Oracle Corporation (NYSE:ORCL) Q2 2020 Earnings Conference Call - Final Transcript

Dec 12, 2019 • 05:00 pm ET


Oracle Corporation (NYSE:ORCL) Q2 2020 Earnings Conference Call - Final Transcript


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Welcome to Oracle's Second Quarter 2020 Earnings Conference Call.

Now I would like to turn the call over to Ken Bond, Senior Vice President. Ken?

Ken Bond

Thank you, Holly. And good afternoon everyone and welcome to Oracle's Second Quarter Fiscal Year 2020 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 CEO Safra Catz. 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 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.

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 Ada Catz

Thanks, Ken. But before I start, I'd like to acknowledge and thank you all for the many, many sincere condolences we received upon Mark's passing. Thank you. They mean a lot to us.

As you can see we had another solid quarter. This quarter, we finished with total revenue growth within my guidance range and EPS at the high-end. Cloud Services and License Support continue to see material growth and given that it represents more than 70% of our total revenue, it more than offsets declines in some smaller non-strategic businesses.

We continue to be encouraged that our overall revenue growth will further accelerate, as we reach the final stages of this ongoing shift in business mix. Of late, I've been spending much more time with customers. The overriding theme I hear is the compelling nature of our technology and how it is critical to the success of their businesses, feature-rich, simple, secure, performance and priced right. They see Oracle is being strategic to their ongoing operations and they tell me repeatedly that Oracle is the right partner to run their mission critical assets, both in the cloud and on-premise. Their comments reinforce our conviction that our product strategy is right.

At Oracle, we've upgraded our internal systems to the cloud. And we are sharing our experience with customers by describing the stunning benefits and efficiencies that can be realized from the move. And though we have thousands of customers