Oracle FY 4Q15 Earnings Call Notes

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Currency headwinds ended up being higher than expected

“The currency headwinds ended up being higher than consensus estimates would reflect, with 8% to software and cloud revenue as well as the total company revenue, 9% for hardware revenue and $0.09 for earnings per share. Currencies continue to move significantly and remain unpredictable. So my comments today generally reflect constant dollar growth rate which is how we look at the business.’

SaaS and PaaS revenue is still second t Salesforce, but we will catch them and pass them. We have 10x more customers than Workday

“Our cloud SaaS and PaaS revenue is still second to Salesforce.com but we are growing much much faster than they are. So it won’t be long before we pass them. How and why is this happening? Our SaaS growth is due to the rapid acceptance of our new generation of Fusion application. We now have over 1000 Fusion ERP customers, around 10 times more than Workday. Mark said that once, I am going to say it twice. Around 10 times more than Workday.”

It’s between us and Workday in the cloud ERP market. SAP isn’t a factor

“Workday says they never see SAP in the cloud ERP market. That’s the one thing Oracle and Workday agree on. It’s between us, Oracle and Workday in the mid market and high end, the cloud ERP market and we are winning big time”

Number one market share in servers over 15k in the US

“when you look at the market share numbers, they sort of get to be staggering. We’ve taken over the – and this is not a question you asked but I am going to say it anyway. In the United States when you look at servers above $15000, the number one company in market share now is Oracle. I believe that will occur region by region by region because of the strength of not just our hardware product line but our software portfolio with it.”

It’s a declining market, but we’ll gain share because you can take workloads back and forth from the cloud

” I don’t think we are telling you that there isn’t a non-premise market. Please don’t take that message when we described. But I think the fact that you can take a workload from your on premise data center and now move it seamlessly to the cloud and back and forth to a data center gives us a tremendous advantage. The configuration we have in the cloud, the configuration we have on premise now can be identical. If they were to move workloads back and forth, use that on our hardware in your data center, use that on the very same hardware perhaps in the cloud. We are the only company in the industry that can do this. And so I think this bodes very well for our hardware business, granted in a declining market. But I believe Oracle will gain market share in the declining market.”