Oracle (ORCL) 19 Jun 192019 Q4 Earnings call transcript

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

Now, I’d like to turn today’s call over to Ken Bond, Senior Vice President, Investor Relations. Sir, I hand the floor to you.

Thank you, Holly. Good afternoon, everyone, and welcome to Oracle’s fourth quarter and fiscal year 2019 earnings conference call. from press non-GAAP financial financial reconciliation be and the a which information, of website. viewed to Relations GAAP and downloaded copy release tables, and includes can A Investor our other supplemental

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

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

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

results we our ourselves future light new or are obligating release these publicly statements to not of information revision revise in events. finally, forward-looking any And to or

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

afternoon, Good Ken. everyone. Thanks,

end comments. Larry and on US call end to high had my turn my for the then guidance terrific As you and growth fiscal per high quarter $X.XX their above guidance. the see, above can of the one guidance. recap year a XXXX dollar and first to my we with total point revenue before share moving go I’ll of QX over earnings over Mark I'll

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

as a were X.X the license cloud on-premise not up that billion, up expected, X.X more. the X%, of more while largely revenues full headwind revenues than and QX for but cloud quarter a XX%. support total were services currency movements smidge and was expected, incremental license maybe effects percentage were Now in Anyway, billion, license

growth abundantly autonomous particular, stability database I Oracle it making service base license to the enough cannot of quarter. Oracle platform. grew quarter our that after technology are In in stress was XX%. and growth customers XX%, the The run key database options investing up necessary clear of customers, the

their environment. Our bring hybrid our Oracle the your via customers have maintaining license premise, or in they this And model, use are BYOL, expanding licenses and cloud, own the portability in on environments. to

or just are This do, capable popularity whether can't products others it's cloud things of capabilities. security, in is because our largely doing our autonomous performance, scalability and

services, As whether via overall our or cloud that customers is is starting our technologies, growing to base accelerate. our licenses and adopt customer growth

premise database transition on In accelerate addition, will agreement database only help service. with the the Microsoft to from the autonomous interconnect recent

XX% and in $X.XX some The Now, the income and operating Non-GAAP up US below some rate a to EPS non-GAAP higher. dollars at gross we year. was which quarter XX% XX% discrete in the up was USD. I GAAP tax up last was $X.XX as items constant our up of X.X%, last cloud discrete continue of a for and as in and dollars, currency, even XX% XX% revenues to in margin quarter US XX% margin and slightly and in in GAAP also was dollars. go was X.X the and rate billion, from from expect and result services and result billion, this the numbers, US currency, items constant tax of XX.X%, base was rate EPS will XX.X for XX% the were X% from license scale year. operating for grow, XX%, year, up Total support X% was last tax was The

billion, full Now, X%. services the license as Total were to year, revenues company support billion, XX.X to XX.X moving X% for cloud growing year recap fiscal revenue on the growing was and in X% compared dollars, total $X.XX operating revenue growth, growth driven in XX% XX% dollars, constant up lower in share by rate. US in up currency, EPS Non-GAAP FYXX. income tax was repurchases US and total

This is full operating for our mirrored up was margin year, the slightly this year. percentage to XX% in which

see from As total XX%. in in business. as our a greater expect over margin Operating cash revenue full we cash tax surpass will in year, year flow as was growth cash higher years million tax billion lower in the installment the I you were higher will last $X.X our flow of that last than million including statement QX, only XXX in reminder, accelerates, year, our our transition the billion, XX.X quarters coming XXX operating best ever payments the And and we in nearly at benefit the and towards bottom four was payments QX. FYXX tax scale because, the XX-K, this

X.X deferred in four year the cash last is X.X cash We were The constant flow in balance term was billion. revenue up for billion the over quarters XX XX.X have billion, marketable securities. approximately short now and free expenditures billion currency. and Capital X%

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

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

million XX shares of XX billion. for last have we XXX the a months, Over repurchased total

five reduction the nearly years, with by outstanding year we've FYXX. shares past XX% last this Over almost the the of in XX% reduced total

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

constant non-GAAP the basis to in currency. today is Now guidance, my a guidance and

rates Assuming total remain effects on about and the on EPS. should effect exchange revenues, negative currency X% $X.XX the have now, about negative are they same as current

to X and are for QX, X% grow grow are expected between constant revenues revenues expected USD. to currency X% total X% So, currency to a in between X% and headwind, total in assuming

expected currency constant XX% between XX% and $X.XX and and expected constant is EPS $X.XX in is $X.XX in in to and $X.XX headwind, between currency the be EPS grow assuming XX% $X.XX XX% grow USD. to non-GAAP to be Non-GAAP between between in USD and and

expect Now, than we And digit grew double of report once revenue we XXXX, grow growth. this last will again that year total currency will I year, fiscal and course, EPS constant past faster year, X%. for

Total but fiscal QX a year fiscal X.X assumes base it could ’XX be is XX%. a our CapEx of for and for expected depending billion, My move to guidance about on little year bookings. EPS ‘XX rate

year rates our rate base, will any expect cause for However, higher around one-time that our quarter average to from events, fiscal one-time I XX% events normalizing tax vary could tax tax for lower. both or But tax in actual given these XXXX. for

to comments. his it I'll that, turn Mark with over for And

X% EPS We're we quarter Total X% for at top up constant now $XX.X solid currency in Really, a the constant license had apps, months billion XX we in support to and in up trailing Safra. In Thanks, X% just that revenue. and cloud XX% we bottom. from revenue up currency. XX% had year. was great grew with momentum, recurred. of

revenue faster have grow opportunity ERP to enormous us And market. an in a in that I'll of continue just we and in second. front than talk and We to HCM

SaaS XX% you revenue was was plus X happened. give me Overall, bookings, stats ERP HCM revenue at in and QX, it it annualized XX% you the is give billion, in call to let few solid revenue or with in year. QX, context Fusion what now X.X, HCM wins some Fusion and a apps up just of discuss SaaS I'll as and In high-XXs. XX% second. in year. full was a growth, up and the up in revenue for XX% XX% nice up for ERP Fusion was was continues. that also NetSuite up full and strong ERP momentum XX% QX, the up again the

bookings a XX% in remind last had NetSuite, that's this They revenue plus those And have doubled in XX% when to growth we and acquisition. the you bookings we strong QX, had had And and since was quarter. growth in drove acquired I rates, XX% QX, what addition in growth now the what roughly bookings, this that growth. they

In the business, data issues to broader further revenue our a for XX% XX%. up you and down service, SaaS privacy revenue as within and give continued the our year. just our verticals, challenges our context was some related to In the was XX%

gained in calendar market running, the three globally to share you Now, give I'm quote, but and the years I Oracle latest although most let market words, then IDC's of and improvise, you IDC read I is, to share results, the give SaaS And “Per ’XX, quote have annual years vendors, out that I quotes, I'd me quotes. to. ‘XX ‘XX.” as can't on all applications, the closed going so that enterprise like improvise an can’t

So anyway, some about of talk in space. wins second. momentum I'll we assess a to the the you in app strong

and But -- us telling extrapolate very mid-teens Autonomous not small. up up numbers database basis X% the in if XXXX they -- XX.X that they're In our it, billion on mid-teens in still mid a digits, driven growth than new are you significant. single license I'm ecosystem, trials by relatively, them, relatively database, while QX ecosystem growth. More [indiscernible] we added trailing were QX and and they was database database with alone. was repeat the license helped XX were months QX, infrastructure

a got QX We our of pull-through great wins. business with XX%

were database customers customers Oracle. and adding autonomous So are we're have to Oracle through different just autonomous do, pulled new autonomous analytics. bought customer, base And way, XX% I database that adding Database customer, customers by autonomous are brand the they think putting database, Oracle customers, of new won so both than but we am database. had Oracle be to the both. Database we and I'm XX%, workloads an on but on the many replacing just XX% we’re time, the a meaning our all the not you They We're about of our might existing doing workload our which database, of with we’d an when required new we the new I

being want that license if and need to hit key to Guard it run autonomous, these and want Now, the the harder. our tenant a multi hit SLA, just Safra’s briefly, was growth database point active options little it wrapped you to and you up Data so I In she XX%.

up think for gain share growing your database. us why quarter X So you think analyst. favorite is X, points was huge for the you in do customer This share gain number from market or whatever a X, us

exceeded quarter, and was XX% target solid our growth. revenue It a saw we EPS

gives business us of customers cloud I that our couple try Our bookings little rates, thought wins also the to confidence here. size we you our renewal of companies climbed strengthen to selling had apps from of the key quarter typical growth our the will just I’d and we're I'm of a rates give during going with continue and you meaning renewal existing color give just a to. more continuing

all this. who I'm about some in you a a rhythms, bit going deal the get for we to little give you you try give replaced and feel so and

compete key Some interesting and I our some company used Argo going billion MCR, company; $X.X about to Cloud because with company, billion combined Diebold Insurance, EBS was them office was one customer, bought in will the focus on Diebold a they two of wins. that's be $X Nixdorf when Australia, was wins [indiscernible], an and Diebold to an I'll I SAP mining back an They in customer. Nixdorf Oracle ERP. Nixdorf, and

Nixdorf new Brazil, Diebold they of out our run net and they and for win so whole will So on Oracle supply ERP billion, about company they’re on running Oracle. [indiscernible] ERP. were bought TOTVS, procurement, chain Brazilian fantastic ERP $XX.X us to and Cloud

background all they of Experian, did our of Oracle a little little they of whole suite, ERP with bit bought really -- basically it and Cloud. had company which bit billion $X little a SAP a procurement, supply our planning, a ERP of and having bit Microsoft against it the a little a EBS, bit everything, whole replaced chain, of is

Now, the Stock this heard symbol HP. Helmerich may their company was you & is the of, on Exchange New heard Payne, I've them never stock reason York

about & their company. Epicor wanted And they're I $X.X Payne. stock billion with I for And Oracle while them, have ERP the and a we at never years, stock got symbol Helmerich replaced from cloud symbol

billion they supply procurement. companies, some idea plumbing EPM on Ferguson, chain one So a largest you of They $XX is anyway, the ERP, bought company. wholesale just and would which are give distribution that. that

tremendous, with us Santander them. in us. for a Just for to tremendous and we’re the win US, looking another partner win tremendous

competitive, to new of scheduling all deploying very in but Electric, and very University, with our of deals is our grants with deployed, which not was only commissions for which higher and and which ERP, Medical, financials stuff Wright [indiscernible] discounting, difficult student commissions are Emerson system ed. all deal

Tiffany, payroll, our win is for something some us of you I'm HCM, management. at Tiffany billion very So sure important great talent, be have Waste quarter, HCM will This HCM Houston. Tiffany the location. occasion. in key is running Management company all on in a bought amount waste a ERP. some $XX from for win of

getting a what good to and just but from EBS, Infineon, Totus, just in getting this here, things read or my let competitor the on, EBS. I you, Okay, mean, us. looking to as got for on would and Epicor, of they it exactly, bought traditional but And logos just and I I in say some as other Lawson, Microsoft, I'm of stop very outside the logos quality of give a Q&A just as start could on sign base, one page, many me user was, Oracle and that Infor, maybe as do you terms one, the was SAP, a We quarter the to a I’d our what reading down try list module replaced, give I'm Oracle couple from about XXX that that user I competitors, I think XXX many this you I'm go of incumbent as -- we're asked I lot. but EBS, flavor. get do more than the Microsoft, flavor at we are of the accounting base. didn't from a

With Larry. that, over it I'll turn to

Mark. Thank you,

As surge sales. a Mark in license saw we said, database in QX,

growth required saw in sales those database very options database. our also rapid autonomous to of We run

GenX database quarter, database over cloud. We in our autonomous our as to added to migrate In cloud. the database we continue users public overall trials new gain share market XXXX the we

patches GenX a for infrastructure driving detected. upgrades itself, all all offers up, advanced data, automatically customers to self including new features. human says cloud of a close any is array need intervention compelling well other our No database your infrastructure itself that threat anything any without security the technology of automatically itself Our cloud encrypts these and features, running backs downtime. need this itself when autonomously, tunes for the provides It autonomous without and

you, start call the Holly, if we the please. Thank Larry. portion can of Q&A

line Raymond [Operator Instructions] of Michael the James. And our first from question comes Turits,

Good I'd Oracle is Oracle Oracle to of that has Cloud just up, but workloads Cloud. clouds? In integrated strategy move sure it general, database to evening, more Azure ask to about to Azure directed at running lot this partnership the represent obviously partnership. Azure strong an premise quarter a other on like getting Oracle and recent Or ways your workloads stood Does in been with services opening on workloads? make

It and Microsoft really is most customers have technology Oracle Technology.

suite we it So, analytics and Azure, unified Microsoft they run their But might public as high and have in and database have those data oracle we interfaces a make in database to experience. as these Microsoft we And Oracle possible made, to we also built the the -- speed want as analytics we the easy you accessing an Oracle and technologies together. made the glued customer cloud. for

two database technologies things. they but talking suites Microsoft is those the access in in they But Cloud. have reliable. to, running it Oracle and interconnect the customer Oracle the So products cloud, speed of have customers, like the to They're each working high can they're they feels other Microsoft the in one analytic the to still highly at running and technology and just now, Cloud and is

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

forward especially database Safra, autonomous, my autonomous you on cloud hitting we're for can the this how by see a strong call. a focus Is revenue should on on think to data the impact going on thanks going going the you the gave like quarter basis color autonomous about forward? give database. more where on revenue? quarter. and and on to license revenue us the question stride But what's business quarter Congrats some I'd the adoption Mark, we on database visibly

say Let me is about I most can give think interesting the you maybe what this. thing we

additional plans. business, fact, have But put upon have some we And giving for our guidance. We together the terms years business. traditional forecasting ways way in We now the you quarterly we what that annual out autonomous in is in cloud where interesting relied comes we're forecasts. of with of the about Safra field data, of that's, add the consumption services two One database we spend consumption to and cloud, collecting data, cloud, our our sales, not for have will, around said, rather, our started depending capacity you inside we selling bookings, and data the technology, but we if field cloud to money. because more bookings, to have on real might

signaling that clouds. And drive GenX of now, precise. that lead Bookings our increased be much into not me forecasts. It's from database little faster our public seeing a our triggers cloud It's more we're is to growth usage consumption encouraging. sales from we're it. of interesting, in kind that right getting time bookings bit signals our our Let provisioning just autonomous than just-in hardware but even

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

It's great seeing options. so see we success early as the long to for is your the for think term and embracing in database about in database question software the is Larry. to the But about And it increasingly success years business, business autonomous prospects ecosystem. demand accelerating of Larry, lot like database nice tied this. would seem it's the developers. a the of was ISV past, future My

And your Oracle OCI First, see attracting to agree do how that database would with developers you you more and statement? broadly?

applications, thing, board. same most think and I to applications, which applications to used is the are attract developers, why -- write developers you’re ISV good is it why the saying across important attractive because it are

all. don't of our Developers will, business. think you foundation were anything's the at I changed So if always,

Oracle the the Oracle everything is X And most Salesforce.com I database. database. in current much over pretty the running of most use ISVs, cloud ecosystem in runs already. million have that the on our We ISVs developers mean,

on cloud the acquired Database. to run that Everything in Oracle SAP runs the

to are but said quite gotten haven't SAP go [indiscernible] yet. know developers. there that ago, X going move we I that after says Now, years they Anyway,

fact, a announcing going touches which developers, is to you to be yesterday, putting In we're developers program will. finishing basically we the were Oracle [indiscernible] free services OpenWorld, if of at to

provide able dorm and their a the cloud, from this entrepreneur, So can on service, be the sole someplace we college up in being that let to be to this and to get place to a MIT cloud then graduate applications, will Oracle in entrepreneurs company will build start developers to and service maybe cycle. free to We developers an in early. we're people being And able starting entrepreneur programs ISV. sign that. That's all a eventually putting the do free sorts an becoming want of have

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

You know good was what, myself, for another with I'm help know can't to going too, I apps database. but up the waiting been I follow this.

working for time long see in We’ve Difficulty] this a [Technical great just up the been it's on numbers. to begin it to show and

have is mean, of probably struggled growth is it’s many this companies It and doing kind know, was but Oracle, and the see relative out some better odd, lately constant been was because quarter conclusion the your than since in, of this. currency from the investment I as we’d Larry logical timing infrastructure community infrastructure weakness you that you've been

maybe We're just like more quarter, for. out been give that and what's I constant you sort out Mark, detailed on and since going period. it’s covering that's maybe, even XXXX We're can or base right. and general waiting guess, that? there. over options better figure a for last generally, been ‘XX to comments infrastructure detail time guess, -- not out Oracle, you in over can back the the something the broad we’ve of on if us just And this the growth some then, there. currency trying looking give So mentioned to demand -- was back comments went IT you little on more I I Larry, looking since fiscal than

I was Okay, one mentioned multi-tenancy an multi-tenant a One take built so that autonomous you the it never suddenly let database. existing Oracle to you that are application, an take it -- required the you is option. move be where change thing, there use be application database, could and think to is multi-tenant, don't me are you can them options that two Mark This an to ISV, absolutely a database. have the existing

So autonomous that's one thing that's database. required for

instances. refers fact computers Real is thing real application that run clustering. other the The clustering we to database every application to use multiple this

one they running. our in keep there's, So those case of should fall systems off, [fall [ph], computers are tolerant]

the never never database So breaks. autonomous breaks,

next by. line going gentlemen, the Ladies stand come question and to And Goldman of Sachs. is from Heather our Bellini,

me can hold moment. Heather, okay? on a you for Heather, hear you can

Yeah. a silent went Can before. you minute me? We hear for

continue Okay, I everybody. Why you like to – would Larry, or… apologize, on us don’t

to answer questions. the like I’d

Larry's any did answer? John, of get Yeah. you

let open up line. me Standby, John’s

John, get out, figure and we'll Thank apologies logistics. you, of this we’ll back you the Heather. on line for kind

my Let me, back cycle answer. repeat to and I’m going

database So an One And options allows, database. it and the option, that cloud tenant feature the answer, with was take application. for to the ISV suddenly, an to autonomous move of say, application, That's their there option. meant multi-tenancy let's the skyrocket. required sales never we've that that our are existing they're multi for application a their cloud, two seen becomes and autonomous application changing is one not key multi-tenancy

key or feature required feature a RAC. single single is database to use the computers is application to instance. RAC a to database called this autonomous other ability use of database multiple The autonomous that's run

X, that one left, you configure – computers, might we computers. we because tolerate X, X, multiple case of X database you we and might fail, autonomous in those running, with system, whatever will configure but you lose should still the computers application you you failure have however have X, only have have So X, or X, keeps multiple X, the X

driven again option you than fails, are would autonomous more expect the consumption have database the Autonomous by of options must ensure RAC to rapidly database. growing that. you being RAC never

adoption. very, seeing rapid we're very So

and $XX,XXX existing with becomes thing might let's a to this, of a a little in customers project. initial small come In our XX, days, very a lot $XXX,XXX XX color XXX within fact, to say, add another transaction, project, ARR that project, and

million months, few another after it project. becomes $X.X And

the the consumption soon. And which much back on business. the just find rate said the the is based optimism guidance, fields in curves, not data which earlier, this encouraging. hopefully is and to thing trend. about We'll fascinating was And optimism sales that’s what The optimistic I anticipating. I'm Safra’s me, than that growing of currently To the are forecasts. beginning I faster just shows really find wonderfully consumption our we're this out So,

Holly, if now… Okay, we could

think I you follow-on. as Mark a had Do remarks well? have closing

mean, a It was you seeing seeing just, of we're And business infrastructure stuff there infrastructure but broad seeing I’m general, seeing have just you is any, there's I have funky that any just out struggled Oracle, mean, I a Are you're there changes guys companies demand in -- customer lot base, beyond software. strong, general. a your lot even? recently. of you wondering, for in out anything for like wondering what Are

Yeah.

hot I that's the difference. new products. have We mean,

perspective, the speak go I we how you can at you to out rarely a Larry money with different But very we to get somebody business to but level factors. time. think and performance from a had secure, talked get that everybody, I say, that, save at of lot product the all won't again, like go when senior a would database, and talk about same a better more autonomous

just of your security and this lost. name page, patching front like somebody the have data detection responsibilities fold you the to you living? for read the would to a to How you talking So who about how company above on outsource never much the does

talk. I’ll Mark let So,

saying, set we've got different you Yeah. simple got and, so new, partitioning. which benefit of a And about a bringing most Well, really products, just Anyway, we're autonomous a of great we've stages this we've in and us in are competitors a new a John, you is got now different message. different new the weak. This very we apps, from strength mentioned we've it's in for that cloud from what approach of know database. products, got are and is just out maturation,

think And other terms so, different be people what various a that versus might that's just the we're I in. product cycles in, in of bit

application I that are with close -- well aren't product we’re like Fusion acquired some data mentioned the of well. are of then some great, cloud, agree have maybe doing doing Mark extremely There privacy me frankly, hardware. selling on-premise, more really of hot with the naturally other lines let kind They're very software issues. that’s quite couldn't because NetSuite really products autonomous cloud new we like that really Yeah, and accelerating. oldest downsizing, database, all on well. Quite Mark some products, suite,

are yeah, future. our hot. the hot our the and will, good are hot that's determining news are the is, than there So so businesses some of you not that bigger But now not, businesses, if businesses

is said right. Larry What

SPARC XX%, I quarter. think business it's worth noting, declined our this XX%

growth Our NetSuite high-XXs. what's business aggregate I of XXs, they at described, what the grew, and as we just when it's rate described. and plus that's up don't out And look cancel XXs the but we in company, the bigger, like now made of negative

that create described. does the phenomena it Larry so, And

really marketplace. Fusion, database, the care. ones have like Clear overall very it away we underneath melting these these these Again, one look question. up have just and your growing of NetSuite in like, the activity, But moving number this don't that share. like a dominant looked I does businesses autonomous to ERP. will taking modestly. provide [indiscernible], the the last you this other and top very, line Yeah. answer number and is the of rapidly, swear there's lot modern And, be part It businesses and that, you is are

our line focused products are products on SPARC and top our driving are now higher. our We SPARC

Sachs. Bellini, come next from our Heather question will And Goldman

you ended, I It in I the performing, walk could through looks of I so quarter of of us strong a much And in if comps next I SAP the on able that is in far. where puts you just be of that customers SaaS opportunity for NetSuite acceleration trying you and out look that fiscal types to of we mean, anniversary business? customers us the they're right, obviously through if of business I with tougher to you're infrastructure like that’s back of get terms the should the the to how re-platform, you ask time some as competitive was acceleration of see, terms Okay, I wondering and you app the see how types spend is so on. customers segments those some mean, there. that wanted went the is [indiscernible]? the share to win you, the potentially, so that we the go you also, can I to little segment, announcements an focusing and kind might on had takes how of guess of some bit was to or could wondering going kind those about within SAP environment in time, Mark, Workday year. of of another out When guess and year in think given could been everyone's first win play for seeing

up Okay, And well all is that of to question version, SAP that like The and forcing Difficulty] smart. what's board hour be and of million to XXXX to we've say got bill has CFO, to is, older changes, CIO board changes beginning all new guy damn your to bill a to the to $XXX earlier all thing the [Technical and something move this you or to the move has show HANA? so member up is, the forces not on an they've by abridged the what to big I all to bill My code the would directors, to point, just get think And take big me new HANA. like, just says customers platform a roll are clever, this made HANA a to the phone they have called they wherever guess changes remade a the the is means board code. to it's and customers but poor move to that Larry to their the made, the

new the And on. well, goes, it's $XXX okay, million. platform? the guy what's goes, just I The platform get a goes, costs very think guy goes, The for. it guy goes The some this well, that it's new we badly. the goes, goes, guy and a thing what well, we our guy and we and he get ERP run new and well, oh we some meeting yeah, goes, and plumbing get He do

the customer an in alternative? it? somewhere do Could somebody talked not you And we to? have Could the have else? go goes, who we we else mean, Do with

vice part, an strategy think Do that XX years? all it's customers we versa to their remember, And get we customers you're to been on you that calls to with talked I to we in incredibly these mean, is answer Heather, is years stay at expected and forever. ago, after yeah, it play. really that yes. their interesting put this systems ERP never because when they us So or to know, I and XX from because customers talked The called haven't sold

base percent money of lot getting not of some their simple. it's result move for a just will as much, a real because yeah, So of this,

Anything on Workday?

and a they talk about and the When Again, just it the ERP I no and job, really is it think sense the again, product. know where the Workday hype of from real buyer upmarket Workday position day, don’t of HCM at the do competitive. an financials chance can they they aligned does, divorce buyer are they're because HCM combined, my buyer. they and not all they decent ERP have buyer they And are but HCM the that, in much I with a end

us really So to for us, moving is for keep ahead. the market

in must market XX% and financials must but be XX%, it now, cloud plus XX%. XX%, share be Our

the we story is is NetSuite, NetSuite NetSuite sure about you if can greatest I So, because we team things enough accelerate? yeah, And say the doubled I I'm didn't can do think the story here listening. that I the think see rate.

job. this not growing Let industries, have lot build more fabulous execution. A domestically. doing fabulous just pure a for, internationally, they're but performance, a NetSuite. me job, industries growing US And They NetSuite, of that salespeople, domestic performance is micro say done we more better NetSuite just NetSuite, in just

so good just perfect, which I between NetSuite everything's and we've And a is good news. Fusion, tell really you run. had really won't

can We I do stride. better. And we're just do can better. think our getting we numbers, these With

So, very about feel good another. I

is and bigger it becomes kind Yeah. it else. growing overwhelms higher Fusion so percentage, And a becomes as Fusion everything ERP a percentage, of quickly just

two now lot benefit curves the get -- and is NetSuite those in you're decline. kind countries. products that started moved another. growing those cross to our the one the an just product we SUN, are yet. a SPARC we’ve Yeah. this mean, crossed And some have haven't That's what than really countries And, Fusion Yeah. of really now hot, of is products again, of international beginning of I of change. that's fact of in quarter, mix lot a in are rapidly frankly, to seeing like that bigger the that quite we

year kick So a in impact. will to have that's fiscal going and big this that

come is Phil of Winslow, to from question Our the Wells Fargo. next line going

an congrats focus sort to feedback do for us taking you're and has been on of applications, question the infrastructure, what on great Thanks on think lot from we wanted and just my are the time hope to customers? Cloud spent Oracle How what's where update adoption on the the platform on of lifecycle? infrastructure can Yeah. you a give on we about seeing year. to, A and finish

I question should any is, OCIX impact with there? one about there's announcement from think relative then And investors the sort to get how of if Microsoft, we

of Well, OCIX, moved call now our and OCI to -- we had, cloud. which moved all we products. GenX two customers, We moving really frozen, what our we is customers, of classic, almost all had our infrastructure

is our people, cloud only dramatically clouds. think I existing GenX not Our than better but cloud, other GenX

with our went, where of have, Intel on we an two architecture, lot we without going separate then have if that have, all we will. computers have We has memory that another a you computer powered processor and the each you we read, And that code. have and separate control this, computer you into

and cloud It's and at as an the get impossible that that's Azure data our computer the impossible is computers, customer messaging and also than or and to the or one use single a customer manage in virtualize for So customers’ GenX programmers and every code our the architect, of that we really different at look encrypt to our cloud should to messaging very and encapsulate that. cloud -- our one the another do it's all two for Amazon the data. one Google and hack the And it. uses,

that So infrastructure this, we architectures we did architecture, vulnerabilities. existing architectures, many because had just our decided redid too we

to bit in is freeze. OCI we GenX us of to Amazon to frankly classic, a a saying, else. secure, to and us of world’s somebody the but and And so I'm also of much And to go and a into coming with much said, we're everybody these customers the all we're that, that beginning going much faster, to architectural more invest are faster, bullet, a networking, else gives because really not this, beginning quite faster between this going much differentiate much okay, going architectural are going more understand platform, lot it's not and us the looks this to they're now that, good. We're huge see differences, agencies go distinctions. hey, or reliable security

that better sorts run our we because don't -- a Also, redid capability a learning in all us performance running that's high are bunch performance much that high competitors. our have didn't rendering the workloads, computing of allows our we of GenX, other people machine way -- fancier have network guys we RDMA to large built network, cloud, have workloads on than we have, in GenX, simulations, we have into

beginning and buy. applications and So, beginning do of are are people to notice just move bunch a there better we to and they're

today Barclays. final comes from our Lenschow, question for Raimo And

to terms and and geographic talked the strength, wanted But in just to now countries of the we're that deep industry. terms I done beginning already about then against NetSuite go are in or or journey on you here. of we initial that that? going going industries certain sustainable to a Thank it of like, investment Mark through is certain wanted see, the a innings I like into and are of in going that is how against lot Where we back kind the you. is coming

a I It It I point scales. engineering continuing GenX would works to thing First, GenX people expand. that hiring in think our one it's add love Raimo, got We're is customers to group, It's thing. really well. reliable. and Larry’s great

field fantastic. by so point, mean, and Phil's it And it's very just Salesforce, our to received our add well to been I is

haven't NetSuite, On at seen we've seen the beginning, to internationally just yeah, point, acceleration we that we're the Larry's domestically. really

So we've done we're internationally. do. more to adding that, got some salespeople We've

is there growth there. So,

what take We are is more we there Suite more to adding industry, not an a are where there do success, even call an and industry, industry. we is adding we micro countries, which

around would we campus to one solution And offer as we're for we stop and refine the so retail and bookstores, deliver the universities out. those put retail, would would a bookstores that complete taking take of bookstores, consulting then we in and customer. build for and campus instead a it shop continuing So

to is we've again significant more after customers. So do increased more NetSuite. get yet force yet to increased of expectation sales R&D again drive continue those, And to that our we in our growth

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

XXXX for appreciate quarter conference you earnings thank We joining And Oracle your you. today's participation. fourth Thank call.

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