at base e-business less XX% if our base our digits. below user the single applications the base. they has our in application we typically of using. is cloud from The of X I SaaS, cloud looked point our with and base out percent that is your solutions we percent of get on premise revenue. when replaced terms has moved pipeline in and user it The fairly application. the bulk some base. extent, SaaS I user The than So is is number today put to a user bulk that of not is our convert times user our XX% it's to be we to That

be of we us, migrated In has that to would Oracle. cloud users now biggest addition, one the have and just the

that's really SaaS, to company of now suite traditionally entire we've important the had because to capabilities on that point we ERP cloud. migrated have We the an moved premise

I given So by and and above, growth number we of could the not very, to do point into all do market our accelerates ability business what share which and large the this to taking continue that we’ll by moving rate and have accelerate your we to the we growth point believe us a very well does user turn to just very rate. are truly SaaS base your

like that many have to some very some ERP businesses slower I add developed would acquired like we rate growth that we've HCM, and that we businesses rate and that and years have have SaaS to we organically thing SaaS some growth is we high ago. one

changes, you Fusion NetSuite, from quarter, coming ERP, we also Fusion As mix quarter. of -- the quarter this this great the the is growth it's after all part see HCM, expect

math says the higher of this to that's rates and higher As the became that's the rates, services. I the expect rate mark, should renewal I growth again our larger Also services, because the Fusion shift growth are the as you ERP, very to of change. renewal in mix rate see SaaS also the a HCM changes accelerate growth think mix just total, percentage the growth high where it much important. Fusion SaaS

So older in have products. rates some than the NetSuite higher Fusion we acquired much HCM, of ERP, have renewal SaaS Fusion

renewal SaaS business. So rates the in should sales combination rate of faster our dramatically growth higher and increase our

and lot you you raised a of a So there… in guys question got simple

Analytical answer from Larry, thank you.

say at actually business we it's you don’t have SaaS. to grows rate important that because reason report we a understand the the SaaS I to And really

grow to that that for higher. growing Fusion businesses while, a we've potential had the single mid-XXs digits acquired have with low We growing are

grow that's Larry's we're we are that growing to to NetSuite to point, but start numbers businesses it's XX. that and think going then roughly have start to seeing We vertical the mid faster growing high-teens, we acquired

see total slower more becoming rate -- high now you was very then growing as a -- and right you those our and And large business in change you've mix growing percentage SaaS of a have acquired business larger fusion works at got more a a certainly the then fusion larger SaaS would businesses.

the reacceleration So grow to the again amount. of just matter Mark it's

Our next come with from John Jefferies. the of DiFucci line question will

do I I'm figure and with also to has to think BYOL question out. just this My the trying

look a of near ecosystem figure Well that it aggressive. looks not hopefully would you or think it result. one that out times I that it be from pinged But And results certainly and other been the to it our it due into customers numbers appreciate. large when is makes I'm doing used because the So with said I you if too. the flexibility that's over emails that of that couple just do, to the future? sure be guess is pressure last going the have you out, to too? offered -- what quarters, happen getting whole I guys I there whole would I accelerate to here just no that getting thing something it you at Mark because they point is unique are that BYOL and you’re And talking doing as field and about, ecosystem. a And really at your in vendors we’re it. pretty diligence to will that some I'm what it's start pretty revenue that am BYOL think whole will ecosystem else moderating And the sense see buy guys cloud word, is that couple aggressively when of me -- I

questions. that about Well XX was

my the which in about around were guess try do it. you apps going I is comments ecosystem, on to SaaS. acceleration, started I'm -- one talking mostly to of my and was mostly portion which best unpack apps So and then database introduced talking we you

going Let twice. to want BYOLs is me concept pay to in tack as go don’t to our The answer, to we well. on chime and Larry want customers this around

and appropriate I'll cloud our bring can automation. the get a with database and And choose And example it's ability cloud, infrastructure that you grow customers improve they of business license to take the So to on some buy it the advantage by the that way and can the with that's an cloud and then to faster. perhaps they have the that opportunity reported compute, way the in may buy for storage license and And for them to tech. you the business add to our effect then our ecosystem to on that and they us focus why if that have license to I bring will it. license growth

autonomous to market We now. really the are bringing just database

going told taking without I its bring to quarters, the the share. it's our market. several this that's So phases That little you ecosystem database, bit been through tech go John to autonomous over and past of a

thing I -- think be it, think we've tech miss-print the because in don't to And autonomous don’t announced ecosystem years. database the database be to want I is important don’t it I I our autonomous most sarcastic, growth. accelerate want will

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

about the we a thinking quarter. what this us perspective maybe Is now forward? be level? started on on and just normal share license if made bit little really We've that software But we which Could you couple which close been revenue the go going growth some been There's about about last how growth movement this your has you here, count were been of down a in could a Thank cloud which couple buyback should includes comments forward -- buyback last license the cloud. very license Do some you of better, been to little revenues you’ve questions. get Think on a for think then Safra, And license mix bit total stock, we basis. the all from should we between new has give focused which a on breakeven? worse you. boil to quarters. love sense and the or for new your to new

buyback. to I Well, tell in don’t usually I’m you much how going advance

to really it So seems know expect what -- a don’t give in buybacks, $X don’t like that tell we my I usually amount guidance really to from billion because reasonable to you, quarter. the Haven’t don’t next in exceed quarter, did do. this

license And cloud? then the mix versus question about

is there buy to licenses, base when data Well, your to bases, options bringing continue base options data applications license like a it purchases, license and buy did no continue data BYLO, the like doubt cloud, like. customers base your buy data encourage to give real the you're more clustering to multi-tenancy that

So that you either will see customers an use in the make -- the in love premise you idea our they and once that or on the cloud, they again license license, investment can it place. can deploy

where business fact not have our simply So people case. business historically premise thought -- our is is on as traditional of license that that in the

the In it’s licenses fact, deployed our our licenses deployed in is more sales cloud. our -- license cloud, business just they're are our our By are more the the being and the force not just in being in cloud Microsoft and in the SAP cloud. being Amazon not now cloud, -- way, deployed and

to used as legacy is business, a license So but technology and are business. again, These be modern cloud are business not clouds competitors the going business legacy our in our more cloud, more not and our just not well. licenses license oracle our used being

guess this software We’ve badly every single analyze everybody that, want just it’s I ecosystem. X%. why know tried back our I’ve grown you to how would on And and to micro business I year-to-date say number, I focus

Some shows of up license. that in

that cloud. of in shows up Some

the in overall could And in cloud, migrate license talked revenue the autonomous currency that to We’ve it’s can fungible context SaaS the either a me how to and in to up cloud, and have, on the show license a call. and will buy of Now, will we’ve we've of about -- ability growth we the I what the question, that’s have ecosystem goes effect going to show now user is bring a database, focusing down, important, up. earlier base, again I about but goes can with the buckets. a revenue apps that it both on support user that couple base our show up it apps, drivers talked that

things drivers look all in cloud, overall And going I to could I'll go in every multiple probably one trying they're got both company, way manage the on come license, here, line simultaneously could but we've growth, we're some so share software these in because towards and to are to come to going gain to say time, but again driving long ecosystem some is more more continue segments. it think the micro at

next questions from Heather, line Goldman ahead Sachs. from Heather the of come will your go Bellini with Our questions.

you want micro Mark, were over fix XX% few 'XX, and shrink I change quarters. XX% license the this know to years couple a of on last that manage over data but the seeing last in don’t guys you to revenue, segment us big in performance

as it maybe trying is one-time XXcRX are to nature big One in micro maybe the performance? questions not of to benefits quite growth versus again, more think next much that of people over on of to that result And and ELAs, the I that of because trying doing up are some see they but customers the frankly, big of just manage a they the course the that license of all in keeps innovation of get you’re sense driving front. how coming is guess Oracle therefore what's And about it, there's a recommitting a the things debate how year? just of

am what it or to my commit I own that's yes. can now customer to think of monument now want. I do buy ultimate bring maybe it here ability the at we whichever talked to want. I is to gives the get have now instead now going the we I and a core figure currency But about want, what And get that -- out technology we to I the Well, think a gives and quantities how the having there, bring customers earlier, whatever customer much I customers flexibility of license, now I answer your

across has add cloud gives and even concept cloud multiple the the customers credits, to to given the our credits relief, move to reapply customer fact now you a opportunity was also a decision universal BYOL we those lot of make So a services. that that

a products So Heather, created this having I effect acquire the environment way now customer an they friendly of say, very we our a would terms in market. -- it’s the on is very and

Let into cloud. revenue as revenue go went that and be. some clear we as this I With someone BYOL, to the BYOL, be -- didn't brings revenue have could XXX% try of to license into cloud, cloud. of goes the an some about Without to when that me Oracle their cloud, customer BYOL, goes database the to someone when and of

our So and there's no license question BYOL revenue. has lowered increased cloud our revenue

And technology?

technology. And

to of is question Brad from the Zelnick, next Credit going Suisse. come Our line

On or impact multiples have you about with I the get better would going autonomous and talked converting have to you've as to regular because seem data get that Larry can you’re service? Xx database generally talk past you it the base that economics perhaps cloud, Mark on would in it from on-perm, and imagine the

software, labor, anything hardware take the the of human cloud labor buying the that the is base requires or the up the amazing buying no the cloud system, are to the applying database thing the we no automatically. it's the surface, it's running there the DBAs the of system with all the the it's buying bulk the labor patches, zero. and human human about not there a system, is only done tuning the autonomous DBAs are There that no data not DBAs cost or database security it's But no Well, administer backing planet basically services or else, are on to not database. recovering

it's opening system, secure this the by of huge and the only human there a eliminate labor. value one I data security error apply fired I the that without way, more ends And patch remarks, in also nobody all newspaper, gives up forgets cost said human that's your CEO you patch So my on front human labor, is so something. up you earlier getting or page think we to savings not is stolen, eliminate no automated. to forgets getting much By your

system. more a secure have you So much

system. of have be lot have human a less, and more much of out You willing them you but reliable cost because beings pay a the system money we've automated to to

of most the database we new have done and autonomous management very has think are important this move the are thing base. in customers is terms Oracle deal. So on going big data time. now, we autonomous data and think for some maybe right number of think management data planet company the bulk one We again the this ever is We been the our to a

performance on migration, up when from press much one on pretty you year data don’t you our automatically if autonomous or do in speed. premise high cloud same from talk retune an our on to guarantees Now about into run anything it set because we when your premise -- it database indexes button or have that else, running autonomous to on running you you you’re Exadata base, an move at give data database to premise moves will the

times premise, on at not Amazon. will And faster If you’re times running runs than run to faster of it the cloud. Exadata XX moving by multiples it

the interesting minute X/XX Now Amazon a the thing the If Oracle’s than that's our times are minute close faster, faster charges got there. we charge of by prices the big XX by it run surprise -- database we Amazon But same and is. cost enough. is and or essentially we what okay no database are it's the Amazon

the move to it and customers we database, a benchmarks benefit went all can live So our ago are, eliminate to them, company autonomous mean profile our of expect of look forever. cost. it’s been huge you we’ve weeks security patches, the just labor, a public we're couple going change it's We at go to the the X/XX automatically apply I we to and human

your your to the to the is Brad, yes. multiple, question answer question about

from Moerdler from will Our question Bernstein. line the Mark Sanford of next come

X%, seeing but cloud at or are Mark, Are growing in only constant quarter recent other the factors coming X% with the own year-over-year there has currency. quarters, SaaS PaaS support X% constant premise this in? you increased or your been business software Safra Oracle by currency and of that cannibalization on

really Actually, seeing all you’re is seasonality.

absolutely And no are cancellation that will up, in cancellation. you in technology for business, cases reason. in transacting and some you’re If They cloud see apps our the asking And the especially way base. to BYOL large rate not there’s in are overall customer they with not.

overall the same. company actually And are the so the for cancellations

don’t quarter to seasonality. And if So you’re moved want is seeing you know the for they’ve anything… I Mark all. add all at

to other than it’s little say she Everything of say and nothing two I’d different right bit said is a stories. a

decline want apps apps growing Apps that want support, We bulk migrate not sure to growing more in to actually support that than just support. case support base it’s it’s our make support is data growing application decline growing. data is is is I the bulk SaaS. X%. is growing the to of our of our in it’s materially, base ERP It’s So X%, the support

likely Larry’s we I of have about up business of BYOL through part customers to those now the Does described very about continuing So that. a migrate BYOL, much does in cancellation and migration as support byproduct about very talked earlier that no And overtime, I will applications have is growth impact to the if of ERP goes issue help? earlier our tech, support the I our that of the the SaaS. of point

it effectively QX Is going are to quarters you the be detail? can more should and give seasonality models, better. way be Is up. that weaker other follow quick is thinking Just that then so the

just do when renewal. It be happens we to the

to year think as and So some I the asked you year a quarter support. -- think you will I just one to -- also that recover And that because on and full first it compared with see it tech will a Mark return. said, of mean do you I side see you has remember

since with So less first licenses, licenses. we apps associated we’re year those less support have selling

rates the growing. the and But on been so some amount years, so past floating a we have then And -- little that’s folks same are app the less, for bit few that’s is it, side cancellation migrate. still and the

quickly. real just, me Let

support goes tech an business, the is stays database license of applications license then in is the Fusion recognized is recognized part someone stop where an in the to as of part buys part revenue same the that goes and brings the additional as support Oracle for has the XXX% paying This support, business Oracle a suite -- or revenue to cloud. the that's of up. down to business. license the if recognized autonomous the contrast autonomous ERP, in moves someone the in Oracle cloud or running they business the and And is e-business cloud license cloud, database to Fusion if revenue. of On and And our our license a ERP

So it's split.

to So these applications two one changing businesses applications operate different product. from ERP, we're the from of new of people very cloud. from product older to We're We're our e-business is a actually differently. a migrating which changing business, runs to an applications. runs one another. generation Fusion suites on-premise, One generation In in

in Our same very, run very the tech business premise, is Oracle different. database the you database cloud. on Oracle

we expect shrinkage. any So don’t

Mark and As new database, cloud. databases grow even business, license the to license our to license migrate tech, as for to our business we our continue support said, specifically expect those business, people

net-net Yes, really tech completely accelerates unchanged.

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

shaping think you ERP, months? when at you horizon an if we the couple the why And competitive the do inflection front do seen XX Thanks. absolutely the over see HCM you started look on When demand we've in the and you can ERP how over Mark, to an see in last of would just see I next do about that, environment opportunities up? market, say, inflection CRM, maybe you discuss years. XX

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