甲骨文 (ORCL) 2022 Q1 法說會逐字稿

Welcome to Oracle's First Quarter 2022 Earnings Conference Call. Now I'd like to turn the call over to Ken Bond, Senior Vice President.

歡迎參加 Oracle 2022 年第一季度收益電話會議。現在我想把電話轉給高級副總裁 Ken Bond。

Thank you, Erica. Good afternoon, everyone, and welcome to Oracle's First Quarter Fiscal Year 2022 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. Additionally, a list of many customers who purchased Oracle Cloud Services or went live on Oracle Cloud recently will be available from the Investor Relations website following this call. On the call today are Chairman and Chief Technology Officer, Larry Ellison; and CEO, Safra Catz.

謝謝你，艾麗卡。大家下午好，歡迎參加 Oracle 2022 財年第一季度收益電話會議。可以從我們的投資者關係網站查看和下載新聞稿和財務表格的副本，其中包括 GAAP 與非 GAAP 對賬和其他補充財務信息。此外，在此次電話會議之後，投資者關係網站上將提供最近購買了 Oracle 雲服務或在 Oracle 雲上線的許多客戶的名單。今天參加電話會議的有董事長兼首席技術官拉里·埃里森 (Larry Ellison)；兼首席執行官 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. 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 from 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 these forward-looking statements in light of new information or future events.

提醒一下，今天的討論將包括前瞻性陳述，包括預測、預期、估計或其他可能被視為前瞻性的信息。在今天的討論中，我們將介紹一些與我們的業務相關的重要因素，這些因素可能會影響這些前瞻性陳述。前瞻性陳述還受到風險和不確定性的影響，這些風險和不確定性可能導致實際結果與今天所做的陳述存在重大差異。因此，我們告誡您不要過分依賴這些前瞻性陳述，我們鼓勵您查看我們最近的報告，包括我們的 10-K 和 10-Q，以及任何適用的修正案，以全面討論這些因素以及其他可能影響我們未來業績或股票市場價格的風險。最後，我們沒有義務根據新信息或未來事件修改我們的結果或這些前瞻性陳述。

Before taking questions, we'll begin with a few prepared remarks. And with that, I'd like to turn the call over to Safra.

在回答問題之前，我們將從一些準備好的評論開始。有了這個，我想把電話轉給 Safra。

Thanks, Ken, and good afternoon, everyone. We had a great quarter as total revenue was $100 million, above the midpoint of my constant currency guidance, with outperformance coming from all parts of our business. EPS was also very strong and was $0.08 above the midpoint of my constant currency guidance. As the dollar strengthened from when I gave guidance, and it strengthened significantly, we didn't get the benefit we would have gotten had it stayed at the same level throughout the quarter.

謝謝，肯，大家下午好。我們有一個很棒的季度，總收入為 1 億美元，高於我的持續貨幣指導的中點，我們業務的所有部分都表現出色。每股收益也非常強勁，比我不變的貨幣指導的中點高出 0.08 美元。隨著美元從我給出指導時開始走強，並且顯著走強，我們沒有得到如果它在整個季度保持在同一水平就會得到的好處。

Now from here on, I'll review our non-GAAP results using constant dollar growth rates unless I say otherwise. So total cloud services and license support revenues for the quarter were $7.4 billion, up 6% in USD, up 5% in constant currency and accounted for 76% of total company revenue. Total cloud revenues are now at an annualized revenue of $10 billion with an accelerating growth rate that we expect will exit the fiscal year in the mid-20s.

從現在開始，除非我另有說明，否則我將使用不變的美元增長率來審查我們的非 GAAP 結果。因此，本季度雲服務和許可支持總收入為 74 億美元，按美元計算增長 6%，按固定匯率計算增長 5%，占公司總收入的 76%。雲計算總收入現在的年化收入為 100 億美元，並且我們預計將在 20 年代中期結束本財年，並以加速增長的速度增長。

GAAP application subscription revenues were $3 billion, up 7%, with Fusion apps up 26% in USD and 24% in constant currency. Our strategic back-office applications grew 25% in constant currency, including Fusion ERP, up 30%, and NetSuite ERP up 26%.

GAAP 應用訂閱收入為 30 億美元，增長 7%，其中 Fusion 應用按美元計算增長 26%，按固定匯率計算增長 24%。我們的戰略性後台應用程序按固定匯率計算增長了 25%，其中 Fusion ERP 增長了 30%，NetSuite ERP 增長了 26%。

GAAP infrastructure subscription revenues were $4.3 billion, up 3%. And excluding legacy hosting services, infrastructure cloud services grew in the mid-30s, and we saw triple-digit booking growth this quarter. So I expect the infrastructure revenue growth will ramp higher through the fiscal year.

GAAP 基礎設施訂閱收入為 43 億美元，增長 3%。不包括遺留託管服務，基礎設施雲服務在 30 年代中期增長，本季度我們看到了三位數的預訂增長。因此，我預計基礎設施收入的增長將在本財年上升。

OCI consumption revenue, which includes autonomous database, was up 80% in constant currency, and cloud customer revenue was up 44%. Database subscription revenues, including database support and database cloud services were up 6% in USD, up 5% in constant currency, and that's up from 4% last quarter.

包括自治數據庫在內的 OCI 消費收入按固定匯率計算增長了 80%，雲客戶收入增長了 44%。數據庫訂閱收入（包括數據庫支持和數據庫雲服務）以美元計算增長 6%，按固定匯率計算增長 5%，高於上一季度的 4%。

License revenues were $813 million, down 8% after a tough compare from last year's Q1. So all in, total revenues for the quarter were $9.7 billion, up 4% in USD, up 2% in constant currency.

許可收入為 8.13 億美元，與去年第一季度相比下降了 8%。因此，本季度總收入為 97 億美元，按美元計算增長 4%，按固定匯率計算增長 2%。

Operating expenses were up 3% this quarter. The gross margin for cloud services and license support was 84%, and the gross profit dollars grew 2%. I expect the full year growth in gross profit dollars for cloud services and license support will be similar to last year.

本季度運營費用增長了 3%。雲服務和許可支持的毛利率為 84%，毛利潤增長了 2%。我預計雲服務和許可支持的全年毛利潤增長將與去年相似。

Non-GAAP operating income was $4.3 billion, up 2% from last year, and the operating margin was 45%. The non-GAAP tax rate for the quarter was 18%, slightly below our base tax rate of 19%, and earnings per share was USD 1.03, up 11% in USD and up 9% in constant currency.

非美國通用會計準則營業收入為 43 億美元，比去年增長 2%，營業利潤率為 45%。本季度的非美國通用會計準則稅率為 18%，略低於我們 19% 的基本稅率，每股收益為 1.03 美元，按美元計算增長 11%，按固定匯率計算增長 9%。

As a result of some discrete items, the GAAP tax rate was 8.4%, and GAAP EPS was USD 0.86, which was up 19% in U.S. dollars and up 16% in constant currency. Operating cash flow for the last 4 quarters was $15.3 billion, up 17% in USD, and our free cash flow over the same period was $12.6 billion, up 9% in USD with capital expenditures of $2.8 billion, also over the same period. CapEx for Q1 alone was $1.1 billion.

由於一些離散項目，GAAP 稅率為 8.4%，GAAP EPS 為 0.86 美元，按美元計算增長 19%，按固定匯率計算增長 16%。過去 4 個季度的運營現金流為 153 億美元，按美元計算增長 17%，同期我們的自由現金流為 126 億美元，按美元計算增長 9%，資本支出為 28 億美元，也是同期。僅第一季度的資本支出就為 11 億美元。

We now have more than $39 billion in cash and marketable securities. The short-term deferred revenue balance is $10 billion, up 1% from a year ago due to timing differences in customer payments but with gross deferred revenue up 5% in constant currency. The remaining performance obligation, or RPO, our balance is $38.7 billion, up 10% in constant currency due to strong bookings. Approximately 60% is expected to be recognized as revenue over the next 12 months.

我們現在擁有超過 390 億美元的現金和有價證券。由於客戶付款的時間差異，短期遞延收入餘額為 100 億美元，比一年前增長 1%，但按固定匯率計算，總遞延收入增長 5%。剩餘履約義務或 RPO，我們的餘額為 387 億美元，由於預訂強勁，按固定匯率計算增長 10%。大約 60% 預計將在未來 12 個月內確認為收入。

As we've said many times before, we're committed to returning value to our shareholders through technical innovation, strategic acquisitions, stock repurchases, prudent use of debt and a dividend. This quarter, we repurchased 94 million shares for a total of $8 billion. And over the last 10 years, we have reduced the shares outstanding by 46% and an average price that's about half the current share price.

正如我們之前多次說過的那樣，我們致力於通過技術創新、戰略收購、股票回購、謹慎使用債務和派息來為股東回報價值。本季度，我們以總計 80 億美元的價格回購了 9400 萬股股票。在過去 10 年中，我們已將流通股減少 46%，平均價格約為當前股價的一半。

In addition, we paid out dividends of $3.2 billion over the last 12 months. And the Board of Directors declared a quarterly dividend of $0.32 per share.

此外，我們在過去 12 個月支付了 32 億美元的股息。董事會宣布派發每股 0.32 美元的季度股息。

Now to guidance, what you're all waiting for. I remain highly confident that fiscal year '22 revenue growth will accelerate because our fast growing cloud businesses are becoming a larger portion of our total revenue. I see total revenue growth for fiscal year 2022, which is the one we're in, somewhere in the mid-single digits in constant currency and accelerating. Cloud is fundamentally a more profitable business compared to on-premise; and as we look ahead to next year, we expect company operating margins will be the same or better than pre-pandemic levels.

現在是指導，你們都在等待什麼。我對 22 財年的收入增長將加速充滿信心，因為我們快速增長的雲業務在我們總收入中所佔的比例越來越大。我看到 2022 財年的總收入增長，也就是我們所處的財政年度，以固定匯率計算處於中等個位數並且還在加速增長。與內部部署相比，雲從根本上說是一種更有利可圖的業務；展望明年，我們預計公司營業利潤率將與大流行前水平相同或更好。

Let me now turn to my guidance for Q2, and I'll review this on a non-GAAP basis. Assuming currency exchange rates remain the same as they are now, currency should have a very minor positive effect on total revenue and EPS in Q2. Total revenue for Q2 are expected to grow between 3% to 5% in both USD and constant currency. Cloud service and license support revenue for Q2 are expected to grow more than 5% in both USD and constant currency and then climb higher through the second half of the fiscal year. Non-GAAP EPS for Q2 is expected to grow between 2% and 6% in both USD and constant currency and be between $1.09 and $1.13.

現在讓我談談我對第二季度的指導，我將在非公認會計原則的基礎上對此進行審查。假設貨幣匯率與現在保持不變，貨幣對第二季度總收入和每股收益的積極影響應該很小。按美元和固定匯率計算，第二季度的總收入預計將增長 3% 至 5%。按美元和固定匯率計算，第二季度的雲服務和許可支持收入預計將增長 5% 以上，然後在本財年下半年繼續攀升。按美元和固定匯率計算，第二季度的非美國通用會計準則每股收益預計將增長 2% 至 6%，介於 1.09 美元至 1.13 美元之間。

My EPS guidance for Q2 assumes a base rate of 19%. However, onetime tax events could cause actual tax rates for any given quarter to vary, both up and down, but I expect that in normalizing for these onetime tax events, our non-GAAP tax rate will average around 19% or so.

我對第二季度的每股收益指導假設基本利率為 19%。然而，一次性稅收事件可能會導致任何給定季度的實際稅率上下波動，但我預計在對這些一次性稅收事件進行標準化時，我們的非 GAAP 稅率將平均在 19% 左右。

And with that, I'll turn it over to Larry for his comments.

有了這個，我會把它交給拉里徵求他的意見。

Thank you, Safra. Oracle Cloud business infrastructure plus applications has rapidly grown to $10 billion a year. Oracle and NetSuite were pioneers in cloud applications, Oracle and NetSuite being the very first cloud company of any kind. Several years later, Amazon launched the very first cloud infrastructure company.

謝謝你，薩夫拉。 Oracle 雲業務基礎設施和應用程序已迅速增長到每年 100 億美元。 Oracle 和 NetSuite 是雲應用程序的先驅，Oracle 和 NetSuite 是任何類型的第一家云公司。幾年後，亞馬遜推出了第一家云基礎設施公司。

Oracle Fusion ERP has over 8,000 cloud customers. NetSuite ERP has over 28,000 cloud application customers. Oracle is the overwhelming market leader in the global cloud ERP market. Oracle Cloud ERP is currently used by many of the largest most complex companies on Earth. This past quarter in Q1, a company I couldn't name until now, a major portion of Bank of America went live on Oracle Fusion ERP, consolidating ledgers in 33 separate countries into 1 global cloud ledger.

Oracle Fusion ERP 擁有超過 8,000 家云客戶。 NetSuite ERP 擁有超過 28,000 家云應用程序客戶。甲骨文是全球雲 ERP 市場的壓倒性市場領導者。 Oracle 雲 ERP 目前被地球上許多最大最複雜的公司所使用。上個季度的第一季度，一家我直到現在都無法命名的公司，美國銀行的主要部分開始使用 Oracle Fusion ERP，將 33 個不同國家的分類賬整合到一個全球雲分類賬中。

Also in Q1, another huge bank, Macquarie, the largest investment bank in Australia, went live with Oracle Fusion ERP. Also in Q1, Vanguard, the largest global mutual fund provider, went live with Oracle Fusion ERP. That's just in Q1. Okay.

同樣在第一季度，另一家大型銀行，澳大利亞最大的投資銀行 Macquarie 上線了 Oracle Fusion ERP。同樣在第一季度，全球最大的共同基金提供商 Vanguard 開始使用 Oracle Fusion ERP。那隻是在第一季度。好的。

So Oracle Fusion is building a very strong position in the world's largest financial services companies: HSBC, Bank New York Mellon, JPMorgan Chase. They are all live on Oracle's Fusion applications. We have started working with our strategic partners in banking to develop a new generation of cloud B2B financing and payment systems. There are things you can do on the cloud you could never do on-premise. There are opportunities in the cloud if you are the largest ERP supplier. There are opportunities to go into new businesses like financing and banking, with banking partners that would have been impossible with the old on-premise systems. And those are opportunities we are aggressively pursuing with the world's money-center banks. Banking and health care will be Oracle's 2 largest verticals going forward. Speaking of health care, Humana was an important fusion ERP win in Q1.

因此，Oracle Fusion 在全球最大的金融服務公司中建立了非常強大的地位：匯豐銀行、紐約梅隆銀行、摩根大通銀行。它們都在 Oracle 的 Fusion 應用程序上運行。我們已經開始與我們在銀行業的戰略合作夥伴合作開發新一代的雲B2B融資和支付系統。有些事情您可以在雲上完成，而您永遠無法在本地完成。如果您是最大的 ERP 供應商，雲中就有機會。有機會進入金融和銀行等新業務，與銀行合作夥伴合作，這在舊的本地系統中是不可能的。這些都是我們與世界貨幣中心銀行積極尋求的機會。銀行業和醫療保健將成為甲骨文未來最大的兩個垂直領域。說到醫療保健，Humana 是第一季度重要的融合 ERP 勝利。

In the infrastructure part of our cloud business, we continue to innovate in several technical areas. We have made great progress. And then now -- and we are now on our way into the big 4 global hyperscalers, and I'll give a list of those in case you don't know. They are Amazon, Microsoft, Oracle and Google. Note the order. I was not the one who sorted that list. Oracle has come a long way in the cloud infrastructure business. Our technology is getting really good and very competitive.

在我們雲業務的基礎設施部分，我們繼續在幾個技術領域進行創新。我們取得了很大進展。然後現在 - 我們現在正在進入全球 4 大超大規模企業，我會給出一份清單，以防你不知道。它們是亞馬遜、微軟、甲骨文和谷歌。注意順序。我不是整理該列表的人。甲骨文在雲基礎設施業務方面取得了長足的進步。我們的技術變得非常好並且非常有競爭力。

And of course, we continue to deliver breakthrough innovations in areas where we have long been strongest like databases. The Oracle Database remains unrivaled in running the world's biggest and most critical systems. And our other database, the open source system MySQL, is now on a new generation. And it now includes an ultra high-performance in-memory query processor called HeatWave, plus a new set of management tools called the Autopilot.

當然，我們將繼續在我們長期以來最強大的領域（如數據庫）提供突破性創新。 Oracle 數據庫在運行世界上最大和最關鍵的系統方面仍然無可匹敵。而我們的另一個數據庫，開源系統 MySQL，現在已經是新一代了。它現在包括一個名為 HeatWave 的超高性能內存查詢處理器，以及一組名為 Autopilot 的新管理工具。

Amazon's version of MySQL -- again, MySQL is an open source database. Anyone can have it. Amazon took a version of MySQL, renamed it Aurora and put it up in AWS. Now the open source version of MySQL -- the old version of MySQL pre-HeatWave is very, very slow at query processing. In fact, the way you use Aurora, typically in Amazon over the years, is you do your transaction processing in Aurora, also known as MySQL. And then when you did your query processing, you moved your data out of Amazon's MySQL, old Aurora, and put into a thing called Redshift, a data warehouse system from Amazon. Recently, Snowflake has come up with a data warehouse that runs at AWS, and Snowflake competing quite effectively against Redshift because Snowflake runs on multiple clouds. And Snowflake, like Redshift, is way faster at queries than the old MySQL or Aurora.

Amazon 的 MySQL 版本——同樣，MySQL 是一個開源數據庫。任何人都可以擁有它。亞馬遜採用了一個版本的 MySQL，將其重命名為 Aurora，並將其放在 AWS 中。現在 MySQL 的開源版本——HeatWave 之前的舊版本 MySQL 在查詢處理方面非常非常慢。事實上，您使用 Aurora 的方式，通常是多年來在 Amazon 中，是在 Aurora（也稱為 MySQL）中進行事務處理。然後當你進行查詢處理時，你將數據從亞馬遜的 MySQL、舊的 Aurora 中移出，並放入一個叫做 Redshift 的東西，這是一個來自亞馬遜的數據倉庫系統。最近，Snowflake 提出了一個在 AWS 上運行的數據倉庫，並且 Snowflake 與 Redshift 的競爭非常有效，因為 Snowflake 運行在多個雲上。和 Redshift 一樣，Snowflake 在查詢方面比舊的 MySQL 或 Aurora 快得多。

Okay. So Oracle introduces this new version of MySQL, this new generation of MySQL. That's the HeatWave. And the customer reaction has been stupendous simply for the reason that, over and over again, they measure Oracle's MySQL to be 100x faster than Amazon's Aurora for query processing. Now this was actually not unexpected. The old MySQL, which is Aurora -- that's what Aurora is, the old MySQL, it's terrible for query processing. What was unexpected is that Oracle MySQL proved to be more than 10x faster than Amazon's Redshift or Snowflake for query processing. So suddenly, there's one database that you can do transaction -- one open source database you can do transaction processing on, MySQL with HeatWave. And that same database, MySQL with HeatWave, is the fastest place to run your queries. So you don't need to move your data into Redshift or Snowflake anymore just to do queries.

好的。所以Oracle推出了這個新版本的MySQL，這個新一代的MySQL。那就是熱浪。客戶的反應非常好，原因很簡單，他們一次又一次地測量 Oracle 的 MySQL 在查詢處理方面比亞馬遜的 Aurora 快 100 倍。現在這其實並不意外。舊的 MySQL，也就是 Aurora——這就是 Aurora，舊的 MySQL，它的查詢處理很糟糕。出乎意料的是，事實證明，Oracle MySQL 在查詢處理方面比 Amazon 的 Redshift 或 Snowflake 快 10 倍以上。突然之間，出現了一個可以進行事務處理的數據庫——一個可以進行事務處理的開源數據庫，MySQL with HeatWave。同一個數據庫，帶有 HeatWave 的 MySQL，是運行查詢最快的地方。因此，您不再需要將數據移動到 Redshift 或 Snowflake 中來進行查詢。

This has excited so many customers that they asked us over and over again. We made it available -- have we made it available this quarter. Oracle's MySQL with HeatWave, if it's available at the Oracle Public Cloud, but they asked if we would make it available on other public clouds. And we thought that's what our customers want. That's what we're going to do. So we plan to make Oracle MySQL with HeatWave available on other public clouds in addition to the Oracle Public Cloud and compete aggressively where we have huge technical advantages over Amazon Aurora, Amazon Redshift and perhaps most interestingly, huge technical advantages, performance and cost over Snowflake.

這讓很多客戶興奮不已，他們一遍又一遍地問我們。我們提供了它——我們是否在本季度提供了它。 Oracle 的 MySQL 和 HeatWave，如果它在 Oracle 公共雲上可用，但他們問我們是否可以在其他公共雲上使用它。我們認為這就是我們的客戶想要的。這就是我們要做的。因此，我們計劃在 Oracle 公有云之外的其他公有云上提供帶有 HeatWave 的 Oracle MySQL，並在我們擁有超過 Amazon Aurora、Amazon Redshift 的巨大技術優勢，也許最有趣的是，與 Snowflake 相比擁有巨大的技術優勢、性能和成本的情況下積極競爭.

I'll turn it back to Safra.

我會把它轉回 Safra。

Thanks, Larry. Ken, I think we're ready to take questions.

謝謝，拉里。肯，我想我們已經準備好接受提問了。

Yes. Absolutely. Erica, if you could please prepare the audience for questions, please.

是的。絕對地。 Erica，請讓聽眾準備好提問。

(Operator Instructions) Our question comes from Raimo Lenschow with Barclays.

（操作員說明）我們的問題來自巴克萊銀行的 Raimo Lenschow。

Congrats from me as well and especially on the RPO disclosure and growth there. My question is around Fusion and NetSuite. We obviously are in a recovery -- somewhat recovery scenario, and I'm looking at your professional services as well, which kind of -- is kind of very strong there. Can you talk a little bit about what you're seeing there in terms of people wanting to do, now that they're coming out of the pandemic, more around digital transformation; and hence, you had actually an extra boost on demand despite what you saw already beforehand? Or how do we have to think about the dynamic there?

我也向您表示祝賀，尤其是對 RPO 的披露和增長表示祝賀。我的問題是關於 Fusion 和 NetSuite。我們顯然處於復蘇中——有點復甦的情況，我也在看你的專業服務，那種——在那裡非常強大。你能談談你在那裡看到的人們想做的事情嗎，現在他們已經從大流行病中走出來，更多的是圍繞數字化轉型；因此，儘管您事先已經看到了，但您實際上對需求有額外的推動？或者我們必須如何考慮那裡的動態？

Raimo, maybe I'll start and then Larry can add in. I think that one of the things that has become incredibly obvious during this pandemic is that companies that have closer digital relationships with their customers, their employees and their suppliers are doing much better than those that don't. And the work from home and all the data that -- capabilities, whether it's mobile or otherwise, once you have that implemented your ability to adapt to changing business situations is so much better if you've moved to the cloud.

Raimo，也許我會開始，然後 Larry 可以補充。我認為在這次大流行期間變得非常明顯的事情之一是，與客戶、員工和供應商建立更密切數字關係的公司做得更好比那些沒有的。在家工作和所有數據——能力，無論是移動的還是其他的，一旦你實現了這些能力，如果你轉移到雲端，你適應不斷變化的業務情況的能力就會好得多。

And also capabilities that you may need can be supplied by a vendor like ourselves where, for example, as we've discussed, we rolled out health and safety to our HCM customers, so they could better work with their employees and monitor and advise them regarding COVID. And there's no question that digital transformation is the top goal of companies and those companies that had been delaying or moving slowly have brand-new urgency on it.

您可能需要的功能也可以由像我們這樣的供應商提供，例如，正如我們所討論的那樣，我們向 HCM 客戶推出了健康和安全措施，以便他們可以更好地與員工合作並監督他們並向他們提供建議關於 COVID。毫無疑問，數字化轉型是企業的首要目標，而那些一直拖延或行動緩慢的企業對它有了全新的緊迫感。

And of course, because we are ranked, and I think it's our third year in a row, in the top right-hand quadrant of Gartner, really with no one even close to us, we are the #1 choice of -- for moving to Fusion ERP and other back-office applications. So for us, I have to say that there's just incredible, incredible momentum and commitment from our -- from prospects and customers and for companies who have been on-premise, either with our products or historically with SAP, where they just can't continue like they did.

當然，因為我們排名靠前，而且我認為這是我們連續第三年在 Gartner 的右上象限中，真的沒有人接近我們，我們是移動的第一選擇Fusion ERP 和其他後台應用程序。因此，對於我們來說，我不得不說，我們的 - 來自潛在客戶和客戶以及已經在內部部署的公司，無論是使用我們的產品還是歷史上使用 SAP，他們都不能像他們一樣繼續。

Yes. I'll add -- your question about services, we have pretty much made the migration away from on-premise implementations, where all of our staff is focused on cloud implementations. And during that transition, every time we go through one of these transitions, it looks like something isn't growing or worse yet, something is shrinking. Well, in this case, the on-premise stuff went down until it almost went away. And basically, all of the implementation services you see for applications are cloud implementations. We've now made the migration, and that should just grow steadily as demand for those systems increases.

是的。我要補充一點——你關於服務的問題，我們幾乎已經完成了從本地實施的遷移，我們所有的員工都專注於雲實施。在那個過渡期間，每次我們經歷這些過渡中的一個時，看起來有些東西沒有增長，或者更糟的是，有些東西正在收縮。好吧，在這種情況下，內部部署的東西一直在下降，直到它幾乎消失了。基本上，您看到的所有應用程序實施服務都是雲實施。我們現在已經進行了遷移，並且隨著對這些系統的需求的增加，遷移應該會穩步增長。

We really don't have a lot of competition, that's the understatement of the year, in cloud ERP. And I'd love to know who the competitors are. SAP has -- doesn't have a product. When we bid -- we're in a competition with SAP right now, and we've just gotten -- we just found out we got -- we're a vendor of choice. And their big thing was, well, SAP doesn't have a cloud product. They have hosting. They're willing to put a custom computer in Amazon and just build a specialized version for the customer. That's not the cloud.

在雲 ERP 領域，我們真的沒有太多競爭，這是今年的輕描淡寫。我很想知道競爭對手是誰。 SAP 有——沒有產品。當我們投標時——我們現在正在與 SAP 競爭，我們剛剛得到——我們剛剛發現我們得到了——我們是首選供應商。他們的大事是，嗯，SAP 沒有云產品。他們有託管。他們願意在亞馬遜上放置一台定制電腦，只為客戶打造一個專門的版本。那不是雲。

We update our application every 3 months. The entire fleet of 8,000 Fusion customers are updated every 3 months. The entire fleet of 28,000 NetSuite customers are updated every 6 months. You get SAP. They install it. And then they probably will update it again 5 years from now. It's an on-premise system. They don't have a cloud system. We're winning every deal against them, every one, and we're taking a lot of their customers away.

我們每 3 個月更新一次應用程序。整個 8,000 名 Fusion 客戶每 3 個月更新一次。整個 28,000 名 NetSuite 客戶群每 6 個月更新一次。你得到 SAP。他們安裝它。然後他們可能會在 5 年後再次更新它。這是一個內部部署系統。他們沒有云系統。我們贏得了與他們的每一筆交易，每一筆，我們正在帶走他們的很多客戶。

Our next question comes from Mark Moerdler with Sanford Bernstein.

我們的下一個問題來自 Sanford Bernstein 的 Mark Moerdler。

And congratulations on the size and strength of the IaaS plus SaaS cloud. OCI Gen 2 passed Google GCP and the Gartner IaaS, PaaS feature functionality ranking this month. Let me ask, is the functionality check box enough to capture market? Or do you believe that customers fundamentally view OCI different than AWS, Azure, GCP and why?

並祝賀 IaaS 加 SaaS 雲的規模和實力。 OCI Gen 2 本月通過了 Google GCP 和 Gartner IaaS、PaaS 功能排名。請問，功能複選框是否足以佔領市場？或者您認為客戶從根本上認為 OCI 不同於 AWS、Azure、GCP，為什麼？

Well, I think the big question was -- I think the big issue remains open about Oracle. I would say it probably still remains open about Oracle, is can Oracle compete with database against Amazon. It's interesting question because Amazon doesn't really have it. And well, Amazon has like 13 separate databases where the Oracle data -- we do everything in a single database. We don't think an application should talk to 5 or 6 separate databases. We think it's a very risky security architecture.

好吧，我認為最大的問題是——我認為關於甲骨文的大問題仍然懸而未決。我想說它可能仍然對甲骨文持開放態度，甲骨文能否通過數據庫與亞馬遜競爭。這是一個有趣的問題，因為亞馬遜並沒有真正擁有它。好吧，亞馬遜有 13 個獨立的數據庫，其中 Oracle 數據——我們在一個數據庫中做所有事情。我們認為一個應用程序不應該與 5 或 6 個獨立的數據庫對話。我們認為這是一個非常危險的安全架構。

But the question is, Amazon is the big leader in cloud, we're the big leader in databases, will -- if forced to choose, will they pick the Amazon Cloud and a database other than the Oracle Database. And -- or are they willing to move to migrate their Oracle applications to the Oracle Cloud to get the Oracle -- all the security and performance advantages of the Oracle database? That's been the big question out there. And is our cloud good enough to compete with Amazon and Google and Microsoft?

但問題是，亞馬遜是雲領域的大領導者，我們是數據庫領域的大領導者，如果被迫選擇，他們會選擇亞馬遜雲和 Oracle 數據庫以外的數據庫。並且——或者他們是否願意將他們的 Oracle 應用程序遷移到 Oracle 雲以獲得 Oracle——Oracle 數據庫的所有安全和性能優勢？這是一個大問題。我們的雲是否足以與亞馬遜、谷歌和微軟競爭？

And I think we have answered those questions. It's not only good enough to compete. It's -- in many cases, it's much better for security, for performance, for reliability. We -- for cost. we're cheaper. And that's one of the reasons we have such a big ISV business. Well -- and so many people have left Amazon and come to the Oracle Cloud, was because we cost less. So we have significant cost advantages. And I think this is another big step to proving that the Oracle Cloud is part of the big 4. It's not a big 3. It's a big 4. I'm not including the Chinese players because they're regional -- not global. I'm counting the Gartner sequence, and the Gartner sequence is Amazon, Microsoft, Oracle, Google.

我認為我們已經回答了這些問題。它不僅足以競爭。在許多情況下，它在安全性、性能和可靠性方面要好得多。我們——為了成本。我們更便宜。這就是我們擁有如此龐大的 ISV 業務的原因之一。好吧——很多人離開亞馬遜來到甲骨文云，是因為我們的成本更低。所以我們有顯著的成本優勢。我認為這是證明甲骨文云是四大巨頭的又一大步。它不是三巨頭，而是四巨頭。我不包括中國玩家，因為他們是區域性的——而不是全球性的。我在統計 Gartner 的順序，Gartner 的順序是亞馬遜、微軟、甲骨文、谷歌。

And if we're in the big 4 and virtually every important database application on Earth runs -- I mean not every one, but the vast majority run on the Oracle database, those migrate to the Oracle Cloud, we have a very, very large business. And we're seeing people moving more and more things to the Oracle Cloud now, and this Gartner report will just help -- we'll move that along quite nicely.

如果我們在四大巨頭中，並且地球上幾乎所有重要的數據庫應用程序都在運行——我的意思是不是每個應用程序，而是絕大多數都在 Oracle 數據庫上運行，那些遷移到 Oracle Cloud 的應用程序，我們有一個非常非常大的商業。我們看到人們現在將越來越多的東西轉移到 Oracle 雲上，而這份 Gartner 報告將有所幫助——我們會很好地推動它。

By the way, it's not just the Gartner report. If they come and look and they run -- if they do a comparison, a straight-up comparison, us, Google; us, Amazon, they move -- they test the application in both places, we win all of those. It's when they don't come and look that we have a problem.

順便說一下，這不僅僅是 Gartner 的報告。如果他們過來看看然後跑了——如果他們進行比較，直接比較，我們谷歌；我們，亞馬遜，他們搬家了——他們在兩個地方測試應用程序，我們贏得了所有這些。當他們不來看我們有問題的時候。

Next question comes from Derrick Wood with Cowen and Company.

下一個問題來自 Cowen and Company 的 Derrick Wood。

Safra, a nice job at accelerating recurring revenue growth while still growing operating income in Q1. Last quarter, you alluded to the fiscal '22 being more of an investment year for you guys. Can you just remind us how you're thinking about balancing top line growth versus operating income growth or operating margins for the fiscal year? And maybe touch on where you want to be adding more investments to help with accelerating growth either from a geo perspective or a product go-to-market standard point?

Safra 在加速經常性收入增長方面做得很好，同時第一季度的營業收入仍在增長。上個季度，你們提到 22 財年對你們來說更像是一個投資年。您能否提醒我們您是如何考慮平衡本財年的收入增長與營業收入增長或營業利潤率的？也許從地理角度或產品上市標準點談及您想在哪些方面增加更多投資以幫助加速增長？

Well, you and your colleagues have been following Oracle for a long time, and you know that when we talk about investing, we still focus on increasing profitability, okay? We're not like many of these other companies that when they invest, they lose money or they don't make more money. We will make more money this year while investing and accelerating than we did before.

那麼，您和您的同事已經關注 Oracle 很長時間了，您知道當我們談論投資時，我們仍然專注於增加盈利能力，好嗎？我們不像許多其他公司那樣，當他們投資時，他們賠錢或賺不到更多錢。今年我們將在投資和加速的同時賺到比以前更多的錢。

So that's our expectation, is we don't have to pick. We've never believed we have to pick because we have differentiated products that are very high value. We have -- you know how we run the company. We don't waste money. We spend it on things that bring returns, and we're very careful about that, but we have so much demand worldwide right now for really our cloud product lines pretty much across the board, whether it's our database services, our cloud customer, our OCI Gen 2, our Fusion products. It's just such a great time that even though we're going to invest more, we will make more. And so we just don't think you have to pick one or the other. It's just a matter of this is an important time for us to invest, but we're going to make more money.

所以這是我們的期望，我們不必選擇。我們從不相信我們必須選擇，因為我們有非常高價值的差異化產品。我們有——你知道我們是如何經營公司的。我們不浪費錢。我們把它花在能帶來回報的事情上，我們對此非常謹慎，但我們現在在全球範圍內對我們的雲產品線的需求非常全面，無論是我們的數據庫服務、我們的雲客戶、我們的OCI Gen 2，我們的 Fusion 產品。這是一個如此美好的時刻，即使我們要投入更多，我們也會賺更多。因此，我們認為您不必二選一。只是現在是我們投資的重要時刻，但我們會賺更多的錢。

Yes. I'd like to just second that with an example in the past, recent history where when we bought NetSuite, we considered NetSuite strategic. We thought that this was -- this is a company that should be growing even faster than it was independently as a part of Oracle.

是的。我想用過去的一個例子來支持這一點，最近的歷史是當我們購買 NetSuite 時，我們認為 NetSuite 具有戰略意義。我們認為這是——這家公司的增長速度應該比它作為 Oracle 的一部分獨立時還要快。

And so we made a number of investments in NetSuite, and we've seen their growth rate. NetSuite's gotten bigger obviously. But their growth rate has increased, and we've invested but we've made more money and we're growing faster in NetSuite. So I think that's the model that Safra likes to implement. And it seems to be working pretty well at NetSuite. We don't see why it would be any different than a larger business like the Oracle Public Cloud.

因此，我們對 NetSuite 進行了大量投資，我們已經看到了它們的增長率。 NetSuite 顯然變大了。但他們的增長率有所提高，我們進行了投資，但我們賺了更多的錢，而且我們在 NetSuite 中的增長速度更快。所以我認為這是 Safra 喜歡實施的模型。它似乎在 NetSuite 上運行良好。我們看不出它與像 Oracle 公共雲這樣的大型企業有什麼不同。

Our next question comes from Kirk Materne with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Kirk Materne。

I guess, Larry, can you sort of double click on OCI? And specifically, I was curious what you're seeing with some of your early OCI customers in terms of net expansion, meaning how are those customers growing with you in terms of either net workloads or new infrastructure services? And within those customers, do you feel like you're taking wallet share versus some of the other public vendors just to give us a sense on how those might act as a proxy for others?

我想，拉里，你能雙擊 OCI 嗎？具體來說，我很好奇您在淨擴張方面看到了一些早期 OCI 客戶的情況，這意味著這些客戶在淨工作負載或新基礎設施服務方面如何與您一起成長？在這些客戶中，您是否覺得與其他一些公共供應商相比，您正在獲得錢包份額，只是為了讓我們了解這些供應商如何充當其他供應商的代理人？

Absolutely. The -- we have corporate customers that have been with us for a while that are constantly -- that are expanding. Maybe the most interesting thing about this is our -- are the ISVs because the ISVs, they're on the cloud business. I'm that's their whole business. They run -- their primary expense is running their cloud operations and when a number of those companies move from Amazon to Oracle, I mean, give you a bunch of examples, then really take a close look at the economics of what they're doing, the reliability of the system. Zoom is a famous example, but there are a bunch of other ISV examples of companies that have moved from Amazon to Oracle. And of course -- so that is really very encouraging.

絕對地。我們的企業客戶已經與我們合作了一段時間，並且不斷擴大。也許最有趣的事情是我們 - 是 ISV，因為 ISV，他們從事雲業務。我就是他們的全部業務。他們運行 - 他們的主要支出是運行他們的雲運營，當許多公司從亞馬遜遷移到甲骨文時，我的意思是，給你一堆例子，然後真正仔細看看他們正在做的事情的經濟性，系統的可靠性。 Zoom 是一個著名的例子，但還有許多其他 ISV 例子表明公司已經從 Amazon 遷移到 Oracle。當然——所以這真的非常令人鼓舞。

But our corporate -- we're seeing it now in our corporate customers as well. They move a workload. That works. They wait. They move 2 or 3 more workloads. That's continuing. So we think, again, this Gartner report is one more step in the right direction in terms of encouraging our corporate customers to move even more workloads and accelerate the rate.

但是我們的企業——我們現在也在我們的企業客戶中看到了這一點。他們轉移了工作量。這樣可行。他們等。他們移動了 2 或 3 個以上的工作負載。那還在繼續。因此，我們再次認為，這份 Gartner 報告是朝著正確方向邁出的又一步，鼓勵我們的企業客戶移動更多工作負載並加快速度。

But have we seen a pattern? Yes. We move a workload for a customer, move a second workload, a third workload. Once they understand it works smoothly and the economics are advantageous, well, they just move more workloads on a continuous basis. And that's what we're experiencing.

但是我們看到一個模式了嗎？是的。我們為客戶移動一個工作負載，移動第二個工作負載，第三個工作負載。一旦他們了解它可以順利運行並且在經濟上有利，那麼他們就會不斷地轉移更多的工作負載。這就是我們正在經歷的。

Our next question is from Michael Turits with KeyBanc.

我們的下一個問題來自 KeyBanc 的 Michael Turits。

I wanted to ask about cloud customer. I think you mentioned, Safra, it's growing 40%. So what tailwinds and if there are any headwinds is cloud customer seeing? And is that now able to start driving sustainable database acceleration beyond the acceleration that you saw this quarter?

我想問一下云客戶。我想你提到過，Safra，它增長了 40%。那麼雲客戶看到了什麼順風，如果有任何逆風呢？現在是否能夠開始推動可持續的數據庫加速，超越您在本季度看到的加速？

Yes. I mean one of things I didn't mention was that consumption at cloud and customer is up over 150%. So you need to understand that once cloud customers, they take a while to set up. And then once they start getting set up because it's a little bit more complicated, we follow a very, very special security model. And what we do is it's really a land and expand model. The customer brings in some workloads, and then they realize how incredible it is. And it runs their database workloads. It runs their other workloads so quickly, so cost effectively that it just builds and momentum.

是的。我的意思是我沒有提到的一件事是雲和客戶的消費增長了 150% 以上。所以你需要明白，一旦云客戶，他們需要一段時間來設置。然後一旦他們開始設置，因為它有點複雜，我們就會遵循一個非常非常特殊的安全模型。我們所做的是它真的是一個土地和擴展模型。客戶帶來了一些工作負載，然後他們意識到這是多麼不可思議。它運行他們的數據庫工作負載。它如此快速地運行他們的其他工作負載，如此具有成本效益，以至於它只是建立和發展勢頭。

The thing that, as I said, it takes a while to actually land and get it all set up, but now it's gotten to be a good size. And then it's just accelerating for us. And so that's really where we're at.

正如我所說，真正著陸並設置好它需要一段時間，但現在它的尺寸已經足夠大了。然後它對我們來說只是在加速。所以這就是我們所處的位置。

It is a global product. It is completely differentiated, and it is very profitable for us. So -- and it fits the need of our customers because, remember, their Oracle workloads in particular, really, really run amazingly. But also those are their most important workloads often, and those have to be perfect. And that's really they have to be secure. They have to be performant. They have to be always up. And they have to be economical for them, and it's just a -- it's a perfect match for what they need.

它是一種全球產品。它是完全差異化的，對我們來說是非常有利可圖的。所以 - 它符合我們客戶的需求，因為請記住，他們的 Oracle 工作負載尤其非常非常非常地運行。但這些通常也是他們最重要的工作量，而且必須是完美的。這確實是他們必須確保安全的地方。他們必須表現出色。他們必須總是起來。而且它們必須對他們來說是經濟的，而且它只是 - 它是他們需要的完美匹配。

Our final question comes from Mark Murphy with JPMorgan.

我們的最後一個問題來自摩根大通的馬克墨菲。

So you seem to have pivoted your CapEx approach a bit from just-in-time purchases to carrying a bit of a capacity buffer so that you can deploy the -- all these OCI wins. I'm just curious, Safra, does it take a quarter or 2 and then you have enough of a buffer there? Or do you see such a pipeline for OCI demand that this CapEx rise perhaps could last a while longer, which might be good news for future revenue growth?

因此，您似乎已經將您的資本支出方法從即時購買轉變為攜帶一些容量緩衝，以便您可以部署——所有這些 OCI 勝利。我很好奇，Safra，是否需要四分之一或 2 分鐘，然後你就有足夠的緩衝區了？或者您是否看到 OCI 需求的這種管道，這種資本支出的增長可能會持續一段時間，這可能是未來收入增長的好消息？

Well, I don't like to be cut short. That's for sure. And so I want to make sure I have enough, but we do have enormous demand frankly. So this is what I always call a high-class problem, but we try to make sure that we manage it very, very carefully. I thought it was worth it to take on quite a bit more inventory, but it is getting used up very quickly all the time. And we stay very, very focused on being able to deliver to our customers the demand. But we have such accelerating demand that we have to stay vigilant to make sure we've got what we need, where we need it and in the quantities that we need it.

好吧，我不喜歡被打斷。這是肯定的。所以我想確保我有足夠的，但坦率地說，我們確實有巨大的需求。所以這就是我一直所說的高級問題，但我們努力確保我們非常非常小心地管理它。我認為增加相當多的庫存是值得的，但它總是很快就用完了。我們非常非常專注於能夠滿足客戶的需求。但我們的需求如此之快，以至於我們必須保持警惕，以確保我們在需要的地方以我們需要的數量獲得了我們需要的東西。

Ken, we can't hear you.

肯，我們聽不到你的聲音。

Thank you. A telephone replay of this conference call will be available for 24 hours on our Investor Relations website. Thank you for joining us today. And with that, I'll turn the call back to the operator for closing.

謝謝。本次電話會議的電話重播將在我們的投資者關係網站上提供 24 小時。感謝您今天加入我們。有了這個，我會把電話轉回給接線員關閉。

Thank you for joining today's Oracle First Quarter 2022 Earnings Conference Call. We appreciate your participation. You may now disconnect.

感謝您參加今天的 Oracle 2022 年第一季度收益電話會議。感謝您的參與。您現在可以斷開連接。