Oracle (ORCL) 14 Mar 192019 Q3 Earnings call transcript

Welcome to Oracle’s Third Quarter 2019 Earnings Conference Call.

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

Thank you, operator. Good afternoon, everyone, and welcome to Oracle’s third quarter fiscal year 2019 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 prediction, 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 also considered potentially other statements made be that which may are important information to and forward-looking. Throughout will including statements affect these

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

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

Thanks, moving Ken. QX Larry. over call everyone. I’ll go then the results first on over Good afternoon, I’ll before turn guidance. and to to Mark

company support recurring services up and using XX% license non-GAAP billion, total revenue, As cloud constant dollar currency growth for constant was in and unless revenue. for our now rates say prior results I’ll largely nearly in Total quarters, I otherwise. the of X% review accounts $X.X revenue quarter

Asia-Pacific. in cloud especially growth strong regions, growth past quarters, in we As with double-digit seeing robust all rates total for revenue are in

categories, ERP and in high-XXs. In the verticals terms mid-XXs grew in the of the product grew

totaling X% license and services constant the of currency. with license revenue cloud is cloud license Software revenue, in revenue it and of is grew on-premise and support which XX% business, Our total

license resilient and are revenue. the adoption the extremely growing focus long-term shifting the remained infrastructure to that to has faster business business as for we stable SaaS of and transition upfront made subscription we Software cloud. business OCI, now Our revenue nonrecurring recurring have Database trading Autonomous for Through entailed

the was up income $X.X X% of for XX%, margins it improvement gross our as shift for in year. than with continuing revenue Gross mix were growth in revenue just ago up is X% continues. XX%, revenues go gross up our revenue X%. GAAP XX% and margins in billion, at year. three was As cloud software us this now quarter software ability and cloud overall last $X.X scale, total up And a more software infrastructure. $X.X $X.X billion, double total to is support business, was was last and percentage provides operating I continued GAAP SaaS expect Total billion, Once margin margins, applications with the our stability what investment from business last accelerate the year. higher. Cloud cloud year, Non-GAAP as X% last infrastructure from gross margin up same were significantly Oracle will essentially operating billion, the from support was services and license years total

and for pretax rate up numbers up catch-up XX% XX%, tax in by year the the law, was is income. $X.XX rate quarter GAAP currency. comparing was so non-GAAP tax year the and This the very impacted non-GAAP The was not XX% constant quarter last greatly change in after EPS U.S. last meaningful from

last four billion. quarters quarter $X.XX. GAAP flow tax This rate was $XX.X XX% was Operating cash and the GAAP EPS is over

and were expenditures working due of $XX.X free to timing flow down X% billion, last quarters, billion payments differences cash four and capital the tax Over $X.X capital was items.

as returning over cash approximately a of XXX to will a in quarter The and we contract with I’ll shares billion $X Since refer more return deferred recognized have billion, performance of XX what backlog, billion. the repurchased dividends, shareholders and and next constant billion, remaining in The marketable currency. or and be to total acquisitions, balance committed $XX remain short-term value as of investments repurchases the which $XX up months. stock revenue XX% obligations, we securities. now internal $XX.X million We is will X% capital revenue through than to in is for Q be this

last quarterly of XXX we Board nearly shares repurchased XX% months, XX%, increased shares absolute $X.XX Over $X.XX by per and the from XX share. the dividend Directors the the outstanding million and to reduced

of to $X.XX the with a continue X% share. I for to and a U.S. expect currency. headwind currency revenue QX headwind will earnings strengthening Turning per dollar

Okay.

with turn guidance. let to So that, the me

Taking to double-digit of is currency between be So the QX and to for EPS revenues negative currency the to to deliver expected growth EPS year headwind, and account grow grow fiscal $X.XX EPS EPS to XX% and XX%. My X% U.S. guidance grow assumes XX% base in XX% $X.XX so and tax non-GAAP USD. $X.XX for be X% for Non-GAAP X% constant into non-GAAP total between currency X% in expected XXXX. and we $X.XX rate between QX, and USD constant in in constant are XX% expected between to in dollars. currency $X.XX is in will

quarter for to could normalizing our rate call I will events, events that, tax cause But rate. vary base tax around comments. onetime actual our tax for average rates that turn expect XX%. with tax tax Mark his for the However, to over from onetime a And any I’ll given

X% recurring. now for and at trailing our constant momentum XX%, XX% constant up to A bottom. $XX plus that was and top us quarter acceleration apps currency. was Safra. XX% billion currency from an in for XX continued revenue months we that of In EPS X% us our with. over Total and in solid ecosystem, revenue Thanks, growing is

we an and have and in market than enormous opportunity faster HCM. us of revenue grow to continue ahead We ERP

mid-XXs. up Fusion and overall were our up XX% actually apps Bookings in up That’s Fusion Apps, were revenue revenue revenue In mid-XXs. the XX% XX%. was higher Fusion in XX%. ERP is terms revenue billion. even way, up the $X.X and By NetSuite was up, of the now ERP organically. annualized SaaS HCM up SaaS bookings,

and and or revenue Our up XX% verticals in a vertical our is to cards the quick $XXX have to was I’ll you and annualized going IDC read revenue now it I’m read quote over from million. get letters. precisely I

enterprise I and We’ve America exactly sure make based this just SAP.” on share seen and vendor in “Per latest me written. Oracle one surpassing building. let annual salesforce.com results, momentum this as it’s number IDC’s do is applications North the share revenue, market market So

So other always this you real but can us. better any see I from somebody surprise is us, not in numbers than to think it it’s when

Let me infrastructure. to switch briefly

have techie to our were on a now co-system customers. build. $XX We months Nearly momentum GAAP X%. added new QX was trailing paying trials basis Autonomous XX Database, was that continues Our in and billion QX And X,XXX up X,XXX alone.

new we’re Autonomous Warehouse XX% pull-through, We’re of trials with adding many also great Data our seeing and customers analytics. using

over XX was customer to customers revenue have Cloud fourth digits greater quarter. XXX the triple than soon. be We expect up we consecutive for referenceable and

confidence EPS into going the forward touched XX% me here we bit Safra quarter businesses solid only Apps to and the backlog, hit have that the going is on So our Climbing begin visibility our saw and and overall, revenue growth. rates renewal Cloud we strengthen which targets revenue a a gives from earlier.

you a I give happened but give these Looking these as higher base. FY our I’m what some EPS And some to all XXXX year user I as the thought a wins mentioned. well well. in I’d user going didn’t certainly us. you Try as revenue for quarter FY grow give context Most flavor really than growth digits, revenue. do you about will be quarter, in customer as are forward, expect that in Safra XXXX. to outside will our be this double bookings Most the occurred for people of our affect base of few

from, I the which the brands group moving for user ERP Packaging gaming, quarter. again, company example, Netherlands. time the to on-premise semiconductor, E-Business I of if in gave Suite go user are is This Tyson company. the migration. master I the customers were people Hospitality. mention win base America, that the the the I’ll will, quarter. an inside a connected a few a E-Business reference an University we Canadian our E-Business Healthcare. ADT, of threats DePaul win outside back called base. not this did we migrations, as Suite in user and user had are nice our that’s actually today Oracle together. those quarter. cloud. those, In customers outside of base Ashford U.S., you manufacturer We or base soft base Great examples. our we office the E-Business mutual migration. For traditional E-Business days. a Suite in On outside core cost engineering had lot competitor Nova ERP. area migration. wins and Abu again, user E-Business sake Suite in to ERP nice Bank, HCM, user Eaton, of where could of old These Suite base in Dhabi Core although you again, on, Bloom Germany, brand-new traditional of are, our Corporation the a again of that couple ERP Those our These cab at even the airports, of in of see acceleration of sort there Watson, a comp really multi-pillar migration, of another our I the Netherlands, HCM won’t, was out sort in slew

Gap. extra everything innovation, SaaS, billion. and many, and a global the using by It really their as at to for what’s many be Exadata been working Oracle Gap’s using really reliability as We’ve Autonomous multi-cloud quarter. turn on really was few they’re technologies we impressive customers but good with delivering $XX transformation are quick wins Gap on with scalability those So sake time, good to movement really quality nice in Isaac, Joanne new couple well I’ll again, a what X gen to and of as and of stop platform see our Italy, really, relationship want logo our did just some growing quick Stores, Fair effort. greater to part we’re names from PaaS, a environment, of in thrilled We really net include even than in of The and you had make Revenue very services the a as The pretty quarter got. cloud, beginnings we’ve and they of the every there, our shared Database. private retailer. partner the I all mix That’s tee comments a a and a cloud move some enabled in side. but base. their the user set things really with

So it And I’ve in bookings that, solid for the overall or statement on quarter but been side, income that with over of I’ll we’re describing. turn us these good, quality that also Larry. to the describing

Thank Fusion driven by very, very the applications been growth cloud rapidly. Both you, on two businesses, Fusion Mark NetSuite growing and strategic Mark. cloud Oracle’s numbers. and of future applications in applications cloud our you are suite The has infrastructure. business the rests our suite NetSuite. and gave

applications responsible Customers integrated process a our think As applications, chain is NetSuite different both of imply, the complex business sales, suite together. different such approach and lots and running be integrated lots suite do with clouds. vendor’s provider resources, services the supply to integrating and of manufacturing cloud Most applications their Fusion of financials, has back the of services We for on like applications received. the the to the rapid Database infrastructure No applications. to cases, for highly cloud very market service, their reason make well human office our other covering suites cloud cloud office. comprehensive not gen MRI been share. of introduction provider The names want the work both in customers a primary has Oracle very growth front X applications featuring of our secure Autonomous including

trials. had Over active we QX, nearly X,XXX During X,XXX.

kind from processor only and customers. is technology Database cloud across has of makes of a is insulate control infrastructure one portion entire customers we protection No separate and of is differentiated our respond leadership this inaccessible it intruding our time Each and database threat the memory, also from The other other has our upon it automatically. Q&A cloud their Autonomous to market a security capability. applications the No Oracle us computers required. infrastructure about provider services turn to cloud back and Oracle public other database each cloud if AWS. that code Our this highly cloud. cloud turn makes down can our future. offers security call. you, technology Operator, I’ll No could plus to by very and operator. database optimistic leadership by

Heather first Bellini comes Our from Goldman Sachs. question Instructions] [Operator from

Thank month ask half accelerating it currency to picky you. were like it’s think growth second this Last you that sales a and Good be we together wanted our I look goal, constant XXXX, you. Mark, not when trying afternoon. tech to question a I but I’m much. reiterated would on basis conference of at versus knit first accelerate half doesn’t

be fiscal half currency XXXX meaningful? to would that So I growth constant wondering for wondering is and that type I or fiscal ask more you was XXXX. acceleration that than similar could mentioned higher what the currency thinking of fiscal changed just it of second be that fiscal guess be fiscal we anything you. constant XXXX to the should also revenue to if acceleration which is referring XXXX XXXX Thank growth wanted about I just you’re in I’m

Yes.

So go let’s back.

think XXXX get At half a than will first it, faster underneath whatever a faster the level bigger part it businesses of faster half. in are XXXX our than your is grow our are businesses. our is big becoming what I second other When around you XXXX. than first, XXXX than growing total drivers. grow FY adjective

So bigger, offsetting those effects. obviously gets one example, hardware smaller, as Cloud just gets have ERP an example,

overall In have business does cloud our addition, things that now but is been on-premise consulting with in has for declining attach consulting we services inclining, our our as that bookings. example,

I’ve the of substantively. you ERP we on of forward. about Database are growing clearly, which numbers offset each and Within our of example as are growth it, a drivers comments other. apps just as parts certain given an these as result, So HCM go two Autonomous huge Larry’s

going So XXXX statements, you’re top-line half, half, to see acceleration of I growth where CD. versus XXXX think all second are those all first XXXX in XXXX, to

please. question, Next

comes & Your DiFucci with John from next Jeffries question Company.

you. Thank

might So dividend increase XXXX characterize on follow right your quarter. of this really been uptick buybacks results of to period, with aggregate be to have this guess the sort think investors base some to relatively Mark, dividend, Cloud revenue during what a the I can fiscal I talked we that that thinking, I steady And a share the in your how the way might and and on talk Middleware this bit guess business appreciate it. be this point? want a about line and you and extent and about at the is but little Apps information of you lot acceleration I data options lot that get big driver a of

let I’ll options. bit comment start. I’ll also a Larry on the

just into we database move the here autonomous. on to think I first, the side, is get when big

people analytics, people encouraging buying early t bring get QX, revenue come – people don’t quarter into. XX, then from now much The And numbers a What Autonomous you into frankly buying. XX, interest. we XXK These for John, us. of database get seen, tried think it trials was and we their just nice, increased service of up he of talking level first in with was terms just that the within signs and we in into give Database something substantive. either other our for even and end that’s show what’s level really move purchase yet. testing get numbers to it. to you – It won’t of we point up, as I’m we’ve second the of really some I as the making interest coming the turns early that even are the just as QX QX

we becomes usage move continue other Larry with into this he trials on usage, core I’ll driver we forward. the follow expansion, as let key real parts to a options. real convert into of as So

the the option As use by public cluster and multitenant Autonomous people option for the they Database options required Database. Autonomous in are cloud, typically application got which real

the those accelerates So the is the of Autonomous that there’s Database question two purchases options. consumption will that of and no increase Autonomous introduction of Database license

my just how weren’t even of smaller. You big and it us middleware on-premise or getting growing And used Can businesses growing, this of you other that to how declining. just middleware tell roughly sort second was talk about smaller is at alluded stuff of question, that part and point? you some the wasn’t was these

the cloud. got of suite we’re so going you discrete services But that We’ve not will not knowledge, to we’re I’m out break in – business if cloud. out, else from break the is – never unless going into I’m John, We start into my to clearly, it from full going breaking it like break today. to on-premise out but everything a not to middleware – a today, moving

a couple well. quite doing I say of can are middleware parts of

think a it’s mixed I story.

I are well doing the very in think analytics cloud.

XX% Database out quarter. a have As Autonomous had with Mark of analytics goes good java mentioned, very had and

last context we’ve business business one had multitenant not middleware, many simultaneously. in as fast could declining the as talked a have it. about, of it’s faster Security within I products Like Middleware point. thing. growing It’s we things the growing things is things within well. many problem the and Again,

Your with Winslow next Wells Phil comes Fargo. from question

taking on for question. a Congrats my strong Thanks Great. quarter.

for shifting also to that what to Data My Just autonomous people with and had be we about I John’s gen some OCI there top want you customers the adding differentiates on X so driver the on question of trials, Is out top in Just being continue you then positive Is thousand it. how what great X,XXX and year timing When and get on would a data build the speed? since we cloud, reacceleration the Warehouse is on why. it’s is to more it August, think about should it points process it mentioned Oracle over, actually autonomous out performance? on increasingly about ACI color is the of transactional cost? really question and the those and platform database. being that think reacceleration and the two then of combining,

start. let I’ll Larry

Okay. All right.

So the driver is many different things.

a that go customers and The to find is a been call database, Certainly, Some stunned literally a lot from We’ve improvements. can collecting doing runnings and of the hardware, they can trials they useful five our Database. fact minutes. having productivity onto studying not be thousand minutes in what references get to customers things about log running it not we’ll Autonomous our a the five cloud. our of up were and encouraging the Up in and they shock customers. and database and having proving X,XXX

promised quickly, So things running big AWS been They customer bill know one very in your university faster XX%. who’s user and cut series AWS on and were we of half. times up and getting that We’ve productivity I issue. by XX.X has we cut they these ads bill were had tests. that AWS they running a done their got a These running found researchers. than are

So it we Aurora than they’re they was very, felt way less Redshift making Autonomous Amazon. was less and at expensive the very worthwhile Database were move, cost or sensitive because much just expensive,

Data Some existing it a shifting one but and Data other. minutes each people not being in taking new Warehouse, compatibility, able existing was Warehouse, an an just the Warehouse existing an it up had they spooling Data lifting take to five and

cases. I of should seeing Productivity, We’re Autonomous driving Database. those of usage compatibility say. Productivity, all cost. and All motivators, the use

is cases I did with if you CEO customers that talk would go it. important, could about now database where that in partitioning our you have If and They understand the sold release to levels sense. what we and is did fact release five why you but that so many nothing to a they that you understand its like It’s why itself audit would the get the from not about it – you’re tunes the company, this that to and talent the patching where the CEO isn’t extremely us in and creates I fact that, is. itself, labor or done was level patch can top gets fact less customers too. completely hear it’s this actually we’re trials the something When point, at Larry’s data it’s many If discuss strategic. reason level this the sold business is CEO about Database. can have goes – that. it nothing a the why at apply it that to price at the four now actually something the thing we This problem CEO their to org. a never migrate just The in who pass instantaneously, enthusiasm it it in better security Autonomous because said the performance, a level. but patches indexes, the database what and if They give is base so We’ve talk and committees. of down release way so will, had own to all customer like labor a levels it’s high makes you area or talking the down the seeing response be just This this

technical. it’s to an the many a point release it’s what of benefits why in-memory frankly you opposed Its many and as to fact than to such CEO think it what that the is benefits being our us so will benefits the our traditionally different you customers maybe if to business is I’ve explaining described. because would multitenant just of has So exciting

spend Knowing I’ve a much patching CRM on how got system. your we lead for

too get your into won’t specific situation. I

one with vehicle a a a many closed bank case has and of ways large has that vehicle to fantastic aware in and vehicle frankly be very a still in You’re to job, deployment to done. the only terms use but window I’m a Oracle this of amount certainly that of good and this tremendous done that a patch with get is has

That quote you can great. me give guys. be Thanks, for Well, would reference. that Safra,

Barclays. comes Lenschow with Your Raimo question next from

that’s XX, there a look, – talked going that ecosystem. terms Thank I apps for few quarter over is now it towards bring to accelerated Thanks we was quarters wondering, be aware question. we like run was in wanted taking again just my when special you and tried but to of? anything or you. ago we’re in about rate the I high-XXs. Mark, need that there new talk back anything on is it we because Was this of kind to can of NetSuite go the to

Well, said I when beginning mean, as to a over calls well. I’ve had QX I doing revenue. you’re was we multiple started and they’ve on mean, in been into bookings just row, now tremendous their growth XX% acceleration this very last see that turn

believe salespeople many that’s So I And customers. We’ve been what can sell more countries strategy’s and actually I simple, the better implementation We’ve new though if said in in is out addition than I more we but with it now do where frankly the localize and I’ve that, too, very complicated been bundled domestically. both more done verticals, our think actually for sustainable. you product countries. been our we’ve any rate very we new we internationally no success we’ve before, done with and and know we that very, building call the released what popular suite it’s

and a much as faster the executionally. the quick revenue so the know flew quarter, we’re I team grew very pretty NetSuite. but So our excited actually my job about bookings I grew think also has done than in the comments say ref I as marvelous

actually we do than today. think I described excited been and even have can NetSuite. And perform will better about continue I We just I what that think to

with James. question Michael Turits from next comes Raymond Your

evening. Good guys. Hi,

enough areas see growth enough had other seeing been growing start Cloud now cloud and to and accelerating business acceleration business of that you’ve that in big accelerating cloud. in Is which can ERP a we the headwinds? piece overall of other an some and becoming HCM So the

I I start. he’ll guess mean,

As and in and my that I becoming beginning SaaS It’s are I I said mid-XXs. positive approaching our $X but bigger annual And to the only we’re and part HCM HCM’s billion. key of some too better. it’s don’t ERP get in a our ERP sort think growing to mean, get and comments, revenue want today and see business. of acceleration context Again, parts. I to nothing better going in bigger

focused force base by the our and flavor the own way most the industry. against beginning move in was reason sales And as I those us read are that brand and read competitors. a very them fact by so and base so brands deploy traditional as to you’d into well get both our as we I of competitors bigger against industries that Remember, our well user on-premise not base we those or user own on user the as references that sitting our numbers competitive. get with is is We

clearly position and in and businesses. I’m So, confident numbers rates good of describing businesses I’ll our the it’s growing yeah, point growth those to very and we’re our I made so and feel $X mean, very your like a I that on putting billion about what you can do you are own math and say bigger after earlier this and stop start becoming bigger

expect even more we’re I the Safra, one keep a CapEx Thanks, for Any Safra. OCI Mark. quick If you with where that capital. managed to could in to trajectory low spending change follow up, investment.

very that’s to year be to next it bit less similar past No, and quarter basically it’s this looking same, expect kind for at. last than the little we’re a quarter I of this year, the what so

understand able of and there’s a do improving little it getting have envelope we’re our sort scale to if that SaaS is operation course, That’s enormous we’re margins all of and push the why keep the you humming investment a the we opportunity there. economies so same Of may within to but huge more, gas really so far.

Your with Bernstein comes Mark next Moerdler question research. from

of to going question. questions. my going to in ask two taking for you do take a while. much I’m haven’t very you liberty I’m something a Thank and a done built

X%. The first roughly is which is cash about double a was the salve talked flow RASM bit on growing down call for digits you

a more color And impact? You that definition up follow little recognized talk the that cash things Are other here, was have on you there are or you about timing having the a underlying factors impacting then gave an some Can Mark. cash? flow call. I for your of when

I mean, on. things two are there going

just If quarter, more collections, cash to nothing at but on. collections, focus you cash than of it’s really nothing look that timing the in

you one it’s and going of that’s If look two some which other that at you look schedules, on. the at really things year-to-date, may in the payments. tax And

in going So nothing every happens once while. on, a special

If that a you by of frankly. a and will we’re quarters’ Because years, you very thing, previous then look see previous up bookings. back QX collecting it’s lot

So – excuse me. billings,

it. really that’s special. So Nothing

Then Mark. for as a follow up

of can clients and of given the for the color new types Oracle workloads specifically clients autonomous especially You’ve are adoption But you on for autonomous discuss the some Database. Database. Autonomous that driving [new]

two the get announcing think ought as to you I going ask for doing it. opposed to just questions to you’re question police

I about to be polite Mark. it. Sorry, decided

was in that very that start Larry, you to Yeah, know. one? thoughtful. want on don’t I

tissue application. combination and that’s vision Sure. detect computers there different a doing from savings, a AWS – an diagnose combination of samples researchers the cells. to I that Database learning and earlier and big does for they’re I and that anomalous Autonomous The of lot kit] things. are machine mentioned mean, that’s cancer at [based all a to machine and look learning database new moving Cancer computer of a are cost using

of improvements of shocking things customers applications coming and there databases, with on-premise transaction the the Databases, Then the the from the development, that there’s infrastructure. transaction several of and Then customers much Database Data development, also. one infrastructure application, application, that there that simply is On-Premise one faster Autonomous customer same application data Oracle We general either associated one’s them productive from times lifting had are on-premise they test They’re there in new their the thing much are running, millions AWS. and data cloud. those much, developing sometimes moving that over from the ones in that, much cloud Oracle experiencing responsive, they’re intact, Actually, So, are the are it’s development to and existing these on-premise, moving moving, move there one and test cheaper or performance do cloud out and customers to new it on-premise millions just productive traditional Warehousing developing lifting cloud. they’re running moving just compute, the people all Cloud more and development are many and their of system moving than more in from the to that’s processing new more cloud over there there to ran again, are the test to the a move who over the into into big getting are are reaction taking exact application processing much the either their moved and the application system. moving

applications, data shifting test development, transaction cases. processing, online different are and lifting lifting of warehousing, from AWS, and use So shifting, there moving lots and

opposed into at to our in It’s autonomous in user look We transaction. roughly Just very new off at competition a our net Oracle. are to Warehouse, I’m well. on base, of net IT, XX% couple quick as Mark, XX%, are XX% them Autonomous have the right. good customers did And roughly as migration. follow-ons. Doing Data no as described not top there’s LOB my a right head are as XX%, the actually news this of I Database the which XX% before. all simply now Larry

movement Data got. So anything we’ve customers, terms dynamics, is the opinion, got they’re to we’ve dynamics driver in Warehousing a addition lot biggest in net new and improving certainly database Analytical underpinning my of individual of of our probably of improving

next from Suisse. Zelnick Credit question with Brad comes Your

is On-Premise ERP opportunity I massive question’s installed demand’s you’re base much. the Mark, not so as niche Thanks haven’t than for that Mark. from, your success Excellent. people participating think more there’s the how the but long in tail, think that traction we more where appreciate there coming half think most long the tail sense give My legacy just and heard of. you’re seeing suspects? versus vendors in us much Can might the market you the about displacing for even you a that of usual cloud

that’s exactly what right, think I said. you

together common On-Premise Germany have company it’s two the two vendors XX% than that think from I thought Oracle ERP of the vendors, dominated market market. by less So and and is those the

the a Lawson, of blizzard than R&D, they resources more when less cases want companies, there line our to have has are move. be they names company in modern user and to blizzard But There’s on to development public them. an roadmap, our on if share, to turn in knowing are equity. go example. and a describing, XX%, Coy Dodge, attractive we confidence IBM They’re believe our like move a the tens equity. be companies of They as going knows sales a to these, not called move many competitors. that competitors tens code. in customers of with there, move. Fortune implementations, as you’re old going a why, to than Deltek. private situations know because to I There’s without for company a have got heard to I need more resources actually Cloud. their are Brad, a more or of of much there’s perhaps earlier, and [ETHICA]. actually XX% urgency There’s old, how to here They third more your are on into That’s of our not They mentioned market their in They We customers. on pieces plan big no called of them these from other system. actually to the it’s all XX%, these. any beginning McCormick most of many of they a They and they’re and point and them our mentioned actually they’re it need old They’re get migration to platform, these up in very moved company have and as got we’re have ERP focused called through to couple XXX there. like desperate roadmap. without actually have base second fairness, would have you’ve sense They’ve cloud knowing These migrate companies. private even or market the

quick say or an business territory, need success would there’s as territories because E of you competitive one give we you territory these would many much rather and an have vendors of these competitive today as one can. you of one our have salespeople suite if our you have ask move me of that So to niche absolute as where you’re rather salespeople after going

it rate So, and well that to fact HCM why so and CX we’re hear in to opportunity. to much frankly we area other apps yeah, you when so because some front on our rate office andit’s continue sell so it’s we an it’s of even attach focused keep the is about as see an market ERP, the incredibly why an additional attractive us talking attach

I the to now Ken. call will turn over

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

quarter for you joining appreciate earnings We Thank Oracle’s XXXX today’s conference call. third your participation.

disconnect. now may You