Oracle Corporation Q3 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Total revenue was $13.3 billion, up 7% year-over-year including Cerner, and up 9% excluding Cerner. Revenue came in at the midpoint of guidance; EPS exceeded the high end by $0.02.
  • Total cloud revenue (SaaS + IaaS) excluding Cerner was $4.4 billion, up 26% year-over-year. Including Cerner, cloud revenue was $5.1 billion, up 24%.
  • This quarter marked the first time total cloud revenue exceeded total license support revenue.

Cloud Performance

  • IaaS revenue was $1.8 billion, up 49%. Oracle Cloud Infrastructure (OCI) Gen2 revenue excluding legacy hosting grew 52% with an annualized run rate of $6.7 billion.
  • OCI consumption revenue grew 63%, though growth was constrained by data center supply availability. Oracle noted over 40 new AI bookings above $1 billion each that have not yet come online.
  • SaaS revenue was $3.3 billion, up 14%. Strategic back-office SaaS applications reached $7.4 billion annualized revenue, up 18%.
  • Cloud database services grew 34% with an annualized revenue of $1.9 billion.

Cerner (Oracle Health) Update

  • Cerner remains a 2024 revenue headwind but is expected to return to growth in FY2025.
  • Oracle completed migration of most Cerner workloads to OCI. This lowered operating cost, improved security, and enables quarterly update cycles, accelerating modernization.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Good afternoon. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Oracle Corporation Third Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Thank you. I would now like to turn the conference over to Ken Bond, Senior Vice President, Investor Relations. Mr. Bond, you may begin your conference. Ken Bond: Thank you, Krista. Good afternoon, everyone, and welcome to Oracle's third quarter fiscal year 2024 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. On the call today, our Chairman and Chief Technology Officer, Larry Ellison; and Chief Executive Officer, 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 provide 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

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional