Oracle Corp Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Raimo Lenschow - Barclays - Analyst : Perfect. Thank you. Congrats from me. These are very impressive numbers. Safra, can you try to help us bridge the strong RPO number and how we need to think about feeding that into revenue? Is that just the capacity function? Or is there anything on the customer side that you need to deliver or the technology side you need to deliver? Just help us to bridge the gap on those. Thank you. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2024 / 9:00PM, ORCL.N - Q4 2024 Oracle Corp Earnings Call

Question: Raimo Lenschow - Barclays - Analyst : So it's just a mechanical problem in a way.

Question: Raimo Lenschow - Barclays - Analyst : Good. Very good. Thank you.

Question: Brad Zelnick - Deutsche Bank - Analyst : Great. Thank you very much and congrats from me as well. Larry, it's great to see the amazing momentum in OCI, especially given it's a competitive market and the leading names in AI are coming to you, wanting to partner with Oracle. Can you talk about the innovation road map for OCI and your AI services in particular? And why we should expect Oracle to keep on winning not just today, but over the next several years to come in this market?

Question: Brad Zelnick - Deutsche Bank - Analyst : Amazing. Thank you so much, Larry.

Question: Siti Panigrahi - Mizuho Securities - Analyst : Thank you. Larry and Safra, it's impressive to see how fast you ramped OCI as you're now available in 11 data centers. And then now with this Google partners, we'll have Oracle Database at Google Cloud. So I have two questions: one is, as you embark on offering this multi-cloud flexibility to customer, when can we see a similar partnership with AWS? And second is, how should we think about these partners is helping your customers migrate their on-prem Oracle workloads to cloud?

Question: Siti Panigrahi - Mizuho Securities - Analyst : Thank you.

Question: Alex Zukin - Wolfe Research - Analyst : Hey, guys. Thanks for taking the question. I wanted to dive a bit deeper on just precisely how many deployment models you guys are offering for OCI because it feels as though that is getting particularly differentiated as we start to think of sovereign cloud, GovCloud, more private cloud, given the conservative posture for AI and data privacy. So how do we think about how much of an advantage that is providing in sales cycles? And maybe in that massive $30 billion-plus in the second half RPO, but also just comment on the magnitude of that opportunity going forward.

Question: Alex Zukin - Wolfe Research - Analyst : It also sounds like you guys have a better price in most cases.

Question: Alex Zukin - Wolfe Research - Analyst : So thanks, again, and congrats on a good quarter.

Question: Kirk Materne - Evercore ISI - Analyst : Yes. Thanks very much and I'll echo the congrats on the cloud momentum. Larry, Safra, I was wondering if you could just expand a bit on the OpenAI announcement this afternoon. Just what that entails in terms of how you'll be working with them or Microsoft? Are there certain workloads they'll be working on with you directly? Can you just give us whatever additional color you can on that deal? Obviously, very excited. Thanks.

Question: Kirk Materne - Evercore ISI - Analyst : Thank you.

Question: John DiFucci - Guggenheim Securities LLC - Analyst : Thank you for taking my question. My question, I think, is for Safra. Safra, the IaaS revenue growth has been really impressive, and it has been for a while here, but perhaps even more so the last couple of quarters, especially is the backlog given its scale. And this may be somewhat of an obvious question for you, but it's based on my conversation with investors. There's two high-profile topics that I want to make sure we understand what the contribution has been today versus next year. And that's Oracle database at Azure and AI in general. We've heard a lot of conversation about the former when we speak to partners and customers in the field. And you've spoken a lot about the latter today. So beyond conversation volume, can you talk a little bit more about what the contribution of these two topics has been to that impressive IaaS revenue growth in this quarter versus what we should expect that contribution to be in fiscal '25?

Question: John DiFucci - Guggenheim Securities LLC - Analyst : That is really clear, and it really speaks to, I think, what you started talking about a long time ago, especially a lot more publicly, geez, I don't know, the fall of '22, but thanks. That's really clear. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2024 / 9:00PM, ORCL.N - Q4 2024 Oracle Corp Earnings Call