Oracle Corporation Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Oracle Q3 FY2020 Earnings Summary

Overall Performance

  • Total revenue was 9.8 billion dollars, up 3 percent year-over-year. This compares to flat growth in the prior quarter, indicating an improvement.
  • Non-GAAP EPS was 0.97 dollars, up 12 percent in constant currency versus last year. This is stronger than the 5 percent GAAP EPS growth observed last year.
  • Cloud Services and License Support revenue was 6.9 billion dollars, up 5 percent and representing 71 percent of total company revenue, compared with 69 percent a year ago.
  • License revenue remained flat at 1.2 billion dollars, the same as last year.
  • Non-GAAP operating income grew 3 percent to 4.4 billion dollars, with a stable operating margin of 44 percent.
  • Cloud gross margins increased to 86 percent, up 1 percentage point from the previous quarter.

Cloud Applications (SaaS)

  • Total GAAP application subscription revenue was 2.8 billion dollars, up 7 percent (higher than low single-digit growth earlier in the fiscal year).
  • Fusion applications were up 32 percent, showing continued acceleration from the prior quarter’s approximate high-20s growth.
  • Fusion ERP increased 38 percent, outperforming its roughly 30 percent growth trend in recent quarters.
  • Fusion HCM increased 27 percent, compared with mid-20 percent growth previously.

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Operator: Welcome to Oracle's Third Quarter 2020 Earnings Conference Call. Now I'd like to turn the call over to Ken Bond, Senior Vice President. Sir? Ken Bond: Thank you. Good afternoon, everyone, and welcome to Oracle's Third Quarter Fiscal Year 2020 Earnings Conference Call. 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. On the call today are our 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 actual results to differ materially from statements being made today. As a result, we caution you against placing undue reliance on these forward-looking statements, and we encourage you to review our most recent reports, including our 10-K and 10-Q and any applicable amendments, for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock. And finally, we are not obligating ourselves to revise our resu

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