ORCL - Earnings call transcript Q3 2022

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Operator

Good afternoon. Thank you for standing by. Welcome to Oracle's Third Quarter 2022 Conference Call. It's now my pleasure to hand today's conference over to Oracle Senior Vice President, Ken Bond.

Ken Bond

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

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

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

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

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

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

the However, over we that, to Cerner. With I'd like will making call to turn regarding be no comments Safra.

Safra Catz

of Eastern the afternoon, Europe like of Ukraine. tragic in unfolding by the good start invasion I'd acknowledging and Ken, everyone. Russian Thanks, as a result events to

partners. our incredibly customers hard and to are employees our Ukrainian working We help support and

services, saw in than cloud. using over Russia, have years, of to results organic now for We our all XX%. a now $XX.X review the the they in the subscription saw all growing revenues dollar ago. transition in with I and cloud guidance, say was services, and support tech were subscription database revenue third annualized, grew total growing X%, Fusion organic up we week Oracle XX%, at outperformance level had segments. having time up XX% with well also XX%, growth all up to up were billion than legacy broad-based $X.X quarter autonomous the total our first over was Cloud our again, database, revenues, since than triple Customer revenue expect total revenues I'll are database X% infrastructure includes services And XX%. was XX of revenue business revenues, we XX%, over We with higher last I the X%, growth. last otherwise. and subscription than growth revenues XX% company excluding and the for and ERP, And strong rate and Total billion, backlog at GAAP our XX%, Customer more unless when excellent strategic ERP, billion, growth OCI $X.X Oracle's Fusion saw $X.X quarter which an X% billion, X%. And turn including non-GAAP license accounted I HCM, And higher cloud were quarter in cloud above up annualized applications will highest higher revenue. up Not total mid-XXs. and in exit up revenues the billion, XX%, rate constant And I'll business. growth application digits. and XX%, year and rates $X.X the will expect of and we for infrastructure last results. with revenue cloud infrastructure quarter. revenue for trend more record was so operations consumption, machines clearly, the higher of quarter. were GAAP of Database my up support than performance up License up Cloud XX%. time. hosting revenue did apps Fusion NetSuite $X.X it quarter. were services fiscal to and growing suspended back-office grew including the now growing began midpoint Total only were billion. cloud also but segments

The highest license up organic So X%, grew dollars for all quarter gross $XX.X mentioned the XX%, earlier, meet were for growing last up I and in demand expenses dollars in services. invest the as revenues profit full XX this XX% as cloud years. were over services be gross expect over and the cloud to support license cloud margins Operating for growth support growth than X%. billion, in, total rate quarter we and higher year. I profit was will and services for our gross year our

into $X billion the now operating plan profits QX in invest for to expenditures was $XX.X year. the double rate. billion, and CapEx $X.X and quarter $X.XX onetime We was dollars. same billion. were litigation digits the quarter. billion, X% billion, X% affected our $X.X share CapEx quarters line U.S. this GAAP U.S. due next top currency more last growth price was charge the is $X.X growing last than And negatively rate. on per equity earnings our was rate to rate widespread performance in in revenue by balance flow was our margin downturn by share than X%. was with in Capital was for were quarters in share tax in $X.X short-term in income slightly last XX%, tax base cash we're by up year. Non-GAAP constant XX%, over Our up the dollars, deferred impacted and non-GAAP or And with the equity our from cash was is remaining per $XX.X results XX.X%, cash Both The free flow RPO, year. X $X.X X track billion, base QX. investments share, period per earnings in expected declines push XX% a billion. up U.S. dollars. last And as have continue adversely The over in XX Operating marketable $X.XX months. and to higher $X.XX recognized revenue billion, X% constant is markets And tax currency of securities. below to be strong the down was GAAP operating for $XX line to gross is affected revenue up was The very next while bookings. due billion grow XX% deferred in The of primarily per we the X%, our Earnings competitors. around all Approximately for balance obligation, to share

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

the as last This XXX buybacks of XX declared of quarter, quarterly million we reduced in Directors of total a a repurchased the per advance million we Board of $X.XX We've dividend X the over dividends paid of shares months, out Cerner. and again purchase for the share. billion $X.X of

a is A continues strong the to become points. overall larger few as of Our proportion our cloud business. fast-growing business business

well Cerner may First, should the it year. in in not though does first my assumes close be Cerner that very again, quarter. close accretive And guidance in the QX,

now, X% fiscal expect cloud our that X% more be year operating And fundamentally we're business higher for finishing which full a Secondly, margins levels year pre-pandemic XXXX, will than is profitable on-premise. I of to non-GAAP XX%. to

now which my me QX, a turn on Let for basis. to guidance non-GAAP provide I'll

this right of negative know, they Now QX. fluctuations expect EPS was to you are the we as quarter. currency But remain U.S. of rates I as $X.XX exchange in for now, X% all dollar strengthened a will it the dramatically a in and headwind lot November. see assuming currency revenue And X% on same

X% Of Cloud GAAP the X% for to revenue between license revenue for and EPS and expected in currency. to between X% currency to USD. EPS be strengthen Total and QX X% constant currency be in expected X% easily expected constant in X.XX expected grow dollar Non-GAAP is could and and grow between course, X% to in USD. in USD. is X.XX is QX X% to between support to is X.XX in QX to service X.XX grow for to here. between from between X% grow constant

GAAP of are Both of our large expected well and rate investment to of It year. last we XX.X%. strong masked decline XX%. earnings as year-over-year cloud core non-GAAP low guidance last to rate momentum some for growth due the saw EPS EPS see to a these was tax we and base year gains both as out tax My Now QX a very assumes business. continue

our non-GAAP comments. that, expect XX% any his for always it that rates rates As given however, average I I'll normalizing will actual cause tax turn to in And but or tax with quarter events could or onetime for events, these Larry lower, over so. onetime I for to be higher around tax say,

Lawrence Ellison

parts Safra. over the going I you, ERP wins my to as HCM business. and cloud you I'm that Thank from X with, is strategic in I'm the And to -- businesses. start to have going strength usual. go-lives will, our SaaS if business SaaS comments. strength going go to for and our

brand-new our product. HeatWave about talk MySQL to going I'm Second,

and a then well say, a going fair -- received think not and read that remarkable to we've in analysts are it's going do by -- quotes that I'm had history. bit a the get and speak it's to going what customers. I find but from so analysts really the about I'm I'm think customers has sure I'm a I it, product our read to you'll industry to I'm either. going to These the never quotes little to and second. in And is innovation,

our roll health and on more now? SaaS time, And to with an first been cloud customers. and Fusion HCM We now long winning We're up for exceptionally right quarter the care. business for in ERP we Overall, enough. more progress, have see to beginning in the us office. over back XX,XXX industry we've industries, starting ERP, strong have First, is ERP -- the this beginning how Earth, see doing largest certain sales. we're was incredible HCM QX business

Okay.

was are in health a we added ERP have are We Clinic, deal the That's very care company bigger and won Tenet doing this an and Linda hospitals, so economy. by health to how Scheduling a changing thing. pharmaceutical industry already Sinai, are HCM have doing it's the the Northwell There Mount SCM the HCM, systems. workforce did Kronos hospitals the And they're and known We've we're care interesting. Kronos. providers. And HCM not are out University's really out ecosystem. community I clinics, track, ERP. than well same people health Loma at other to beginning that do Kronos HCM multiple ongoing -- provide someone economy. ERP, hospital can go to Kronos. Hospitals their We've they care we Mayo not because we're have hospitals at list care Uber, of is space, mainly added talking health is much most and professionals. are our agencies Workday Health in manufacturers. the while some health -- care. is started have Health complicated Health, at over are they and and consortium, care? -- hospitals, we companies centers, the -- won help for work HCM companies. of is government I providers, have that recognized similarities and pay we They in CHS in health are Clinic, the having not Health already Atrium people all part long that Doctors replacing And wins our a lot we about Health, there. medical replace of hospitals win provide TriHealth. We that. call who that So I our clinics. of hospitals. paying Cleveland over health that, Kaiser, there, offices. it employees only in XX payers, systems Community a one that's their Health. hospitals that own hospitals, care are They all that schedule multiple care, some have an insurance things Services. those gig an care adapted in health hospitals Nurses, health The device recruit, additional health work and

payers the Saskatchewan at one of deal we're over like providers governments. in hospitals won big payer, Johnson government also ERP & J&J. of and ERP We health deal a but clinics, So the won ERP Haemonetics. just over medical SAP and not at on won most a company, device care We the -- at big deal focused we SAP an Health Johnson Authority, at are

it's just specific one and the ambulatory care automate great device. just roll providers, clinics, care. of little functions decision up to This bit. buy entire payers, across Cerner. board. features been was we're So the to health company, ecosystem integrated that for the a our we're the pack able portion building No going health has some having this the results. ecosystem, It We're to the Obviously, just after medical the pharmaceutical hospitals, just and influenced just the that entire inpatient just

live XX We have with HCM, of Missionaries HCM over went went We health users. in INTEGRIS hospitals. XX,XXX great FCM, live Franciscan consortium Nemours our ERP, wanted They go-lives system. a at XX on Health Health. That's Children's hospitals.

provide we'll to And us. we So health been additional get Cerner has stronger capability care for with strength as providers. real a obviously,

Okay.

outlined other just get and largest France. customers win our The QX, Bank, TD We care banks position another Agricole SAP. X is key are HSBC, Macquarie, Agricole we've we Generale Bank at just other over a We win have won always in and being ERP America, will addition Bank, after very And We are of ERP now strategic we TD SAP of Societe Credit in Crédit to HCM. Crédit that financial X health Bank -- Silicon services, have UBS, of We target over strong more York Lloyds, JPMorgan lot Mellon, in Valley a won in winning financial as the and Santander, the Suisse, New industry Chase, a Bank. services. one. ours in won

Chase just the went very expansion Discover, will on We on just -- huge HCM credit soon. live get JPMorgan Paribas a our did product. ERP. of card, our

and a Windtree a of Windtree, Communications, our SAP, was AT&T, all customers strong again, over The replacement. financial logistics [Ultra], So a existing big ERP Orange, Communications. but at we -- customers, MTN, system. SAP, Huge had -- transportation, even Rogers go-live Germany on. was world we UPS, SAP big for stronger. beat We added We -- Knight big win U.S. FedEx, that Yellow, is win and Schneider Workday. Birdie, Swift, we the a replacing in where Go-live have at in an Workday not are really an Workday. In replacement at SAP's at was big at Didn't services, HCM our getting a around system. Austria TD so its In just backyard. We a And replaced an National existing and freight at interesting. in Express. win had SAP over right had and Germany. a It where replaced DHL. win in go-live DHL we number wins ERP of HCM go-live

We won SAP. the country days we've this in truck Post. Dürr these over Services, a the is think pretty Financial at Deutsche wars, Toyota. winner Bahn. We're a added backyard, won buying Deutsche Services. I We're against the confident IT got on win for winner much, why SAP. former won -- in on-premise really ERP good In Daimler we're Germany, We We software In we won SAP's package known Panasonic. application Panasonic. position in at in we We're very Mizuho just not and pretty Japan, a DHL.

in quarter, Japan. A Canon of contractors the win general over win This Canon. Taisei big big at -- X at largest big SAP a ERP that's one wins at

at had Kroger a is and Auchan, and XXX,XXX ERP users. Albertsons. at economies doing both a with In live So not Japan, Albertsons HCM where historically, we Kellogg, that go-live well expansion in well doing and Albertson have financials. done now. on Kroger these in Tesco, now are big huge applications, doing we grocery, where, We in in Sainsbury, big well Germany, have but well we

other ed. And not We we expansion win Arizona, Organization goods, ERP BAE at Steel. aerospace SAP. But the an SAP agency SAP. a got, important full IOM, which that strong SAP the ERP division -- higher win replaced gas a -- again, days. agency, from of ours. the Systems, defense, cloud in as UCLA, the at Hilton, name really where Hotels HCM in added HCM ed U.K. University very more a Cummins. very and some very X our Eni, We So are and been in in with big our This, we logos of State, of big International at ERP replacement win the an just Texas. won We allowed We UN all In HCM of win, won very, a at Higher was of Rutgers, replaced UK. Tennessee, Vanderbilt, of have added of of competitor -- expansion now Intercontinental campuses in replacing University of Hotels resorts of an biggest to Penn ERP. and live to University in Hilton, other industry beat the has big SAP We in strong X them. The We of logos HCM consumer the suite at over and won we're for a we a than a campuses a -- ed. replacement, University very industries, who and large important are win won public ERP. were Princeton, was SCM of Cambridge had the we a SAP. company. replacing MGM. gas, sector, oil ERP they're we X say a system In won -- big California we an University for Eni, their X HCM, Higher them, over Tennessee, went We The Migrants. at Tata not HCM win HCM. well, and We grocery. for SAP. over these the HCM Unilever. Marriott, always Caesars, Resorts

live went over ERP, In for live and HCM management, SCM supply went big Defense. off won live SCM. expansion live. went went bang, on user XXX went Environmental on go-live on an where it Jacobs a Mountain HCM, live SCM. the ERP ERP. ERP, services, also ERP XX,XXX Zoom waste and We ABM And professional live engineering services in Beyond finish stores. of U.K. on went with big Iron construction, Bed, In high tech, Tiffany for Bath chain. We Ministry SCM. I'll on of and and their live go-live. and suite ERP went on

Okay.

and the ERP in quarter So us HCM. in office very, very strong for back

Now I'd making very in announcement had announcement Oracle a our transaction are at good query databases X and is open is we database. source good infrastructure. from are -- much And database. at SaaS popular been major like processing, about MySQL not a to and major to switch other processing. the historically, The MySQL MySQL. the most world's but popular world has

Aurora. So which MySQL. own it the earlier or that call a transaction processing. for Redshift both their in typically of it's HeatWave, HeatWave Aurora, my business how We And transaction MySQL -- going multibillion-dollar By after is MySQL for to now has version ways. and different usually processing. business query MySQL data way, good database move at Redshift, the than -- processing. then the use MySQL And Amazon is database business. into versions they'll They MySQL customers the we're processing AWS, product, X of MySQL. built MySQL Oracle a is That's query used. query processing, the for transaction processing. the Snowflake query AWS do Redshift, Redshift, their at Snowflake into from MySQL for

decided make simply HeatWave doesn't than transaction a it does very Snowflake it or better this Aurora -- Aurora. replacing MySQL replaces multicloud processing does the time product. processing query Aurora. Aurora replace Because and And replaces runs first to It lot and well, for Snowflake. MySQL Redshift a and HeatWave Redshift both So HeatWave because both we or

HeatWave Oracle but running in in we use it And also Oracle Azure will the So to run it well. as Cloud, users is be -- have able already and it AWS. up will

easy MySQL And from a we and the Redshift or if to a for to going convert we're it AWS that -- Aurora your and user do running really base. We immediately button, Oracle and that? So of user did Redshift it base a make you because We product. Snowflake and did example, and moved Aurora HeatWave. buttons, is users Oracle, we're after why Aurora AWS, an the Snowflake multicloud to HeatWave. couple to data press is want

change You do application have at your not to all.

you You couple move it. press a and of buttons,

benefits. you performance Well, would do cost Why that? the because Okay.

So extraordinary. are moving to MySQL HeatWave

going to to reading. Now talking, for going start word quotes, start stop I'm read I'm going to to And them analyst word. reading going and I'm I'm and

say they're So understating extraordinary, the what are when saying. I benefits I'm

slides. So just quotes. going few reading start let to I'm me up bring the a

Wikibon the AWS faster underlying leap inflection databases against and database Autopilot X.X have lower superb and combined an HeatWave quantum with market They're a is MySQL top HeatWave database. analyst, than may the innovation Amazon industry MySQL greatest user and to cost. leadership. source the HeatWave design represent database are point Snowflake and with open MySQL product. at outperform to past Amazon believes front One Oracle XX MySQL single up architecture. and support. market. to technology for be base service greater. light Autopilot, technology about in far Snowflake Redshift years. wants the in Autopilot, can Okay. query a benefits architect a second design database shown open cloud Customers even by -- is battle cloud Oracle transaction best attracting how Xx this The HeatWave in The true Aurora with different and expect to or Xx the well HeatWave HeatWave and in performance MySQL combined the X with very entirely MySQL the and in that an

XXXX. with and competition competition a is represents The business. database awakening metric This outplayed imaginable. the New HeatWave. for line the analysts bottom analysts industry to cloud fast every got to is these And in are word measurable entrants to we in Snowflake most rude such just This database cloud saying. are the competitive what need as the distinguished word believe improve all their technology will a wake-up stay the of now patents for in call engineering and company my the manifestation shamed Oracle out they they XX named X because every send talked they to introduced demonstrates is like they basically what and the juggernaut. Snowflake. innovation shock MySQL over did database about of HeatWave must there. MySQL looks is waves respond years physical And HeatWave, dozen cloud innovation real and as with nearly techniques, database deep all favorite database what

own and -- spend $XX,XXX It's The all the benchmarks HeatWave, would new scramble grapple That's their what for cloud benchmarks did. The on data, cloud wasn't other were a you to demonstrate to by the no-brainer. answers. benchmarks all Snowflake. the can way, the on public. this. reproduce fully as we can benchmarks. they benchmarks advantages they You the ran talking these out $XXX,XXX over cost shocked. code, and the transparent GitHub. price on These that These data of analysts fully run needs It's put And and all our scale for analysts transparent went about. of are MySQL performance, databases. customers that And new Clearly, competition now HeatWave's the analysts and market warehouse ready all

these of to them These analyst vaporize all MySQL, -- and down didn't. quotes, full combination we'll performance quotes. names, are its all using melt given MySQL cost in Snowflake wrote such with offering organizations quotes. sounds this Oracle X/X For like in I are -- provide massive These capabilities, the by with it, of scale-out context, as it all the at HeatWave I -- delivering another makes but HeatWave you Together and Snowflake. has yet Xx reason solutions invest

Amazon cost with Amazon's of AQUA. in less performance. together TPC-H extraordinary with XXx HeatWave AQUA orders Azure, with analytics both an higher magnitude Snowflake expensive. and and XXx Google scale-out MySQL sets Snowflake. AWS, at HeatWave X.Xx combination It's in vaporize melt MySQL is performance. XXx AQUA Redshift down Autopilot makes than XX% resulting the HeatWave MySQL blows better better, in cost MySQL slower, Redshift HeatWave's bar testing this coming Taken performance Redshift literally massive and with and away capabilities, Amazon faster with

I'll think Safra. turn and it there back I stop right to

Ken Bond

Q&A the you, could portion Holly, Thank Larry. you please call. the prepare if for audience of

Operator

the Bank. of [Operator Instructions] Deutsche our the from will question come And Zelnick for line first with day Brad

Brad Zelnick

continued XX all a your for wins, Safra, years just one I one in the especially on looks got I've then right, this organic quarter. to follow-up momentum and for Congrats I you. Safra revenue want model, had missing Larry. And anything. not it great at quick make my just and those like and strongest have sure customer looking growth that you I'm

Safra Catz

Yes.

You've right. what to it's which basically business, because And a our for of all now very And cloud, is telling our is got is you be that which big. while, fastest-growing getting increases been when you're XX%, number. parts It overall math XX%, growing rate different of XX%, growth the -- big the a it's XX%, and just here. these it's the business, of causes It of business. I've

Brad Zelnick

can OCI? as Oracle versus us Can the traditional of workloads. mix embedding of programs the really ecosystem an OCI update the And have that leaning you now are well, as targeted where to you're as some you have global talk in nontraditional SIs about ISPs in. the winning with how increasing Larry, on largest well now us of you supporting and And number world if you

sense and get where evolving use see help you Just going. us a cases the are of that how mix

Lawrence Ellison

Well, it's I think based. broad

I our payment of system -- coming the with think with one on of a BXB Oracle. because -- of back office working ERP planet we're are partners the the customers -- payment a banks on to one the largest system, -- one

automate cloud X that talking able we I'd with making one for have a to ERP does A purchase Cloud And ERP in modern be transaction, look world, from that a to pay Oracle system To want Oracle strong, automate purchase the we're to transaction. dominant, that are what BXB one another. so the that. look ERP ERP, to if another So like system. Oracle we like? systems future at fact BXB the in argue, There's BXB you purchase looks

We to payments, have range finance be able check of the credit, a to logistics.

business. with large that a our and to company -- automate large a ERP logistics very large aspect working bank very we're So of

it's revenue That's been doing systems this turn -- never that of these a that, don't on of one but network system. huge to ERP business Some of payment ERP it's BXB talking to think another. you opportunity

are banks adjacent that's Giant are with going. are, to all customers and the ever because The to -- facilitate in. the is in companies business interesting joining payment the here. their be cloud opportunity are one started as just joining customers. putting same about Once of before. kind cloud in gigantic cloud the the customers ERP in applications up between that our applications with wanted the banks, thought because adjacent The all Logistic of to the ISVs So integrators the coming ISVs. transactions had that's had customers customers giant logistics the really logistics no ERP familiar where where system become ERP are are our and a to ISVs and companies BXB systems these and Oracle,

Operator

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

Raimo Lenschow

that. really post-pandemic that that. update trying like for you then the is you the any systems, answer want success today? luck came my one realizing, case And I'm here, to rumors like people in Safra, on, Larry, out office oh, need by but to shoot, that I driven comments on that TikTok in on back

there's So more here? temporary you boom seeing that think that's Or legs to that? do you're kind of more

Safra Catz

The is one thing with relationship tell you can the folks at have excellent an TikTok. I we

Lawrence Ellison

It's excellent. Yes. I'll second that.

to a I thank this it's down cloud, of rushing like and kind other after? the is, your people the God, to is which think pandemic to get me going a of question, the it's slow recede. pandemic, take Now that year boom, Let part to beginning XXXX do

how still in this world, the one to in ERP all logistics early that product people be ERP system the through move just it's finance to days really procure interesting Just system, probably that -- those I talking Oracle and either B another ERP. you finance example needs and different and and ERP go facilitated something, financial more automate in a finance and A things. the we're Cloud that the multiple but from understanding multiple to And really it of -- more is you and days. product one and delivered, in -- be on-premise ERP early finance We're of when that buy as Oracle a to partners and going to -- to understand partners Cloud opposite, it's from modern partner and with mentioned

is in I very in including accelerating. accelerating, really faster. Even I the another though this. It's now NetSuite, of the no, have in customers customers the just growth we getting early we're -- I think days. doing total, XX,XXX early we're mean think Fusion, days so accelerating, in early growth -- really ERP almost our XX,XXX And still -- Oracle

Fusion You growth that with it's spite at NetSuite down. the growth doubled. and mid-XXs rate, bigger look -- rate, going getting of We're we've and XXs, than not rate the in growth our and high mid-XXs we're more sustaining fact

Operator

the question of come next Credit line our with from will Phil And Winslow Suisse.

Philip Winslow

double digits line Congrats growth into on out your another One accelerating that quarter comment we year. me, from profits push today to continued was of to the next growth. top script stood our while and grow really

from the currency X% your Now obviously, reacceleration X basis QX. obviously, and continued past quarters a the to constant this guidance, X% for on is

help while on-premise, you you, apps, profits? the double takes said, confidence also, Larry cetera, that you et Safra growing can and give for you in database the for this and question in to terms is, unpack acceleration between digits, continued just of and cloud us my but So puts like

Safra Catz

Okay.

around that's made business the businesses increasing. capability shrinking. seen, parts putting business And -- We the years, of out for quarter, lot of CapEx you've we've are revenues were example, now, few that Simultaneously, a as that been increasing. double the our basically investments. we've So been of had is because all you of a world. year last year, lines this this our have and were the as of But see significant in parts over past lot we've

-- have which are of lines XXX%. business as We have bookings different growth, high well as over some of

-- most so growing. the happened what's And of is is now business the

well, is small up a And the smaller this then, license And very very like including, number very, technology now. so they're was going our quarter, of technology getting that And application course, much for example, negatives. less we're of the license, is just X%. things

the on So role. absolute an cloud is business

grew extent a we are to have of able and the autonomous of the bookings, sort the those all we we And can deliver of -- the You lot shrinking. HCM, And and they're numbers and loosening and our supply first just We now all less of that already large. place. of parts business some ERP, shrinking but where OCI all, the database. course, chain growth it straight in there's are expect to just over of see parts all growing, also, business the

next this year. we're And very upbeat so about

Operator

Our going line from next is come Keith Morgan Weiss Stanley. to the with of question

Keith Weiss

care. an the great verticals, through you a and lot great to momentum particularly to see now. Congratulations banking really on guys focus health about the results a talked It's quarter. Last quarter, showing increasing on

like us This some in little How to rolling create you more you Can much aligning done of to left the much approach work a new verticals? of talk sides? up And or that talking vertical-specific about How is be is how will, you the it quarter, a of build the up building you're if is on X effort for roll up verticals. go-to-market about on and products? that those strategy, bit strategy much vertical? those go-to-market how those

Lawrence Ellison

for let that's pharmaceutical in for that's vertical, of just in as think me well, with is think a health they care a care. trials clinical But epic -- because There's is care Cerner health start health And vertical, that an certainly and which compete not providers. you companies. people as, Well, of care. health

really. for run integrate not the trials pay The providers to those want the clinical You pharmaceutical run, trials. but clinical companies and actually --

can hospitals. answer have week -- complicated. entire they a hospitals you work different So nurses ever the a enhancing work X for independent and had your that ecosystem. X our we days to And a very we are couple to is But whole do if so doctors of that week or -- in ecosystem greatly HCM contractors, days the scheduling these will, that system question, tried no one's

don't scheduling independent and and it's contractors, collection but full-time of workers think being complex. them independent is hospitals You contractors, as of a of that is Paying complex.

of unionized. complex. are The Some are them rules

used inventory industry-specific Hospital drug, -- scattered warehouse. lot doing their a we're there's can't throughout the isn't a to drug. In the hospital. in can't them stop manage massive the called for Nurses to for we're bleeding. drug all hospital a you warehouse, bleeding, stations they're look acid, hospitals go is help the go -- inventory have interesting -- So workforce. of someone's and features inventory Where an -- to to doing you drugs tranexamic which the warehouse

operating got it's be to to to be unit. It's to and it You've to intensive be to got -- care the close able close -- got find room. intensive immediately, where the

So the throughout inventory hospital. all is the distributed

quickly. So things we can tags find RFID paying so are very, in the you very inventory all

doctor So One it. how go have enhanced a prescribing we insurance can inventory drug is the specifically pay authorize they'll make being And on I I is with test, authorize to a on. a check before can I I a can for thing patient, hospitals. company sure to for and handle does before for

so these this I no? okay, -- the can drug We're symptoms, hospitals symptoms, automating that this negotiating Well, for? and payer, interaction the providers. paid can lot between the with Yes, no? company. get time Now given Given payers and the test a Yes, I insurance of these doctors get for? spend paid the

automate No in a really all gigantic adding we have to the why tried one's to which up a industry-specific yes, good interactions we pieces. industry. of before, features think the in that's ever roll So entire position this we're care, a but is And lot we're ecosystem. the health

pieces. of the have insurers. lot payment a We the automate We

have manage workforce. We them to us which allows their help HCM,

have ERP, helps keep inventory. track which them We of

patients. And Cerner, them which soon, deliver have help we care will to will to

have for noise. the So we'll system we clinical and pharmaceutical be -- trial

for make We need pandemic can all that have showed entire the portfolio, we're the we first integrated And has desperate the an pieces and time. of interconnecting so such we're in actually, system. efficiently the ecosystem work

Keith Weiss

It a massive it all like Yes. if together. pulled gets sounds unlock value

Lawrence Ellison

do I can to it's this think We're is do to our the we least benefits me, mission. for are is -- on way at actually, this a -- Oracle personally, it. great. it. And But

patient do care The benefits systems. the world think a variety to has need pandemic the is to enormous. this. health I weaknesses be in to going We of our every in shown

what address those to the to technology weaknesses, and we're that's have We do. going

Safra Catz

Okay.

Let me just other say one thing.

to vertical number And and which work products, retailers. core of in we part actually We a industry. work brings work we has incredible have work. So and industries We it in in the industry, these We're the products. don't work slightly in customers of competitors have be don't in financial use construction this operational modify systems to how We our been with have a We products. engineering. we our services. We just systems utilities. in we're able ERP value to say and in

Operator

day Evercore the line the for from will with of question Kirk last Materne Our ISI. come

Kirk Materne

rev rec quarters? supply to up are to in front maybe How Cloud at helping you that expand And Safra, in a I accelerate starting of of database? Customer terms on was autonomous a of And a at hoping should about next just on X then strength we really of could that adoption Cloud of think for loosen bit the couple over constraints in leading somewhat the indicator things that. Customer. bit about being the any area

Safra Catz

couple of team. challenging, I'm will really admit of incredibly Well, that I and our years past the have been proud

it. coming going been possible relationships I That well quickly has we've we need is out And a it us have as our absolutely the large we me way as we a so with true. for a And special our in very as cloud exactly build to our to number who are they public the to landed because our provide have whether built out that, get to it sight hear same our on and our That the excellent want or line those us The cloud our much optimism regulatory hardware on have or as visibility clouds of have sight the requirements of extremely enormous sovereignty suppliers me our been also much Larry have handling every something built We I backlog backlog. is facilities. have that Customer wonderful we massive liked, And demand cloud needs. customers because from capability customers. couldn't or it's as would internationally. incredible their of made and require you an We've told meeting everyone's Cloud hardware. have otherwise. think want reality gives We've is they it at to and meet that that at data is we how customers of line time. same again, think line that where sight private for deliver and I

to of newspapers be read on. going -- capabilities that read execute. read actually, newspaper, the I'm the I a everything in I I the So to confident team see and my extremely But computer used now the we that's don't newspaper. so

Operator

conclude management that I'll portion to And over comments. it turn for the their today's closing will call. of Q&A

Ken Bond

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

Operator

Once Third today's Oracle Quarter again, we'd Call. like to thank you participating for Conference in XXXX

You may now disconnect.

Oracle (ORCL) 11 Mar 222022 Q3 Earnings call transcript