ORCL - Earnings call transcript Q2 2022

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Operator

Welcome to Oracle's Second Quarter 2022 Earnings Conference Call.

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

Ken Bond

Thank you, Erica. Good afternoon, everyone, and welcome to Oracle's second quarter fiscal year 2022 earnings conference call. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation and other supplemental financial information, can be viewed and downloaded from our Investor Relations website.

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

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

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

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

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

Safra Catz

everyone. larger currency We to fastest-growing had another report it pleased continue quarter Earnings gave dollar constant despite percentage discussion. afternoon, since strong, achieved across growth I my above high-end me let $X.XX the guidance. the non-GAAP a business. also revenue excellent guidance, X% become currency high-end headwind EPS, appear. I'm the the strengthening a outperformance the to parts of even that guidance, outperformance for higher, in U.S. saw are of and broad-based the and my as growth with even business increasing we EPS constant $X.XX $XXX of will good quarter guidance as We but Thanks, were the like above continue Ken, currency, of million of save to grew this our stronger revenue they and fantastic revenue are company. looks of QX as the which nearly so guidance revenue results, to with total USD above a than

the are Before market seeing we I that go revenue I driving accelerating comment what through our numbers, on in to the though, is growth. wanted

have and the from As I've only we are infrastructure mentioned applications to calls, competitors able strategy the combination our we of cloud. in offer a on where differentiated previous the highly company

in mission-critical cloud also depend of We need us. with in Autonomous are both applications like HR have set unique best-of-breed in capabilities security their Database and infrastructure systems, And have SaaS of differentiated on and highly industry-specific because our we course, second-generation up but of dependability. and and being apps available cloud our a and experience customers us can decades performance, when they ERP,

Oracle. cloud projects, services, they modernize. technology to thinks test turn us their others them do, as to company partner in much attracting beyond retail many their a are other their telco, digital industries simple in want they compete. and to the mission-critical as customers, whether to financial consider focus which complex utilities, capabilities know own conduct business unique and to Once how Our with it's transformation they rudimentary dev and They and they invariably especially workloads to as about move

our I'm and new our course, with driving and on focus with days you user, of sure references our embedded existing systems suite that after the closed Our lost success results not Fusion of prospects full are processes. of it's customers on customers And quarter any customer nine announcing because both on we and more we ourselves accounts. new and lost entirely not their an and is are and is it opportunities Oracle

here to Back dollar growth using non-GAAP our otherwise. review rates, constant the unless results from on, I'll numbers. And Okay. I say

up technology, infrastructure GAAP up which years billion, So GAAP billion, quarter accelerate a total billion, more $X.X we total And currency cloud including last services and X% America revenue for OCI company were license Cloud ramp constant growth quarters infrastructure excluding in accounted revenue and currency $XX.X best will faster XX% grew revenues legacy Autonomous up cloud at with and Database, will higher. billion, services, now XX% cloud billion HCM in currency. billion Fusion year. infrastructure amongst the bookings cloud and ERP businesses in XX%, of were with well revenues was up revenues, includes $X.X when growth our the American further cloud Database expect I than grew were through regions. exit XX%. performance annualized currency on are X% rate year apps and and support XX Latin XX%, up up total continue and growing to revenues constant applications up for mega revenue, as expect $X.X up in saw not very XX%. subscription revenue consumption revenue. were having and in years. XX%. higher highest our and mid-XXs, constant growth subscription hosting in X% was revenue support vertical were North revenues, result, Fusion license were database the our the growing services Total XX% was growth Customer NetSuite constant excellent revenue including as now strategic fiscal cloud deals. cloud fiscal database organically up application and in We back-office rate. $X.X annualized than dependent the $X.X as revenues our any the and up and X% XX%, XX%, four over services up License ERP potentially subscription rate XX% of Fusion

currency. X% gross similar margin from better the than per profit quarter up services U.S. $XX.X XX% was quarter Non-GAAP in slightly earnings than the services last and currency. year income last I to $X.XX up expenses cloud rate higher dollars, and dollars were constant for support in license and billion, cloud U.S. XX% up non-GAAP was base profit license gross full-year operating year. this in billion, XX% for margin up in was $X.X will dollars, expect of and rate be the was revenues were X% operating or currency. The share The and constant tax XX%. in XX.X%, constant in total the dollars growth gross in, all was XX%, grew for quarter. X% support for So up X% Operating our

dispute acquisition-related During billion, arose GAAP hired litigation-related will the we of totaling other relate co-CEO recognized $X.X charges They that quarter, former my expenses in we to consisted a and which recur. XXXX. when that not substantially

due in on alone last were in free our litigation next $X.X and in balance $X.X this Operating X% was mentioned. over timing currency. As I a was growing tax up We loss securities. cash billion, deferred $XX.X are XX.X% constant recognized a XX% one-time and result The the rate short-term quarters four revenue obligation nearly income for constant revenue net invest as deferred and billion, is of the in is was strong year. months. and track QX customer to gross affected for Approximately have results cash balance flow CapEx now currency negative $XX XX% expenditures in up with $X.X to cash billion. remaining The currency last billion bookings. Capital differences some charges over items nearly the quarters this CapEx $XXX or marketable expected million negatively GAAP per GAAP constant $X and payments were due $X we ago The was RPO four slightly is charge, XX the flow the period billion. discrete for from to a to $XX.X was to GAAP billion, billion, the year by be in share. $X.XX was same billion Both performance revenue due

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

This the Directors price. out years, over dividends of last total paid XX months, authorization Directors increased $X.X again average of dividend We've the the quarter, XX% for an by half an at over shares share billion. $XX additional XX declared the of quarterly $X we reduced about billion The share. by of XX a last Board share Board the current the of outstanding million $X.XX per for that's a repurchased we've shares repurchases and price billion. And

to year. so reasons I'm reiterating guidance. going XXXX from we've XXXX the full-year growth accelerate seen Now that revenue our this expectation far by for all the will already start

by mid-single fundamentally that expect now business or solidly than profitable the the performance compared full-year the a I on-premise, cloud year mid-XXs. pre-pandemic more strong same is exiting half, to revenue margins that the of operating be year see I the in levels led expect total our better revenue in in finish first will this XX%. Cloud and the growth will Given we digits,

X%, turn in EPS QX. Total guidance are in than X% remain a the we or in we grow I for I U.S. I'll no of expected idea between than that. between which see X% we and not, X% to in they Clearly, Let all they the have the X% QX my on the of which X% for $X.XX know to range midpoint X% provide will rates is grow And currency in revenue and is reported QX. revenue me saw to November. headwind if exchange and X% USD. same you currency constant The for assuming dramatically strengthened now QX, higher just is dollar a to we for currency QX reported now, basis. the higher non-GAAP that as and in will expect

and constant QX for X is and expected to trending between EPS X% revenue EPS between X% tax in X% between guidance and and XX%. is and currency positive in constant QX grow a quarter service $X.XX X assumes currency between is in X% between for USD. to $X.XX currency. rate base and the is and grow X% in grow license be be negative direction. the to Cloud in everything in Non-GAAP X% $X.XX to support of and grow My USD for EPS for constant $X.XX between expected Non-GAAP to in So USD. expected right QX

However, one-time I lower. average for that, it XX% could for one-time these expect normalizing rates or over higher be tax tax non-GAAP in I'll our any comments. for cause With events, his that turn tax to given will Larry events quarter rates to so. or But actual around

Lawrence Ellison

Oracle's going Thank status Cloud right, ERP Safra. I'm you, to strategy. All discuss and

job are great I to ERP entire to big of a think business. lot the I their lot option today? is installed on-premise same of the into dramatically the Microsoft their so of or have it's mean business to moving Microsoft our base this the of didn't companies increase Office me, So the like a – think a people – you how cloud going size cloud Unfortunately, I we find interesting. opportunity, did

we business customers on-premise, our JD E-Business Only up moved is on-premise their big today? how So Edwards. Oracle to Well, ERP. made PeopleSoft and ERP X,XXX had have of Fusion of Cloud X,XXX Suite, in X,XXX those

we not customers to any Now of have lost these competitors.

lot but let's round all so don't yet. our expect think that is a and X,XXX plenty But big have Well, move X,XXX to $X Fusion those realize – really customers. on-premise now come. our number X,XXX X,XXX at cloud to all a came old I remaining people That's remember revenue, upside. migrate to ERP look we That's all year of And is over business. it We upside. business today. X,XXX, and hasn't ERP, Fusion how happened the only how billion of from

customers. of running cloud before the these product. that XX,XXX NetSuite with X,XXX new are Add Oracle all out X,XXX customers. not were we came new ERP Those to So our

So total of cloud Only XX,XXX Oracle that migrated Oracle. far. has new ERP are our has a X,XXX so of on-premise to customers base installed

going got net to that. be new Only we us few coming customers repeat ERP in to base last on. our years. that's from later installed XX,XXX me X,XXX the cloud Let

revenue about So year. growing growing So fast ERP a about? cloud is how XX%

our but And I those majority so $XX are the are ask from ERP that are like someone our look installed other from Whether again, let's base, Oracle's coming big five ERP, it's cloud company else's XX% be companies, Infor the of or business, will who small customers yes question, approaching variety migrating, And our where base. how large majority of number in of that a we are of we coming out a would cloud be migrating have – like the a current from vast migrating five business. SAP billion on-prem – not years? not company customers base. they customers and think the people's are people from else's our installed someone other or years And on-prem installed are from in they're

Let's old So ERP cloud that what five this on-premise about are the that much scale, out say, scale, predictable Well, more much inherently pointed And at margin business. is our earlier comments, Safra we as and it's in are business business. year? cloud $XX margins billion in more XX% estimating our than in an her that's profitable business.

bringing XX,XXX and we five Fusion $XX expect these All right. again, now margins. expect growth from we years XXX,XXX in XX% our have XX,XXX, NetSuite But on customers customers size are current and to about So at based now, estimates. five business, rates – just plus years billion the of

mean customers? competing? really Where So they from? many what's competitors. we so Well, – significant happening? winning coming new two have we are we we I have only how are Who are

some us. bought software That's the the We for in is their not have true cloud explain around true build losing is Their are minute. hold two they cloud, didn't installed what to product SAP, on a software SAP they actually the didn't the XX-year-old a simply to going customers to rebuild just products significant old SAP But cloud. they've I've Workday. same product, I'm because but competitors, they a forever. but said selling and to cloud did this and cloud they base, product, been build goal before. their edge

couple For example, a couple already oil big us gave – and this of oil pretty customers. a gas Petronas, quarter over. SAP a taking hundred customer of presentation moved and I gas about long good-sized

is doing live SAP, this well done out interesting do Workday does they in find live. and because find any. it against but quarter. very continue few others well customers. And are we they've Workday have go Petronas a quite to to very very have SAP well ERP and to winning product. Try Try Workday So But HCM, and cloud

So we're winning ERP. in cloud everything almost

we I taking Workday They beat more are customers than their time, base. still base making we beating are Workday XX holding SAP's the and on know, taking, of are don't we of are We – from to we inroads. XX% installed but are

cloud because is we Burberry on? have that and going very, a we low we very what's again, winning? ownership. are So cost Why very has feature-rich Well, are winning true a product of

the So and it's on-premise enormously capable, it's not expensive systems. with old compared

Our months. large implementations, I got of medium, take mean we've companies that sometimes implementations six

Now don't wrong. get me

Lynch of Someone It years. few just that we SAP make like Bank the won. we Merrill are to few progress America going That that at customer was to was then an years. took division. a And doing America. And of continue hopefully, took Bank a

SAP. cloud but difference product easy was Very it's lower even general, gigantic implement our or let's say, SAP in Workday, So much faster use. to than a cost and implement, to

that things a the on and is assistant. There's then tablets two And like voice phones user There interface mobile have the computer we aspects. and digital works have interface. that. We

to talk our You applications.

our You talk to of all applications.

for reports. ask You

They new cloud mean they or a Cloud That's by new version I on features. voice You XXX% even are the get thousands desktops, all ask questions. our product. three single with runs months, handful Every months. for apps single version customers sometime smartphones, a desktops, every this of every true think it's every hundreds mobile, All three new X,XXX get I app Alexa sometimes of app. has that. Oracle on enterprise. Fusion like And what our a customers, a to smartphones, app apps And tablets, Not of ERP run of is a tablets, every for We deliver right. interface.

in is in, important size, features must mean three the depending you don't industry important? because customers. specifically feature your new on of industry, the all Well, customers your why on that I are on have you're same our most Now – different a among in, you're lot they new depending want country different different want depending the

customers features this to They for out it with days So in built when themselves. old Accenture IBM IBM them. was went somebody and hired the Services Services else, these or SAP, build

model don't new – your the is Now customize product. it

your or in you you that not You we'll they a new forever. version. us of five of the build don't them. them them get than or need you customization Give and the build you But three some next build quickly, months we to. product. features are have four list and and have faster you wait maintain and new part months have put And months can we And are before ones can. you They are standard them the release, to might get to them that

So not they're expensive.

different their true In every what fact, what have the versions I come in and free. SAP new because cloud new don't their their have product a product. months. with say offers which don't versions cloud years cloud is radically three they're product. This They They call not so-called they three is than every they product, in

all What a what to modifications modify make works That's the a real make not system. and you people if same new make cloud vendor, and in model. hiring a fundamental used reliable have That a requirements real not systems. the and and testing to months, years. are their in That's slower. for to things it delivering responsible make them regular the with expensive, potentially and going in every bug? if they not and by it on cloud system, more customize. how doesn't happen enhancing to responding go they and the they time the You That's That's mistake? a it system cadence less We,

be three they customers We to technology. before long new upgrade some are months, when on unprecedented upgrade. deliver our won't schedule We also every

so, hour down are deliver on we for are or and zero an they sometimes downtime upgrades. schedule to And

new has is So Nobody downtime. on. won't be else to else there it be when now long this. move customers working our no version, the Nobody will

And Database? autonomous this The – the is to save money soon on self-tuning almost human what's important stolen human all all of left Autonomous our human money a labor. – you good. be of the security thing you I've most there's the some good is the the because money no applications hacked said before, save human No that's no Maximum port a actually, data Security risks, will database. But because the no about the clouds labor, but not no no no other being is all made created human of been labor has all, hacked data. been Almost out open, a errors, of vulnerability. have mistake,

human the a Database beings You by a that and car safer than being, can't car than database with beings who human is self-driving because It’s much Autonomous do is make managed it. don't a just by safer problems. cause and touch like a more that human mistakes self-driving is database secure driven

Okay.

to stop while, and out describe turn has what's marketplace an, of on and I'll kind little ERP up going roll in I’m industry been there So a for from going we the Fusion a perspective. beginning and on slightly an industries. in to bit entire are

the adding are for banking. features We

healthcare, extremely forward just on doing banking I I ERP, the well in for our would be be are earlier in banking most company not strategic those industries going and largest an and said in industries. think two – Maybe will and we total healthcare. and but quarterly ERP call,

world. everybody. more. Nationwide, lot But America, JPMorgan, on Some customers, all long and NatWest, Bank of not again I of USAA, York Mellon, a a to Macquarie. and go the of and New can State Bank financial also Street, of going and over list customers I'm with HSBC, include our on on service insurance AAA Santander, banks have live banking we list and

at end had We In won. big in we printed of new of services quarter. we was Barclays. our fact, in we list of provide we the banking another won in the a QX. And a that every bank quarter That and lot all the logos financial wins new had

MoneyGram. Ameritas, MetLife, huge won go-lives, We And Assurant. major had go-lives and insurance. in we Bank, Blackstone some First at

services identified the and above the in – banking well as Healthcare, very being are banking. and to in industry with I We doing future. strategic the specifically and of our par on financial terms other importance

Clinic, world, in So that say banking. of America North healthcare Saint concentrated healthcare customers I the healthcare our would around Providence have but I'd Joe. as include Cleveland with large lot a say wins compared wins more Kaiser, we are

go in can the PPD. you, quarter: on United healthcare your print leisure. New but hospital on, at you for we those Mayo and out wins this read Again, and one States, Markel], the Health can number them Clinic, Syneos [Tay ranked again, and I

from DHL, go TTS. about other industry Let become FedEx one we FedEx, customers. before key closing on. customers. my from me and World, SAP. logistics strong We've I UPS, That's talk a win I was with very have remarks. give takeaway on can very, DP logistics UPS, us, SS,

which of ERP. countries. companies a We in rolling through now logistics have lot – of is example, most XX around Oracle But the FedEx, live world. the out big for FedEx, aren't companies And Fusion our is

industries other We three industries to ERP lots as these of to capabilities are in well, cloud but essential plan they our add our I to new major system. because wanted to are highlight winning

I Before have I capabilities, these a confession to describe make.

– not believe are anyway. it I don't We

five a billion business cloud our We way $XX years. in on to ERP are not building

lot I think a to that. than bigger it's be going

me explain Let why.

new talking As ERP, Cloud system BXB does does inside work e-commerce. very systems. procurement soon as and to of Oracle transaction words, question, Thank will level its BXC working more one banking tracking, ease ask ERP a it invoicing look business dramatically an ERP Cloud you. other Oracle I to payments another commerce, of resembles entirely financing, huge grow originate of Cloud to simplify placing ERP order? and Back ecosystems. procurement and ERP purchase automation right such, with for partners will how supply the bring transacting chain it our shipped, We efficiency these opportunity run Cloud products to system, Cloud ERP processes. adopt and cloud capabilities much new are automation concert Oracle And Safra. more all and system two In our an BXB in Oracle what doing the logistics delivery procurement customers' the one is companies a like? that new Oracle new This represents to ERP Oracle and and when

Safra Catz

Larry. Thanks,

think I is going Ken to questions. take

So...

Ken Bond

could audience, the please? Yes. queue you Erica, if

Operator

first Zelnick comes from line Our the Instructions] of Deutsche with Brad question [Operator Bank.

Brad Zelnick

advantage. and what capture Africa, cloud Great. automated, in Thank main like hypersecure, in investing highly about these – a to with Oracle really far over think missing when in posts share so broad probably you And with in a regions to to making partnership some. shared fair see I posts build Oracle's Airtel clearly be competing already demand. we breadth performance India, UAE, services broader we you But people accelerating wanted things alone, continuing understand as congrats But have? West much continue more it new there's France, we investments. on and Thanks. your much about versus expect of and up with see functionality there's because than up how from think you should versus XXX you the when in road you on go a is quite know how map stack with Larry, Otherwise, public really, market, the competitor Larry, Safra wouldn't cloud stack, growth. its your to great Orange you customers. bit us, OCI competitor ask this helpful. quarter depth? price takes I to are quarter hear great real and just for the new I'm Singapore, the But Because But we product what I

Lawrence Ellison

of have other again, things bunch have. don't guys Well the a we

applications. We have

this. to I for is up of of I doing with ERP but businesses, data Salesforce you of is mashing apps course, building those. infrastructure. separate customers. about two who example, our think their running running these around top warehouses about things. Yes, but as of building combination ERP of Bank want big talk doing application Oracle talk all it a maybe America, they're want on – those mean combination We a everyone know data. is apps data. to you doing They're and They're So bespoke of They're of not.

us have huge discussion, databases? We've a to every providers have. to opportunity is this want the single do do for had I say some that popular has? to view on the have choice really And We some obscure we infrastructure databases. not have Amazon the menu. want other want service often to our not choices, of is we do XX customers, think databases, we want we So databases, don't or let's good the single but an support all are that to of And infrastructure other XX but want every support

So are thing every not feature going to single try match to we they do.

development We all. will, have have don't however, at environments they

makes that have on for top on Fusion set tools So a or of easy data warehouses if we NetSuite, top you're side our over you or that building ERP of on of of the HCM business. Fusion of infrastructure whole on top

Postgres have like. we we have some – stuff popular the we have Kubernetes And around. and do – So databases. you and the I popular mean all the obviously, have we

of We better Amazon's MySQL. XXx than It's MySQL mean version of but version because have more faster of our I HeatWave. faster. than is much much MySQL,

We have this Query all. have Optimizer, they at don't

recommended to at idea things can't look to is at to the and all. able do So popular most our development and systems, products they have recommended do be environments

these our building of large centers. are one very their let of other very, data differences They small number strategy in fundamental I mention think a one me strategy. versus –

think a It number don't going a giant that reliability some improves data centers. of never center data in two, primary one, put And expensive that data backup center in. mean that data smaller I We afford and less We primary about I Less put down. down. data when but a in Our mean We dramatically. into cloud. allows and things at put large could strategy happens go in NRI sovereignty. a the countries Japan. center build cloud don't in countries nations to sovereign us goes a And complete smaller, what like did of can't that care this put not with – a we we have blast that radius cloud. down. customer to backup. a just is sovereign can a complete It database – a go they to reduces we

will from it this. So that large Nobody we if enough, to financial run inside their all. can It can We wants run that. And else fit small cloud, won't a the firewall, we institution want to do into inside we differ run public? we cloud people can – do our differ their how make in data if cloud can center, cloud a center. that can their the at that data that

think with basically We And thing down. goes can't then any the and company note critical I'm noticed say Microsoft. this that close about our other three a we Cloud We and uses one American So availability. that from let is very Oracle’s Google, to telecommunications Amazon think said, paraphrase North note ever of about a all large clouds, clouds. it me Oracle, the cloud and going a the we've the – that who other never differentiator is

through – you security, I critical is is where way autonomy. only security, this have Another differentiator true, you promise is the where we achieve can

human no that your they that expose solve No we've only If beings malice. tinkering to human you beings, been systems, have out no way make can equation. beings data. with is error, human human of to The and human able the deploying your mistakes problem get

things be we'll combination of bunch very, be we just guys other differentiators. effectively think bunch And and to the reliability, able we autonomy infrastructure with able and apps to a other of a compete will very security, not So do. of have

Brad Zelnick

again you, Thank and helpful. super that's Larry, congrats.

Lawrence Ellison

an long have answer will not that again, ever. I

Safra Catz

to going add that answer. Brad, I've got to to you're more this, not believe

hyperscalers. scorecard capabilities who's that are of do very us, even course, ago. than in been which, the longer the we handling other this addition, But large year you answer than But another was doesn't the a missed databases have the Israel, of all, centers, Italy. a Google this and where France which few actually scorecard of the one first least not So fact sure that data seen we in in higher where of uniquely I'm is and we real Microsoft, Gartner's is year passed all measure in you've

So infrastructure to handle. just right and in addition why interesting, cannot that it's that coming stop us All world all to we there. incredible that's but customers applications the will an right, And put things very in they us. has have are in I position,

Brad Zelnick

so much. Thank you

Operator

Barclays Our from with Raimo Lenschow next Capital. comes question

Raimo Lenschow

I look for Hey. Thanks well. the system treatment. my the as I try numbers when canal now, had of, root taking the I've to forever, role But accelerating. changing I in I for avoid an much congrats and kind Fusion to it as remember back But I I volunteering go used ERP and wanted ERP, like question, strongest industry, me at if from to Kind you for Larry, work seen ERP apologize the NetSuite as for possible. of was to think. that. is

like in industry in going again. of do and So what's that, on now? congrats kind the the for terms willingness to the of or pressure Thanks it

Lawrence Ellison

Yes, very much. thank you

configure, making have having The very it we spend of infrastructure, think much have easy people I better. products the think our to The consulting experienced. our our now gotten got product, more implementers Installing more customers install. The the I experienced. more around – themselves are have products a gotten much experienced. lot automating in time

unique customer things one dropped So it in also takes cost time in, putting way it no and has modifications of know own the the cost to precipitously. day billions, sounds years. five way it just I these over to used in There's I obviously to some a it to – way back mean, the precipitously. used take his it of and implementation unusual added be to now. but Well, comparison of to it to some the put them installed wasn't related period it the billions seven crazy, is configuration system ERP to of for cost the has dollars. SAP an The it be bought a to computer the of dropped

a procurement months and for medium-sized chunk low big live your at entire of live very, is quickly unreasonable get not a very can get cost. company, to Now your business, we financials and you – a maybe business, six not but very, very on

a I'm So own more And their totally ahead then to going extensions. not other encouraged to and mention are just time. go Customers build world. it's the one different thing

next less than yourself. you so different or and much an us quarter to the need nothing, it it for extension, It's try the tell you upcoming two us need, we in can expensive what maybe schedule to a do If do model. That's fundamentally have in it releases. to

Raimo Lenschow

Perfect. Thank you.

Ken Bond

Next question, please.

Operator

Our next question Morgan comes from with Stanley. Weiss Keith

Keith Weiss

Thank Excellent. impressive quarter. you guys, for taking the really question, and

at data good growth a count, and CapEx of Oracle. Brad your are looking as investors frankly, earlier more sort at that leading intentions for had think more center indicator of I really point looking a and

expansion. into hoping maybe expansion you center center data us So in that just I digging capacity isn't could data that. side, on was update And

You through of center should could expanding data centers as capacity about how making? expand help you to and that within Can those think you're really to these us overall deliver both data all data existing expansion we about centers well. capture investments think

Safra Catz

that first that. guess centers I the public data we of are running. with that. that get I'll started are the database I'll Well, announced take ones all, up and

the course, many have Of in we offing.

region as Larry very invited investment we've for government-focused centers. a government, private States that talked seen made JWCC. about, significant customers. We in And have, been in United you've for the also certain we've submit I'm to sure addition, especially data But

of we and levels different data at revenue have you invested we you centers have revenue generally requirements the when those, also potential. security We invest countries. we so other of those. for government see that fact ahead see don't in is see different announce, What we don't do And

rolling been out We on track. have

about we it. feel So very good

make have to sure capacity customers. continued just we have for We

move working in some And we that's to their out customers And for they countries, in center, one start us. when those. and open data

as the a investments, see guided I've where have lot for of make going We demand these you're year. whole worldwide us to

Keith Weiss

you. Super helpful. Okay. Thank

Operator

Our next with Mark Sanford Bernstein. question from comes Moerdler

Mark Moerdler

successfully on you the are unique reasonably much. and on the And hyperscale seem spin good cannot? offerings why going large you're different this and able discussion others I'm largest to follow-up you to Thanks. do hybrid be Gen how of dedicated cloud, opportunity? any a the that regions see Thank you margins, explain Oracle's sense which not with very providers deliver how on Can offering. OCI to X. can you us give

Lawrence Ellison

take everyone to that the party. a says at late Well, one. I'll crack Yes, we’re

what built. else saw we everyone So

of operate a people lot built orbiting happy past. Other else We of really of smaller a a it NASA we he built That's the X, few Version they lot We chance centers. one the build Gen or Elon X figured to satellites. we of but built satellite centers low centers to fact, people One And had do it. of we And of able built to cloud. else? with data out did one satellite to It's sensitive data do two needed – for was couldn't he Because high people. the the could we servers. of of our government. with it. we have In – very a one it. that's things twofold. able were to manage compressing security to building number people Why his system. re-architect in art a why and right? failed magic being lot And of the as to a special with do thousands no is lot couldn't a But versions very our nobody it, kind Musk weren't not and that zones software the then super cloud, of Think we which could. about it. else tried, we need is really decided, build he other No data system, without to earth smallish what software

lot automation Our different you of you for of build super for where number small software centers large number would very people. managing managing and center a a that large data is software rolling of out data had a

more small on easy. centers. And software It commitments rather what of because worried meet team than number a were fantastic And way large bunch it about different while. cloud all a have a it a prioritizing only those us to that allows manage knows we data do we a just it. to the have – software And – Safra automation automation. to it's the lights-out is relied all automated wasn't a we've a we've centers job number it, center, centers. that suite much bit did data different automation data of And and So a was large we It's can us to this. of took made heavily commitments. do data And of to fully

Mark Moerdler

a lot makes That of sense.

Safra Catz

are centers data full comment a to want but that cloud, at I Larry, truly also the on private customers.

just... that's So

Lawrence Ellison

people about talk about of they talk about Yes, hear – I talk – cloud. hilarious. think I a its people hybrid lot

public And not data automation center. run of to region. services, apps, cloud the in We build you offer XXX% a floor of ridiculous. run hybrid. is – it your firewall. means software most then put it link hybrid public cloud. your all a plus is, we'll that We that cloud. We'll runs So is common runs And can the that. can software. because your That's data say, in on the have your hybrid you we someone's well, some This It of to not can People a identical our we is that there's a the whatever cloud have whatever got hardware, that's automation behind a identical That cloud. them. center our all there cloud. now put do We

So it's true.

our the So hybridy thing. it. a same located behind notion where the but the only exactly data your your if on feel of it's you're you and thing safe, Otherwise, firewall thing, cloud. basically the network same center were it's high-speed about That's comfortable hybrid than is safer interconnects with in cloud floor public

region back in public in region your back cloud. data a for center. every a of your They cloud. then move are except identical That's out workload a the public way from security in cloud into firewalls hybrid some private can your private protection the You private and real and

it. have don't guys other The

Mark Moerdler

of do and really lot strong appreciate congratulations a makes quarter. sense. it I That the on

Lawrence Ellison

you. Thank

Operator

Winslow question Credit with Our Phil from comes Suisse. final

Philip Winslow

find quarter guys. being and the where to jumped had for about a And model I taking I my than actually quarter question the a that its was one obviously, of mean, you Oracle, And license about to by that… was driven the outlook. business. congrats this. was In I when years database and my license lot nine that Hi, out numbers back then Thanks think great growth year-over-year. jumped for to to out, me most the on I higher quarter a a go think when assuming

Lawrence Ellison

on said really I way, mean is. the I'm at business, mean you glad business think it about Salesforce.com, Oracle. run their it. that. Benioff entirely over I their That's they cloud By what Marc

say, that's revenue. cloud people Now well, not

in cloud. count Salesforce's we You cloud that just you're it's license think all But revenue. the But revenue. count right, of that don't application? use We the as don't stuff revenue. by of Oracle cloud and our being driven the And I so. modern some license is that database license count is that very a clouds. database we running again, Well, as large –

Philip Winslow

versus And space, other as during well. acceleration QX just think you even partially mean That license some in the about seen I that the great. example, QX. But seem when example they've cloud see you think if accelerate that acceleration my there, services together we answers and of overall just for the business and That's to like the and of one – with questions. the smaller competitors here of your about Salesforce

your I the moves scale percentages, And to at what something there's going question going on. my world obviously something to these infrastructure guess be there seems data in seems definitely be is and Oracle the on data So at stack. when

And So sustainability what about drivers? of the those think do you is how that?

Safra Catz

And development and you're have it's And the ones also are high be can But it's Oracle exponentially. very performance, reliability licenses, Oracle operate. much grow. who can want going continues large to going course, on it's news to in and and you listen, those the that's We're Java for And to about very so that they me. of use growing new strong, to of data, that going is in insights analysis, it to either data mean to coming for data, amounts not going able other from Larry, in is really, talk to remember, nine or being leading is is cloud, it. data requirements. handle application out economical way what's doing in Oracle addition, capture buy And We're high the you amounts analyzing I But the bring is and that's to we data. data well. times what getting this database of Oracle. of on continues database important environment. when people warehousing, XX. our a when of incredibly for huge pick transactions, data, technologies especially

more is this of so more businesses of our course, draws just And digitize, great as us. this And just for technology.

Lawrence Ellison

Yes. run I And applications I databases hosting call do It's in moves of they're their what database they would taken and licenses, those that cloud. over for those XX% vast The database and say the still majority licenses them S/XHANA who as Oracle. Way not SAP cloud the Amazon has SAP cloud. run they when a in to of I HANA. big do to have call Oracle customers cloud. Oracle business the us, running and mean their even migrates it

its license that on does the right? cloud. of license new on-premise, mixed It's is of way bit cloud. mean a the of most mean to Some So does a revenue bag, the and and not – not license license a revenue it's

Philip Winslow

Great. you, Thank Larry.

Ken Bond

will of Erica with turn to for call us Investor conference And XX the today. be I'll you for back A replay telephonic closing. joining this available hours Thank that, Relations call website. on for the

Operator

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

disconnect. now may You

Oracle (ORCL) 10 Dec 212022 Q2 Earnings call transcript