Oracle Corporation (NYSE:ORCL) Q1 2020 Earnings Conference Call Transcript

Sep 12, 2019 • 05:00 pm ET

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Oracle Corporation (NYSE:ORCL) Q1 2020 Earnings Conference Call Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question will come from the line of John DiFucci, Jefferies.

Analyst
John DiFucci

Thank you. I'm sure I speak for everyone, just to briefly say that our thoughts and prayers are with Mark and his family at this time. But also knowing Mark for years, I'm sure he'd like to sort of get back to business, so I'll move right to question here.

So there was -- Cloud Services and License Support was strong this quarter, but License was not as strong as we modeled it anyway, and I realize it's a seasonally slow first quarter, and you said it follows the strongest and yes, really strong fourth quarter, as strong as we've seen in quite some time. But is there anything else you can share on that line, any further color?

For instance, BYOL has got a lot of traction, right? And could that cause your financials just to start to trend more seasonally sort of like it used to? I mean it started to get a little more even. It's still seasonal but a little more even. So should we be starting to think of seasonality, how Oracle used to be even more seasonal or we're also hearing and you guys, you hear it too, you hear from some other companies that talk about macro pressure. Are you seeing any of that at all? I'm just curious, any color would be helpful.

Executive
Safra A. Catz

Sure. That's easy, John. It was actually something very, very simple. First of all, outside of North America, our license was up, up quite a bit, in fact, internationally. What we had done in North America is we did do a split in the sales force. We've been telegraphing that we were doing that before we split the North America tech sales force between selling cloud; a group selling cloud and a group selling new licenses.

So the group selling new license was a new group and so I expect that they will more than recover during the year. But that is the only weakness we had, and it was simply just a slow start as we reorg-ed the North America tech sales force since we split it.

So there's no macro issue. There's no actual regular issue, and of course, the thing is that in Q1, small numbers make a big difference, and so they just kind of outsized. But no, we don't see anything and that's really all it was.

Analyst
John DiFucci

Okay. That's really -- that's helpful, Safra, and that makes sense and sort of we're hearing things about that. And a -- just a quick follow-up maybe for Larry. Larry, last quarter, you had really strong results in the database options and most especially the ones related to the Autonomous Database. I'm just curious, in this quarter, again, a seasonally softer first quarter, but can you talk about the options themselves? And I'm thinking more about things like -- my favorite is multi-tenancy, but there is others that are important, too.

Executive
Lawrence J. Ellison

Yeah, I think