Oracle Corporation (NYSE:ORCL) Q3 2017 Earnings Conference Call - Final Transcript
Mar 15, 2017 • 05:00 pm ET
Welcome to Oracle's Third Quarter 2017 Earnings Conference Call.
Now, I'd like to turn today's call over to Ken Bond, Senior Vice President. Ken?
hank you, Holly. Good afternoon, everyone, and welcome to Oracle's third quarter fiscal year 2017 earnings conference call. A copy of the press release and financial tables, which include 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 Chairman and Chief Technology Officer, Larry Ellison; and CEOs, Safra Catz and Mark Hurd.
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. And 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.
Finally, we are not obligating ourselves to revise our results or publicly release any revisions to these forward-looking statements in light of new information or future events. Before taking questions, we'll begin with a few prepared remarks.
With that, I'd like to turn the call over to Safra.
Thanks, Ken. Good afternoon, everyone. I'm going to focus on our non-GAAP results for Q3, I'll then review guidance for Q4 and then I'll turn the call over to Mark and then Larry. Just so you all know, we're not all in the same place today, so we may all answer at once, so give a chance.
Clearly, we are delighted with our results as software and cloud revenue was at the high end of my guidance and earnings per share $0.06, above the high end of my guidance. Our pivot to the cloud is now clearly in full strength. We continue to see outside growth rates in our cloud business, especially when compared with our key competitors who're all seeing slowing growth.
But more importantly, the increase in revenue from our cloud business has overtaken new software license business decline on an annual basis.
Next year I expect our cloud revenue will be larger than our new software license revenue. The investments we've made to transition our business to the cloud has been important to ensure that Oracle remains a technology leader and we're now beginning to see the benefits in our results.
With cloud overtaking new software license revenue, we expect our business to once again exhibit the same pattern we delivered over the previous decade as a license business that is growing revenue with disciplined cost management that results an EPS and cash flow that grow even