Oracle Corporation Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Oracle delivered strong Q3 FY2023 results, with continued momentum in cloud revenue and operating performance.
  • Both SaaS and IaaS businesses demonstrated significant growth, with Cerner meaningfully contributing to overall results.
  • Management emphasized Oracle’s differentiated cloud infrastructure, AI capabilities, and strategic wins in large enterprises and healthcare.

Key Financial Highlights (Compared to Q3 FY2022)

  • Total revenue: $12.4 billion, up 21% in constant currency (organic revenue up 7% excluding Cerner). Last year total revenue growth was lower, making this a clear acceleration.
  • Total cloud revenue (SaaS + IaaS, incl. Cerner): $4.1 billion, up 48%. This is significantly higher than cloud growth last year.
  • IaaS revenue: $1.2 billion, up 57%.
  • SaaS revenue: $2.9 billion, up 44%.
  • Cloud revenue excluding Cerner: $3.5 billion, up 28%.
  • Application subscription revenue (incl. support): $4.2 billion, up 33%.
  • Infrastructure subscription revenue: $4.8 billion, up 10%.
  • Operating income (non-GAAP): $5.2 billion, up 11% year over year.
  • Non-GAAP EPS: $1.22, up 8% in USD and 13% in constant currency.
  • RPO (remaining performance obligations): $62.3 billion, up 66% (organic RPO up 26%).

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Operator: Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oracle Corporation's Third Quarter 2023 Earnings Call. [Operator Instructions] Ken Bond, Senior VP of Investor Relations, you may begin your conference. Ken Bond: Thank you, Emma. Good afternoon, everyone, and welcome to Oracle's third 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 the Investor Relations website. 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 actual results to differ materially from statements being made today. As a result, we caution you against placing undue reliance on these forward-looking sta

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