Oracle Corporation Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview
  • Total revenue reached $12.3B, up 25% year-over-year in constant currency (CC). This exceeded the high end of guidance by more than $200M. Compared to Q1, organic revenue growth (excluding Cerner) improved to 9% CC.
  • Cloud momentum remained strong. Total cloud revenue (SaaS + IaaS) was $3.8B, up 48% CC. Excluding Cerner, cloud revenue grew 27% CC.
  • Cerner contributed $1.5B in revenue. Organic revenue growth excluding Cerner was over 9% CC, above expectations.
  • EPS was $1.21 non-GAAP, up 7% CC and −1% in USD due to FX headwinds.
Cloud Business Performance
  • IaaS: Revenue was $1.1B, up 59% CC (compared to 58% CC in Q1). OCI consumption revenue grew 88%; cloud-at-customer grew 83%; autonomous database grew 50%.
  • SaaS: Revenue was $2.8B, up 45% CC including Cerner. Excluding Cerner, SaaS revenue rose 16% CC.
  • Back-office SaaS: Annualized revenue reached $5.9B, up 26% CC—an acceleration from the prior quarter. Fusion ERP grew 28% CC; NetSuite ERP grew 29% CC.
  • Oracle now has 40 public cloud regions (9 more in development) and 12 regions interconnected with Microsoft Azure.
Infrastructure Momentum
  • Oracle signed multiple infrastructure customer contracts exceeding $1B each during the quarter.

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Operator: Good afternoon, ladies and gentlemen. Welcome to the Oracle Q2 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. And please be advised that this call is being recorded. After the speakers’ prepared remarks, there will be a question-and-answer session. [Operator Instructions] And at this time, I’d like to turn the call over to Mr. Ken Bond, Head of Investor Relations at Oracle. Please go ahead. Ken Bond: Thank you, Bo. Good afternoon, everyone, and welcome to Oracle’s Second Quarter Fiscal Year 2023 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. Additionally, a list of many customers who purchased Oracle Cloud services or went live on Oracle Cloud recently will be available from our Investor Relations website as well. On the call today are Chairman and Chief Technology Officer, Larry Ellison; and CEO, Safra Catz. As a reminder, today’s discussion will include forward-looking statements, including predictions, expectations, estimates or other information that might be considered forward-looking. Throughout today’s discussion, we will present some important factors relating to our business which may potentially affect these forward-looking statements. These forward-looking statements are also subject to risks and uncertainties that may cause act

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