Oracle (ORCL) 12 Sep 192020 Q1 Earnings call transcript

Welcome to Oracle's First Quarter 2020 Earnings Conference Call. I'd now like to turn today's call over to Ken Bond, Senior Vice President. Ken?

Thank you, Holly. Good afternoon, everyone, and thank you for joining us on short notice. quarter XXXX first conference Oracle's to fiscal earnings year call. Welcome information and of reconciliation which financial and the website. copy Investor financial from and be our downloaded press supplemental non-GAAP A to release tables Relations' viewed GAAP includes other can a

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

factors As expectations, forward-looking. information important other be considered to estimates, Throughout present today's discussion, relating that forward-looking will will forward-looking include which affect discussion reminder, business or a statements predictions, we today's may including our these might some potentially statements.

also These forward-looking statements statements uncertainties to are materially today. results made subject actual may to from differ that cause and risks

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

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

questions, a with prepared remarks. we'll taking begin few Before

to call turn I'd to Safra. over that with And like the

such thank for and you, Thanks, Ken, notice. joining very us all, on short

and all Of for of a blessing XX our for day us honor XXth you memories day. of be course and the that September friends us. May all and we lost every employees day is our at that of country we an to victims important their many know Oracle. today Many and

call tomorrow. this planned to originally hold We

felt once. to all of However, a of absence our as it Mark reasons, leave taking at we share be news for sense made will health-related

the and the care but of extremely business the health to needs himself. end was quarter, Mark taking focus on his with of engaged he now through

rest of three with on management Mark's our cover Oracle, the the his support and responsibilities absence during always team worked a team. managing us as I from of have As Larry will strong

Now, rates revenues the modestly first I will the to headwind though quarter, $X.XX dollar non-GAAP with more growth I and review per were unless both otherwise. in earnings results of expected share, switching total in were range. than And our X.X% constant a QX movements effects with to to headwind state currency my results line using the guidance

billion, and Services and Cloud accounting revenues is Total of Support nearly all revenue this company the up of three for $X.X for revenues and were recurring. quarter License total most quarters of X%

license as $XXX see and revenues growth License a license XX% last quarter. X% we QX. is our software tend off normally Cloud On-Premise reminder, And new volatility were in because coming growth in quarter, more QX to million, rates down smallest

were terms mid-XXs Fusion XX% revenues XXs. was Fusion up of up teens. ecosystems, in up low up mid-XXs. SaaS low billion, HCM up In ERP, ecosystem while $X.X Vertical apps single-digits including up Cloud down GAAP nearly was the ERP Fusion NetSuite Data was high with X% the applications and in

up XX% trailing but revenue recurring. Autonomous X% BYOL infrastructure for now. highlighted were small by both with our GAAP revenues ecosystem a also more billion, base now database digits, is basis, triple similarly ecosystem than $X.X revenues, XX-month On up up total revenue of Database application and

of trailing our is more On three XX-month than a recurring. quarters basis, infrastructure now ecosystem

profit in grow, scale Asia for margin especially an in America strong continue and revenue results Pacific. our of gross The XX%. to driving was cloud gross Cloud our cloud Support in terms expect we higher, growth Latin and growth. in regions, saw margins And we as and License Services all will I double-digit revenue In gross geographies, acceleration go with

from the X% were income X% was XX% XX%, last operating $X.X billion, year; last quarter Total $X.X and up year. for billion, from last up margin Non-GAAP the from up revenues year. was operating

constant non-GAAP and rate and US$X.XX was up and the XX% US$. XX% of XX% at was US$X.XX below base and in rate X.X%, GAAP in slightly and EPS currency in tax and up XX% rate EPS GAAP constant XX% US$. tax was XX.X% tax quarter The dollar for was our in The

Operating cash $XX.X last four flow the was over quarters billion.

cash last four marketable short-term cash the $X.X $XX billion and quarters, $XX.X expenditures were deferred Over capital and We billion. approximately billion is was in the balance now $XX.X billion. revenue free and flow have securities

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

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

a have share. shares Directors reduced XX%. of And and $XX increased $XX a $X.XX months, five share for XX shares the the by for authorization dividend Over of we've XXX last billion. outstanding last repurchased The Board additional over an billion per the of the repurchases by than declared quarterly again total we million years, more

is on today a non-GAAP constant guidance My in currencies. basis and

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

could Of change. course, that

for headwind, are U.S. X% X% to revenues So, assuming X% dollars. expected total expected to currency total currency. a revenues grow grow to QX, to And in constant X% are X% in from

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

XXXX much and expect in around to accommodate our year $X.X to expected and invest a third CapEx fiscal growth double-digit is fiscal but need Total For that for billion, report constant depending fiscal it them. move to EPS currency. how we be on XXXX consecutive bookings, we the I could will little quarter,

XX%. XXXX and base fiscal assumes My for tax QX guidance rate a EPS of

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

time a call emphasis highlighting the some about quarter autonomous back-office spend of talk for turning database. on then Larry had applications, his and with we little wins will I'm the comments, over key during the to who

you, Thank Safra.

you're of we in opportunity applications have And business base than These enormous replaced, can has of As by both an of installed who and the massive but the Not ERP of quarters us HCM our have customers, aware, them. cloud, already to in now. are no served HCM. products half current and who only operate and growth the reporting ERP existing HCM excellent a is path. companies, of for have more number to ERP back-office been we vulnerable SaaS and do upgrade a market we're ahead process replacing being companies

results positioned player us to only few not years, already they've has Fusion player in strong but over just of investments on-premises but last Our cloud, not enabled the Cloud biggest all the the back-office back-office period. become it. we the are biggest which back-office our in

with that, upgrading with some of suite their and key we e-business Healthcare's Management, Communications, Cloud Bank our Healthcare here Envision Fusion we're Fusion Lawson system. Bangkok is Performance Service World, Infor Shaw Thailand, which replacing legacy Envision So ERP Enterprise Workday and Fusion who's beat are Financials from wins QX. our where an DP Financial system,

competitive operating in – their to migrating first process from cloud Lyft a their Fusion nice chain who's EPM as Varco was who's Workday. expansion closed in in portion now plan EPM is started win year. supply National against they that Fusion the on-premise management the and system a going newsroom we cloud is for but of NetSuite ERP the their out Express both another as Oilwell of this Media last growth Hyperion application. that Scripts forward.

suite. overall products, adding So more Fusion our they're more of – just adding – they're they're adding

an NGL gaming has company located Gaming online was chain Energy Partners also a company supply National our that called and ERP Fusion at town against competitive unnamed win is suite bought and a the management. Penn Waldorf. German

beat same garment Waldorf German a where manufacturer Limited Group Company. that we Standard large

Southern suite running E-Business Suite Company and was Financials and the and Financials overall Fusion everything. is moving a HCM PeopleSoft HCM utility Suite Cloud E-Business they're to PeopleSoft that

we've is – Fusion HCM chose great we're Dubai where by and to HR infusion suite on large Fusion entity cloud. the is the moving ERP some is A adding who the Fusion both to customer expanding from Fusion Healthcare wins. HCM suite. the our Continuing, cloud. adding in some to standardize long-term Suite Holdings Envision HCM in their recruiting. airport great and a for BAE on-premise Taleo technology already-purchased Systems additional transportation relationship upgrade got U.K. just the an HCM very E-Business

SAP and and visited Nestle; times Gas us. Here's they has from HCM. Southwest always many And of the heard displacing payroll. we're Southwest displacing won. we as probably battle -- McDonald's chose between our a legacy where They to move And Gas this was beat they their company Workday. We everyone's picked McDonald's. cloud and decided chose to SAP Workday, our and on-premise system. a we're us on-premise

from to And just HCM including with them engaged also Texas University the as providing customers. on-premise Industry PeopleSoft and technology, Fusion wins to are success. survey they support our it's a not The IDC their actually customer them but cloud. the taking consulting analysts cloud we're of that of marks on bunch only notice migrate not in

Salesforce, them. released X,XXX among their XXXX Workday, SaaS of customers survey of SAP, all all XXXX, Oracle over IDC survey on vendors their SaaS/PaaS rating In vendor period. Microsoft Oracle, surveyed that the of highest had May in the including SaaS SaaS experience it all SaaS with

the already ERP ecosystem beginning that can upgrade largest a applications largest the So our the we're system supplier come. to it just in you the back-office long be cloud. period. And overwhelmingly won't before again, We're cycle ERP of benefit at see will years for we're

All second sounds Autonomous bit think It this changer. hype. game about talk interesting marketing I'd right like a is cliché we because to a changer a game The little Database, term. area of like the is

is explain that Autonomous second-generation first-generation technology cloud element a how cloud. this a important from me key is. Let differentiates the

benefit and use. it. real a so first-generation and the for only great in second when use use the cloud generation pay the you was cloud, not what pay what And going first-generation -- were computers for you obviously you benefit, Now rent you you benefit your to of

human not cloud, as even do computers of is take computers of cloud. computers. renting the per savings. paying run Second-generation out an pay we also we That's the to as the for those labor costly economic and Sharing the running only benefits not use, labor bigger deliver

theft, from than What's data in But that's never which So a not cloud. cloud autonomous run a expensive a prevents an second-generation much you the do second-generation really cloud. cloud first-generation first-generation economic autonomous can is to less is really important what's advantage, manual important.

accept out configuration errors reasonable at policy people so when they the of Let data. me They your a have point One. for the Capital control by was refused Amazon how to have made responsibility you

your You system. control of have

for for responsible not manual systems, totally your a an are system make mistakes, the users can your when configuring when for results. it's responsible not for are up, system. your are That way data, you, responsible us. are your you unreasonable and system running lead patching on the the if responsible when system, have on prevent encrypting When user there's the your that. it's You And is no you position. manual backing for In responsible a errors to catastrophic are users users system, to users

Oracle Capital it the security could human let In configures an never have system, data while Autonomous doesn't automatically. automatically the The configure human because autonomous Autonomous Database patch happened, the system patches it doesn't system, itself Database to running. holes. itself The system to breach close One Oracle ask being beings a

you doesn't with way it have you if was only it's ask can while data all way our want does big and prevent back is you to only a if automatically competitors do can it or The eliminate Oracle This very theft Database is The and data, Autonomous don't. we that this to to your deal. error. one you encrypt an of running. human up The want Database

was on error down close autonomous driving, going by XX%. But XX%, and XX%, to forward It's What's XX%, the thing accidents about greatest eliminating human going thing Then stop, to other they've threat okay, Uber to I that's error. interesting. to save driving. this pilot to The going seen autonomous driving? stuff. it's looking reduce all to the about autonomous It's and greatest come all lives. pilot cut

resulting mistakes in Autonomous a Oracle self-driving end users there do what catastrophic it mean of Oracle prevents manual changer. game database And The data by I to from is loss. in cloud, no story. way That's the Database, making

better be the You less, want beings and are those we no right. and because savings out, there human common cost huge take involved they data theft, you pay can't make to All to prepared mistakes. labor prevent

new only it's still we Autonomous we're in showed on So been in -- XXXX in Open in the two ago Database early World years of and announced -- around really terms to this XXXX it up company. and beginning and It's some now product of most new our proving successful technology. exciting get traction offering in we're be history to with the exciting the

curious it. sorry, it. – All I missing? sorry, So got I'm here right. am I got I -- I'm

data. here's customers Database services. the trials. a with autonomous more other added In We're some the database. have X,XXX Autonomous pull-through you you Oracle and over new of customers, paying incredible recent use Oracle We So -- than we to QX, X,XXX seeing variety And the Database the autonomous then Autonomous now database. for use Cloud to come

About Oracle the using variety But using Oracle way XX% our using are Autonomous Database using they're Cloud. they're analytics, Analytics. also of the people they're By primarily, using using who they're Analytics tools. a also Microsoft Cognos, of other are

never of a at many bought Oracle database added weren't to customers Database Corporation. Autonomous had people all. XX% customers Oracle We've Autonomous Database from that the using

half from Autonomous the but the them XX% new move are Autonomous net on-premise them net to just Database workloads from They're of moving on-premise Database. XX% Almost on going half the other not Database, are to new. of Autonomous that to applications. are

quarter. some had all to in wins I'm fabulous it. mention We've going the not Obviously,

advantage data over wins Canada, to have XXX reporting company data Autonomous faster We Cargojet LATAM I'm Oh centers get and and to warehouse is not & Controls, Black Database is of Autonomous data X-Eleven on-premise their Johnson to on quarter. more mention wins, moving yeah, Airlines analytics. all Energy, the one Uber. OCI going Stanley But all their Autonomous moving getting their Decker the the Database. much the Siemens to security XXX. Autonomous moving point-of-sale in is the to Data Database

it with turn the that, back let's operator. to And

third clarifications, double-digit e-mails XX.X%. for will of Thank you, year was of of fiscal to before the I a we year this we a non-GAAP the XXXX, couple Larry. And The Q&A, couple Holly because our rate tax this. full earnings go year, had then expect the be just growth. on quarter for consecutive for

turn we to Q&A? don't why up Holly, that, With

will [Operator Our Instructions] question first Jefferies. the line of from come John DiFucci

briefly Mark I'll for sure thoughts question back get and I'm say to Mark everyone time. for of speak are to right to and he'd us so just here. sort I'm Thank move this knowing I like to business, at with family you. prayers also that our his years, But sure

Cloud you quarter, quarter slow the Services some as -- right? anything color? was anyway. Support has else seen there this as fourth it License quite I was follows there time. got a seasonally So, first License and strong share a quarter strong it's strong can But but modeled as really we it we've not yes that and traction said is of And and strong was any on strongest you as in line, BYOL further For lot realize instance,

even we you you of just And companies I'm seasonality it color mean seasonally to but seasonal, hear of that that talk of cause think helpful. like how it too that could it get macro guys more Are even. you a more hear financials to more used I seeing little starting a start some we're to? to Oracle trend sort be all? at to more from still any started pressure. your little Should it's any used hearing be about to just curious also seasonal, even you would or be other

easy John. actually It very, simple. That's something Sure. very was

do before salesforce. licenses. tech we First selling a in up, in salesforce telegraphing split were a selling -- did North internationally. the a we up of group We've license been and that group bit cloud; we cloud split doing all, between America fact What was America North the we is selling that North new of quite America, outside had in done our a

North the that was and year. the the sales the that's just so it. expect more than -- I slow recover that we new But tech it we only will license as and is a group we the split since only start force selling they had new So, group weakness during was a simply America reorged

QX, is small no macro it they big the really that's So, outsized. there's that just we was. so thing a no and kind in actual of course of And no all regular anything see issue. don't and There's numbers difference But make issue.

and that's really quick sense Autonomous related most options sort makes ones -- Safra that especially follow-up Database. really a helpful Larry hearing quarter and Larry. you and strong in to results about of That's maybe we're had just and database the that for things last the the Okay.

are this a is in that can there's others curious again, multi-tenancy, my quarter, about options I'm important just I'm like thinking quarter, too. softer seasonally -- the but first talk favorite about but themselves? you And more things

think all in America with great those are because the reorg impact cloud. I multi-tenancy North the and that license had Again they I memory the Database are those think Autonomous very database options then in on the very, to used are well. selling bring licenses sales a of that

then they So, licenses people up They the buy and existing multi-tenant. those move their rack. cloud. options to memory. They buy buy in They and pick up them

of So, the indicator think delayed some trials were but demand we the reorg, of And in of think we enormous. just up those number QX. is signed the we've is sales leading the because

So, of and in incredible to QX. deals had double activity. we QX. more signed Database them new And we we Autonomous of our paying trials customers again -- expect terms cloud we more that XXXX XXX expect the than the XXX in activity, in deals cloud salesforce cloud signed

customers the also not best drive license that expect and So, That of options. from early that but to we because the building. go revenue over just cloud will And well indicator. start pipeline only paying X,XXX to revenue, is

please. question, Next

Great.

Okay. Thank you.

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

in ERP? the that perhaps And of dig there consolidation in And if help what so seeing from a has been finally John's great Thank patterns I'll you logo well, so amongst us many Larry you're always that's tail? look a in in you that Thanks that is Mark you. evidence recovery. new attract. wanted demand a gave has business business, momentum cloud customers can lot market you're benefiting color existing comments, but versus which very to on be the long any understand like getting your you might speedy start sentiment And to little by in migrating and ERP as But able just market. fragmented wish that to players echoing a much. I Great. with bit the

territories Lawson. picking sales We -- easiest think sales about I territories. the consolidations. Healthcare Well, me some let have are talk on actually Lawson of We're which

So, Healthcare say we've the of those. pipeline. up rolled one-third of our go Lawson customers of a already out customers -- are we Healthcare either bunch their and in in pipeline, there our converted or I'd about customers Lawson

just have our really tried not we systems. it's -- We've mean to But and tried. territories, Infor Fusion attest A going. also cloud to years lots win I that's build retail to of big some is vulnerable And So, our we products. expect are think new I those. a which that. of XX merchandising sales a combination well Lawson territories to people get retail company a added can all which I that very of took I they have deal. It's lot scars. mean, easy. Fusion of Financials

while very years. overnight systems. that over NetSuite been these in been took Lawson complicated over business a anything. build to XX XX has -- years. have XX It Salesforce in really And success doesn't takes And business

hosting. ahead their companies, one have true pick a them. cloud and extraordinary a system. is now bunch They some really and of the that's converting of largest some companies, true doing us large don't But we're not but not their taking we're -- customers. their system. does SAP we're the seeing that go very kind larger And medium cloud of So is have of some a SAP

half very -- But very, answer. And it's the very now I'm the of We're we we sorry; Oracle SAP's think with in converting their market. huge we -- think long is of course largest one very, largest opportunity. the customers. European very largest very a of SAP and in are middle their has conversations customers. about that We right

started European of roll but two as the highly European fragmented guys all exists market the really the you it by -- targeting us say of to the think of highly about up. out market. half half are opportunity about have the have who other the half weak We We fragmented. vulnerable, and And we

XX%? our you cloud market I'm share is market look I If mention mean at the in afraid to what almost is. our and ERP -- What it,

lot. A

is don't don't people then we I put really never yes, I have just, just know. that go ERP I of ERP that don't I it but to than mean, because of crazy. have and code. have and don't I an other I opportunity know don't to And a a any a sound aside mean, all not a SAP system. other which mean heard how But half their of is opportunity. whole that. think the rewrite system cloud NetSuite XX% did I virtually consolidate really so low. that Fusion, guessing, lot after I'm little and can know cloud It's mean, them They I we marketplace crazy other of. companies And know it. of I describe maybe

You don't very often. this happen see

please. question, Next

Thank you.

question next from come the Winslow, Wells of line Fargo. Phil Our will

start Hey, wanted you on best. to just taking solid wishing on to congrats I question the question database. the echo thanks a for and the to Mark just John's up I on all to the year. just recovery and team, the speediest And wanted my follow

get growth that's terms you the of levers? just obviously we're One the of database getting out you database I sort with inflection of just metrics there. of customers, curve in think How guess trajectory showing all some the is going of from the forward these do an I investors shape guys, trials also because questions different of from about

steep -- we this -- extraordinary, curve forecasting Safra incredibly forecast, not growth because Database. she's it. gives rate forecasting Autonomous we're Well, I don't growth when so a Okay. you in mean, not the is some

else on have database especially again, case I a the a of view are conservative A, planet right has, dominant nobody giving this we're – you, So, that now. is but point of Database. supplier terms we would And the where we say technology in the Autonomous

for In on-premise, two bigger IBM based there probably previous and combined. than of IBM Microsoft are cloud of databases cloud matter. of None availability. were bigger I But are mean and while I we're and dozen autonomous. that task of XX.XXX% We're there The are of is a than Microsoft the themselves, battles, more – them none specialized, a lot more times of or in bunch open competitors. these them more previous None of more secure. mean, there them reliable. we None reliable give than biggest I the they're are – XXX running. war mean them, combined a source them you our seriously a XXXx guys.

because We – have your ensure that system can't can errors. make pretty only can't stolen, much that pilot you the be data because we you're

You all make all decisions of can't – because – are that's mistakes, commit you can't those automated.

mean, another it's that of we – so two and completely I sitting owning. markets have we're in So, opportunity dominating an

slope the made can all great share and you you actually can And do always – of in where and see that. curve you One that analyst while There can curve see data curve you for you the in the been curves enough – the actually see curve reports see it the that progress data have we years the ERP, and these a can is can and and studies. – are we've we've it. market and the of

to technology. just playing That's I installed database. what extraordinary base In to a our curve. on any data in second such the see cloud, it's markets, and you Autonomous it's think understand little Autonomous to But curve in – I we're the be. cloud, other And make back-office be got about But good to have going go the in two Database. this that's wait enough not pretty those ERP all let's differentiator. a in Database, talk it's And Autonomous should so is to opportunity. Database in early out can we're living. to not the that safe and successful with we've do the go extraordinary even this listen we turns gigantic we're this me

Thanks, guys.

Thank you.

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

much. again, Great. Mark going And him with Thank to his and so thoughts everyone's for and echo thoughts you family. I'm

Just I One, Safra about environment. wanted if I John could, DiFucci asked some quick ask the questions. two questions to know

you're the about a was results haven't American people seen where sales early seeing as come share the – August if elongation wondering, with wondering in what there just you've good talked I can if seeing. August, globally anything reorg. of saw any been cycles, you've you you sales in just North there's lot if results You been I'm us since just as wide. maybe from

you're you secondly, about just seeing? be week. speaking Open obviously partners to. OCI in related But know of us talked – if can Thank and to I a lot lot then next of with late And question There'll have you. been World's the wondering, partners a there. share a real what a of to to talk pickup we've momentum And just

positive here like we on of Actually, the abroad, The point either The United product we're it. momentum feel got in markets of – States issue at cycle lot we've we're view. not Sure. regarding seeing a a very from momentum Oracle. or very,

doing are Database Autonomous whole products we that the and the amazingly. Fusion on are the so that are expanding is OCI globally we so the seeing we're compelling. we have news killing just That's weaknesses. not world it. And basically and happening field, around much Our good

have know second that be hold back we momentum, answering your the that just able lot ourselves, Larry there not will of to to so from extent question. company, I I are, a And product,

of ahead Go him Open in advance So Larry. unleashing just World. I'm

Okay.

at XXXX. – to Open next we're So be going about we week talking Database in World, started Autonomous with

up. – there speeding Autonomous improvements and we're to Database. it not And but continued We make at

whole No But we're a bunch World, not about Database. announcing be we'll At one Open is this. new services. doing talking Autonomous of autonomous

deliver autonomous mean, you completely we'd an I data the in should of your operating like autonomous world's you're where really other first and take to only way. have But most I thing autonomous sites. important a -- goal cloud, arguments that machine our services. it's see our develop So mean, learning going And to technology we on to we're the keeping bunch system. same

human make rather plumbing bunch operate You and so building can on that than the services should to cloud, aren't prone opportunity a have the concentrate managing autonomous people error given that to in beings and the of of and complicated mistakes expensive. is which applications cloud,

rid errors. to rid So get of the take we the want of expense, get --

OCI our other have Autonomous we bunch they see with but of see they Starting or come and in you'll OCI. a on is autonomous differentiated in new services cloud these If our things, roll. Autonomous look analytics, that's to have Database, Cloud And more second-generation all the at -- definitely compute around highly our announcements talk people Database, Oracle look a friends in Amazon about we I Google. can from really a

Thank you.

please. question, Next

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

you much some for how commentary and autonomous else. his this taking good Database appreciated? in about occurring revenue everyone Mark color our with are Safra trending? very on moving family. on adoption to is, I how seeing more that lift the tell Autonomous it's any Again, Thank sense that think echo how us large going, thoughts that's revenue Please what is you off the can question. him give Larry, Autonomous given quarter based going you're now, And customers sales color how would to be Database based as is any how to

our I Amazon. sometimes mean, approach, Well, of critical they're

been you're their the to I cloud get I products, the in on been in that. than way and in them for give has the innovator -- just has the very Amazon project I what and so land what past. they that selling in used for mean learn you think from expand, is you project, project, they successful do. were then next I it's I'm Oracle marketing go different And which one strategy the Sometimes and of credit try to

We've small, We on demonstrates that adopted Database. that. Autonomous just after and have in and get another a great project another adopted is with there project technology then start land project get this how

fact The again, have Database added to is many we're opportunity XX an is -- about we getting now And getting to moved more that where how how have after word their this X,XXX as to four example So land-and-expand how -- and and the examples we've really an two overall the market. projects first short so -- have been is that, then X,XXX the it good adopted in on successful people more on we Autonomous big see in moved we gigantic. almost QX we on approach. have -- traction out is, X,XXX trials of of that is trials, moved

brilliant. It's waiting the of brought They workloads. them the security-conscious for bring not been customers didn't They've reality far. most us. brought other those critical to cloud and They've The not is that so vendors. them to large have our

the in trouble workloads. having have actually all with these are vendors They for waiting enterprise other important us. been The

the bring to so XX and what often as And to small. size smaller that's then starting we're in, start X,XXX I will workloads long started next see. the take? times their opportunities buy How is the they've they don't And can quite And size. it times know.

it. not just go We're to -- with we're trying

because and have they You of expanding. just their before customer go Those they're have unsuccessful risk these been cloud these many can't that tries enormous, you been and security other or is have The that literally tried many way. know can you situation. to go, it pay it's A it's workloads, to both also never either just any expensive forecasted. the opportunity of understand it go as

So powerful this overplay ride for us. to here. it. with along We're going moment just a going it very not to is very, We're

a start try little where at customer hear you and like had would to you try dozens grew. World about these some And of know it, from Open quarter. to much they And a a going talk one very before customers. bit, to they Systems, our originally, when they'll it's You're we Engineered

in this work for can only critical is those cloud. the our next Now that workloads level

Thank it. you. Appreciate

please. question, Next

going for is last line the And question from to come Barclays. Lenschow, of Raimo today our

as echo Mark all me let with family. Hey, well our are prayers his and

back, why little going was on which just have should quick maybe grow, talk in about declined a can Just questions, one I number Safra, theory you quarter? that deferred this that question, two bit

talked look more in I you bigger bigger, -- is deleveraged kind saw question full for look. if at was Larry you capability medium-sized around terms SAP to is But like kind ERP. -- it going functionality around And about and or your Because starting some you of referenceability? of of customers then quarter's question just the of more it a numbers. me

I've were days using able guys is closed and And the which Oracle XX, record you Fusion. to quarter that, are XX in seen. of You a deliver kind

it So solution. it's seems powerful like really power -- very a

point. you. wondering what's just I'm So at back this holding Thank it

and think like same to easily first, pretty I'd close of realize actually doing the we tell we did result is should Well, thing. amazing thank -- to our got this you you noticing Financials all for happy with that be the customers team, on Fusion I I the and

but first, yes, it. the got people quick was this and the very So, to do technology close, we've a

deferred Let answer revenue me your just comment.

that X%, just want But are okay? net gross it up to timing related I bunch understand to things we a collections. So changes ultimately is to simply actually deferred of you revenue

something unusual in pay really a And when of things matter kind There's so It's quarter the that operating some the that's may only cash different. of shows and thing. we up see next nothing literally you flow.

simply impacted the But bit number X%. nothing a but up just matter it's so our by of There's here. and a in down collections. to currency, It's of deferred gross netted timing actually deferred revenue, it's just collections, timing is little of see the revenue

move. and for make migrate and mean, SAP talked this before moving about question to these very of been to bills to system some SAP move of -- Germany customers what interesting. I several to to they like like move a talking big the decision of I've we'd of some large saying, mean The -- -- to lot to very are Fusion. move Okay. to our to to Because in of to another It's I a guys I SAP, customers the want -- they I I spent for and all Oracle. upgrade We've customers mean waiting SAP We'd consultants. $X cloud. are the facing billion mean, some time

upgrade it's mean, not swallow to HANA, big the cloud. call do they it's really cloud pill except, a I the to what in So S/XHANA a

benefit. no for And

much you virtually, the same code you it's same And for the had had before. code pretty It before. really is

is do to big They want are first. these -- want it. customers really want of large really these be customers one don't the They worried. don't waiting So it. none done wants already who's one No first. customer they're are to to What -- be conservative. They for

take the middle them that as customers a which in largest are as can live close of and their converting close, and do to Fusion. six several will as one are that's Fusion. we probably But will months before we pretty talk of less. And divisions before soon their that, be We about it's on they're publicly use of reference, another maybe that can

Almost that work. be every assured business Germany leader to migration in I the make talk will it wants have to just they to

in we're incumbents, on Now at then won they're faster -- jumped and earth get get going one some largest much the one we've the mid-market them faster process this can if this and SAP we can of And converting. converting. high live converted we're deals and much in in of we that them against to the get enterprises

with can to it But Fusion to technology, few want do modern they want -- and And can the SAP. use these they cannot that we references, move they get customers -- a as with to of we think people do cloud. we

us, think before but we it's are core going for to references move. opportunity to guys a huge have big of have we these a So

Okay. Thank very you. That's clear.

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

participation. us call. quarter We Thank conference XXXX you for your first Oracle joining for today's do appreciate

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