ORCL - Earnings call transcript Q3 2020

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Operator

Welcome to Oracle's Third Quarter 2020 Earnings Conference Call.

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

Ken Bond

Thank you. Good afternoon, everyone, and welcome to Oracle's Third 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 and Officer, Ellison; Larry our CEO, Catz. Chief Safra Technology and today call are Chairman

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

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

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

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

Safra Catz

Thanks, Ken.

usual, review I results our otherwise. using non-GAAP state constant As I'll unless dollar growth rates

negative a an total dollar, in and currency though with resulted the QX revenue revenue. strengthening saw had quarter of above total of excellent dollars. see, to a of EPS which guidance and constant midpoint we $X.XX X% were U.S. even in growth As in you in we headwind can EPS my Both revenue U.S.

I've both The a a momentum been remarkable forecasting. product and that acceleration quarter quarter infrastructure. It applications of of customer lot revenue the was really with and demonstrated in

X% billion, Our the and year. billion, basically Those were License company revenues as updates, up total same last $X.X revenues $X.X which and XX% nearly year. IaaS for subscription Support accounted License quarter SaaS, for were revenue and software our of last our Cloud up business, revenues, business, includes XX% subscription powered growth. the from Services

across Fusion ERP are with subscription X%. HCM up a applications our XX%, apps up revenues SaaS of NetSuite We up application Vertical were $X.X was at lot XX% and billion, was ERP Fusion seeing up up GAAP XX%. high was up was Fusion XX%. digits, momentum up single up X%, revenue low subscription data base. infrastructure up database revenues both total and -- was over Database by off GAAP highlighted single XXX% billion, but a single Autonomous cloud X% and revenues up were small digits. with $X.X portfolio, BYOL

can it As easier revenues, ecosystem rate replaced to our of see the business subscription revenue of more make revenues will clearly. you which the with growth part you for see, largest we've

ecosystem growth the combining license to be determine subscription entire our still able software revenues. and You'll by for rates

Our rates Services X% up for was margin The Both Support SaaS quarter. IaaS were cloud renewal continue quarter XX%, from Cloud gross and more last X% last and to last up up. year. margins both than and from gross go License

gross cloud our will profit an in gross expect I acceleration margins our scale, to further, get to continue increase we As driving growth.

now GAAP XX.X% quarter margin non-GAAP the tax billion, U.S. of in currency, have in $X.XX tax USD. cash slightly from net timing in billion. and in was deferred EPS up Total $X.X last for XX%. up Capital payments. XXX marketable if X% billion USD, free tax were up billion billion. expenditures EPS XX% due in balance for down short-term from cash in was $XX currency $XX.X was dollars, was constant up and currency X% flow for was in The rate and rate quarters have X% last $X.XX X was approximately differences base in $X.X transition operating Non-GAAP unchanged We revenues income The constant in year. over XX.X%, were constant our in revenue USD. customer the flow cash below GAAP XX% and year. Operating securities, constant currency would The up last X% was last over at $X.X and billion, the and ASC year. Gross quarter operating from not billion, up been changes. the deferred XX%, $X.X X% X%, rate is to was over revenue X% the was $XX.X essentially

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

the have a reduced by Directors nearly for additional declared outstanding per Board The XX%. a repurchased XXX shares $XX Board repurchased over a months, $XX quarter, And total shares of dividend for shares the $X.XX This of for the Oracle million billion. share. last we also last we over shares. X XX And million total billion. $X of repurchase years, an billion have quarterly again of XX.X we authorized of the The

Now to COVID-XX before guidance, to a the the of about turning impact need few say words I virus.

suppliers public the using business that asking largely modifications conferencing few and Over our video weeks, virus be with our the the what other as on We're precautionary as It's and companies observed our to clear customers seeing employees usual Likewise, on result, actions. effect QX. will we've what not nonessential yet in some take and, a concern. will last travel. the business growing postpone conducting we're as impact such the have

of and minimal that the quarter, my me thinking The share it Last QX we will on much business, the with So and revenue the over contracted. quarter. our Consistent QX. this the the you from with part of expect modeling the expect of in to subscription larger trends be update, impact virus subscription subscription XX% let for year, product the cloud is the year, year. that with backdrop, continue grow, already business last I of a was percentage given to

business transactional enormous of for In we pipeline QX. meeting reviewed team, executive with my the

a and, hardware. lesser is quarter seasonally As you a large know, QX software extent, typically for licenses to

business the in going am much current revenue. estimate provide uncertainty climate, range I wider my a in to the for total Given

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

are remain EPS. same the now, should as effect they no significant rates exchange revenues have current Assuming or on currency

Now is of right change, that's it that now. may course, what but

$X.XX dollars. So X% both total are positive 'XX to to in constant but vary. and $X X% to revenues QX, revenues to it constant constant for is Non-GAAP be billion and is X% be U.S. to both currency between expected to and EPS and subscription USD. around both Total X% $X.XX between could in FY CapEx negative and to dollars. U.S. in Total expected currency grow between X% for between expected range expected range are X% currency

for of guidance a XX%. QX EPS base 'XX the My assumes FY and tax rate

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

Now subscription in revenue with faster-growing our assuming ever-growing fiscal June, acceleration on year has for XXXX. It stabilized, for portion share to based economic optimism be situation the around will I revenue global our our will business. basis growth attributable you my the of the

of bit more obvious the and a it even it for impact have been You early but virus. the QX, saw would in of

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

Lawrence Ellison

X success key There of the giant Being market infrastructure. application are areas #X you, market Database these segments determine two will Thank Autonomous cloud other future, in segments. Oracle's products will infrastructure of that ERP both in and enable and product adjacent Safra. our applications

customers lead a market We expect huge XX,XXX market. and ERP on-premise cloud to already over X have customers. ERP than ERP the We be ERP larger ERP Xx with cloud segment in software to market prior Fusion NetSuite the X,XXX the

in to cloud SAP us more suite. ERP. cloud What's largest are to tiny even ERP Our purchased primary success competitors today, is of Fusion is migrate ERP working with rewrote ERP market competitor, Workday's ERP the ERP is Oracle HCM never And applications also from as seeing for compared in little ERP opportunities are cloud. SAP Workday's their very HCM. cloud. is of in actively many lack the increasingly is of in application struggling. being other the Workday, part share an SAP's customers to success creating a Cloud cloud interesting ours. for

HCM than faster Fusion more than Workday. Oracle customers is As and HCM a now growing result, has Workday, revenue

beginning integrated experience, sales, we're highlight having sales sales a of couple drive multi-pillar of an in suite CX, these and of demonstrate strategy see to applications customer our suite our want because application integrated to like the wins And I same service Fusion. power cloud the marketing.

deal $XX First for supply Controls. that included Cloud signed performance They Marketing, one, Fusion and Sales, recurring Price, e-commerce CX Oracle ERP, and ERP, management, Fusion Fusion service, Configure, management marketing, annual chain million Fusion enterprise Quote. Johnson a

-- HCM and ERP, cloud. EPM Chain Fusion the Fusion Fusion bought HCM similarly Skanska Fusion in Supply and

and bought United a We HCM. bought multi-pillar Services wins of and ERP Automobile Global they of Fusion or Snap bought lot ERP EPM, bought bought United SCL SCM. and of bought lot ERP. the Health deals EPM We Engineering ERP ERP, won We HCM. Unisys, The Institute a ERP. and suite. CX. both CDK of bought Electrical we're RECO So bought most ERP. and ERP. both ERP. Adecco cloud. ERP the of Global seeing -- and Association bought S&P had Electronics SCM buy ERP. all where Airlines in

in Chain. Supply Supply one Chain. ERP. UC -- wins ConAgra, so had Supply a supply Big Supply Total Convenience bought bought quarter. number We addition bought number Citrus Chain World bought buy Fusion Supply and Chemical, Supply Chain Supply of Chain. SCMs RECO Chain. bought Oilwell's Chain. Chain. National Supply Chain. Fusion of bought chain National Health the a S.A. in Unisys Supply to Dow was bought Distributors did

to selling more enabled a suite. us part lot as said, suite the the of I a has As HCM sell

with Workday HCM. UC HCM. Technologies Supply Supply bought replaced Molina Chain Healthcare with ERP HCM, Sensium HCM. and and HCM EPM. bought CSX Health bought ERP along their HCM. and bought bought Oracle Nemours Chain, Fusion

-- service, products, Fusion our their as Kaiser Fusion Fusion dramatically Ford de Fusion Chile expansion e-commerce. bought Marketing, Fusion implementation Keurig bought Oracle HCM their Dr marketing, Kaiser's service. HCM big of Micro Banco Fusion Health, expanded Fusion their Motor another Sales service. Company Pepper of Cloud and and expanded implementation. Sales, Fusion CX Fusion implementation, did Marketing Cloud IKEA bought Focus service. Fusion Fusion dramatically

Fusion bought e-commerce. bought and Quote. Price, Price, bought bought Configure, Cargill Quote. Marketing, Fusion Sales. Fusion Fisher Fusion Thermo bought Marketing. [ph] Motorola Comcast And Sales Participia Fusion Configure,

application business. Okay, of that's the part our

I'm about spend going to business more you detail a our our database give I'm business. being driven infrastructure by -- to little going

share -- Database. business. market database been Autonomous has in the long our Oracle Our Autonomous the new leader

cloud our both cloud our business database in quarter, on-premise, grew This growing X%, with overall and database triple business, digits.

cloud. the enormous this experienced databases past X% we our our quarter rates accelerate to the And number customers Autonomous Database technology to an Database. in from that have growth Autonomous advantage as we legacy database expect with We transition from

Japan I'm you up. momentum give business going detail very $XX the is are of Nomura. we think mission-critical applications Oracle give wins service commitment to made It's a beginning the Oracle infrastructure big a pick you from these institutions. a the large-scale moving our bit Cloud. They their Nomura of strategic quite These number how that are to to are sense of a a million transactions commitment financial to number systems handling in Cloud. and that a production on much to very important of

competitors. at and million applications as Fiserv the SaaS cost data allows infrastructure. made our gain our reduction to commitment their commitment. they will to ongoing time from Fiserv better Software $X savings million good a Oracle from our Cloud and $X They after versus GenX labor. This cloud the They'll to public out they moving of move customers because public centers a got manage GenX made public of cloud huge both move performance be cloud -- clouds benchmark Oracle better them. public into similarly is cloud. in using cloud, Oracle's for security the payments They're the digitally their helps application SaaS tremendous cost to application own WorkForce testing, GenX and an Customer. Oracle the their deal Their a

move their Their most Azure made million annual $X They're will their new workloads Cloud. will retail and moving with Associates into And leverage the cloud. critical they has the system, expanding the applications. to management our asset for into GenX public manage and public cloud. Oracle public Azure for sales mission-critical cloud, moving business. our and cloud financing is T-Mobile now they're their Lendlease and warehouse both their into application to moving T-Mobile device application SaaS mobile that Gap interconnect commitment Oracle our a Manhattan Microsoft Sprint. is

repository using interesting. and really Depository Clearing trading clear go global any is one DTCC XX% the and also Depository through Clearing public of to settle firm, & Trust Amazon This global suite. -- Autonomous Amazon Database. is Redshift accredited brokerage from trades system moving & trades their Oracle Corporation the their Analytics Corporation's Trust through system. migrating multi-terabyte Oracle Amazon using our analytics They're out AWS of all cloud into

packaging cloud. to is National Sonoco, integration, migrating international migrating life Oracle's suite, on analytics, provider databases of their of that products, their their all our diversified public Generation consumer at product cycle e-business Customer. Bank pSeries of is all to Cloud IBM of Oracle Canada X management, running

will to again away into from away some entitle just -- with from has from to Southern our our quarter GenX Server We and infrastructure. environment a had Analytics Norfolk the moving using use getting. huge visualization. decided move us. and give wins. some to in we're their Oracle for also public the Microsoft And SQL of warehousing It away database both for Microsoft wanted and cloud. They from Oracle Teradata the using Cloud applications our ideas very I has exciting that our customers cloud into Server, away from our wins Workday AWS, SQL big you been away

that, And to back turn I'll Ken. it with

Ken Bond

Thank for please? audience Operator, questions, the you, if queue up could please Larry. we

Operator

[Operator Instructions].

Goldman Our first question Heather Bellini from Sachs. comes with

Heather Bellini

you could if I called could telling with talk particular, that little of us bit in what to in more know exactly about. there the you your can wondering, mentioned Safra, about progress is you seeing kind things around share the was in I QX, it about little bit up direction you've that a numbers, the Larry, that start are just business. database show you anything out But you and little with this? us of been that a to things give well? starting you you in like looks detail a but dislocation, rebound of you driving any kind how in how terms for share would about sharing might it Is May perspective progressing, when example, is get high-level should us from us able kind see the this mentioned you're OCI, to comfortable that be macro forward? you in thoughts stability in acceleration now as it more the of how then with you going we be a of about -- think like you think picture seeing And Safra, us

Safra Catz

Okay.

great So these Autonomous Database more and And projects products small then, what have I you'd success, what Obviously, can overwhelms everything. will of Larry, more expand is momentum like. add the projects start you the start and power of we as with very the having all and and dramatically.

it's Our with and of average being powerful consumption rate is just increasing result dramatically, the very popular our and Autonomous very, incredibly customers. Database

America, itself, In few that that, little in mentioned which technology in year, addition, the North business, the had I earlier database a really had database license, a like is reorg we chugging. things the

even the Basically, some for have February, was showing this it the lot, this expected for really assuming better coronavirus fact, grows. you be up. consumption fact number. will way, with the that I subscription the the and side grows is just of of this way bigger a That economy that business and subscription getting bigger we in end the and been to coronavirus market QX impressive. would In that it's down probably bigger entire so By quarter. but globally, I And stability of have business, and last sharing up week a be revenue for but infrastructure at in is the side the going

customers then I good services products, overall, and for add to know, good Larry, if care lead to of anything want success to our takes don't itself. you So adoption that.

Lawrence Ellison

by great what on to want amplify Safra products. I Yes. means

labor. a error. Autonomous no human unique there's There Therefore, is So human is product. really Database no

the don't of a run to Autonomous itself. because combination drives Database -- less beings lot The Autonomous do Database human it's So driving. costs a

labor So there's labor, can't the associated thing. And vulnerabilities. Database. cause if there's running that That's security mistakes no Autonomous human no with big humans make one

on application thing big about know cloud, What CPUs. and another when for mean any it both public is don't Oracle by may isn't But not serverless pay your is Autonomous running that people elastic. that you I Database, the

Amazon's When dedicated not running, got true CPUs You databases. your of is no application That servers. not you. you're for to isn't paying

Redshift Redshift, have you pay for you If the processors.

serverless, If elastic. have We're instantaneously implementation, for you their pay you those we're only not processors. MySQL

servers don't to need still while cores then to So no database suddenly we if longer need X And the do X XX to when or -- that cores, XX back cores, you instantaneously is go running. go we from you the X. the automatically

They they running, pay so it what and the it's you us. to to are trial when literally of us. and much AWS It's and much, Oracle picking serverless has So we're an are elastic people less we're They discover it's is though a expensive not application only a AWS. application they that, the once find for actually And do use. you once faster. they translated do to is What comparison and bring benchmark this bring we that, they that promise fully even an and secure cloud. to discover shock than more they they're

ones but application And is are that business. of are cloud. cloud, the secure applications. of SaaS business most and we they the run cloud, all Their the economical are picking most maybe to most importantly, of the And their try us the interesting clouds. And highest-performing different the some some that's providers,

and continue. business, trend more we and this expect winning we're more So to

Operator

of Brad our question Zelnick And the next is Suisse. with Brad? from line Crédit

Brad Zelnick

business, investors, have the or know question but I Larry a on about typically Customer. supported most anticipating anxiously just at know Cloud focus I Autonomous been which be isn't many I in ask customers Database to the Safra, of wanted hardware for to availability

business? might constraints the be availability can to question Cloud the So in Customer? that having us Autonomous of on any give on is, shipping can of sort at you impact way, hardware be supply any the my And impact on that update

Safra Catz

an components actually QX a of impact short supply. little there bit as in were So was in certain

but and suppliers so our to a fact, again, the suppliers in even suppliers' some And in QX in once to coronavirus been have as of would components for higher our China. shortages result

I We my availability could our think we of some all and not sell the think that what -- include but what impact through to we'll on we're to possibly of deliver ability does may that, QX. see trying is all this guidance we QX. in but in some work continue,

Lawrence Ellison

to Yes. like as comment well. I'd

can as into same we conventional database up -- from cloud Exadata is the of servers Our away at product conventional made Customer Therefore, the the Exadata machines. actually components servers. parts Cloud the reallocate

the are them machines value the component and larger to are So because Exadata Exadata have -- higher much and machines we they much Customer. a them, software at Cloud sell when GenX

some there So -- do from do the see into should is if our commodity the commodity Customer servers, lower less us -- all you'll I plain expensive less old machines, hard have if to it work shortfall, profitable reallocation and high-margin think to at of those be orders. in -- we very, we're thereby, commodity away the a servers servers servers, and going to meet very Cloud high-value, Exadata

Operator

is from question the next our Wells Phil of And Fargo. from line Winslow

Philip Winslow

I a wanted also Cloud pretty ERP Fusion, on rates, focus acceleration strong Cloud, apps some the XX%. business. you XX%, the QX. on in just called to HCM but great Congrats out there Safra, Obviously, growth

here. questions X So

to question from how you? What for your guess a your Or of growth? impact what's about net it suite much this the that customers are breadth new existing actually customers Or are choosing is First, is Larry, decision? to you buying hearing driving too. the And customers ERP I flipping Oracle? sort cloud? on-premise of this Is why over

Safra Catz

say So -- me just let sorry.

exact it Is yes, All question, new is Yes. our right. it from Is customers competitors? e-business upgrading Yes. just all, those taking some customers yes. of all our Yes. your which suite? let from Is me competitors? It customers? replacing it First yes, biggest it out Yes. yes, SaaS of Is is, answer things.

Now Larry Go talk. I'll ahead. let

Lawrence Ellison

technology. Yes. our think this have maturity of Well, again, we of the is combination to back we the best the product,

assistant. top we database, and faster also built But our is capabilities. built our think products like of technologies applications digital voice those than are so our of top on are on which other our databases, more Our applications inherit secure

starting And just -- have against than to say, Workday, talk and you think Oracle, your better and computer to a have? say, we do how their smartphone demonstration and I Alexa, when "I we'll have a Oracle so like and reports Oracle, your do So many you do claimed don't saying and we by a show I'd to vacation has XX." long vacation get you August transactions you interface. -- better UI your not have UI," and "Oracle, schedule talking days a Workday by they they'll X-week

Workday. and infrastructure SAP, SAP have are that we to much have our a infrastructure doesn't away of us much technologies. fraud against intrusions. I machine between applications company digital voice have accessible don't top interface, an make our advantage And on have argue, we Workday difference a the cloud. taking to more have modern Workday infrastructure. learning so cloud. a like our Workday an and technology Workday showing Workday security autonomous with integrated those doesn't doesn't more assistant. biggest built have applications -- database. would user an and The detect a They detect -- have doesn't digital is doesn't

to inherit effectively deployment. Our to advantages, us those demonstration it against and them compete from of applications very allows all

out from it's finally, company have to CX where and suite very to like HCM And Workday to broad chain for manufacturing. this a we and build going supply very to very, ERP difficult be everything

for So started cloud. do to it's They started because it's very finally difficult haven't haven't for writing difficult the And a SAP that. to they very small do that company yet. for

So we're applications. in everywhere winning

a have suite. We

We have technology. the modern most

and and in And but formidable very front That's We performance. they're against HCM competitive different very very, of competitors back a progress they though the very are We're office. have -- all application and making well, some a in we're best security dynamic. the doing ERP. Salesforce our office competitor well the a against the best --

Operator

Lenschow Capital. line our And with next Barclays the Raimo question from of is

Raimo Lenschow

been uncertain guys have Can in we're before. bit, you times like in talk obviously uncertain but little you times a

contrast about recurring in stream maybe revenue today see a were where its we little also -- the database bit and what the in you you where also a whether And then little -- Oracle there's this XXXX, XXXX? were renewals bit on around we with but cloud. can where talk So

Safra Catz

Yes.

By my business cloud out pointed I in quarter. our there way, is in very as support percentage which our large generally because this as -- the quarter And the because our the the it of a XX%. remarks, transactional QX, continues This quarter of off QX, is it and Last historically very, the the that in will be year So business large opening big growing quarter percentage year, after building is in was very business, recurring, it's was the that XX% it revenue historically, a is is is next percentage just base chunk. is a past lowest a a it percentage. biggest. which isn't QX, year

minimum it actually I more, does, was Assuming about this be to it X little actually be I it quarter least at it and at expect a at what to be more. this did bit what expect a least because would XX% -- points.

in would had say, business. because of bubble because percentage it significantly or some And our especially our high point, Internet world. during license bubble at I very large companies. that the when just was been, So At it a a inflated of That XXXX we very remember kind less those variability like much that totally different revenue have the imploded. was point, Internet very -- of dropped

it's central their the SaaS our or they it's operations strong. whether of is is very businesses now customers, and remains database our to products and on database. and infrastructure run the business The the strategic Our strong, which it

months, now correctly is gotten the And strong. that of really the everything organized of to show starting in past power our few sort Our tech business. we've business very it's

Lawrence Ellison

couple Safra to a -- began. a quarter, that XX% was quarter the past before not much is contracted Yes. quarter just license our we business like the business I'd much onetime very reiterate One is said, This anymore. the add is what in business had of of comments. to

subscriptions. accurate. ongoing just are to close That's these So very

The all got other recurring comment is we've this business. --

used other we from offices a comment in and away to model the big lots over small lots big over in gone And those to has place. have offices is hub radically model, The changed California. small we office in our all office business that the a place spread where of we've Austin, spread Texas, all have

do demonstrating where -- communicating you across We our doing products aren't out demonstrations digital to have We're India. you, products consulting site. we we're these support. selling implementation people Philippines with hubs, there. selling. We our implementation We're to going the we're doing the not just the do necessarily do digital of We of Internet. We're on you. and We're out where consulting

So our our digitally. model, and provided and more business more model, are services selling

subscription-based more model, revenue and is Our more of reoccurring. it and

of from our the changed time the from has Internet from a business So bubble, radically XXXX, XXXX. It's very situation. different

Operator

from line And Sanford Bernstein. Mark question a from is our next Moerdler

Mark Moerdler

Congratulations quarter. the on

I'd downturn? this you buyback given the quarter. dividend, making. market very to to positive how whatever like the we get think color be will that. It statement can dividend, you're your use about How authorization how you should Also, we the a expand downturn? ability on You your about given to buyback should economic seems support the increased think the

Safra Catz

of And it's as question okay? to it's can not is stock. few tell And or you basically enormous We strong, is There's future in the on as of support could can business share buying It but investment. with our deal. it with. profits very think dividend It's an have an our amounts on it's fantastic we shares generates incredible going no dividend, very cash. a outstanding any I'm reduces partners we buyback, back our past days, sale comment clearance gone good been of have think kind can we number I we the ease, tell, believe, -- that. very and large otherwise as we We known mean to obviously, support obvious. increased Also, our you

governments. has of So worldwide the mentioned that would I've our would half. hit business and an obvious by imagined the would have we in I reaction inflection. accelerate companies second that have never kind it

-- To year done really in is becoming QX stabilizes, on will and modeling changed our I extent -- my model -- obvious. our like. be this what I've I continuing will that best it's that So the next believe look we've just we at

So a back, and let I to a think our we stock are is know before, and buy it. after authorized you bargain. was obviously will bargain we have we done It

Operator

comes final Turits our Michael And James. from Raymond question with

Michael Turits

keep strong high continue apps in I accelerated left see at subscription Fusion back headwinds come a to from up rates. for of this could further anything acceleration time. applications. growth tough in Applications year do quarter want in end to seeing Nice and grow results, think that this to this year? Is to you where particularly and you there next? that rate terms And could app

Safra Catz

The It's business keeps base the of business accelerating. fantastic, The growing. obviously is okay?

winning, are I'm I are get constantly. sorry, well quarter, interrupted The -- products and ultimately winning stronger it Larry, every you. really are we is on way. We its

Lawrence Ellison

of you do throughout has No. mentioned these companies, about doing of they're you're going very companies XX that say, And SAP's a American is, I terms isn't large lots, enough. engaged my in I company." couple companies. it us given giving to I taking actually doing are there of with one divisions "Can question replace large talking division Asian divisions company, last German than largest we the multiple companies, to And all within just into. need German because more -- we're was of customers put is, to is And company applications, multiple company new SAP it with very my my looking I news companies, to in one answer -- quarter, Fusion are divisions that of the at in Fusion? divisions us trying

have we lots are it -- not, to SAP looking largest the SAP's the never believe in world. famous from is examples away or So rewrote with customers companies that, at to the of applications. SAP most cloud. moving because astonishing their that moved never SAP They me it of now

in ago? the programming that way, code had Ask language very -- them still SAP's It's you language, programming programming. simple SAP's same a years Is their proprietary question. code they're the called ABAP. a by XX

XX-year-old the database cloud it opportunity take never the have They technology. in of early a are our looks us, like and for ERP that. Their an this the the when They in never really on-premise missed they seen Oracle like the and Java, program in we I ABAP. brand, franchise, at They the winner rewrote in cloud. Oracle beat entirely. days are had and they grew I've except to relational of seen created program We This aware and out commercial its on-premise brand, first looking which -- never largest wars. wars, the is -- customers the but us

implementing we with Oracle on It's announcing XX summer. taking be not division, first be SAP this this So live, working them, Fusion their this that deals huge summer. that it started just And applications we're enormous. the their with We're some a and their customers this by is -- opportunity customers largest started we'll getting them customers. working divisions have going real with -- scale summer, We're will we signed of months we live live ago. largest will

And of be. dreamed than going this just -- scale drive to growth higher we growth it enormous. applications ever could help the our opportunity So our is that's

Operator

I that, Bond for like turn remarks. to to over with the would back And call any closing Ken

Ken Bond

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

Operator

today's joining Oracle's Call. Earnings Third participation. Conference XXXX appreciate for you We Thank Quarter your

now disconnect. may You

Oracle (ORCL) 12 Mar 202020 Q3 Earnings call transcript