ORCL - Earnings call transcript Q2 2020

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Operator

Welcome to Oracle’s Second Quarter 2020 Earnings Conference Call.

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

Ken Bond

Thank you, Holly. Good afternoon, everyone, and welcome to Oracle’s second quarter fiscal year 2020 earnings conference call. from press non-GAAP financial financial reconciliation be and the a which information of website. viewed to Relations GAAP and downloaded copy release tables, and includes can A Investor our other supplemental

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

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

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

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

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

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

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

Safra Catz

like to for Thanks, Ken. before we a to us. and passing. mean lot I start, many, Thank thank you Mark’s But all many upon acknowledge I’d the received condolences sincere you. They

had we solid quarter. see, can another you As

businesses. total EPS range that revenue, continue our quarter, offsets the revenue to we guidance given than growth, within Cloud and smaller material in and some than more more it XX% at This Services finished total non-strategic declines License see with high-end. it my represents and of Support growth

we further final our growth will reach of ongoing business mix. encouraged overall We this continue accelerate, be in that shift the to stages revenue as

time Oracle right comments simple, strategic performant of in Oracle our to to is strategy their the right. The as nature and that run businesses: Of reinforce their feature-rich, they being Their They and see it with ongoing and late, both conviction theme right. and our is hear compelling secure, technology operations, that product their been critical partner the our on-premise. much overriding assets, success repeatedly is of the I customers. how to the more spending cloud I’ve me tell is mission-critical priced

allows At to a experience, go cloud, of customers customers Oracle, we with our have stunning sharing unique infrastructure to experience serve by Cloud move benefits know know to we upgraded who we’ve and describing the our transformation. how and customers the references, and and as internal digital can their that the own systems thousands and efficiencies own realized our from knowledgeable applications and us be to about adviser to adopting Oracle want are

many in To few to our and the but give books days let a benefits context, or get money, our Many out we’ve we XX And results only saved too. their results our can of report we weeks. less. just share Fusion we for companies With don’t report some are seeing now ERP faster, not able close earnings Cloud, in business. me you are

and rates Fusion And activities. AI seen onboarding manual our Cloud, satisfaction we enabled of high by have been HCM eliminate and employees. things have ERP than for soar in like XX% to new By levels using the able processes accounting all-time with Cloud, Fusion more we employee hiring

offer saving And separately, Fusion for process. accelerated complete employees, hours we’re with managers our reduces made to as process XX,XXX time by time more than HCM than and also of it our year needed XX%. talent easier more manager review We’ve the the job each

than campaign and cloud conversion. and platform, Cloud, with in salespeople days planning Cloud sell more With built-in machine doubling sell with In seen learning, a our rather lead augmented Data learning quickly. we’ve sales, more our Marketing machine And we’re own to weeks. now front-office using takes our help

We automatically We as Sales is needed much handle Cloud, each the increased that Cloud a of over to our millions faster move ordering automated. with and volumes our CPQ And year. XX% result of cloud. in transactions customers fully to of activities of transactions capture the easier, with

In Infrastructure, adopted custom GenX the apps. for Database including addition, we’ve Autonomous our

Our at than more each internal costs time, to run are while features same are down millions, IT new quarter. adopting these by systems XXX the we

intelligent efficiencies. margins continue as are and and processes. foreseeable to that I increase us simplify more EPS we continue grow will our will going to see even And business revenue technology growth turn, expect automation Oracle, double our see an a future. In you result, and I digits at the expense and cloud using our own that Here our as rates model engine expand expect for

Now rates X%, growth on non-GAAP that and for Q same fact Currency in simply – I’ll I the nearly guidance review rounding. a to is numbers. largely using rates the results dollar line look in growth few of our my with categories the otherwise. state at constant unless the was because QX

for XX% our customers revenues order License and cloud of this most X%, the up total $X.X license. X%, is recurring of were $X.X instead billion, of GBU Services down billion, as on-premise quarter more accounting Cloud revenues company Support revenues were Cloud license revenue. Total and of and for over

NetSuite our XX% in Vertical more billion, revenues low In Cloud terms XX%. while Fusion double application of trailing SaaS recurring. $X.X Data up revenue up a ecosystem and Fusion digits, up XX% is XX%. were HCM apps up up GAAP months low-XX%s, including with of On application ERP up the was stabilized. than X%, was basis, Fusion ecosystem ecosystem, ERP XX

with base ecosystem basis, GAAP XXX%. quarters and BYOL infrastructure over ecosystem recurring. highlighted $X is Database more both database revenues, small XX-month X%, of a three up now, revenue revenues revenue by Autonomous total our off than billion, up up But a were on infrastructure trailing X%, for

architecture, days. significantly longer. connected. deployed in was this able fully four we GenX a few Just done GenX days and took were It ago, just first get typically our with our Cloud@Customer to Exadata Previously,

As has to technology optimistic a very the actually GenX other our Cloud@Customer do about this. will we right on impact our the have are cloud business. No result, provider

terms of in Latin except accelerated Cloud Support in growth In all worldwide. address EMEA, License XX%, in to and revenue slightly results margin from investments SaaS we Services with saw and regions down Japan. in quarter for our to was double-digit America especially Gross Cloud higher demand revenue GenX strong due last geographies,

our our showing base our acceleration installed the gross focused continues quarter, database the strategic double to we Exadata, our hardware includes an will scale, grow digits driving world-leading products By grow. As customers for higher, expect way, get grew on cloud on-premise, profit of in gross growth. which delivered I margins that platform once again our to

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

was rate rate tax quarter EPS and up base XX% USD, flow quarters GAAP below in USD. slightly and GAAP XX% was XX% constant four tax of in for cash the in $X.XX constant the EPS XX.X% $X.XX up tax was XX.X%, over The was in USD, in billion. our last was rate XX% non-GAAP USD. The and $XX.X currency, Operating XX% in currency

capital $XX.X cash quarters, four flow were billion. and expenditures was last the $X.X Over billion free

timing changes. deferred XXX. the and over billion, billion balance revenue payments. prior securities is currency cash our approximately down due X% net not in the to deferred in and have XXX year Also, over was constant Gross differences revenue in now $XX X% was short-term marketable and in transition ASC We customer currency $X.X by been have affected for to up ASC deferred transition constant up if would X%, balance

committed acquisitions, to debt We of to stock and our shareholders remain returning and through technical prudent innovation, value repurchases use dividend. the strategic

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

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

in on today are and total as effect remain guidance have rates on the EPS. negative exchange revenue should a Currency a X% $X.XX basis current currency, My assuming and constant effect negative same is they now. on non-GAAP

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

the quarter. X%. I this Now I constant revenue sound they’re a currency like growth it’s guidance expect and but number, just revenue impact my same USD of realize do of that nearly our to – currency similar rounding X%

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

move rate higher growth. XX%. guidance on and XXXX year be fiscal for fiscal around billion, for $X.X but could QX to of data is My Total expected CapEx a it assumes demand XXXX EPS base tax for year center based

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

will And finally, than and that for the total growth EPS last grow expect that will to year fiscal year in we for faster double-digit XXXX, constant year. report currency, I revenue continue

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

Lawrence Ellison

Safra. you, Thank

market happening clear cloud, other segments, Applications Oracle’s future before, Autonomous and product market infrastructure ERP will in of two Being we’ll is are success determine the both in and products the applications. As the I’ve infrastructure two adjacent these one enable already application number and of giant in key said Database. there that This the areas in Cloud applications segments. our

huge Fusion XX,XXX a customers ERP have lead over ERP ERP, with customers. and NetSuite We in Cloud X,XXX

competitors, customers. claim ERP ERP they have to XXX a Cloud closest Our and few Workday,

opportunities in for part seeing more, as is in Cloud of purchased application HCM HCM. ERP lack suite. and of as Workday’s we’re being an More ERP creating cloud a Cloud success Oracle

sales more than same suite beginning a result, to beginning to of see in HCM sales have today, service in we Workday. applications integrated our we’re customer marketing. that And and drive strategy experience As and CX customers

their the cloud. SAP never ERP for rewrote applications

migrated from base result, SAP a installed Fusion customers vulnerable. and many already replaced to very As ERP. SAP SAP’s midsized is We’ve successfully

customers ERP. for base from us to now, months go created few cloud. their in to SAP’s XXXX, Oracle. develop with for Fusion grabs. SAP’s That a biggest working plans largest up calendar enormous customers Fusion rewrite didn’t will of is QX the already applications has are an for the year one on customer SAP’s They opportunity Many migrate ERP. of Importantly, live

in We’re over rate ERP already far market Cloud and in market growing already beyond can ERP of alternatives growth to declared technology, measured our Cloud By safe rate a XX%. increase the that and a offering at we XX%. old share compelling one is SAP’s applications as number our business

We’re very, very in winner the comfortable that we generation be overwhelming ERP will Cloud this business.

wins in EPM Robinson, a media Supply equipment application some Albertsons big a and transportation chain. ERP, at supply bought the quarter. got supply Edwards ERP. Now, EPM ERP, company, EPM. ERP DHL a Advance company, look bought let’s company, bought medical German and bought Publications, ERP, company, C.H. Chain, Lifesciences, and chain. Worldwide,

have HCM I I’m for way, – the HCM a not By because separate deals, list associated mentioning any HCM.

maybe the lot of a will deal. So the to deals next ERP guys, next HCM put quarter, right I these

a So that as see, the you’ll now – at important. I HCM we I very back-office, that get module and just earlier in point people need repeating these made lot of names list, HCM you can my to that’s because another the when are I’ll looking be

supply firm, manufacturing ERP, ERP. bought company, Life supply supply energy Edwards and a telecommunications chain. NCR, firm, and and financial Assurance chain. ERP Lifesciences supply bought services, and bought supply EPM big bought NETSCOUT, bought ERP Ferguson, Mutual chain. Global chain. chain. ERP, EPM bought Companies,

company, bought Pipeline, Central ERP. big energy Gas Star company, bought another ERP. energy Southern Technip,

supposed Travel ERP, supply services, ERP, supply Petroleum, Wagonlit ERP, and EPM Liberty bought be chain. and Children’s company, chain. the ERP, By Global, Unilever energy chain. is very communications Kuwait bought ERP, company, supply supply Hughes, EPM Texas hospital the energy ERP to EPM bought chain. supply Baker in company, chain. and EPM SAP Healthcare, and way, and energy. Carlson bought chain. strong supply and EPM

It’s they EPM what people Manpower, are the ERP, modules, supply New It’s supply supply lot chain. bought ERP, that’s of manufacturing. ERP. it’s bought and Bank chain. buying of Enterprise EPM, EPM and global Mellon Management. ERP, It’s it’s a chain. chain. EPM and bought multiple The not suite, just Performance services York ERP, supply company Sherwin-Williams,

government hospitals Energy, bought in hospital, HCM. Group. Terminal Airport HCM HCM HUS Finland, – Airport my by Retail, HCM. they’re other I’m bought energy HCM. on HCM. in the together. I’m bought I’m Cummins, Group, grouped HCM. CenterPoint bought company, federal company, Services the in bought Graybar Services the run HCM. Finland Hologic, Saudi Fransi all manufacturing now Bosco sorry, at of Electric Terminal both the Apparel HCM. Banque HCM.

Mountaire is sector HCM SAP company, list, us. Farms, stronghold the my HCM Refining, energy Atlantic HCM. big again, from this energy an bought North in

energy bought HCM. a Central Star Healthcare big Texas Hospital big Gas Tenet Energy, bought company, HCM. brought HCM. gas Children’s Pipeline, [indiscernible] HCM. City Council and bought company, HCM Southern Kuwait HCM. bought Technip, energy Petroleum Corporation, Birmingham HCM.

MEDNAX Health sales marketing. service. HCM. service. service. Enterprises Phoenix customer bought service bought Rabobank Santander and Life In marketing. Ferguson bought service. Care, experience, HCM. Ferrari bought IKYA PayPal service. bought Bank Equinix Nordstrom Holdings, bought bought bought and

cloud, market segment, any share me and data though, see with are let the GenX the on-premise is in which the Okay, a very Database market overwhelming combination I other Infrastructure. number cloud. database database one, and strong on share market, the to on yet move to Autonomous good share the of dominant have a in In we

very Our anything. technology Database. do is in That competitors itself. when What have our the over system Autonomous we system. advantage growing system, Database only configures configure you enormous you an because don’t Robots the world’s configure database all business that means, with mean? very, Autonomous the cloud rapidly, Database. does of the is The Autonomous

is, recent here. configuration because all Capital One AWS a that The lost people One of Capital at the data made one

patched Autonomous the that can’t the but caused all People system. beings fold A configure their are They Remember human the one. these of human You losing data of the people not configuration lot by the because some, errors systems. Database, headlines make systems. forget with errors. patch of above don’t

is just is to to database, Equifax it about around stocks Guess [ph] And all. the by Equifax, patched. at flaw patchy get knew detected find automatically And them have Database they Autonomous get a patches itself They They didn’t They was a patching. all Equifax. databases. hard. that They didn’t way, find security what? it. when Patching detected flow didn’t security the

downtime. schedule to had You

schedule the You Database. Autonomous with downtime don’t

it’s the while still running. Database, you the But why robots Autonomous see There’s human our don’t no Autonomous. The attach can’t You database. capture database That’s is robots, labor. database.

So there’s human error. no

you have is and pay mistakes. all get of way, technology if less to than that by labor, faster gigantic willing not So ten those we’re anything you a rid and This human advantage, Amazon are apps. times the

easier to we’re much use, safer, than Much anything means, build That applications cheaper faster. Amazon has. much

added new of small We our said, quarter. thousands Admittedly, have Safra customers Autonomous company’s a growing successful already excess Database business, running introduction business the but way this to our Autonomous it’s we So new of product in in most history. in base. is as Cloud. Autonomous And on relatively Public Database X,XXX our its product, more being XXX%, a off it’s

will rate, another I because of thing this growth Now expect triple-digit just up spike mentioned. Safra dramatically

GenX of Cloud@Customer. introduction Cloud@Customer, Autonomous Our our Database

in Database Database, Now, when mean, Autonomous clear, they’re putting be Cloud. people me I already start are our can Autonomous all – our let customers, Public

defense firewall – Database – next need They center. A we’re this data out GenX Autonomous behind capabilities people big lot their Database in people in ministries, markets, next months, those And their agencies, the the government of our and especially over regulated banks, customers, Cloud@Customer. rolling few that. Autonomous have

all these fact, of a this time did our our No, cloud the second-generation are of installed days. this. – new reasonable four create We actually first to first-generation in second We Now We on their And be day. outposts early. a was in in floor working. did competitors one of can charm. customers. of – is we’re installed a And it have we trying on but the stuff job, GenX cloud it the the in floors their

and that. with and to time huge adoption spent Autonomous software, faster. up because to plugging more is increase that about excited going in dramatically This the running. very the it Database, to Cloud unpacking syncs hardware readying Public us a There’ll the be just it expect our than up rate for opportunity even We do and be you’re on

that will in happens, when The the lead only not have think measure, but share overwhelming okay. any on-prem, cloud. the lead – market market by The – the overwhelming be share we we

franchise a way. our onto We expect in big hold to database

that new running So both secured it’s our interesting highly GenX are applications infrastructure. Autonomous and cloud our in Database our of

end more this the have to year, data next than that of centers of Amazon Web calendar GenX say I’ll by time And centers end countries be next has data the able we XXXX, more year, by in Services period.

end We’re data more a in adding very centers exciting. And, than lots lots have the data more Amazon again, lots of from in by and we’ll that’s now, centers and lots year of countries. – countries very,

in at Database some Autonomous let’s this our look Now, quarter. GenX wins Infrastructure of

– manufacturing our a this people our warehouses mention data firm. that this international applications. They more applications. do got build I’ve lot Albertson’s, buy big also is ERP to buy another work. They where Okay. of They associated those [indiscernible] synergy with applications.

– lot customers. of are application and to our beginning So infrastructure a Autonomous customers infrastructure be customers Database

also So, an Warehouse, the you yes, product ERP, When you’re buy Fusion HCM. Database to when buy you going is product. you Autonomous also Infrastructure ERP, and which buy Data by might

going You’re center. data to our analytics GenX buy in

You’re Cisco application Services. we of infrastructure. sales Data buying people Aon and applications as lot ERP, well like customer, customer Systems, see We Autonomous Infrastructure plus and overlap. as also plus going often Biogen again, and applications, But HCM, Financial Warehouse. infrastructure that. an bought things an plus to see GenX suites see be of Warehouse. Autonomous Data a

Database. manufacturer, Interact, Infrastructure big Database, GenX of distribution Healthcare a services, Embraer Corp., and and Bank Fastenal Clearstream airplane Services Autonomous Infrastructure. Autonomous Data Infrastructure Autonomous Database Company, in aircraft Aviation, GenX Equity company thing, States, the Infrastructure. Autonomous Brazilian GenX Warehouse. same Kenya, GenX United the GenX the – Infrastructure. Infrastructure. GenX

Autonomous Autonomous Data GenX Autonomous Processing. MGM Autonomous Infrastructure. & Faisal Database, Autonomous Entertainment, Database, Autonomous Research Services, Transaction Database Autonomous Schenker Database, Processing. Provident Transaction Manchester, Processing. Autonomous Infrastructure. Specialist Database, Warehouse. Germany, The GenX Hospital University, Logistics Healthcare Transaction Centre, Autonomous Core King in and

Infrastructure, Warehouse. States, in [ph] the Autonomous United Autonomous Soar GenX based Database, Target, GenX Swiss Infrastructure. Post, Data Warehouse. Data Autonomous

USA, company, mentioned GenX GenX that energy and Infrastructure Netherlands, I The but Database. Autonomous GenX Electric, Walgreens, Cybersoft, I’ve Infrastructure. suite Database. Autonomous Data Boston GenX and Gas Processing, Warehouse, Infrastructure. Globe, Processing. bought Autonomous HCM, and Database. Transaction believe, Infrastructure. Data TriMark Autonomous Infrastructure, full ERP, Technip, Infrastructure. bought Warehouse, Thermos, Database, Tokyo the Transaction the Autonomous Autonomous Autonomous Autonomous Tideworks GenX GenX

GenX Warehouse, lots Life Infrastructure. in company, you Data GenX Wizink Chile, of Insurance, Warehouse. of Bank, Equitable Data Autonomous Processing and Warehouse, on lots Database, GenX Zim see AXA Cigna Corporate Autonomous and Data Healthcare, big lot shipping Autonomous Zim, the GenX Autonomous seen Eventbrite, Maersk, Autonomous Autonomous Autonomous GenX containers, Banco Infrastructure. de Services, a them Database, you’ve Database, Warehouse, Infrastructure. GenX Infrastructure. Data Infrastructure. Infrastructure. Autonomous Baxter Transaction

Company, Autonomous Warehouse. Mary Infrastructure, Motor Transaction Autonomous GenX Samsung Infrastructure. Infrastructure, Database, GenX Autonomous Infrastructure, Autonomous Database VeriFone, Autonomous Autonomous Ford Kay, Processing. Transaction Processing. GenX and GenX Database, Electronics,

With the questions. that, over to audience I turn will for it

Ken Bond

Thank Larry. could you, Thank prepare questions. Holly. you the you, audience please Holly, for if

Operator

And from come Raymond is going our line question Michael first the to of [Operator Turits, James. Instructions]

Michael Turits

was Hey, it top strong But what the does to quarter strong the it was good double-digit guidance XQ suggest with fourth-quarter fourth – your for fourth very that and a per year. you reaffirmed than great revenue Safra, see growth. everybody. evening, EPS acceleration on last full-year the guide, of

know it mean early, that what can what fiscal confidence.? that but And what’s means it of what implies give I you in of does terms a into also given it’s quarter, for bit driving visibility So XXXX? about fourth us little

Safra Catz

finally Cloud@Customer. mentioned, So And and I out Larry available. everything we’ve as we’ve both got got and

that, deployed orders have of yet. We not have lot a that for we

demand new have got lot the We’ve a modules including got – entire Database upgraded. been We’ve even Autonomous Fusion of additional there. Database. rolling track. versions got of suite continuously got all all the we’ve We’ve So of on Autonomous

got we’ve and of an enormous conversion So we increasing. have amount immense rates our demand. And pipelines are

that are but to has just deals previous than are more I users of those very, bookings the year, dramatically know But And products carry using through this as we’re next about have year we will the believe in upbeat than momentum pipe also the and bookings, so more expanded we will XXXX. so the more to second-half have ramping more very second-half. were even the up going so

Michael Turits

much. Great. Thanks very

Safra Catz

Sure.

Operator

to line question Bellini, the next of come Sachs. from our is Goldman going And Heather

Heather Bellini

base. the I’m this little Thank But you know in going with two in as I terms or I or whatever about reorg we’re first so a the I anything of in it’s the force quarter quarter, it think, Great. mentioned the could was if Safra, call license that away just and expecting. to big of macro one, were on much terms questions. you you people try talking lighter out whether about get the there’s for sales than time and what, results But guess, a line.

just those then for better the while, license quarter about have covering feel And typically, the given mind. from average QX And and between I two deals then do to for push it’s historically follow-up, outlook QX, company number? you the and to if know QX don’t the you the I one know quarters. But how just a one sometimes I lumpiness next just

Safra Catz

generally the I be of will be Services services new as other as of is have you giant are fine which, the license and thing license have part number, it of I I said, available. most that License. that that They come do for that products not just but do licenses, in GBUs, become QX will significant. moved piece. Cloud in our business, very a QX the don’t instead lumpy. The GBUs GBU in their expect course, fact, think do good of than through feel But the expect I about significant. is And have will orders one we the cloud just as plain

Heather Bellini

my his the help his with respect share knowing to Okay. without hard be some don’t anything on of taken feel place same still in over? to responsibilities to the replace you’ve to just these mean, you there of him going with him, is all someone just it take to Mark being us I passing And calls getting is to how due And that then kind follow-up. just – some regarding getting I mean, them.

Lawrence Ellison

to I because question, people was is, Larry. so that our is CEOs, thought when CEO how for the bit odd. second announced answer how’s the time a a search This we that was question guy? two Okay. Remember, first know I get

And two bit so so CEO a CEOs it’s odd, is one have now – so people we that finding simple. are

So very plans. How’s for let for me make it simple. going – second a we new have the our CEO, don’t search

We was where have no for having CEO, plans an an Safra unusual were second and situation, Mark a it absolutely fantastic team.

But team. confidence existing in we complete have our management

We’re I see of doing are at when that bunch lot a a lot next is of the recruiting Safra a announcements down next the potential layer at soon. both we’re which anytime not down of and and you’ll hiring retire CEOs, layer and people who

so of we’re team, team is not second for the management one a strengthen strengthening but CEO. to And the to going strategies hire that

Heather Bellini

Thank you very much.

Ken Bond

Next question, please. Thank you, Heather.

Operator

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

Brad Zelnick

anything been market you might results from database about we Autonomous the to in Cloud@Customer. Database their How XXX% available fantastic, option now Oracle’s some Great. inflection compare on think is growing it material there installed to deals. Autonomous. financials? I How And appetite for including And the customers your Thanks Public it be in are an But making of over a financial your But in base? are should can might that having Larry, in it the in investors history? I required you’re in appreciate know your your many wondering year, GenX momentum now is we when from Cloud. much. see so a over

Lawrence Ellison

technological relational mean, I I there either no. we’re in terms of database. breakthrough. Well, Well, first guess, a commercial – the

Brad Zelnick

Wow.

Lawrence Ellison

relational of had that’s Corporation, The before had beginning, did. that or very did else We right? we first IBM the commercial So kind one Oracle anyone very created database.

turned company traded world’s most manages that that idea that into an – of So this from the company information. the

much say, use, Database would market. it much so – so that the favored that’s in to reliable I thing. than much It’s anything of same different, more kind is so So else is Autonomous

is it. Virtually, going everyone is it. use everyone use think going I to to

people The is, for said, here. that you while base we to new for a takes – it a will, an the installed Autonomous And seen with in only takes us the a, get introduce – replace eventually we’ve while else. a are Now it news database next-gen It But a shift will products. Database. And will early It huge the that it is adopters all year, everything we comfortable it’s and adopters. have using technology lot thousands. first it. when a good offer, if of and early think you that now

data And Database, put in we If machines QX. and Exadata that’s the and way, storage of cloud is a Autonomous our in data by Public it’s our only your all in if put our we your Middleware – available cloud at and center, in center our in our machine that Cloud.

base. and those – replace So it of two in we that entire think will it consumed one our will be ways

So existing to triple more than business or or database financial triple that is probably out. a double a standpoint look estimate from it our means will reasonable

That’s could And about kind tell Now, your it’s much of business, months. timing. of exactly you over next how will sell course, when I I all in tricky. XX are wish the you

Now many points. that have data we don’t

And new. quarters so then have quarters, We data first the four of points. it couple was of

really data we adoption only couple an So I’ve a points. of saying us have seen this of of rate ever like quarters All before. is been none

Brad Zelnick

you, Fantastic. Thank Larry.

Operator

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

Phil Winslow

Hi, taking my great. Thanks questions. for

then guess, question on like Obviously, sort about to ERP the this Safra that buildup focus NetSuite things talked Larry, and of back saw the wins I up you’ve here rate. of about saw terms tick too. in and that the the in of Data applications business. Fusion the headwinds business? from What past nice growth wanted Just the in Obviously, the year-over-year quarter-to-quarter guess, your a do to I you the Fusion, some you think that different quarter? on also curves of Cloud we some and

help when we from we if headwinds acceleration or QX here? sort curves Larry, together? other those a now are could? that past just In Where for we’re us words, take at you and up, kind of, stack was looking those of all Are we trough

Safra Catz

needs started let can get Larry when add and to he So me then add.

Cloud very will It so of headwind but first if has was slightly. that Data significant has know the it stabilized. So all, grew a completely it for stay I that that don’t In ever business, whole way, stabilized. us.

Additionally, such for our Cloud references. is it to many, of much, obviously in that is what once many other ERP the the customers We’ve easier referenceable, sort our And adoption becomes potential now that, in you much in are thousands. happens it’s move business ahead.

to to wait-and-see suite leading adoption adoption One some and historically had first business the by supply extent of the customers that attitude chain. some a now availability of been of things was

Our supply moving. our and are now willing more customers, has and many, chain customers in so many of interested

single every become XXX-plus a new Remember, features available. quarter,

those realized of must-have the some suite. as cloud mentioned, for business in have been SAP Simultaneously, offerings. customers not customers Larry that offerings happy have extremely features And SAPs’ are

use If don’t you XXX every technology, you get new a SAP’s quarter. features

hosted go adopt their There’s means customers business. are offering, a we a approach really in who which that digital obvious want – a the to who and simply are through choice for

and being in going also other to And got so technology that’s match up a as our which out virtuous cycle. And what adopted. new the we’ve front-office, more success a then course, is and, mentioned, with rolling showing is that HCM, obviously of of it ultimately, segments clearly for lot additional is going where incredibly be success. leads that is us, modules means are this It’s Larry and an

Lawrence Ellison

Yes.

to I at lot SAP and in – we world. top particular replacing we we mid-market, XX that in implementation go March think where the They’re lot got and live – a customers very are we’ve impacts live expect them the But customers this SAP’s right have references. year. a next of again, where customer the of of SAP’s they’re of base, at looking around one

And for They as XXXX. their would to current describe want I an them rooting us. billion-dollar upgrade. SAP a to end-of-life, stuff in SAP have alternative

of quotes five-year we’re it They’re really getting customer, no the in got some plan – So with if you’re no ahead, upgrade. a big actually implementation. having bought a people implement the actually to for to plan SAP bought billion-dollars as have – good with it. It’s – price make cloud that you’ve a bought

change. HANA system, not is to Imagine find and ERP. SAP going Oracle I from It’s can your cloud. taking for and the change only and and There to it’s want that’s only Anyway, to hosted. mean, that’s replacing easy Cloud existing stuff the well, I no they website out for it’s Basically, and for cloud. Oracle the you it SAP’s try find go the say, say, bought. SAP

You is Callidus, can one cloud. find it on for which

it Ariba, another is find can cloud. You on for which

it. that’s your that and little But forgot they stuff forgot rewrite they SurveyMonkey, are by You find they There they write business they bought. for do can had canceled all and there. forgot. business fails, ERP, that it projects that ERP to design They to the to whole

no cloud handle even They option So can’t for customers. ERP. SAP mid-market there go Workday is can’t Workday. to

cloud enormous giant in closely. at But this want we’re companies so to to they’re SAP, an their not me, – got can the way And any that alternative. an business implementation just safely that particular So they one they’re right, believe want alternatives a risks. putting makes these than we’ve that’s watching they take why sense, to that should we demonstrate

the biggest their to obsolete its with gone are divisions core by lots the – They not German, with German do to of customers their of moving don’t And are taking divisions SAP some themselves they’re the working heart of way, with continue persuade Fusion working of just in on some watching of already Oracle’s safely. this them their far. these some But of of code. want us. number can we A their They’ve are waiting. that that – and customers to

because this as problems. on That’s the we’ve ERP that there gigantic, This They Cloud lot SAP. – off got a And one we doesn’t There customer getting a opportunity have competitor don’t cloud It is hard offering. European a scale on-premise. business just are a time lot. not one ground. well, – of have their very competitor is doing having

old it’s the we this. And will gates just last safely. overwhelmingly largest we Office a cloud. can like world So ERP – SAP’s where the out and called be company We and to share for in of to the we sitting get we customers. Microsoft proof be the – do point to there. can be largest what have Yes, chance And it here to have application this get in do Microsoft to ERP, – Office getting – to be used

Phil Winslow

you, Larry. Thank

Ken Bond

please. question, Next

Operator

from is question next come Mark going of Moerdler, Bernstein. Our line to the Sanford

Mark Moerdler

to taking really very like, you starting sounds my for much Database it’s Autonomous Thank questions. gain traction.

that Given be license you it the customer, color including as the to they of the or of Autonomous, shift seeing time it the to Are with from the modules sales selling of specifically? size pipeline, Specifically, appreciated? required you seeing buying adoption. the in customers personnel the us of can you changes give more are the Any would size really interest customer takes cloud? some

Lawrence Ellison

happy I’m that. to do Okay,

will, take, most AWS is, the interesting we’ve to Autonomous to thing going you selling I on the cloud. in think that’s in Database if approach decided

weeks. deal So can we $XX,XXX a we in almost a to selling in our prefer deal, $XX,XXX because close $XXX,XXX four deal,

– app, a actually one on new once to they projects, once working they under So then some you become warehouses, working processing successful. think to Autonomous Database their going, working help of is way And they we have data working Autonomous Database have it expand. on in project hands sell the land they get get start systems, it and transaction installed customers, and our them get

of small So we’re selling thousands and deals. thousands

days I some approach, some and ERP. BYOL, back the coming of those not was they’re some it majority in interesting mean – not the But because of yes, already It is of but And it most small. in are as Not larger deals is deals. BYOL, to early is. it is our – of again, BYOL. is

[indiscernible]. people of them for ahead had early No, going pay Believe using us suite most existing what again, logos standard not, and license, get. In But ERP database. not They’re and we’re we using and cloud Cloud a their we new They are but ERP, we customers, our licenses. were seeing in were the us, customers. e-business they they our new it actually moving days new logos. When or logos. as call they’re

use. You pay for what you

these, it’s It configures it it. best try watch tunes backs mean, we’re techniques cloud. thousands Database upgrades for up. It get promise of And the think itself. in itself is because the itself. There’s it running, selling it, It I the nothing Autonomous we like getting itself. of

the got across way to win our well. do on. base. We very, to just go what’s hearts minds. that entire is And going wide those That’s customer very And and again, working it’s

beginning $XX,XXX month. working it’s month because to very from we’re $XXX,XXX just first going think people a I very, and to the seeing a coming back see well,

Ken Bond

Great.

please? question, Next

Operator

Materne, the question line for Kirk final come will from Evercore. today of Our

Stewart Kirk Materne

It very Europe Thanks thanks Yes. the for sort on the all. little was a and perhaps you bit could was was Maybe add I taking different if much for just seeing of color on wondering this I you question. the Safra, like looked bit just comment landscape that’s your a theaters? geographies what could sort you across quarter. if softer macro. little wondering other just in geographic you’re Thanks. just of

Safra Catz

Yes.

only EMEA in grew quarter, single digits. This the

or of other. the regions on one way think other And the double there’s special I digits. high going some Some high did the in really digits, grow double very nothing

And different. overall, the that way quarter very completely the just them. business it’s of think be Some our remains I quarter strong. next could for But out falls

So it’s nothing. really – it was

out even change data Latin there from Asia reasons have of seeing not doing very looked and opened very, and in Japan. get very very, Obviously, well opening as what got capabilities. a a new lot America of regions it to number We’ve We’re centers month-over-month roll some like. or got they and in different – are in for quarter-over-quarter we’ve successfully a massive

we’ve nothing I got growth – to what which see areas. and special, some so some today’s no explain I happens usage EMEA, we’ll in lot selection some a UK. we real areas, there’s color increase of see and the helped have after in those of of big particular. in But of the add And those think, will in

Stewart Kirk Materne

you. Sounds good. Thank

Ken Bond

A Relations you, you. Safra. in any telephonic Dial-in be call for the we with Please issued conference of follow-up and forward to earlier call replay be can will this found hours. XX look call this Thank available release to from Investor today. questions the speaking information press department

closing. turn I’ll call the back to Thank that, for With Holly you.

Operator

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

disconnect. now may You

Oracle (ORCL) 12 Dec 192020 Q2 Earnings call transcript