ORCL - Earnings call transcript Q1 2019

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Operator

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

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

Ken Bond

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

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

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

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

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

Safra Catz

we was above moving was I’ll earnings $X.XX another go growth everyone. and again, my afternoon, of turn Good Ken. solid share Thanks, my revenue over on QX quarter. midpoint midpoint currency slightly guidance. call to had above guidance. first their of my Larry Once for per comments. before over to Constant the then I’ll the guidance the and Mark

This how Total revenues $X.X revenues. for and the services XX% of total dollar at the revenue using business. and license growth bulk currency. X% review were of is accounted I’ll quarters, we As cloud in prior it results, non-GAAP quarter up constant the recurring constant rates look that’s Company in also billion, support for because our

grew platform the $X.X currency. and our GAAP EPS and our in GAAP non-GAAP in four GAAP was X%, cash of constant revenues Non-GAAP $X.XX in income billion, The of revenues margin $X.X were the last tax same and was grew was total in and billion, $X.X operating have was constant last grew plus detail all was the tax will operating more rate up were quarter XX.X% from quarter Operating the cloud, in speaks. dollars for XX%, XX% year. XX.X%, billion, when up EPS Dwelling the in the in in of up PaaS plus, up revenues cloud and year. XX-plus-percent. he XX% ecosystems, IaaS X% revenues and $X.X XX% XX% U.S. was applications GAAP in and slightly total public $X.XX much record over rate terms X%. Mark grew year were flow as from terms non-GAAP last and infrastructure X% ERP regions and In was up for total little, below the rate quarters currency. up and categories, a U.S. billion. verticals product billion, last XX% in dollars a The Total base $XX.X

investments, the the for our [Audio repurchases approximately as as value recognized through well creating Over and and months. billion with which XX% quarters, to acquisitions, $X.X next capital committed will revenue of were stock targeted remain four Gap] as same be We dividend. over shareholders expenditures internal XX

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

by Directors reduced quarterly declared $XX million for $X.XX XXX flow months, repurchases shares shares of increased a again The Over by XX%. X.X%, an the share. repurchased we authorization last share and have over outstanding per cash absolute of while billion growing dividend the XX additional free the and Board

we which to our website go I to up $XX on which XXX, The estimated posted this instead QX had adopted of million. $XX of last on quick ASC ended revenues, year million before we last Now, FYXX quarter. guidance, quarter, $XX affect a being comment million,

right. So, basically, about

rates Exchange and revenue, $X.XX being headwind depending now a X% moved to headwind per to X% on a have from Turning headwind to earnings to currency. rounding. to share, $X.XX

Now, it the sure what not by of will this I’m be quarter. end

So, delivering last Also, year revenue, higher. fiscal we fiscal higher all to a half have last growth the from to rate constant that especially revenue guidance. when second to year. expected to of X% license. growth with revenue a in because remain with will of be that I Total comparison year’s we grow are committed revenues XXXX for compared tough expect X% currency,

tax exchange XX% and Once non-GAAP deliver be assumes rate, between growth double-digit rate is My XX%. to XX% XX% we be between in and for And $X.XX. XXXX. in to $X.XX EPS is to and USD fiscal base between EPS constant current guidance non-GAAP $X.XX. to grow between QX currency XX% of expected EPS EPS to expect Assuming and grow again, year a non-GAAP $X.XX expected for

vary for Larry quarter tax events, it rate, events onetime one-time from over his turn any these rates tax actual However, comments. but tax could with And that, I’ll our rate fiscal tax I XXXX. XX% base to average our expect to for around year will for cause given for that normalizing

Larry Ellison

has our future. Thanks will two Safra. right. strategic Oracle products determine Okay. All that

our strategy most Customers have the company. applications business. are databases. Automation in Oracle most the on than buying of Oracle the and XX,XXX strategic their customers. and Oracle the the much SaaS the cloud our is other success becoming of in in in existing cloud system. already Oracle to SAP is ERP are to our with market IaaS the popular biggest to the and run is database, way ERP current key the database uses customers. on-premise The number most the the Autonomous to Workday cloud. well cloud cloud so to autonomous ERP position the market to our advanced one product share SAP in customers of Cloud. layer world’s SaaS their infrastructure or segment nearly rapid is IaaS Continuing In run SaaS application Fusion technically Sales puts ERP the uses their use key Fusion And database existing the systems. competitors replace the ERP world’s uses growth buying and cloud. on-premise run their to ERP largest its their Oracle replace Salesforce.com run layer over it ERP Oracle largest services business. Database. strategic infrastructure to database our of Fusion market the all layer ERP of cloud. cloud, Even NetSuite our is success in database applications That’s businesses. their the better layer their Even Amazon Oracle cloud or Our we to cloud And

allow cloud the Now Cloud that Oracle catches bill are Metal the The it business. will advantages in database cloud on behind running, infrastructure, their share infrastructure allow ahead Amazon infrastructure business. costs We these the in may No labor be generation Database of technology. Autonomous while Amazon cloud we think prevents but advantages their other turn way half Oracle Autonomous are in We Oracle Amazon Today, theft. effectively think can Bare infrastructure. us the will is I’ll in Amazon that, compelling rapidly. itself us infrastructure automatically to market can Amazon very to compelling gain compete market both infrastructure with in it We data Mark we that in very, over and Oracle Hurd. infrastructure the think lower that. database by Database against in our these customers do running second very cut to share, running With

Mark Hurd

a quarter. numbers then and Thanks, wins Larry. I’ll in give you the few few

XX% trailing the XX is apps trailing revenue, months X% apps First, our now ecosystem quarter. months now recurring GAAP than ecosystem revenue in $XX up apps XX in billion with our ecosystem. greater in of

to give Larry the growing billion. roughly spectacular XX% most seeing Overall, momentum enormous quarter. stage back a digits annualized cloud. opportunity and greater was Safra apps ERP grow a revenue, up we’ve than, bookings for in is I XX% call, XX%, Revenue than an We’re organically. had we’ve apps customers two almost a now Nearly this was very That bookings for let more. In HCM on-premise We in quarter. to $X.X at NetSuite year. XX% on you the roughly up follows the growth mentioned market expect ERP revenue I than were as Fusion -- think previous XX% in after revenue do greater us. it those NetSuite. double HCM Oracle ERP numbers, as in applications QX. or ERP for NetSuite call revenue ecosystem in ahead of office me few that with few our of through mentioned SaaS, been up and were thirds with, of is support early faster moving mentioned,

and up now XX%, is verticals Our annualized were $XXX revenue million.

Our ecosystem QX were GAAP well perform support in trailing both billion Bring database basis, than up up is now mid single new license $XX and on continues was to greater months Own a and Your as XX License tech X%. digits. QX revenue

in category. But, I to quarter. try about a I’m going few ERP in the it flavor of shift and we few. we first we did talk customer in top to in of you wins going QX, want that give I’m QX -- to what a some did on wins for the about to what keep did Now, talking what to that a to and

an North replacement advisor. us of is I’ll bought in are a actually side Larry Mason Europe and nice at may Sports, bought a now win Federal package going Financials. of bought to Oracle Express. for house, a Legg ERP. also they’re but traditional FedEx the they nice They ERP Academy SAP deal -- all is back just they bought as investment in they Financials us. the very know Airbnb, about that as many is in for was the win Oracle Workday company quarter. mentioned. retailer, you Mason, in an of bought of company First, office a a Conn's, America. quarter. user, their ERP well a a Fusion bit not on Workday FedEx ERP, a This was called Airbnb. of little standardize TNT called also replacement in the Legg And That HCM user, ERP. talk

from the clear. Payroll They bought had of that, migration In one we’ve be course going combination be Saskatchewan; HCM HCM of of relatively Santander the most a win little the customers, bought Corporation, nice quarter. of that is customer Federal to Saudi in of Oracle. This of they Bank the Consumer, ERP. but win significant as with TIAA, large HCM category Mortgage which to of also a is the in one to we’ve The in another significant that us the bit ERP. more Europe; the significant bought same in big driller, Europe; strategic transaction customer Highmark Allnex, VITAS also took bought ever Oracle Nebraska. combination company, as City thought mentioned of Telecom, HCM. and again but significant on Payroll ERP addition company us know; SAP customer of that’s down, supply Noble down for win; from we another for their Equity will the quarter, Workday ERP, over an and gas investment existing becoming the that Talk one taken biggest I’d us, you Sunnyvale; happened time, of billion well. Health, the Corporation office replacement us of of management. Canon a back customer. government a oil number manufacturing a very a a in chain part a a about significant billion Loan HCM for or ERP to quarter the another in business many few State bit is transactions I quarter; firm, other Hospice transactions Oracle in transactions, a ERP, quarter. Marriott, at quarter. HCM Fortis, Still of the Healthcare A $X of is Home just a quarter. in another $X

Energy, Medical HCM in for now as out in Our International; a Prospect Academy a Sports, of which supply us the the quarter; company; again customers portfolio which mentioned City me healthcare Oracle Cloud; which significant. product can mention of I going Rotary been chain to Coulter, company see, I The while. mentioned management Noble saw Beckman you earlier. Zebra number ERP is has Technologies, billion Sunnyvale, and deal again earlier; $X you earlier; now

ERP Toronto Industries. and is ISVs. ISVs But, about of warehouse, advantage chain management can Financials, management they’ll ISVs, software just close thought Once I’d and I tell you back you PaaS the and significant then both couple the opportunity quarter mention Re; and a to using as at their our Insurance don’t cloud Asseco win the Emerson FICO, wins HighJump. of significant. three Standard chain HCM Standard leading infrastructure also Reliance the infrastructure HighJump quarter. provider by in Parcelnet; supply amount, office. So, market. in our again are Dominion; supply Electric; platform talk Company; And -- thought I of the Network is I’d significant the as traditionally And I Nuance these Life much. AIG; applications it few and and Hermes Rail; end of some Communications; a be deliver mentioning Swiss wins. into to

a personalization by PaaS as can saying, company leading I that’s All the you tell and software bring software pipeline Larry’s by they as listen, And Fusion tell be point, ERP. but which by will Asseco that just our at is just material improvement is and not can analytics our I’ll close by now, SaaS these is With level, the space. using platform. e-commerce NetSuite led Oracle FICO pipeline the is, to these record market. to hope a base an by you wins, in payment both significant. is -- platform

it’s Our for overall the highest PaaS was pipeline is And at quarter in it also level us. solid been.

growth year then we EPS half be the your and do will Looking double revenue in and to to last give grow Safra’s year. forward I’ll to take that point for back With than Ken second it higher digits the earlier, expect questions. we’ll

Ken Bond

we’ll the Victoria, Q&A and get you’ll ahead questions, of on call. the Mark. if Thanks, started instruct now audience please the go portion

Operator

comes the time Kirk very Kirk of Yes, you the a Materne regarding curious, in just first Materne much applications a just comes confidence this NetSuite finally wins sir. that rest maybe that with some business. to ERP more of of business, customers to question of from saw Obviously, from Thanks terms Can year? the just the I’ve as Mark from areas, into little get Thanks. your Our I’m I sustainable, the is Evercore quarter this spent cloud quarter. of confidence [Operator here? done. forward maybe the heading how on just what more existing had of Instructions] some your confidence outlining question a know for we improvement words unpack go and show -- of use just kind much. moving the bit the of maybe terms you ISI. HCM I your in I apps Mark you in to the can Hurd don’t what in business and lot than

great significant -- I describe job. is Kirk, had I -- best the a team and think, in We’ve performance the of sort done NetSuite it NetSuite of Oracle sort think the what is of I’d has combined. best management NetSuite of

down. supplement college And in wouldn’t recruiting, incubating NetSuite them a a invested to organization, hires. job of is sales short-term earnings traditional We’ve probably they’ve productive. as because We absorbing our public attrition Our them They getting traditional requirements. quarterly company fantastic done share the have done per also with them. our frankly, and able this them, been

to off. paid and were you, I very QX for revenue plan before, had bookings think ahead QX the that be that a both sales. bit And spectacular in in Their The it’s to mentioned blunt numbers bookings R&D I’ve of were with that them. little I’ve growth. QX translated

going to these revenue the few by about but in regions. the a manufacturing. year. news the call QX don’t the to business you bringing outlined to when not cloud. bookings traditional to they this said, now, great The a win the now And to I’ve mean, growth customers revenue growth can of both material, I talking going you this maturation more be. in chain And this will we’re call, much supply it’s back a XX as tried to last of accelerate again, with is pretty know Oracle rate. customers. business, perfectly and broad And list the X, growth X, across of points customers this do on our I just to is annual can supply year-over-year. expect In their X, sort supplemented comparisons bring from as close of mention year most pretty we of is about compete growth what I that chain, relatively set and read we what to I’m the their Fusion position rate in business I people I predict, think so, have I it be back, And to aren’t great that

spenders. If you Kirk, saying now, ERP will, on-premise the traditional I’m

So, our I HCM talked business about.

of confidence is level ecosystem the I pretty in is So, mentioned my our apps XX% hot. recurring. as revenue,

So, our it conversion listen, our ability of our rates me predict are let quite high. way. morale -- our this to end The pipeline,

at That’s here position is perspective win believes, a into to virtually they Oracle deal. a position technology team -- attitude destiny win every And believe going their the from we’re we - that go they be that’s every this. with to Our deal. to how in

confidence in really and And is high, up tell my on so, our answer long shows to side our pipeline you, results.

Operator

some got with the Mark sort appreciate would as if appreciated. Hurd greatly I’d a Hindlian overall could what’s provide question. the Kurian be Sarah can I next me with But Our seeing Mark, That that. little bookings talk on ecosystem, about you’re Macquarie. second know of trends bit and Mark. really you’re update. asked Kirk of on bullish question us follow-up, apps ecosystem? the going a about Sarah tech with from comes some you us you Hindlian clearly the And let then, and to it, Thomas in an

I Okay. bookings think question Hindlian It’s trends? the Hurd around really it. Mark All right. bookings. first Sarah was got I cloud

give of When They’re sort excitement the And clarity to ISVs. try Larry’s In up, as much really ISV And biggest terms move early of. results of sort I I is can. of And can are ISVs lining ISVs because like the us strong is we Oracle GBUs. point, that. we’re of short describing I now, infrastructure encouraging have. database growth as do OCI the it move. you news can do these I’d these nobody term indicators, reasons when outlined of sort already business, our to you to First, Larry’s that’s discriminating. rate PaaS Early next-gen these seeing can Cloud but probably the fast our know what say, that Infrastructure of in ISVs to It’s good are days, that Larry sort one bookings. This how done. OCI. other we get see we in indicators with you And most their to future talking start the Oracle is about to we as very our mid-XXs of our relates some of what very mentioned

I talked about think I the SaaS growth. bookings

bookings basis. accelerated Our growth for quarter rate rate a accelerated. cloud The overall the in on

the So, have we that description -- for to us focus was run indicator a it trying good I’m good bookings of are. Again, Bookings to think more is was overall the best I revenue. of on indication us growth. obviously a in where we long before revenue here

really you to And to don’t what the revenue, is, because to us. don’t on prize they the focused do bookings so, anything is if keep what mean now translate I’m trying

has continuing our is sure a us, you on renewal our to looking rates, renewal at very which trying they improve, to making forward. believe That our couple we revenue. if are renewal we’re rates So, to also start focused as aspects go other get rates,

lines? we So, us a Kurian, bookings works Thomas Sarah and good taken renewals revenue is your there break. think back. said. Hurd Mark back months helpful. the along very I’ll or to which He’s some going combination a next I He’s taken those a Is he’ll just it gives expect hard. when That’s something the was him Thomas over up break of a better timeline I is of Hindlian stick a what on On outlook. and kind be question. guy, few

back. him expect We

Operator

version Larry, Zelnick now Our database, a purchasing got How you I’ve Again, next Credit cycle. with database Zelnick more And major it’s with Well, the days. corner? do follow-up of Ellison Brad innovation patterns, impacting XXc just Suisse. people cycle? the newer cadence comes next very a envision Larry autonomous accelerated Brad adoption you’ve the for I early to infrastructure. quick think customer are for the Safra. around question moving you from the Larry the committed have ultimately cloud and one introduction to and

things So, that going are there on. two are

prior cloud their applications. for it's shift delivering just to of allows for number technology just the available existing in it cloud easier to on-premise. customers and and it our We’re a -- to product to available -- get out large development making applications, lift for of us It make the new our of

now So, warehouse the and database. an very for a available that’s with -- now customers positive a were trying there’s it had surprised. we’ve with And system very, feedback. lot the of people gotten they’re very here And in that the lot now We autonomous of cloud. process our in of OLTP a experimenting are data

running they got X that strangest you times run a who system fastest on is Oracle to runs the learning one can on-premise, It’s and They someone think for And shocked. increase. the the Oracle database. also Database was than database the me is Autonomous they Exadata machine just the the cloud on human better moved I which it for were Exadata is performance tuning beings. way simply in autonomous the theoretically which the by which cloud,

to moving they’re cloud. Oracle additional now, so, the And workloads

to fact these the upgrade increase we pretty now, early these will can think, adoption things we I confess, actually faster Albeit that days. are the got rate.

to that cloud. of experimenting workloads of the customers. we’ll point. rapid Once think awful lot add Oracle the of process, I through database into to tens quarter, with have workloads We and at mean, get very, their Larry’s on-premise An are from migration their numbers now thousands the Mark Hurd I very you cloud. workloads if first in a of they Just them look first moving have said, with RAC I options The the was the The autonomous Guard Ellison at were their the that come that up leading in license just database. mid-single-digit of driver database have are like growth. Larry real I’d multi-tenant that on Data database Yes. and we growth said. cloud. drivers support. of really database along the own to follow license bringing Mark People what Active to

license and to then So, what their availability. application we’re cloud. the the they’re clusters, seeing it that’s from majority requires then on-premise on acquire multi-tenancy going multi-tenancy and do terrific to we and it. real are is, it, they option performance, missing cloud. that They application database getting they our option. license maybe and pieces a vast They Autonomous want they the move it go in to where of real and use lift back And great the clustering autonomous trying they’re requires deal the database entire And they’re cloud. think try

billion our additional our the are of I’ve it. going as authorization with buy we a you they opinion worth to How just Thanks. forward? buybacks billion strong should we with about own versus quickly authorization, but well. much, And And your then are, the license. continue on for our other color. is autonomous $XX rate much, helpful customers new which required with you see Thanks of an in cloud I’m at stock. think tell be the bringing it express of Brad like growing got and buying going it back. database Our and back deal piece an very how not certain their cash stock, augmenting earnings the taking features seems our buying use while unbelievable like But, to on-premise very you of Zelnick license, growing uses these exactly the buy, existing up think see stock cloud for amazing in $XX We Safra to shares their infrastructure buying database Catz are use this value flows, quarter cash pace and I I’ll when so can prices we going to Safra,

where putting our our frankly. money is, So, mouth we’re

Operator

Our question year of and Safra, next question with several John comes first years. is DiFucci flow John for from for time Safra. Jefferies the you. My Thank cash grew DiFucci Company. line in last

cash operating you affecting cash I flow Was Safra ago? Yes. this two questions anything So, was then, quarter up free flow that cash Catz and modestly cash to two, to quarter guess And this on there let a flow I’ll first. One, was answer flat. year flow. -- relative

Let’s time. do one at this a

both less of know, wouldn’t lower in the record, operating that months by last cash move tax million plus -- $XXX that so the of was way, is much of things is that which So into, a around A flow visibility employees necessarily year, deduction couple our with okay, The lower. don’t how addition, of we get, And to compared latest tax XX value difference, when that in exercise and quarter. have I rates. their there’s options. you

DiFucci -- but for business to one increase, overall is capital and going something see any we you. see an line, growing Thank at continue or some when than time, the And John cash seasonality other payment our So, a second I do, expect example, my that cash you’re direction. upward in because like That’s you flows line that, may question. going to general within but now. in working you see an operating flow should tax that,

Catz a it. Thank answered you you. lot. Safra So Thanks

Operator

the Bellini of comes line you. question Goldman Safra I Heather with Great, you. next Sachs. Bellini Our thank Heather from for had a question

continuing the quarter? software cloud Okay. But share on follow-up to color the you’ve about in any safe then, my comments deferred short-term Thank Safra is say wondering, Given support that seen could to assume the that in is business. Catz I’m if you you. grow? had Mark trends also, to great And revenue revenue question it is

So, yes.

You should growing. assume that support is

down base about was about Our net $XX.XX gross continues short-term quite reality a quarter billion. was as deferred far it is uncollected to the let’s in revenue for as X%. up that And deferred invoices. the bit grow. And say We

So, which We net for QX invoices are mostly been like things sent that and folks other down. uncollected. as bookings had don’t yet down; out net

short-term so, And deferred that’s revenue. our

on support. Mark going know multiple I support, on you great. but there thing just One Going Hurd growing. Database is clear, Heather, to is know be this, inside support things

nicely, our So, it’s rates rather are and renewal slightly. inclining growing

job, But incline to cloud, we to if them very So, the we quarter, move decline support did to and them because to they’re slight our will you we apps. continue revenue But SaaS. this just high. in is is apps do declining had our as to move job

so, you question, impression, Bellini that looking and moving to it at that That give meant nicely; we And working grow, who’s that Hurd to the renewal I’d this if I more incline, to as the what know you of you the every Mark our don’t is where actually I said ask percent is No, cloud. apps is of is just we’re just rather that to when like that rates, we’re of looked net whatever of true. you sure cancelled, total... to like growing against line make it’s cancellation you that net want declining, our database actually no, that. want know it, if I an a support seeing meaning get Heather for of but somebody wrong

is actually, our So, of actually apps in that well, but the driver to our is movement declining cancellation net the cloud. as rate

installed and Safra we attach that leave you wrong… It’s it’s Did grow. rate, Attach support database want rate Bellini you about Catz be increasing? didn’t with clear, just Just make Mark. just sure database. to say that I a Heather base Database to XXX%. to continues renewals So, is

Operator

Bernstein. there Moerdler and was any that Mark was when about call. Services a question better gave it of have just for How appreciate. it Moerdler it my had Mark PaaS, line of was Our Well, understand, you. Was think less really Cloud and and of being. I’d SaaS? from of license in, IaaS, the difference ended drill Sanford between think street weakness you than fact what expected. for question Thank was it -- it from you I taking was comes when my guidance Catz what the weakness, I’ve the currency was numbers some Can I that? Safra most us you was? kind got what miss up if in help we that where next maintenance, you slightly support had should

number. double So, the she Oracle’s Mark I with the the beat -- number you, on gave I’d to negative Safra’s about, that said it in that that relative QX say, be you’re say that when room, so, we when relative expecting. line Hurd talking point, was to to basically was in very guidance, performance blunt I’d

the currency Now, from quarter the we time moved we reported. the during mentioned on it time us implication to the of

we the So, the in again, based end of at that view, and in better I don’t did forecast on line our quarter. we know model, did everybody’s to on relative what’s but our our

Operator

the in Our with next support. question from line and growth mid-single-digit license Winslow comes Wells Phil Winslow highlighted of Mark, database Fargo. Phil you

Ellison well then, Again, great. database So, environment very in as get terms Just players, that RDS as a in NoSQL vendors would your competitive competitive them and question of because competitive what ACID with Amazon means cloud no questions here. on-premise? we particularly, of there have in you announcing seeing Yes. are in obviously both What think environment large some and we for compliance about Larry a such lead there with be we bringing and you Larry technology. very, achieving them just

Now, there not might why to good. you decide it’s a use be a reason as database,

at and the Aurora Amazon we’re the right. number getting Amazon a the is for. sells that If databases, different and Redshift stuff cloud database responsible actually cloud you’re Amazon of committed MySQL you’re lot sells or Amazon a of

the previous people because that. people tell in in there do to happened number with lot Windows. And to a Microsoft’s And available Amazon us of the was going cloud. use people that the generation easily use has chose I’m So, database to whatever content a when of

We So, -- we weren’t the database only do we’re not see that. around.

want in security cheaper the technology, The want the one they we’re the charge cost. Amazon want want charges can, twice If do as minute. is into you highest more in and the database if can half per minute than in However, much the Oracle cost, reason translates of terms Amazon if performance highest you lower if if the we you you than highest is database the much the one reliability, because minute. minute, performance, price. per We

go in as terms So, you’re we to anyone cloud who’s Mark in all Oracle. the best to take lowest they’re numerically, the end people infrastructure, shopping Amazon reliability, whatever of just of growing while and Hurd cost, buy Amazon mid-single-digits. for database, there terms will part to of So, think, in is it, of actually terms use, of going ease

and is point I gained You X, you market market half must have share. don’t the the a know, have growing

the different and the part all dispute the rolling we years, you of just I about. we it’s over these share. all we quarters two year, that talk -- hard numerically, mean, gained past these; Larry the just talked it’s technical just evidence about to So, points eight names mentioned, just

Operator

how cloud, expect Michael Mark, comes that you question Well, in quarter. doing of make markets. final in they James. to their question businesses in applications with terms of from Turits the Mark XX% for I Turits for you to about vertical comment moving script vertical the are Our continuing Raymond to how’d impact Hurd rate? line the growth made on How and vertical of Michael are those are you my in the think being SaaS, I excess growth cloud - a doing

They’ve their a business that’s So, than number. they’re point is where good license to also the SaaS business. now bigger

from an I world of opportunity our absolute it’s Again, to infrastructure you applications applications ISV will, there’s are business biggest the you perspective, if cloud. have the in or us ever case you perspective. on going beginning business that perhaps for from will, quite move OCI are job. I pivot license business, an within they’re about some good of that done, the OCI applications terms in do hosting, if other -- license mentioned think earlier, So, a of Their more they’ve for to next And that our OCI. test they well. could the and they cloud generation the best ISV running And an

of So, going well. a I if then business, sort will, of XX% there’s is our part the will, hosting a of movement that some described, which of SaaS OCI, applications combination both you if and you the a those to as growth, of the

vertical is us allows way, So, vertical license grow, still growing, business businesses. our the their our support by to

So, healthy. overall, quite

Ken Bond

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

Operator

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

disconnect. You now may

Ken Bond	SVP
Larry Ellison	Chairman and CTO
Safra Catz	CEO
Mark Hurd	CEO
Kirk Materne	Evercore ISI
Sarah Hindlian	Macquarie
Brad Zelnick	Credit Suisse
John DiFucci	Jefferies and Company
Heather Bellini	Goldman Sachs
Mark Moerdler	Sanford Bernstein
Phil Winslow	Wells Fargo
Michael Turits	Raymond James

Oracle (ORCL) 17 Sep 182019 Q1 Earnings call transcript