Earnings call transcript Q4 2023

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Operator

Good day everyone and welcome to the Oracle Fourth Quarter and Fiscal Year 2023 Earnings Call. Today’s call is being recorded. I would now like to turn the conference over to Ken Bond. Please go ahead.

Ken Bond

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

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

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

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

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

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

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

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

Safra Catz

Ken, Thanks, good afternoon, everyone. and

reached drive I'd our get business businesses. shared our years And our result, I a that transformation acceleration get I point of had inevitably businesses as of going Three revenue a fantastic like and you as with this declining numbers, end eclipsed the growth size forward. own crossover our growing before would fast great was had ago, a year. another QX see, the over here. But journey to go can quarter you As to to the

you our this Now, I growth year believing closure played see, can out growth not business the back than seven size. don't dollar that's cloud our now significantly. more accelerating Well, billion Gen Since doubled with the our SaaS And office revenue a was despite nearly time. me infrastructure blame fiscal Russia at has service strategic has consumption you for XXXX, of Fiscal as And in XXXX zero. year times organic half of business. X larger. is

rates quarter year last growth And while has infrastructure growth from and competitors this from And their our doubled the we're Gen to year, growth XX% X with last done. far drop have cloud over seen higher. OCI rate precipitously essentially even

I team, we're fact, just told middle at of about the think I In beginning. my the

growth that ahead, should opportunities see the Looking I even future in help future. acceleration growth more power

that fall to demand significant leaves we targets year committed our our analyst remain And meeting. XXXX at us with upside. fiscal last you the financial We shared exploding AI

Our fundamental from momentum experience. has customer One, two, differentiated much competition. better been And driven technology. two highly differences a our by

comprehensive, businesses modern, part years applications most applications. and cloud of office, CX, innovative AI growing and are And base on Firstly, complete before very about our a of capabilities talking global Fusion around we was are it industries. learning our back customers run on with implemented in every the because all of can To across machine set apps to it. popular We the industry size in serve businesses their world enterprise any NetSuite helps anyone picture, customers day. customers the small we from

us business application has cloud margins. technology in to $XX gross helped best Having grow revenue while the SaaS billion the expanding

technologies. be and requirements, moment. in to run choosing the all Java. unique services their unique is media like training we're will are known AI result But more differentiation that and like services the capabilities of for, we're a the Oracle for our database they customers database side, new infrastructure our articles On on or seeing Larry on OCI and explain more reporting infrastructure

That To as on out with work as this complement starts the success. focused technology, technology to through with spirit question we've the no their our changed with our our companies partnership we continues culture are hand-in-hand we with such partnership engineering success. led There's they has way all customers' close our our that try us. and success totally that customers

this ensures an of purchases, from most satisfaction, get from approach, and expansion the referencing. us called already Services, activation need implementation drives part We results that love, created to they to Customer succeed. unique also else to we've tell in ultimately group support or which CSS. rates, planning value and organization they their customers anything that, higher rates, think Success customer that to overall Oracle As This renewal customers to

QX. I'll Now, turn to

you As financials always, to Cerner, currency going have and all. picture. I'm you growth share including rates, a I'll full also that discuss some excluding using constant it and provide results, so with

billion, IS, $X.X and $X.X revenue XX%, revenues, up up SaaS XX%, of cloud was of XX%. revenue IS up billion, Total plus $X billion, SaaS with

IS, than Gen OCI. revenue, support autonomous services Cerner, XX%, for strategic cloud database, quarter the up revenue Excluding $X.X XX%, X billion. more license cloud plus was and and $X.X was driven SaaS our applications, up by cloud at again our total billion, Total

SaaS was billion, which Cerner, up XX%. $X.X including support, but XX%. revenues, were up again, support, billion, revenue, excluding $X.X product XX%. up billion, $X.X excluding was subscription Application-specific cloud include Application were revenues, Cerner,

now applications businesses Fusion have $X.X SaaS including office billion, our annualized years. straight back grew for local and an than larger up grown and have our competitor back four NetSuite revenue XX%, now and Together, up of XX%, ERP, XX%. faster ERP, office strategic are Our strategic

billion, Infrastructure also up XX%. subscription include were which revenues, support, $X

up XX%, was legacy XX%. database $X.X revenue revenue, with already, at cloud services OCI infrastructure was billion, services. services Infrastructure of revenue revenue up up Cloud was consumption was and cloud which excluding mentioned including an As hosting customer XX%, XX%, XXX%. annualized revenue grew up autonomous consumption

were services, revenues, Database highlighted up which up were X%, support, database subscription cloud include XX%. by which database

cloud and alongside acceleration, to databases customer, services. at cloud back the of and a office expect migrate and SaaS services growth cloud cloud database be these will revenue we revenue GenX on-premise OCI third leg As growth

Software year license growth a ago following XX%, billion, down $X.X in QX. the XX% revenues we were saw

revenues $X.X were all-in including So, for of $XX.X up the total billion, billion, XX%. contribution revenue quarter, Cerner's

license Shifting about XX% license and the and support, license support its XX%. gross of margins, services with services continues to grow. it's much much, down percentage happening Oracle to services was growing as this of support and than license XX%, are is support now margin Last margins, revenue, for mix result cloud cloud But support because faster a year, our gross revenues, to as mid-XXs represented cloud and between license the support even cloud.

with gross profit Cerner, and excluding QX. importantly, license grew XX% support services cloud Most XX% Cerner in dollars of

note continue I margins Additionally, IaaS gross to would year, I margins substantially improved will from that improve. last IaaS gross expect and

also income from to center capacity, we've was higher was continued our up these operating Non-GAAP $X.X Cerner. integrate build continued billion, regions to have go we last we XX% data year. as The XX% While cloud margin seen new up. margins operating fill as

GAAP X% but we the quarter for dollars, constant X.X%, of only non-GAAP in tax currency. and benefit standards to XX% The was EPS continue operating not we percentages. to $X.XX EPS income, also in in we will Cerner in the cloud, non-GAAP the was and USD, As profitability was continue the grow rate margin Oracle will scale $X.XX. The from grow economies drive up operating U.S. to

our year. growth compared revenue again And infrastructure Cerner, XX%, Clearly, fiscal investments this company subscriptions continued excluding Total X%. are full were into was the excluding billion, with and off. application XX%, And $XX year. year, For total XX%, our paying accelerate XX%. X% revenue, compared to last total growth total revenue up revenue grew last year to cloud as businesses grew X%

up Cerner, was to $XX.X $XX.X Total year. itself total with up And applications, up up revenue revenue and services, XX%. were were acceleration and services Total cloud office cloud $XX.X And cloud cloud in billion. the which infrastructure XX% services the for license which both XX% cloud billion. strategic up back year, for services to support were were XX%, billion, XX%, by excluding growth

operating was $X and nearly $XX.X $X.XX short-term deferred securities. revenue marketable the up up cash end, in we in quarter USD, EPS X%. The currency. At in up billion, percentage XX%. USD, full was balance billion in And and had margin Non-GAAP XX% year X% constant was

cash Operating flow billion. for $X.X the up was XX%, at quarter

up flow was cash at free $X.X XX%, While billion.

expect up. be was the of to rate. over or as year. billion, fiscal sign due is was XX as see RPO from is The in flow recognized remaining months. Approximately new in $X up expenditures I over XX% billion, to RPO as their in would note cash good benefits last quarters, performance the well cash you'll flow. run free that flow Cerner. organic up our heightened revenue year, And XX% bookings up XX% I $XX.X cash I billion billion currency, reload obligation, our see results RPO cloud Now will $X.X and last of cash a constant With also commitments year, $X.X seeing a XX% last customers from this this as through result of transformation. operating four customers was now customers billion, burning constant that next at as capital currency, from expected our number up $XX.X free total flow very we're balance, cloud we as expect XX strong that

billion for capacity XXXX, was growing fiscal CapEx build QX to existing billion $X.X as needs. year and for $X.X and continue bookings our customers' in we

to for strategy build many, regions. capacity cloud identical remains investment Our adding many

advantage cannot. which Our And starting us smaller, competitors go is point to us. an to for where continues this be allows

Gen also centers and I've business CapEx. fiscal have be year the I projection pipeline, another expect we in demand revenue our as I our to growth existing the online. excellent and have OCI year's of will expect similar this centers Given up new now and come CapEx see fill will our XXXX X increased

are As to and booking trends, always, our which up in investments we with remain why is margins appropriately our line pace gross cloud. our in careful

being true public Azure, with regions of We public XX built. regions these multi-cloud customers capabilities. Microsoft now X interconnect with the around XX cloud world have another giving

customer lastly, have regions, have we planned. demand X live immense We many, And XX with dedicated implementations, and more for national X regions clouded security many more.

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

billion. $X.X a of repurchased XX year, This fiscal year, this for shares million total we

the addition, $X.X over quarterly out $X.XX we billion share. dividend as declared Directors paid Board dividends the XX months of per In a of last of

EPS And before, grow is revenue guidance. fundamental to cloud principle as our Now said to while substantially increasing I've growth.

currency non-GAAP Let positive revenue exchange on they me on are a on and as rates like effect a else. basis X% remain have total for guidance my EPS now, effect everything review QX, positive QX. a which X turn I'll in should If to currency to $X.XX

different. currency be actual However, impact may

from grow from USD to to expected are X% X% Cerner, XX% constant including to X% QX, rate. for expected are and exchange today's grow in to revenues Total currency in at

grow $X.XX and My $X.XX currency. our XX% Additional in to in and X% $X.XX $X.XX XX% is depends Non-GAAP put a on of more XX% XX% rate to revenue, grow is to how EPS Cerner, upside and assumes expected between to and even excluding in can fast EPS customers. again, between cloud Non-GAAP Total USD. between expected in out guidance X% between to XX% to be we and XX% grow EPS is base constant from tax XX.X. USD. expected to currency constant to capacity be

you actual tax to vary. as one-time quarter, events tax could cause every see rates nearly However,

XXXX. some give year initial Now, let thoughts on before I you fiscal finish, also me

I As AI demand and services. and we especially Larry for in our unprecedented are will cloud described, our services elaborate depth, seeing

though a we similar much what higher. bigger to may base in I be expect our least cloud and fiscal experienced excluding revenue, is Cerner, at As growing at continue even rates result, XXXX, will

revenues continue we will our this of As our total operating larger, in XXXX. also expect cloud revenue total an margin high-growth of are growth. deliver as higher larger acceleration And fiscal portion well. a coming are seeing year course, a we I this becoming of non-GAAP revenue, to expect trend percentage

Okay.

enormous an want to fiscal take moment our I making I customers thank hand for year to XXXX off to success. Larry, such a Before

we I you trust want for customers' thank to thank missions been our on spectacularly. focused partners, wonderful for so our You've And being advancing in employees us. and your

Chairman, have and just and And and for this part days our which allowing see Some us. determination, work. your in CTO, for founder vision, leading been with Larry, Thank decades. loyalty is incredibly started. our to for you, and us your many of all thank years, hard all best of our you you us of in fact, I you be incredible you getting are brilliance, new, And our with fact, are, journey, of that think ahead for even and

you turn Larry. to your And thanks, I'll So with comments. over for that, it

Larry Ellison

hyperscalers' is different plus and ultra-high-performance cloud-controlled GenX CPUs hardware using Cloud than interconnected Safra. dedicated Oracle's we in security of manage and and data RDMA performance set set our customers competitors. to Thank rent you, an The blocks The other GPUs much are any privacy. fundamentally Oracle's GenX of our of to higher software Cloud cloud enable and network, than software a hardware that computers unique building deliver clouds.

are to in the optimized a you What network And centers minute, in high-bandwidth, as used models. half twice if all we is as large-scale large-language world cloud the generative is cloud, low-latency the fast, for that building Oracle's today's by do, since pay GPU that is especially you train and have pay interesting run much. perfectly of you that data clusters RDMA

many, doing in we computer, are Space cutting-edge computer, with companies, [Ph], GenX running an build AI Character, AI related Layton of Vector Altair, Respeacher, The Modal XX SliceX, world's Falconry, largest NVIDIA AI has the development GPUs. to the Space, and others. Bio, AI, partnering number development in among plus choice Mosaic Adept cost InfoWorld, Labs, Cloud. with Oracle AI made including savings extreme ML, are high GenX Fouhear our generative Labs, one Cloud performance And high-performance HyperReal, Oracle themselves the XX,XXX NVIDIA many workloads

AI Oracle One recently cloud large aggregate, models. protects customers customers launching cloud with the specialized GenX $X customers' safely a partnership our enterprise contracts than AI last billion In our training capacity private service Fouhear, generative thing. data, the of enterprise [Ph] more enabling data to purchase own is their in to to This customers. Oracle's service In generative Cloud. of their new privacy have own language those for use private train signed

large new instrumental be large and will models, efficiently. own were large data training models. early AI specialized improve development this two models in to service. private highly extend in medical of Cohere helping We language use professionals application precious cloud more our the for first This teams training supplementary Specialized for responders. one of and professionals their Oracle's language new adopters used one trained existing time language resulted

their working protecting As together models enterprise very, training own I the privacy are said, Cohere and it to data. for very their specialized make to customers while Oracle train easy language large of

specialized to lots large going next the Over years, are few of companies language models. train their own

GenX partner, is models quality costs. dawning. large speed care Cloud alone, the for language will revolution health to also their A Cohere, life-saving increase Our health care, new training models. by own discovery access Oracle the of improve using care In language drugs, is specialized patient and of technology lowering large the

you, Safra. to Back

Safra Catz

questions. I think we're going Ken? to some take

Ken Bond

the Safra. you, audience could Lisa, you, thank Yes, Thank Q&A. we for Larry. please prepare if

Operator

Instructions] [Operator from question We'll DiFucci with our you. Thank take first Guggenheim. John

John DiFucci

And businesses has opposite acceleration your some others, cloud just when I for, see are question's hyperscalers this all environment maybe My effects It's to it's Larry the cloud-based vendors, today, what's surprising other somewhat in price. or people but seeing We That environments, usually, lower that's freeze. sense, makes not least performance of happening been a But in, at get around the quite while, I've here. lot today's see tough environment. that's we a better just I important. guess. in the other you. for Thank the thoughts, in even think, across mainly Safra, too. And whether at a

just the other companies better cloud Is like accelerating the else, would So in are show addition that even, I lower business of to price, doing said, question, pretty opposite? what anything outside there good why? Oracle, when just at performance your

Safra Catz

Larry, at in take you it. add here. me start Let And a

customers They accelerating need do is agile. And stay because also OCI of that all, to stay less. competitive. is the to need to spend they more. just need growing First want and fact They to

to technology, business, And so less that's them whether our decisions it's our and a running very allow their make applications, which better spend very, so lot natural.

twice are about is things XX XXX in go customers imagine, some just faster, said, fast, business. Fusion workload less, Larry OCI. faster. But then so them to common imagine cases, some about X,XXX times as talked their so our as Larry and So there's coming run many fast times And or these that competitors. It on costs as from it's the our times where just But being as OCI, compelling. or are helps of Fusion, you it

imagine So looks what that bill like.

to I So at that's we technology want to don't if causing you And without that. add to our have compelling into a more lower Larry, much quickly. a price. us doubt customers move know,

Larry Ellison

announced said, twice we cost We much, do run half Well, times much. half MySQL Amazon's they're as going more we than Amazon cost open a have half new times twice example. as that's half be Safra an I'm I as just new HeatWave. database to. a And as run with that we we moving X,XXX fast, It's fast, database, less cheaper. faster fast a little more a we're than because in to customers as No, as a We lot specific, fast query much, query where much. Aurora, called we X,XXX added than We're version we experiencing And twice a processing And MySQL. versus cost fast. one much we we if as of run speedup, as Aurora, of sometimes from a twice query much. processor much. But cost source lot says, processor version

have We most network, cases, We very can with can't started lot more GPUs that. our In faster that use they RDMA than because this a network, clouds one. going our people run super-fast cloud which in build means we are In competitors' because fast it's other GenX Oracle be the to we a a our network. don't we network. much than had entire use and kind the much was most of build applications, you of that the to two cloud, nothing fast things but of network of

advantages, across cost of a broad advantages portfolio huge have we cost So huge applications.

Let me SAP's us one-tenth, cost ERP HANA. to throw thing. one system with ERP implement versus new in It one-tenth Fusion

our cost lower than of are So the our competitors. implementing dramatically applications

Fusion. we lot as not services, doing and SAP cloud share So infrastructure continuing move they're our that from of people why migration, taking have people for our from quite we're to seeing a of a moving to market doing a from lot lot of we're AWS and to That's well. competitors. better, We're

John DiFucci

Okay. job. Well, thank Thanks. and you, nice really

Larry Ellison

you. Thank

Operator

Brad our Deutsche Zelnick take question Bank. We'll next with from

Brad Zelnick

much within your office so Great, have I'm now, apps? a the strategic a in the as on being somewhat to applications. other I'm just strong versus Oracle thank we Congrats the finish much. infrastructure Larry, of in know, well. from AI not when how the opportunity of is you captured back Cerner, maybe and apps. verticals will years five And front year. on unique I thinking all both don't back, look business thinking generative been side infrastructure And and office, leader

Larry Ellison

I hard difference with Yes, actually everyone use not question. answer and strategic our That's that between else's the difference and both time biggest absolutely. is biggest It's very difference. strategic do is difference the A cloud a technical said biggest Oracle's we that it. cloud between we ago, applications to the build infrastructure that long The RDMA network.

we lot learn infrastructure. on by our can improve infrastructure our of building lots of about top applications, how enterprise-scale we So applications, a

making obtaining feedback productivity. continuous our improvements this applications, have We're we insights, building So loop. in

new a have programming We language.

or applications. one again, our the or lot And lot a of applications Java, our Java. the And tool But build building And gains in cost. factor we other APEX. tenth APEX. are, in this of the now have we're application of we We for one at productivity tenth amount and applications development tenth people, one it time, a the have low-code a XX. We building use called we love

But these are applications These millions users and applications. over low-code to scale are typical not that all of the can world.

more quickly which we've rolled we are developers for one the why could APEX our a has use of made development very, globally. It's them database, Autonomous of dramatically the that underlying a Cerner very, idea underlying We bought period for low-code Oracle reasons very is infrastructure, applications most tools. Database, applications applications made underlying of into medical And time, redo we So our small that of application projects. out environment, APEX these very the the rewrite suite whole productive. because short the we in could we've

last Again, an thing. use it's Let make me we better. database And our autonomous technology close with AI to one database.

database. that. repair DBAs. really is We do technology bugs It We've recovers don't It used adds while cloud space. running. where is It more AI updates cloud itself. need AI self-driving is You our the technology It cloud, itself. our self-healing. throughout We've used a to

We that's different have an other autonomous of the Linux operating Linuxes. all system than

online. online. it You It can itself It patches online. repairs itself patch

our make again, So infrastructure businesses, again, better to we better. underlying we it by to infrastructure, the and and two those being we add need with in our what as our insights and need applications applications we infrastructure better gain applications make our, to make use what do to to

continuous make only have make us infrastructure It's with in infrastructures We're advantage technology. people huge loop competitive gives have. think I a why don't company feedback applications So, the other we that better. better, technologies applications it the that and the

Brad Zelnick

helpful, Thank Larry. Very you, color.

Operator

question next from our take Panigrahi with Siti Mizuho. We'll

Siti Panigrahi

the Fusion Very impressive in to part and especially quarter. in business. want macro you growth, of application this great congrats the Apps on SaaS a Cloud dig ERP Thank I into environment. and

your you that? driving of terms are hearing from migrating what's in to SaaS and the what application So, customer

vertical And cloud combining last year, with also, application world in opportunity offering. the about horizontal talked the you

helping that is how So, SaaS growth?

Safra Catz

will I no you question. Well, Okay. there's that tell

together Our of secret Many to fact Fusion end a application and our have that vertical vertical customers we the weapon is up and buy industry wanting applications by it's industry. also.

vertical CX, what you'll truly and to Cerner are, HCM, but our of all segment doubt, in as with be us we applications, it the is tough healthcare in customers, SCM, posting existing ERP they Whether existing a and as all popular. be the wins probably of it's without most the we see beat. will we fact a whether a vertical applications, have very some horizontal have makes our our for well application We customers, of the customers that online when quarter, that,

to New we many, retail, in many, can very financial healthcare end fill to And buy much better. to wins their be segments services, the listed are that really these solution us makes same their from sensitive hospitality, up them whole and wanting going entire also many us. needs go-lives,

a So, big us. that's winner for been

And I will also every a when they're you but on-premise, customers tell lower better cost a that our also from that into realize moving XXst with also, much system they that they much the XX century system, days. move current is kept

New that companies cloud, capabilities just implementation they're cloud. become available. aren't like They'll years never the have of say five big every to do some who They're hosted. older but actually

momentum differentiated So, all just are we're ahead. around the products our building just around that Go world. so

Larry Ellison

me compete just our to HR features But add our were to HR, which we with Everyone example we HCM going system, Workday we example. comments, industry. add it, that specifically or take we right interesting and there's system, are the decided think Cerner, an Let for Safra's in HCM on. one knows I specialize When whatever. bought healthcare

nurses might well. seeing. do home as out have patients in two turns in might hospitals. the some a it Now, for clinics might They because a private different workforce very work complex or is three at hospital work They that managing they're

addition to working Scheduling they multiple have in They the these hours. very, two travel hospital. working them these people may professionals the at week, next practice three professionals you're tricky. teaching in scheduling tricky. So, days Recruiting universities. assignments when very days have paying the days is office their and Paying is following them very six jobs, own week, one also can Obviously, who may they the week, have a very have week, be very, complex. a doctors private

our we manage So adding a the in Oracle need staff. and all hospitals Fusion the HCM major system, system, effort have their professional HCM had that features to

would that healthcare Now, we there's no had done there's we industry. focus in way, no unless a have way the

hospital We've only we our for not Cerner managing HCM workforce. around things specialized specialized all system we've for have done healthcare we've for a So bunch industry. the our the ERP hospitals, apps healthcare hospitals, the of

provider One regulator. with we're in clinical, of of get cost. the government the want clinical the them develop government things is, that through the at the digital the regulatory it a regulators And form goes take trial now allows do the lower much software. trial and we're faster largest trial output But we process software clinical to of a to results to the the to working clinical much

approving So that automate healthcare at of be we're both that way are trying And our company well ecosystem on the an all investment in the the the blossomed are The healthcare hospitals digitized. and And looking of that's the are across we investment the drug, to regulators and transaction. entire sides drug, designing that drug should the pharmaceutical has doing because into what to entire our Cerner. now ecosystem. the testing

Siti Panigrahi

That's a perfect example, Larry. Thank you both for the color.

Operator

Lenschow Raimo take with next from question our We'll Barclays.

Raimo Lenschow

question me Safra, of Oracle. And Where Thank or A done still Cerner I takeout? cost as we we of part have see there you. synergy Could you the the switch And and beginning a for Safra. gear well. journey? on the congrats are are we cost, little now are capture are a kind do for in so you. Hey, bit? as we, we of thank on at

Safra Catz

you actually stabilize like definitely feel I We to you. truth. beginning we're at still Thank operation. anything. breaking to know want the didn't want the if We risk to the wanted

significant changes business. more legal some we way more we that entity will actually operate lot a imminently the gives the regarding be flexibility and us and seeing have You combination

a the the our of we at close got beginning going of long are middle very at Their nowhere Oracle beginning-ish, margins it. of lot way technical the the at we've on at are We've the just savings beginning way a are to run go we of company development do a the we that right lot as the into most. sort at side product the, There move and our We Cloud. the and to are as them I'd we're capabilities also. on and bring on just we into work got of operationally say

Raimo Lenschow

you. Thank Okay, perfect.

Safra Catz

Thank you.

Operator

with from take We'll Moerdler next question our Bernstein Mark Research.

Mark Moerdler

Congratulations of OCI question. on the Thank X you underpinning the business. like about frankly I'd to taking for guidance. quarter understanding a better the Gen on my the very much get and

give you the industry pipeline can existing on over concentration, Thanks. change going Specifically, both customer well us base the time? as customer as in the to some concentration, color you how think that's and

Safra Catz

if I at from is stab want reality it. to The that don't large. Larry, take our to small a very run know, customers very you

general a their cloud started spending. a percentage sometimes they when their small percentage of small IT As matter, a and costs we're of get

or We're larger on-premise. move As their workloads. to at more find percentages it more chance, they very often a customer most they give advantageous the the their more or have is movement, goal of how critical It's so what it that effective, industries. absolute most quickly we move. if database for side a big customers more realize us with our cost all beginning is is customers. of It's much so of better, course, that secure this us much basically our dedicated customers, We're try so is at ultimate you much of other our out, their of the of sort especially regions very from customers of as cloud and clouds on beginning of business database off

across additional companies auto know, Larry, don't industries, It's have It's very you you know are across I simulations very, us. with of really diversified. some sizes. if doing As comments. their

Larry Ellison

Cloud in Yes, the most Oracle industry technology are interesting maybe the the business. adopting who that's people are

of their it business, I about wasn't excited very came customers. And if obvious, of of are, their So I NVIDIA running days of an still to but most you ago long where they business huge talking a and app, very large in Zoom, one expense the efficiently. Oracle, an extraordinary their the Zoom great cloud. Cohere And earliest, very, our company, is And it the we a application early of a lot And is in about we're an that Zoom. and company. mean, doing us, will, mean, our amount lot were cloud on just is I is a customers application mean, running

of in became Cloud phone lot very a about apparent, of technical highly the companies you the their and a NVIDIA, where Oracle running your lot an others, bunch industry expense scale lot the like companies, early technology. they we're much or is the advantages, companies, due the stages, a of it the Zoom cloud. it's not And the And at lot I adopters see of But advantages. telecommunication a we're that if a expense, technical they if and name of of diligence highly a the training by can of will, when like lot still cost early or were faster, performance the do a adopters, a only, early in way, AI

we're Usually the network, the proud error. pilot make Another of we're a loss Autonomous autonomy, by because caused reliable. pilot. highly of because of thing you data, a for And reliable. doesn't that is example, If, of lot the our because lose Oracle we're is can't highly very Database your data

the It's Database, Autonomous Oracle the a driver the with Well, system. is self-driving database.

can't you that a causes to error So make data. human you lose

a to your are cloud. huge is we company where lose scale. now closely Oracle seen and very very, with hours expenses, of more the where is at Oracle technical has at data, of compare we've XX beginning are the of In those areas cloud company from adoption do companies technology technology your look they else's closely, bank clouds. percentage not services looking phone where the supposed where expenses journey to a other be up it's And And somebody their when cloud. your So delivering favorably own really your less a day, a

Mark Moerdler

it. That's very helpful. I really appreciate

Operator

Kirk we'll ISI. last question take of And the Materne Evercore from

Kirk Materne

Hi, thanks very much.

obviously, could. if I the this saw next for that going some CapEx strong seeing some CapEx Just you're given quarter. going you investors free into this great about a the very year, wondering flat where you're keep Safra, from fact how to efficiencies, gotten We've flow for quarter, able one to a cash questions demand quick OCI. Safra,

could Thanks. So click that double us? a you little bit on for

Safra Catz

this we're we real mean, big past compared I getting I a getting was Yes. of number is to as put think used economies. usual. out getting lot up, It and up. CapEx a capacity. And And year filled

of things the example, and infrastructure our infrastructure, you In Fusion. example addition, is our one for under underlying one example, is don't efficient, give the becomes more I'll even more realize actually best you underlying that under

to moving us Autonomous capacity. as are again OCI, we gives As Database which to move, we added we've Serverless, also moved

constantly constantly, more we're So efficient. becoming

and to cost miniaturize efficiencies XX racks all us services. giving capabilities it's have Our original just our moving landing to to We're sort XX We're racks. savings. was and enormous the of continuing

So it stay within staying past to to may at, we this but envelope, we're where go and higher, again, out workloads it be laid think very up it got going I fit we've if more a lot year year, a if we're this the overwhelming, same hand. as that straightforwardly. becomes just able I think much lot in We've

Kirk Materne

order. congrats thanks Great, and on the

Safra Catz

Thank you.

Ken Bond

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

Operator

And that disconnect. may Thank you. today's you presentation. you and Thank conclude your does participation for now

Oracle (ORCL) 12 Jun 232023 Q4 Earnings call transcript