Oracle Corporation (NYSE:ORCL) Q4 2018 Earnings Conference Call Transcript

Jun 19, 2018 • 05:00 pm ET

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Oracle Corporation (NYSE:ORCL) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to Oracle's Fourth Quarter 2018 Earnings conference call. Now, I'd like to turn the call over to Ken Bond, Senior Vice President. Sir, you may begin.

Executive
Ken Bond

Thank you. Good afternoon everyone and welcome to Oracle's fourth quarter and fiscal year 2018 earnings conference call. A copy of the press release and financial tables which includes the 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 CEO, 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 that 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 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 amendment for a complete discussion of these factors and other risks that may affect our future results or the market price of our stock. And finally, we are not obligating ourselves to revise or revoke or publically 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.

Executive
Safra Catz

Thanks, Ken. Good afternoon everyone. We had a terrific quarter and a tremendous number of wins in the cloud with total revenue growth 1 point above the high-end of my guidance and earnings per share $0.05 above the high-end of my guidance. Before further discussing our Q4 results, I'd like to comment on updates we've made to our financial reporting so as to better describe our business since we introduced the BYOL license initiative to our customers. BYOL, which is Bring Your Own License, allows customers to move their existing on-premise licenses to the Oracle cloud so long as they continue to pay support for those licenses. BYOL also makes it cost effective for customers to buy new licenses even if those licenses are only going to be used to in the cloud. So some of our customers are buying new licenses and immediately deploying them in the cloud. In fact, our largest license sale in the quarter was a cloud license.

Other customers, like AT&T and (inaudible), are moving their existing licenses -- excuse me, moving the existing licenses they own to the cloud while continuing to pay support. Support for licenses that have been moved to the cloud is cloud support. As a result, our new license revenue is now a combination of new cloud licenses and new on-premise licenses. Our support revenue is now a combination of cloud license support revenue and on-premise license support