Oracle Corporation (NYSE:ORCL) Q3 2019 Earnings Conference Call Transcript
Mar 14, 2019 • 05:00 pm ET
Welcome to Oracle's Third Quarter 2019 Earnings Conference Call. Now, I'd like to turn today's call over to Ken Bond, Senior Vice President.
Thank you, Operator. Good afternoon everyone and welcome to Oracle's Third Quarter Fiscal Year 2019 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.
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. 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 amendments 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 our results or publicly release any revision to these forward-looking statements in light of new information or future events.
Before taking questions, we'll begin with a few prepared remarks. And with that, I'd like to turn the call over to Safra.
Safra A. Catz
Thanks, Ken. Good afternoon everyone. I'll first go over Q3 results before moving on to guidance. I'll then turn the call over to Mark and Larry. As in prior quarters, I'll review our non-GAAP results using constant dollar growth rates, unless I say otherwise. Total cloud services and license support revenue for the quarter was $6.7 billion, up 4% in constant currency and now accounts for nearly 70% of total Company revenue, largely recurring revenue. As in past quarters, we are seeing robust double-digit growth rates for total cloud revenue in all regions with especially strong growth in Asia Pacific.
In terms of product categories, ERP grew in the mid 30s and the verticals grew in the high 30s. Our software business, which is the totaling of cloud services and license support revenue with cloud license and on-premise license revenue is 82% of total revenue and it grew 3% in constant currency. Our software business has remained extremely stable and resilient as we have made the transition to faster growing SaaS business that entailed trading non-recurring upfront license revenue for recurring long term subscription revenue. Through adoption of Autonomous Database and OCI, we are now shifting the focus for our infrastructure business to the cloud. As a percentage of our total software business, cloud is now more than double what it was just three years ago and provides us with the ability to accelerate overall software revenue growth as this mix