Oracle (ORCL) 9 Mar 232023 Q3 Earnings call transcript

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oracle Corporation's Third Quarter 2023 Earnings Call. [Operator Instructions]

Ken Bond, Senior VP of Investor Relations, you may begin your conference.

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

Additionally, of the from Investor who website. many purchased or Cloud Services available a live will on be list went Oracle customers Oracle Cloud recently Relations

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

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

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

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

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

great momentum that with our good quarter share numbers, Thanks, the what's continued few want the QX I and another financial a success. thoughts with But I Ken, and you before bottom to continued behind get afternoon, represented everyone. top on explain line. to

our offerings First, drive efficiency. cloud operational

the which love, recently all our term, coined of more the while because Oracle one I playbook, playbook the less. doing about fact, is spending competitors absolutely Oracle In

our know, also profitability, well business move these we own over cloud. XX all Using ourselves the for acquisitions highest resulting started up software all including in our years, ago services investments to the as enables over and growing margins while through us kept in growth, our decades. have this to increase it products during As and the years you for as

of We reduce to Oracle's the infrastructure business customers the which of to our all in no Oracle while their and experience with increases combination transformation. longer market velocity constantly intensity value. unique about and about about Cloud is apps, their technology to commodity renting cloud cost, speed the they is just improving accelerate The are boxes. the talking It's and customers. deliver leveraging white market,

the and because vendor become technology our modernize have their and choice enterprise of we help businesses. products customers have cost We services drive that efficiencies

close no service days, their their provides has using the a infrastructure Infrastructure been and the drive AI with more own for of Oracle truth as their relevant customers recent performance Fusion, intervention. that not an security human get transformation. our business AI Oracle integral OCI increases weeks. as help while And dominating Second, part have customers time. customers Oracle is leads. with some Fusion AI, to embedded news and enables using been books AI business AI cycle, AI in sales to

become customers, across use our Given training they do And when many technologies, cloud. the further and constantly faster. money our for And of platform, architecture the and unique has AI get choice runs information on the whether and our our Gen customers fast time applications for are in platform because industries workloads our our we OCI companies network more capability is scale to what our platform. advantage X OCI it's

us coming saves to money. So our customers

price our performance win was we example concluding industry-transforming in at point their that the our to up and The a powerful own come. long-term strategic wins to of And Uber a drive to will ways in types and Oracle's have yet their rising pile partnership. of see of you're Uber of accelerate quarters businesses. cloud, business. that an comprehensive a Oracle's putting and represents more that technology are value customers because going competitors company list sustainable security another use notable of exceeds Third, to these

of one Finally, expect to numbers, away. and nine and hopefully, the after before I move we're the we this earnings Q days the right file announcing to no fact, that missed our quarter, close the

see to in working what's set which us. with are continue possible We they standard efficiency operating when customers the helps

Okay.

to QX Now the results.

discuss results, go growth and to otherwise, As them Cerner, to organically Cerner. the full both then using revenue constant results currency always, and I'll excluding revenue including over picture going I'm rate provide some a

that's Total constant up $X.X currency, plus $X.X with revenue up XX% billion, XX%. IaaS, of cloud billion, in Cerner, XX% of revenue was and up revenue, $X.X IaaS SaaS SaaS billion, including

XX% billion, includes Now by up XX%. again, again driven X% excluding revenue, cloud Total were XX% support, up cloud and applications, constant $X.X currency, for billion. Cerner, constant billion up currency. in which in billion, autonomous subscription OCI. including SaaS constant our support, currency Cerner, but XX% total excluding XX% $X.X was subscription Cerner, services in subscription the support Application up Infrastructure $X.X billion, Gen up excluding our in $X.X cloud was and in Application currency. database Cerner, were cloud support revenue constant $X.X at was quarter, including billion $X.X was revenues, constant and strategic were license revenues, up revenue X and including revenues, currency. also

this ERP, $X.X SaaS back-office constant of against up Our have including up billion revenue currency, grew now an and XX% and Fusion ERP, in XX% annualized quarter. applications strategic XX% NetSuite

which constant infrastructure consumption up services, in billion, XX%, Database revenue, revenue $X.X hosting subscription services XX%, cloud database But already, of these with of as be up third back-office database, services, revenues, services. cloud from OCI highlighted migrate Gen the an the annualized cloud customer, And and consumption up support, databases XX%. growth legacy and OCI cloud up which these cloud SaaS cloud cloud and of infrastructure cloud our database were up revenue, will include database Database's exclude revenue up on-premise expect customer largely XX% when up is was leg services X by you revenue XX%. were alongside X% grew support. mentioned in autonomous including on-premise to which we was currency. subscription revenue services XX%, constant As revenue made database currency,

revenue, $X.X constant billion, up Software Cerner, license including were X% currency. in

currency. revenues in So for total all in, XX% quarter billion, up $XX.X the were constant

constant of $X.X currency. up revenue Cerner's X% Excluding contribution in organic billion, was

no revenue As to we causing operate Russia, by over year. negatively in last affected a growth reminder, growth be X% of longer organic

a the mix The Last support margin of Oracle between and margins. margins its services to XX% and license services XX% cloud. license license revenue. gross support cloud gross about for Shifting of as and revenue year, cloud represented with support support was result mid-XXs

our because to so growing it's cloud Now down XX%. are fast, services

Additionally, IaaS I note IaaS gross margins substantially I would will that expect continue improve. to last year, gross improved margins and from

continued dollars fill have excluding Cerner higher and data up. we've to gross cloud of license we Most margins our importantly, While build support also go new cloud profit X% Cerner. seen and grew capacity, with center services regions as these XX%

percentages. As will last XX% was from also scale operating cloud, we to billion, and the Cerner margin, continue Non-GAAP to will economies Oracle the continue profitability we in to but operating quarter drive as including benefit the XX% year. income operating The we continue of integrate Cerner we margin grow $X.X only operating to Cerner, not standards in income, from up was grow

be expect the actually one margins XXXX, are way, example, this the Cerner to in quarters, its year, I acquisition. have improved and by year margin quarter, three the trough And X only percentage for operating play we we compared have out out. FY our For by while owned before percentages improvement closing already for as more the over will margin we one operating points initiatives

GAAP U.S. The balance XX% was billion, and up quarter we At EPS and in The non-GAAP non-GAAP deferred XX.X% the U.S. nearly quarter revenue marketable $X.X cash for billion constant rate was constant in $X.XX in was $X.XX in short-term $X.X end, currency. up in EPS up securities. tax in dollars. X% had USD, was XX% dollars, currency.

for strong was RPO also remaining note billion, the or flow cloud XX% is free billion, in will balance well moment. as last $X.X at the up Approximately Over RPO due constant months. $X.X XX% that operating is with cash XX recognized obligation next bookings of to revenue cash XX% flow as which currency Cerner, and expenditures quarter over up The the rate flow $XX.X capital billion. I as a $XX.X in was the Operating Larry RPO $X.X was of quarters, four growth expected performance discuss constant billion be billion. organic cash currency. will to was total in XX%

existing for we customers' CapEx this our continue quarter capacity $X.X to was growing as billion and needs. bookings build

investments that the future. is RPO as the pipeline, you the where we be will see in it about expect foreseeable as Given in CapEx our for now I see reflected demand well what our right

As always, cloud appropriately we XX another now pace trends. regions have world to public around being our We and in the X line remain built. with careful investments with booking

regions giving public XX cloud of interconnect these Azure, multi-cloud true addition, with In customers capabilities.

implementations, customer dedicated regions and for cloud X regions security many national with demand XX have We more. another increasing

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

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

share. increased dividend the Board paid $X.XX XX% million quarterly quarter. of $X.XX dividends And per In from addition, $XXX we to out the Directors in of the

remains will demand. in increasing Our non-GAAP interest meet financial prudently while growth. on increasing this customer substantially cloud given focused growing technologies, income continue our to strategy revenue pre-tax and to invest operating And cloud we

that QX, As win driven rate, rather and upfront. in revenue a time about want business continued XX% our expect excellent had last continues will the a highlighted That see to we than reminder, to by we over we driven. are to to license. continue we because growth growth. to double-digit wins exactly subscription currency constant our migration With see more cloud, we're subscription that talk These are big QX, cloud software license the going now add to spectacular big growth what as than recognized is deals backlog

guidance basis. let I'll now a for to So on non-GAAP which me turn my QX, provide

by on impact Now different remain end. quarter, as total they as exchange very rates I currency effect negative quarter say But currency on assuming QX. revenue every effect are would be at same now, X% in EPS the actual a negative the X% may the least have plus and currency

Okay.

we grow USD. expect growth, to XX expected Here Cerner, be grow is to profit Total to for expected currency. double revenues in total QX, cloud Cerner, XX XX% to including thus I and cloud QX, XX% I are to grow currency, in USD. XX currency, expected Cerner, constant XX% in in will be digits. XX XX% growth operating excluding constant XX% above for growth in to from expect in Total constant including go. to are from to

As my know, you is XX.X. rate guidance non-GAAP all tax typically

However, we've rate a and QX, around rates and our the QX have outcome over last for around non-GAAP our averaged the two used of that guidance XX.X%. most tax And in years tax anticipate is XX%, rate EPS QX. this in determining I likely

non-GAAP EPS and USD. is like $X.XX it Regardless, $X.XX XX.X, rate actual EPS $X.XX X% Now in between or mind constant I think, X% be expected XX past between that, be and and comparing QX to year. and expected you, and X% is in actual quarters, last could With grow higher currency. the that's EPS. Non-GAAP lower affect and or to to grow our for between $X.XX between and tax X%

earnings as got this will said to accretive I I've have here? QX. What before, Anyway, year, including Cerner be

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

business June increased health approximately Thank Since you, by Cerner, care billion. base year, that when has Safra. last we acquired contract its of $X

Defence hospitals and of signed Department domestic Defense, hospitals expanding set multiple We new customers, in and groups in Rico states, multiple United Puerto a East. Kingdom, of the of dozen provinces multiple the Veterans the international the and in Australian Canada, Middle in have Department a U.S. U.S. countries U.S. the Affairs, in multiple including hospital diverse Forces,

EHR and booking over are health organizations, manage chain ambulatory Fusion Government billions hospitals of new application for ecosystem. to early the workforce Well, care to public success revenue data and and business electronic and Hospitals buying in few pleased While health expect Cerner health the using ERP -- and Pharmaceutical The virtually Clinical the doctors, respond is Cerner outbreaks insurance quarters. Hospitals companies patient to contracts actually we overall entire clinics. are system buying their trials. medical HCM organizations of of accelerate of cycle has manage broader, to nurses dollars the the are with efficiently. covering and supply Healthcare quickly high-value health Millennium Oracle are aggregated Oracle health from One of the plus portfolio much next this record disease monitor manage buying technicians. also to Clinical signing to to been clinical business, hundreds systems infectious Oracle we from to Fusion inventory. companies billing, ordering reimbursements their their from complex are care

and Now of some at I'd of couple One like system bought states. the deploy go since Cerner labs hospital-based separate to and we huge the XX to a information Health over Ascension XX wins win a for minutes domain more take specifically a a little single was lab company. across Labcorp

now unified -- additional UK, electronic Hospital Paragon Medical Another replacing Auxilio at across in bed with of Department the Millennium. Cerner and into Center, consolidated Defense in health Rico, one all-new of academic of The Puerto move the data the Cerner the record deploy Cerner applications Defense, National footprint Altera, is client a Defense. additional full Health formerly that Teaching Oracle in their all The is a Teaching Sheffield Vandalia OCI to single Area Charleston the XXX-plus migrated XX was EMRs complete clinics. Mubadala Health hospital, to their domain to directly to with deployed Cerner Mutuo, an implemented EHR Princess Department center electronic private Hospitals. to suite management U.S. Health, the system for OCONUS Cerner Department the of cycle and revenue hospitals. the Service, suite. new Health Cloud the Cloud. The In added the Hospital, also Cerner cycle, CareAware VA business. and deployed all UHS three and hospitals first locations in four health the the a Sheffield revenue deployed ambulatory sites CareAware a their record health modernized hospital the our sites. to XXX-bed Millennium from Alexandra for their NHS, full added unified Banner

better cloud we service. move reliability, centers data patients to is performance better of Cerner and Cerner than our that that costs centers better much much lower the get Cerner the security, Cloud, we more expect we into our the much As from data Oracle OCI providing much OCI efficient acquired. dramatically just

visit. Canada, XXX,XXX an for care Scotia. the in field One-patient, Department in one-patient, again, of problem and still citizens, solved deployed patient Sheikh all The the being serving footprint delivery across every capacity patient patient to a to Hospitals and Scotia, by fact of Niagara thing Defense, deployed EHR time discussed of with one across Australian starting we the provider footprint, record health electronic for Cerner EHR Their citizens all records they of again, hospitals four having provider Health, they beds, for Khalifa Nova single U.A.E. a for support in one-record, capabilities full million X,XXX new of the care of system citizens, Same long footprint Australian in a one-record place. X.X Canada. We've deployed population U.A.E. as a HR regardless acute are delivered which environment we Defence are the that hospitals. you In scattered province Nova of visit. a Nova in in the know, a That now in every records unified Scotia is I've the

-- nurses, of all et Okay. of we on the procurement entire this if I of going the stop from in we the are care Oracle that, acquired workforce Clinical made have and HCM complicated of managing mean direct the of Oracle technicians, you One I'm chain ERP, the very and suite, Oracle Cerner which to wins But We're will, ERP top supply doctors, and scheduling of everything that. Cerner. all those for since for -- up is the rest enormously strong with cetera. their managing part Oracle business. inventory, professional paying of clinical from HCM, trials. or health

chain and manage Highmark also workforce; CX; HCM and workforce; include SCM, Bright Providence CX; UnitedHealthcare, ERP, to ERP. their Health, and HCM ERP Health Independence Adventist in ERP, ERP, customers SCM, Oracle who Clinic, all Permanente, and and SCM then ERP hospitals NHS the Fusion HCM; HCM HCM; Our manage Care pattern products and Adventist SCM; engagement; our a the Health HCM see SCM, user, here, you in BlueCross or the ERP, HCM, supply a chain Cleveland use and Health, ERP to Cross, ERP, St. Service CX; ERP HCM; Mount supply uses HCM SCM; CX system Humana, huge Mayo BlueShield, ERP Health, ERP, Corporation, Hospital, Blue the systems; and the HCM; Care, Oracle and and UK, our and actually HCM Kaiser Clinic, Joseph customer Health their and Sinai -- ERP,

Now ERP, HCM and HCM, wins had at in SCM where was major HCM, the past this Workday. Ascension quarter, in we Health competitor primary buying

features add selling we successful more ecosystem. products specific HCM becomes workforce the to product, manage in care As care our the to health within our Oracle health and HCM more

So dramatically. our going are win rates up

are sales Our down. going cycles

HCM Antonio the of subsidiary a competitor BlueRock where we bought owned SAP. win was AG. -- Therapeutics, Analytic Texas of And the where by in SCM Fusion Labcorp And this, there. Again, wholly Warehouse. San and there a was Health the University big Bayer and HCM, in bought won way, they is was ERP the ERP SAP. ERP, competitor

ICU So a SCM; nice EPM, winner Dexcom, SAP. in it Medical -- therapy win SCM, against was SAP. for a vascular over their ERP, ERP, to oncology. company, and expanded company, Sitel, ICU German German-owned EPM, HCM

live all are SCM The I XX trust National the Baptist quarter. the -- in on, -- trust and on Kelsey-Seybold all XX,XXX on live in employees ministries. over ERP. go-lives some go the HCM. I live -- to HCM; can Hospital, HCM. with going are now over Children's but employees customer, had live just huge Clinics Healthcare XX,XXX UK, now all than Healthcare back hospitals We has to have supply it Providence Health, completely Safra. the additional huge rolled on out I'm to rather doing that, in now turn Texas

Thank for you, if the please audience questions? poll Larry. could you Emma,

today with Mark Moerdler first Bernstein. [Operator line comes Instructions] Your from question of the

held you're With cloud in around of performance? Gen credits the you're slowdown couple dynamics quarter, some has time weakness enterprises. well? price? seeing IaaS PaaS have You in Is we're this seeing the you're so born why difference so over especially the last Is right X capturing economic which at quarters -- OCI and simply across Is customers, many have vendors too you elsewhere, expiry it new be cycle driving low customers? there stark. that the it Is The it that this? to are the is up

important. it's really think I

color the So can the more you better. give,

like right. I'd All a at to crack take that.

So I'll quite Cloud a NVIDIA. different conversation. X and with interesting the Oracle's Gen over at hyperscalers. than He start Jensen very check by is I had other

We have RDMA network. an RDMA a network, non-blocking

guys' AI our because network quickly. network. you're is much to -- dynamically AI a NVIDIA clusters, We Our network standard them group faster these means can we we a clustering those a this of large of communicate use run GPUs build NVIDIA Oracle, is What other clustering, very clusters build large things GPUs the at them. and large very in and these allows if GPU than doing running problem can supports the cluster the

create groups marshal So these we We them GPUs. together. of can can

new They're literally hardware. can are building physically they other a clusters, guys that. but building new cluster. The actually do build can't They

dynamically, these hardware, allows together group GPUs attack problems. No these existing do together to that. AI can us dynamically, standard Our things one else network, to

only And are coming we a AI and run Oracle who faster way But we're a workloads. because and companies we're ones the can the so their cheaper. we're lot cheaper. of to we by business, have lot new So of --

use ourselves. give you we where Let an it me example

thing. care We to care partnership -- have back in this a health health

have Hospital, Ronan about doctors running vendors hospital in at you and with that's that these Anderson I Cloud. software health the shown use readmissions And AI with has say to say a People care of built by really where a Anderson, We being actually we've called recommendations MD with model Anderson respond. if if you MD really the reduce ChatGPT for with partnership And cool big they MD disease-specific about more Ronan, You how high and important. see MD admissions Anderson make patient hospital we stunning or number. Well, AI that's school talk That's decide MD Anderson system, about the one readmissions built actually we they -- reducing working what AI a which Oracle write we by my should symptoms, independent because our then can a is care. these by at this And me. XX%? XX%. is how essay shown, modules

the et health other very since in of But disease, road. is very AI working we really heart stuff, and wellness, our care these a applications doing fabulous we runs that care also like platform that of GPUs we're think clusters diseases create so apply can We ChatGPT so to -- because AI and is these There acquisition to cetera, down very, focused than -- cancer But well others the We are the complex of that. AI language the world. the service very AI the build to health management big of generative with or lot a the startups system. language models. other in on attack especially applications is cool. on diligently top quickly. it of yes. Cerner in We are economically, AI And large then the last provide This We've year the on do we problems cancer.

just do of and the we're in our where AI. our ahead example network way one is terms hyperscalers of other to of This ability

-- users, by data Let Autonomous is stuff We've of with inside one our all DBA. of have AI those the using Database It's cloud, autonomous that administrative that database. The inside is of Autonomous the our and all replaced thing. out our is it it AI completely recovery Autonomous it self-driving now The Oracle because DBAs part of our is doesn't module the administrators. Oracle database is done cloud. of things, point our any runs last Database databases sets, Database me billing, own self-driving. actually The keeps of an track all Oracle AI AI the all of driven

of So AI, are AI. a best we're to for often coming care. health AI, this is cloud time is We're modules capacity, capacity NVIDIA be as vendor and is clustered us. there. a GPU a build AI huge And -- people huge consumer good recommending the we to us of in

Your comes of next with question from Mark the Murphy JPMorgan. line

being My could from Larry. much I'm to slightly that workloads was the you, drill different growth the AI material if already companies you maybe the that is piece, that wondering a are opportunity Cloud. Oracle Thank concept Fusion question very to data and hungry kinds repeatedly on on into lining the generative if the And of that related all of hearing piece is but generative AI the contained that angle. business. that, is a data OCI. as you that I on running We're it, you of overall in those that driver do applications. the other so you something models moving up see see those curious models side? have the am some NVIDIA are entire these AI

yes. available The capacity. AI than more there answer demand is absolutely processing is for actually There's

ones, that can and again, and and we're dynamically -- way we're -- So by -- the only the short.

opportunity, but -- as these it's problem, But diagnostic supply. -- it's a together It's expanding language challenging or them can. really an Whether group there's fast than attack these and more to a generative with the are us We demand exciting have us it's la the difference problem when we as allows medical a network ChatGPT. standard GPUs problems. our it's is great

available not solution, because have can cost-effective make of lot us most a network. standard runs it them because we seeking do ISVs quickly very have we we the So we only out solution the the our -- have on to

cluster -- workload. we to that So is reallocate we running, through for users. can cluster the moment cluster workload they run And up and their can that other it them, or can their allocate a create they break

that, The can't other do it guys can't do dynamically. they

TD Derrick Cowen. line question from the with of next comes Your Wood

bit about application and roll work my touched new just an migrating congratulations, cloud, effective including platform services. help you update to and growth. can also taking give last you're sustaining echo how my Thanks and very for but year's doing vendors know been hoping IT I the should I on their area this at infrastructure edge out on on XG and to question was to which Analyst a high Day, their I'll market, transform more cloud Larry, guys especially them on get thinking how lead more is we've one that especially OCI? operations Oracle telco playing public of some the greater to of network a years? over efficiencies Stack, operators telco you how out opportunity telco the with this the the see partnering And couple next Who's with? you're with OCI

but But that's for data the it into where Japan. a this OCI capabilities. run And an we data that that if will, center have moving a an how And for exciting built them customer. is yet. This Nomura, Yes. of you sure Cloud. we're not they years they're substantial I'm ago for customers. many we've they Nomura, Vodafone a at particular is the for and the in Japan built for have we they are primary to And those in a OCI I data Nomura. ability built the Tokyo first on already data Exchange of us. business business reselling are they workloads backup, mean, few that, But as centers centers actually dedicated and creating they centers run services a dedicated centers Oracle now for Vodafone. them, into Stock financial have to part again, data their build sell we we

building other OCI dedicated of other there. all OCI data data we another They're run of centers, like who automated were data data centers the centers. they someone Vodafone the are example our is that again look like -- data centers. constellation all In OCI these

on We've lot done of you'll So have lot of into our enabled And OCI. but skilled And it Network's again, architectural approach that us. area us I thing growth labor we huge entry can we using AI, advantage we But see -- Vodafone. going with economies -- for a I of still telephony of emphasis. a them. it's one industries lot Same be think and is of a DISH go scale those beings. have similar by of of it for a take on. and human but that is and that that's to -- runs

will, from As also very a around telcos, an it to telcos. they in world. some can will, always where the service. where Nomura And OCI point seeing these to if was dedicate if keep dedicated things, slightly we call a there take financial view, some clouds Japan, strong commitments are build But region services it, our for Nomura and customers financial more, seeing doing bank, companies but you we a customer for cloud. there We're to built now move since we've "on-premise." region an want they're but examples. the major other we're We And different you been in build beginning of we're banks. a clouded to of example, largest

these to a public than I dedicated to industries, slightly way huge moving other the preferring cloud, different moving not rather but industries to mean, have So cloud in regions.

just applications their just cloud. application, So this in their it's

not, and We ability does not. do to that. have Again, not, does and does Amazon the the Google Microsoft

next Your of with DiFucci question line John from comes Guggenheim. the

market, traction but talked they to Mongo such that pay-as-you-go about getting We've heard model, pay-as-you-go about think and employ the a pure seen dramatic question ton consumption been sometimes this or slowdowns. lot mega have as cloud a is some committed anticipate your vendors had in deals. I extent, who you have for the Safra. Snowflake, Other of either deals, even or

that like talk exposure to haven't and progressing? But anything in and at in such your certainly not We you about all your can your results deals they're how guidance. seen

Larry as on commitments we So move of many part customers, companies, who us as to governments it, phone make to cloud. touching banks, was many, their enterprise have

you all, implement tomorrow. have to revenue, you're of less pay you SaaS but pay-as-you-go going do as bulk not of So we our accounting our customers, system, first the some know, an revenue,

accounting still run You have to your system.

in so waiting cloud have is customers into important have are get many then commitment. a They the have to we want and been again, bringing and better the those, want And that our us know their want jewels receive SaaS we the to crown to for slightly fully for they side really two-way committed. had to capacity enterprise they price. of So be the position to a business, them, who because basically

to of they Italia come use, or first usually Telecom Verizon than obviously to So using into price, than a and all, better would that it's expected. those almost of the they or others, always, cloud, they in, they public these make so some whether more over expect committing less like commitments go

a have customers combination or center different customers, cloud telco Larry arrangement the other as provider, However, we with the where mentioned, data a have are other committed. arrangements, or alloy all those

the strong from we're very so commitments -- we're And in our very customers.

running ultimate they way, want back goal for rid the place them their be These those. by a toy put to back And of them to data when know got are get And and we business, they've to want have that want they workloads. for many They workloads forth. of These them. capacity don't finished. the and to sure available they're that's critical centers make because their for aren't

commitment full a like up for people do of and is that, not centers do down these, they shut the -- lot data capacity their the until these the data are sounds of to these their replacing? part most they to So they're the committed ramping center it --

Yes.

Okay.

Yes.

we're at clear here. Oracle is business. of than Just so that X% less Pay-as-you-go our

Okay?

Okay.

helpful? that Is Okay.

very Thank you much, Safra. clear. That's very

from question with Bank. the last comes line today Brad Deutsche Zelnick Your of

expanding then momentum you're for think the of drivers got through been record. your quick for new also, in the I about follow-up have the a the as And Larry, for this parse business and expansion rates contract become idea care allow. can And the it strong versus of Oracle Larry, in win you helping billion for I've $X logo accelerate, does single Safra medical and Ken to decades. Cerner, in terms cross-sell Fusion, doing base clear on talking expectations by about that you a the example? touched with is saving the People if of will quality lives? improve When

for in patient, one think two system VA and things. is is One one the we're the I the for are DoD Well, record. there putting

same. it. model a of is Nova that's Scotia one going in, So the The in

on also enormous along works. system, Again, our to a bidding the NHS. system and the huge contracts are that's responsibility these We go the with is our contracts enormous. contract for some are of But how

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