Oracle (ORCL) 11 Dec 232024 Q2 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 Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Ken Bond, you may begin your conference.

Thank you, Emma. welcome Call. Second and XXXX Fiscal everyone, Conference Earnings afternoon, to Quarter Oracle's Year Good of press other copy our GAAP can A the viewed Investor to includes tables, be non-GAAP a Relations which website. reconciliation downloaded and and supplemental information, release financial from and financial

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

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

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

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

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

things is revenue, XX% the results License at had Cloud and The quarter. good you great recurring table, are top and now look Support largest clear. our Ken, revenue and everyone. number, of the We financial Services very $X happening. as would for we total quarter. of its and another Thanks, this by is revenue afternoon, a it's few growth are recurring, which not XX%. every this smaller it's And year. only happen what told now billion growing you account will The accelerate numbers, one This the When and exactly continues,

one of clear ever, OCI drivers To point, a acceleration. alternative. hyperscale was OCI just is now years that Imagine of ago, viable rarely, if mentioned X the as our

built about we knew was time. kept we And customers what it, a we more are to and and matter talking only are knew catching we what course, had now choosing. it industry analysts on Of of

last for For we Quadrant Services. were leader as the Platform Strategic example, week, recognized a in XXXX Gartner Cloud just Magic

that figured Well, get now workloads, efficient are moving choice to that the top reflect more results really first of On better, financial generation and enabled price they coming and much have a can that, less. engineered more combination while out second-generation of Why we paying cloud understood performance differentiation it's limitations our building customers unique to specifically the us creating for by Our differently. We OCI, are given capabilities. cloud. AI cloud Oracle things, and they scalable to more the several infrastructure? default very of the

better than, security Second, say, and to I'd scale, what we takes else. an it enterprise anyone run know performance

Our XX-year exactly knowledge gives software leading required history is unique company run systems. as enterprise us the mission-critical of to what

and are Customer, dedicated than deployment cloud. that at cloud sovereign Cloud Alloy, vendor offer like Rather need partner dedicated Third, the offers just competitors, our we our also customers recognized services public which we regions, flexibility. clouds only

revenue and as are currency at my of end importance as built can our will roll in high midpoint offerings belief exploding demand, out EPS to be get quickly this the cloud guidance. these the the with of we With multi-cloud working all finally, of guidance the constant we as success and collaborations capacity then out. And at industry-changing total

months less ago. helpful a as currency reminder, guidance point X X when gave was Now than we

at plus Total $X.X cloud billion, up up $X.X billion, was IaaS excluding Including at revenue revenue, XX%. up revenue License billion, and our of was revenue strategic Services that's $X.X billion, cloud up up OCI. were for quarter with IaaS, XX% total SaaS revenue $X.X Support again Cloud X%. autonomous our was billion, Cerner, up by Application XX% revenues, driven $X.X Cerner, which the XX%, Total cloud and billion, database and $X.X SaaS include subscription support, XX%. GenX application,

$X.X Our and strategic an revenue annualized now XX%. have applications up billion of back-office SaaS were

$X.X cloud were up Infrastructure services subscription was which billion, up revenue include revenues, Infrastructure License XX%. Support, XX%.

Excluding up which XX%. grew XX% X%, OCI up services revenue, consumption infrastructure legacy up database database was with and Exadata highlighted billion. subscription revenue which hosting support, $X Services up Cloud revenue GenX license by autonomous database of revenues, include XX%. Database services, was revenue XX% an were annualized cloud

on-premise importantly, cloud migrate strategic we of SaaS cloud, Very as and third services the be databases GenX expect to will these revenue database leg alongside growth the OCI.

where Software were XX%. it was license up to year billion, a XX% revenues comparison $X.X last tough down in

were the in, quarter Cerner, actually X%, Cerner. X% for So all billion, revenues $XX.X total up up excluding including

IaaS Now in gross the are is shifting is Support with margins. faster than much SaaS growing mix which margins XX%. of Support The Cloud to substantially. This consistent was Support and for between Support, License Cloud and year, Services gross margins because last margin and improved while Cloud,

ensure We as center carefully build scale. we up. we gross new monitor While expenses percentages margin regions data to fill margins these capacity, expand higher to gross these go as cloud continue

XX% Services To billion, QX. $X.X grew License Non-GAAP of was this income last Cloud margin operating the dollars year. XX% year. point, was up The Support operating X% in from up profit and gross from last XX%,

economies of continue not income also the only we was profitability in non-GAAP The from will we will but $X.XX Cerner we in to and expand up EPS standards, in continue scale to to drive margin. currency. XX%, operating GAAP and was quarter rate for was Oracle in USD tax USD. up USD, and XX% X% cloud the constant operating non-GAAP $X.XX EPS grow As in the benefit

short-term $X.X billion, and was balance deferred X%. had cash billion up At quarter $X.X in end, we marketable revenue nearly and securities, the

last were the up cloud expenditures we transformation. $X.X quarters, and billion, was cash flow period see the over as cash X Over was Capital flow benefit our $XX.X XX%, continue flow from XX%. billion cash up operating $XX free to billion, same

Our portion Cerner obligation, is over RPO, performance the up in or with excluding currency. constant XX% remaining billion, now $XX

We continue revenue growing continue billion for CapEx sign as expected $X.X large XX the to bookings is months. total deals in the Approximately XX% and build with of as our many next QX capacity needs. was be in we to RPO recognized customers' pipeline. to over

CapEx higher as online our be expect Given more the enormity we be I backlog, somewhere $X fiscal second billion will and capacity. considerably bring half our will of this CapEx around year, pipeline meaning

X at point, built. be regions regions have the Database XX cloud XX public customers run with these public to live, that and cloud of XX now To will able we Oracle around OCI and Azure, starting year, Azure. customer-facing inside another regions Azure world interconnect cloud next on being with

national and regions XX with also EU We dedicated for live increasing have of sovereign planned, more each. demand regions security live more regions XX X X and

be the and course, And the installations. flexibility in finally, many, cloud at planned cloud regions many services so we cloud optionality offering And have X of regions Customer Cloud. become marketplace. advantageous for Alloy alongside the partners deployment many, Cloud and our -- also sizing us of have we providers where The sizing continues flexibility Oracle to cloud customized Oracle

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

dividend last over million This quarter, the $X.XX dividends of paid we repurchased of $X.X Directors total billion quarterly And X we of a share. million. the $XXX of And shares XX out for Board addition, a per in declared months.

let same now, on turn effect should non-GAAP and as QX, they rates are which Now currency guidance have as basis. review, little the to a currency total will If me remain exchange for on my revenue I EPS. always,

actual may the different. be impact However, currency

are I the expected revenues, that, USD. grow from all currency expected for X% are X% Total Cerner, because Cerner, X%. same and numbers revenues, including from So to Total excluding the grow to constant XX%. of to you are to give

expected QX rate is and XX%. grow EPS to revenue, and a cloud XX% $X.XX. to tax from Total for assumes My $X.XX be XX% of grow between and Cerner, guidance excluding XX%. Non-GAAP growth between to XX% base EPS is expected

cause vary. However, could actual to onetime tax rates events tax

firmly comments. his remain operating fiscal let margins our EPS financial that, 'XX Larry for And to to revenue, growth. goals I for with over and committed me Finally, turn it

Oracle response The data data total cloud Safra. existing demand consistently is XXX Infrastructure for you, In Oracle performance remaining expanding has the revenue. process demand, and and now of XX Thank Oracle's RPO, generative our AI billion, to than is centers. in cloud new of quarter. more building Cloud quarter slightly increasing or sharply after the centers our annual reached $XX obligations, increasing

are billions there data We supply. than contracted build XXX cloud dollars have additional currently centers we in because can to more of demand

growing large to industrial and Cloud centers AI dedicated an infrastructure states OCI contracts. customers for banks, huge Oracle and by centers. the new expect plus Oracle cloud next companies, companies couple not generative Gartner in and billion-dollar nation cloud data cloud sign at services. a infrastructure but Oracle centers, infrastructure telecommunications cloud data leader centers, Cloud by services driven data dedicated In as more unprecedented platform few Oracle recently demand named infrastructure a and The rate. demand weeks, is we broad-based, is also cloud buying data buying only and Cloud software

their and turn joint the hyperscalers clouds These machines X,XXX service In we providers database. Oracle interestingly, next XX of new connected to Cloud Exadata Customers for most our data data want racks with months, data to few Oracle and pent-up meet demand designed perhaps other Azure the don't house part centers and with will be Cloud on initiative. And as database new XX clouds Oracle multi-cloud Cloud co-locating connecting other centers. full demand of cloud walled a co-located gardens. to from multi-cloud Microsoft over centers will

country and built data they Cloud. high-performance vary ordered data Again, new New operate and workloads data able and and commercial our rapidly can new automated nation with include to These centers inexpensively RDMA architecturally only health multiple highly others. scale. states so move build have the countries are Arabia, sovereign identical, Zealand, are by of within to that care data Cloud Italy, several centers identical Bangladesh, government, Oracle We services autonomous Saudi to all applications. their an centers be centers because Oracle Japan, their network, them

us migrate and centers companies Oracle telecommunications banks, an largest center. their industrial Mobile, them so data conglomerate contractor. Oracle world's These that they Ken. and Vodafone, infrastructure cloud U.S. demand data Telecom, These few that a are defense for you, to the Saudi demonstrate differentiated technology. of and center the huge but GenX the workloads examples a dedicated Nomura, growing with entirely have contracted diversity a to huge highly Italia build also Cloud to include Korean data of Some Oracle's to Telecom companies Cloud can Back

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

[Operator Ben question Instructions] Your first of today Reitzes with from line the Research. comes Melius

with you acceleration will to guided OCI also, you that here you the Do is your great you AI feel GPUs through backlog for into out the speaking revenue? perhaps on due mind to comment going thoughts It's and more and And afternoon. be backlog getting how moving trajectory this revenue? can from you play potential more into

take or to me want it you you? Larry,

Either No. me. Safra, tell you one,

the How over where fast to here? hand our would we enough. it I from to up started? only filled and get expect limiting data the factor get Frankly, go do is OCI So ability centers,

if we our of recognize alone, quarter able talking capacity we're that been of millions dollars about would This available. to hundreds was have

amount Larry, just roll ideal we the as guidance, have and infrastructure CapEx is, capacity we you GPUs as really is many as and, we've I hear parts, know of just see moving from in reality us, say coming unlimited course, my available a a the can we and grow for as expect can those demand. much of can just lot in, if don't It you frankly. we have become want so out also you to put got so else? use more anything we to of astronomically, So OCI online. And

I right around Well, next few Yes. to X billion going each. additional sign mean, astronomically. mentioned growing $X the the contracts I backlog is in weeks, we're again,

Safra the There's accurate. I and word used OCI think grew XX% reason this it's no why that's quarter. --

Oracle the build -- of we I online. We think of lot is not growth I don't and been these There's overseas their actually, companies OCI to clouds demand there are pent each. to at bigger I centers can gen X, demand. these be their data -- workloads for Japan rate building workloads. to the I again, of X just X believe, above XX%, Oracle come There AI the to emphasize move going workloads I way, government get move those will people governments least will cloud. centers, a X, be data think They and centers haven't sovereign By a as literally, huge data able that where data centers database haven't lot data huge able quickly. demand. it's in large know, up very mean, Cloud is been much are

and again, over to demand build be can few growth is OCI a fast, centers the the I relatively So rate extraordinary. the We XX% data expect years. for

Yes, we're not in now. any right demand-limited way

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

but clusters, take side, it super asked the the the all workloads takes and pretty sounds you seeing AI per comments, Larry's other a core growth. them of But revenue. know comments So about build realize that context here. I'll stuff. And those, Safra's has this should with margins I'll it this since that's time only step you're the A time. call, hose about the the exciting and with not both how back doing, CapEx profit and those time over OCI I part out out we deals some you're spoken But actually Ben Clay AI you're ramp-up cloud Uber, capacity like things? on to get like revenue in time lot you before happening a of also get that's of what gross and growth, think lot maybe about I takes also over and building from

our asked asked. of profitable a Cloud because because extremely more really such is you it mix of you and though I the of the that businesses detail Support. the of And a cloud reality and because is you the structure Yes, at you works very obviously, scale. But give really show I'm also are is large that that and you, we glad way even lines one glad Support are show we I'd I'm is, a profitable. number

profitable. very IaaS, our is business OCI business cloud grows. is as SaaS Our profitability improving And our it

this. than somehow expect for so much money the some the it I up think more much folks pure-play as all because margins cloud don't gross target higher making comparing end to And it are you're probably of in of you who

As we percentage goes margin grow, our up. gross

small once continues worst yes, moment So a full making is where our lot we'll up go a we investments center is space Larry, to tenants I because add data lot anything we to match computers -- some deployment of put moment our how that? to us but don't and unlike a to folks better. have. full-out first start be revenues that And we how and pieces, first-generation of any build up, profitability we have know, more there of don't the spending much a make work. And that's don't so Yes, because not of we the they out investments, the at to grow more engineering we but others you not actually penny before allows you do day, if and of work. that revenue. of that's have that have that flexibility our That's we and and but have have the the they with and in the build that want the everything floor

Yes, I do.

X the data much more important. think than older centers. We're thing I highly is very automated

track have our give of how run Cloud, to they're Cloud, customers, using. much to all Oracle keep idea, you we So to an Oracle of

of cloud. that run the databases. are have to variety applications a We autonomous have databases databases all Those the and

no those We It's labor associated completely databases. automated. with have all

to lots and in it to of certainly the -- you the a services. plug focus every We up bring new and in bringing it there is and people we up people There and in bring process of lots largely are autonomous run data on up, of aren't when aren't lots it center it lots installations, center cloud, the automated. Our day. data

not It Our running to the software Linux, it it. XX -- software. centers people DBAs fully than with terms There's building in Autonomous or There's of XXX autonomous. doesn't no data the cost more our system, with run associated operating associated but to us is Oracle run us data labor labor Linux. cost certainly running running

being it's efficiently. last errors that fact far and inexpensively because very different automated, So data competitors' completely fewer One is relatively we we them a things. data thing are than We up the old self-driving. these or can can autonomous, quickly, and centers system run far security fewer about there have our very vulnerabilities model We can bring our centers. are there run and the them

I back Safra, to something quarter? If might, to quarter gross go OCI have margins that over you said. assume grown fair it time consistently to Is

Yes.

Okay, and then...

lot. grown a It's

And Larry beginning about Safra, okay. I've lot, of what we're at cloud. -- said of database at finally, database, times, a the the heard to then Grown the of beginning the you transition the say just the

today have in pretty still you of that's know that the I much? the So migration but database cloud on-prem, to come

we're really over. is is comes to it dollars Yes, It still talking come. tens of it of when billions about --

we it's also been all piece with So going to out that's it. to in come but comfortable to and And haven't get to it, be has en of place have multi-cloud the receive starting we it -- customers really to another and masse. roll

can many excellent possibility. their in go So they in can customers OCI. at the go can in OCI They are can to go is public choices. have go cloud, They cloud going Azure so customer. in X They

beginning just standstill. whole disappeared a remember, a -- absolute database come it mission-critical the there's the to companies, If not system. at It's it is toy. is just So Oracle the because would a planet

just is this it's the and beginning. so coming And

So going believed with this us No what's on one OCI. you see possible. was

going going And to is then come at that's we're right be something. here it to the behind Now and database.

nature be to that gross for the comments, Larry's expect it, we I'll should but database margin? given the talking, different Larry's comments, gross margins, for the autonomous and infrastructure-as-a-service than OCI core of And stop

Yes, absolutely.

into no no it. using Yes, I back not associated into that's the one, cores autonomous There's want But with mean, don't are to goes no fully other database occupied. the the it's pool. words, it. -- labor it, you're only but the if there's I is detail, database It go no using autonomous. elastic. autonomous one's In also there cores,

We XX my a database So It's are Amazon an a processors customer charge for have with the use only X using you allocate. I something That XX dramatically if you're day. days -- to a or no it what you use allows margins. XX database, to run as need occupied. gross higher you cores other what doing us you very that's than only and cores different it. always you're to hours when Otherwise, totally you literally We week, goes different. where database, customers. It's consume it. using and aren't when

the you. question, thank for several-part Sorry but

question from next Moerdler Your the line comes Bernstein. Mark of with

which want that don't little scalable people customers to and I a much. change yet doesn't in turn focus gears to SaaS revenue Oracle a Cerner Cerner Cerner, has have been full down shifting But really to license solution. bit likely for multitenant, on SaaS. preparation

parts. ask of like a should we one, So to I'd the the -- How is yes? what of, couple think timing of availability about

moved so Millennium I has That's of the believe of customers will be about Cerner half And -- correct, not the customers. pieces. half several

we've as move February. existing customers something also hospitals we to half will like You of customers Oracle at developed just Cerner will of of Millennium, those Half can think began OCI about by that finished. that's be And OCI. But Epic. a in all product have and called automating and Cerner

if when is something finish Intelligence it we available calendar rewritten Health health. But known we're now, hospital was really to hospital that's We health inventory because It's but people year. national New states. Data will to countries. of they largely view. out rooms our and There's we sold national It's it they right rewritten the no and public COVID contracted for of health. Remember U.S. management. public states. that next knew It's yesterday. COVID, completely sold called Australian as it didn't many were well, York HealtheIntent our no Again, we one in process, weren't it's for know Now as of but have one European managing -- kept during knew No how And and population population-scale, to That's track sold rooms. view. thought Platform. running one no didn't Cerner for

national that view. now. It fully We is available have and it is SaaS right

the are So moving more pieces but basis some going online. into subscription they're a all pieces very of gradually, of license pieces Cerner OCI, are Other and quickly Cerner coming the -- moving all they're basis. a to some from

helpful. So that's very

of and think Millennium, that version? in lift So SaaS going timing to the the question -- I should asking is maintenance we the fully to be OCI. going SaaS? that And SaaS? fully to was how be you're moves starts saying, the the should of the about was think transition? When revenue about rest a answer how solutions to Is will be we the cloud license the as to

will we're lift So and new fully year. will a Millennium a piece -- big in a upgrading are be pieces different at rewriting but starting and be it shift, the OCI we at time but and not a a will modernizing are available not it time, SaaS we next piece in replacing -- be Millennium

OCI. -- customers February. so And Cerner features as will be Millennium the capabilities be to in again, a a Millennium customers of And moves half getting and as OCI part by new will

companies, providers, time, Oracle for making public governments a our track governments. manage and research pharmaceutical what the in products keep think a governments, of much hospitals, departments, including companies, their companies. like products public and lot has and of of health lot ambulatory division also health adding health to including care clinics pharmaceutical to to for we're as But same the payers, for hospitals of products. inventory, we're adding their health the So adding products for companies new products hospitals new Really, workforce. including state entire insurance ecosystems, we Millennium, national additional We're At progress. of we're

footprint ecosystem for had. So much we larger Cerner we -- are care a than entire the health is products ever which have

larger are was. after than a market Cerner much we going So

I'm at. expect we what a I be getting that's to growth guess Cerner story, So

Great. That's going question. where with I'm the

Yes.

sort think growth just this year, negative story. So let year. on, fiscal for for Cerner will will I year the a -- from me be then it. It And of X to that the you, points but end tell will will X it full fiscal be be

be no on Oracle's drag will okay? it So a growth, longer

Perfect. Thank I much. you so helpful. it. was appreciate really very That

Your next question of comes Siti Mizuho. from Panigrahi line with the

Larry and leg Safra, start uplift, still migrating database an OCI, and many call expect which will stream. you run will the have maintenance workloads bring a growth. mission-critical third revenue Oracle we which revenue Oracle And sticky you in those of database workloads to cloud Xx

now You data also have OCI center. inside Azure

So from my databases multi-cloud hearing move Oracle database cloud, to Oracle are or outlook terms in their And comfort of how change being database? to question OCI the is, Azure? their what customer you either for and does your your this preparedness

Larry, this? No, you yes, with why don't start I do.

You go.

Okay.

ran everywhere. very system on digital ran are as ran many We We We mainframes. first one computers. IBM ran computers. on databases the customers of equipment, on Oracle every ran if that happy remember And started operating on Remember, every We them, computers. HP Our on mini with idea. computer. the personal you

of they database same are they Microsoft They wasn't data They cloud, greatest same install that in OCI, the of enormous. right with Microsoft best the Microsoft. data want -- that see the to cloud, was X,XXX they want and those Microsoft the only to was Now do machines also But that building is to to And had if get happy identical Microsoft, centers. clouds Oracle, run number That as our in Oracle. they've Exadata demand for and always the using centers flexibility want Microsoft. capability they're at get we want the us in the Oracle use very can it well. they're not latest The Microsoft, the inside other can XX version Azure. to they Oracle want to want from Cloud. They plus in customers transition. decided

some important example, have is In for for Japan. Japan, very Some of remaining to important them of it. very data that it's in

supplies does Oracle Exchange. Cloud things partners the of Cloud, are Tokyo Japanese in is run market. Oracle in Research And that dedicated a Oracle GenX number One other the of does that the a who the direction. Stock that it same it Japan center Nomura database services and data in There by to are Services going runs financial

Nomura support in regions So the Japan, want from or they They Hitachi and public they -- these don't with that customers commingled natural used database. data else their to -- own companies that. want quite anyone states. is in that their to those but We want OCI sovereign a used don't they database alone. for that of part can they to something of We OCI, they their all every from we Nobody do. that that companies We their to They can cloud. that -- wanted want from regions and build regions of want can these or large it to or buy bought -- can build can. Oracle full dedicated Fujitsu OCI. used theirs have flexibility build for theirs do bought these regions We sell build for regions. buy their to own from our the to allow for else's. They partners. Oracle it can It They of and be want their out -- in those else else region. NEC. they a it it They That's have anyone want nobody

line... next comes the Your from question

-- the way back get will we're to Oracle, demand little seeing And on think means That to to get way you you a summarize. want be me on be future. any to already. want Let Oracle, we able impact get the you literally any bit it. database it demand, will It

on of customers alone, close number Exadata could hardware. put of many thousands customers That's Microsoft in of you me that X,XXX with you much put a that's terms that. tens on can Let That's how And reps. stunning okay.

Your from Wolfe comes next with Alex question Zukin the line Research. of

feedback incremental of you're any increased the seeing partnerships in to the specifically wanted of inside the to and starting or whether around the from AI your portfolio. NetSuite. or that update not form gains that can application gen around capture, Fusion the applications some increased ask field market informs around of Cohere? migration Maybe either of share Any monetization or activity, increased I around share uptick some value portfolio, functionality it's or early resonate opportunities

I Oracle Well, Perhaps never most the Yes. new a what again, Cerner it is our now stunning place. Health. that we're lot that of at called is using things we're in every doing Cerner did earlier -- mentioned

a and doctor's One writes of those summarizes doctor notes a new for doctor module a between telecommunications patient the the consultation things is and automatically. our

the time, we've done fact, can a large generating a but it. in We our In language minutes. the scribe, now doctor have model summary without of couple the for first edit

biopsy pharmaceutical succeeded the those. simple So got We've very using we're course, with just or they one otherwise those called people. many very, of doing they or patient have just well, doing job without -- the whether in challenging very a -- diagnosing has with weeks would chemotherapy implemented, doctor's on whether are out the the it's able that to AI processing success areas, of in biopsy, Israeli they images, partner cancer-free. And to those, you've maybe it. And But assigned of terms all drug area, the We're sooner they find customers. that in knows And descriptions, design. having all that tasks cancer or shocked sooner -- we with notes actually actually of an from sooner companies. from weeks delivering scribe biopsy most from weeks of where go in we're in being product another as get as great quickly Imagene. everything writing than to the some the those it do But even a hardest of actually news read image, they're about doing descriptions

tasks no, So enterprise a from more employees important and and competitive. technology, everything health very efficient of mundane science your we're making still that's company more huge you care seeing and your this uptake that more complex throughout an find in to health

how Or a of do it. you a of Copilot captured from you envision Got standpoint, monetizing model? value to seeing incremental way similar ultimately then the And some the is Microsoft? inside this monetization in -- do

we're of inside different -- Microsoft. than our a Well, we we're little bit -- think remember,

we have a clinics. We We have health We the all clinical -- [ example, databases, databases, conventional ] for run diagnostic blood -- run run in enterprise databases image for run care applications, those. trials. lot costing We we of hospitals. ambulatory in testing more

take notified to of So in aren't doctors cancer I it. their doing Right with on prescriptions, now, if cost aren't which chain, a we prescriptions. notified. with value does and that The orders, has a much does don't value know the our does money. things that them. get the AI, spend end so huge now that is actually highest doctors diagnosis, end really I all actually from human the -- the and that's the have refilled and our supply want generates application of monetization patient the suffering that. doctor's someone the that We're is reminds high -- doctor's you're being don't compliance. Right doing patients subscription patients Reminding preventing the bunch the automatically We're without of -- terms of of can't rehospitalized, you when the notes, that partner at too which

ways, the part keep also our And of not in multiple when their and have of to to allow we only a applications the some in application for in many, ultimately we this this provide of Now types because these of models applicable different use basically service learn part control is way, many data to is data. to them private one addition. our -- then product, their of but we is monetize as it unique for capabilities to by of our they customers, as but infrastructure use

lot... So there's just a

cancer our making us that enrich Imagene, we good application. and very their AI our own develop to That in they're health keep but to applications. that's we we that's point AI company their a private diagnosis. applications company allow and does application have care partners Safra's in but their our That's the enrich come not using an them to care, that, to other that Israeli to that mentioned their companies data applications. And have doing I health use our earlier,

-- and build their So Imagene, we monetize enabling of -- to AI them so their through we our a and own. in application, lot build also the

It's right. is the Safra combination course, of a X. So of

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

now Safra, quarter for expected. frankly XXX less reach centers, which was of the several can requirements capital years to very build frame cloud seeing And bit you're about ambitious. data XX CapEx a Oracle perhaps, taken seems to see? that, this time it's you're in than that light ones, then plans especially that speak Larry, we had talking and it new related What to you and don't maybe is that we if

about necessarily have quite They're yes, Well, and more don't cloud for in and Azure okay. That's sometimes data they centers Cloud. center lot always the region When little seeing. more someone OCI company you Microsoft X:X. But order have a of -- and what building XX. those that How say, data and mean, because for regions we're XX a XX way, inside then get comes translate we bit -- don't when we XX, X opportunity right. -- order -- of By OCI a build centers data we to orders synonymously. not XX for -- use that's not an cloud puts we're an -- along as that's I us creates customers data the centers?

partner things demand. XXX. up like combination adds we're building the based The are from those the customer of public our Microsoft. So on XX own regions We're to And centers we're building data regions the X then seeing. direct

decided Customers many, Yes. And companies the their own have include also, that doesn't it many one and started small things which the now in Cloud they at of region. number, is want

smaller which and no, they So is a they no. Cloud decided, had no, Customer, at

my tens a Now of This I region working. get is dedicated I've I millions, it. saved hundreds want of millions. of own. sometimes millions,

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our each we able but to as and this best the our use large there's customers pretty can then demand, capacity to quarter world's that our succeeding more we give doing are up language quarter. greatest keep -- gold give building them So want what we towards more to quickly. And the it, were and dramatically They rush dramatically ability got they this increase more model.

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