甲骨文 (ORCL) 2024 Q1 法說會逐字稿

Good day, everyone, and welcome to Oracle's First Quarter 2024 Earnings Call. Today's call is being recorded, and now I would like to turn the conference over to Ken Bond. Please go ahead.

大家好，歡迎參加 Oracle 2024 年第一季度財報電話會議。今天的電話會議正在錄音，現在我想將會議交給肯·邦德。請繼續。

Thank you, Lisa, and good afternoon, everyone, and welcome to Oracle's First Quarter Fiscal Year 2024 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 our Investor Relations website. On the call today are Chairman and Chief Technology Officer, Larry Ellison; and Chief Executive Officer, Safra Catz.

謝謝麗莎，大家下午好，歡迎參加 Oracle 2024 財年第一季度收益電話會議。您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 調節表以及其他補充財務信息。此外，我們的投資者關係網站還提供了最近購買 Oracle 雲服務或上線 Oracle 雲的眾多客戶的列表。今天參加電話會議的是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. 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 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.

提醒一下，今天的討論將包括前瞻性陳述，包括預測、期望、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。這些前瞻性陳述還受到風險和不確定性的影響，可能導致實際結果與今天的陳述存在重大差異。因此，我們提醒您不要過分依賴這些前瞻性陳述，並鼓勵您查看我們最新的報告，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和可能影響我們未來業績或我們股票市場價格的其他風險。

And finally, we are not obligating ourselves to revise our results or 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.

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。在回答問題之前，我們將先做一些準備好的評論。說到這裡，我想把電話轉給薩夫拉。

Thanks, Ken, and good afternoon, everyone. As you know, 22 years ago today was a traumatic day for our country. Like many of you, it feels like yesterday when the country lost nearly 3,000 souls. And we at Oracle, we lost 11 employees. I remember exactly where I was when the tragedy unfolded and it is still so hard speaking about it even all these years later. Today, we honor and remember each one of the victims and heroes, and we hope that their memories are a blessing to all of us.

謝謝，肯，大家下午好。如您所知，22 年前的今天對我們的國家來說是痛苦的一天。和你們許多人一樣，這個國家失去了近 3,000 名靈魂，感覺就像昨天一樣。而 Oracle 則失去了 11 名員工。我清楚地記得悲劇發生時我在哪裡，即使這麼多年過去了，談論這件事仍然很難。今天，我們緬懷每一位遇難者和英雄，希望他們的記憶成為我們所有人的祝福。

Now before I go to our Q1 numbers, I thought it would help to start with some of the things that are going on at Oracle that you'll be hearing about over the next couple of weeks. Next week, we have Oracle CloudWorld, which will showcase the latest innovations, including AI on OCI, the progress of Oracle Autonomous Database our multi-cloud strategy, the use of Oracle analytics throughout our portfolio to drive better decision-making and the use of generative AI to differentiate Fusion, NetSuite and our industry application.

現在，在討論第一季度的數據之前，我認為從 Oracle 正在發生的一些事情開始會有幫助，您將在接下來的幾週內聽到這些事情。下週，我們將舉辦Oracle CloudWorld，它將展示最新的創新，包括OCI 上的人工智能、Oracle 自治數據庫的進展、​​我們的多雲戰略、在整個產品組合中使用Oracle 分析來推動更好的決策以及使用生成式 AI 使 Fusion、NetSuite 和我們的行業應用程序脫穎而出。

Now CloudWorld is our marquee event each year where current and prospective customers take time out of their busy calendars to join us in person and share their experiences. We know that there are no better spokespeople for our products and services than our existing customers. Our innovation result directly from our development teams interacting with customers to anticipate and build the next generation of products and services. Some of the customers you will hear from next week include NVIDIA, Uber, Ascension Health, Cohere, and many, many, many more. You'll also hear from our expanding set of strategic partners that are driving the Oracle ecosystem, and this includes Amdocs, VMware, Microsoft.

現在，CloudWorld 是我們每年的重要活動，現有客戶和潛在客戶都會從繁忙的日曆中抽出時間親自參加我們並分享他們的經驗。我們知道，沒有比我們現有的客戶更好的產品和服務代言人了。我們的創新直接源於我們的開發團隊與客戶互動，以預測和構建下一代產品和服務。下週您將聽到的一些客戶包括 NVIDIA、Uber、Ascension Health、Cohere 等等。您還將聽到我們不斷擴大的推動 Oracle 生態系統的戰略合作夥伴的聲音，其中包括 Amdocs、VMware、Microsoft。

Overall, it's remarkable the interest we are getting from the ISV community to work with Oracle. There are a lot of discussions going on and you will see more announcements shortly. From a financial standpoint, we see this customer and partner ecosystem as a leading indicator of our income statement. I've been talking with you about our revenue acceleration for some time now. In Q1, our remaining performance obligations or RPO climbed to nearly $65 billion, with the portion excluding Cerner up 11%. We have now signed several deals for OCI greater than $1 billion in total value. And the first week of Q2, we booked an additional $1.5 billion in business, which isn't even included in the Q1 numbers. Approximately 49% of total RPO is expected to be recognized as revenue over the next 12 months. My point here is that customer momentum is continuing to build. This momentum is turning into bookings, and that gives me the confidence that our annual revenue growth will continue to accelerate moving forward.

總體而言，ISV 社區對與 Oracle 合作的興趣非常濃厚。目前正在進行很多討論，您很快就會看到更多公告。從財務角度來看，我們將客戶和合作夥伴生態系統視為我們損益表的領先指標。一段時間以來，我一直在與您談論我們的收入加速增長。第一季度，我們的剩餘履約義務或 RPO 攀升至近 650 億美元，其中不包括 Cerner 的部分增長了 11%。我們現已為 OCI 簽署了幾項總價值超過 10 億美元的交易。第二季度的第一周，我們額外預訂了 15 億美元的業務，這甚至沒有包含在第一季度的數據中。預計 RPO 總額的大約 49% 將在未來 12 個月內確認為收入。我的觀點是，客戶動力正在持續增強。這種勢頭正在轉化為預訂量，這讓我相信我們的年度收入增長將繼續加速前進。

Now to the Q1 results, which I remind you I am announcing on day 11, only because day 8, when we were ready, was a Friday and I know none of you like that. So this quarter, we saw a modest currency tailwind, but as always, I'll discuss our financials using constant currency growth rates. Clearly, Q1 was another great quarter with total revenue at the midpoint of guidance and earnings per share $0.02 above the high end of guidance and our cloud growth was 29%. Total cloud revenue, SaaS and IaaS, excluding Cerner was $4 billion, up 29%. Now including Cerner, total cloud revenue was up 29% also, at $4.6 billion and with our IaaS revenue at $1.5 billion, up 64%, and SaaS revenue of $3.1 billion, up 17%.

現在談談第一季度的結果，我提醒你們，我在第 11 天宣布，只是因為我們準備好的第 8 天是星期五，我知道你們都不喜歡那樣。因此，本季度，我們看到了溫和的貨幣順風，但與往常一樣，我將使用恆定的貨幣增長率來討論我們的財務狀況。顯然，第一季度又是一個出色的季度，總收入處於指導值的中點，每股收益比指導值的高端高出 0.02 美元，而我們的雲增長率為 29%。不包括 Cerner 在內的 SaaS 和 IaaS 云總收入為 40 億美元，增長 29%。現在，包括 Cerner 在內，云總收入也增長了 29%，達到 46 億美元，其中 IaaS 收入為 15 億美元，增長 64%，SaaS 收入為 31 億美元，增長 17%。

Total cloud services and license support revenue for the quarter was $9.5 billion, up 12%, driven again by our strategic cloud applications, Autonomous Database and our Gen2 OCI. Application subscription revenues which includes product support were $4.5 billion, up 11%. Our strategic back-office SaaS applications now have annualized revenue of $6.9 billion and they grew 20%. Infrastructure subscription revenues, which includes license support, were $5.1 billion, up 14%. Infrastructure cloud services revenue was up 64%. Excluding legacy hosting services, Gen2 Infrastructure Cloud services revenue grew 72% with an annualized revenue of $5.6 billion.

本季度雲服務和許可支持總收入為 95 億美元，增長 12%，這再次受到我們的戰略云應用程序、自治數據庫和 Gen2 OCI 的推動。包括產品支持在內的應用程序訂閱收入為 45 億美元，增長 11%。我們的戰略後台 SaaS 應用程序目前年收入為 69 億美元，增長了 20%。包括許可證支持在內的基礎設施訂閱收入為 51 億美元，增長 14%。基礎設施雲服務收入增長 64%。不包括傳統託管服務，Gen2 基礎設施雲服務收入增長 72%，年化收入達 56 億美元。

OCI consumption revenue was up 91%. Exadata cloud services revenue was up 46%, and Autonomous Database was up 42%. Database subscription services, which includes license support, were up 6%, highlighted by cloud database services, which were up 44%. Very importantly, as on-premise databases migrate to the cloud, we expect these cloud database services will be the third leg of revenue growth alongside strategic SaaS and Gen2 OCI cloud services.

OCI消費收入增長91%。 Exadata 雲服務收入增長 46%，自治數據庫增長 42%。包括許可證支持在內的數據庫訂閱服務增長了 6%，其中云數據庫服務增長了 44%。非常重要的是，隨著本地數據庫遷移到雲端，我們預計這些雲數據庫服務將成為繼戰略 SaaS 和 Gen2 OCI 雲服務之後收入增長的第三條腿。

Software license revenues were $0.8 billion, down 11% following an amazing Q1 last year of 19% growth, which made it a tough compare this year. So in all, total revenue for the quarter were $12.4 billion, up 8%, including Cerner, up 9% excluding Cerner.

軟件許可收入為 8 億美元，繼去年第一季度 19% 的驚人增長之後下降了 11%，這使得今年的比較變得艱難。總而言之，本季度總收入為 124 億美元，增長 8%（包括 Cerner 在內），增長 9%（不包括 Cerner）。

Shifting to margins. The gross margins for Cloud Services and License Support was 78% with IaaS gross margins improving substantially from last year. And while we've continued to build data center capacity, we've also seen our IaaS margins go higher as these new cloud regions fill up. We monitor our expenses very carefully to ensure our gross margin percentages expand as we scale up. To this point, gross profit dollars of Cloud Services and License Support grew 9% in Q1. Non-GAAP operating income was $5.1 billion, up 12% from last year. The operating margin was 41%, up from 39% last year. As we continue to benefit from economies of scale in the cloud and drive Cerner profitability to Oracle standards, we will not only continue to grow operating income but we will also grow the operating margin percentage.

轉向邊緣。雲服務和許可支持的毛利率為 78%，其中 IaaS 毛利率比去年大幅提高。在我們繼續建設數據中心容量的同時，隨著這些新的雲區域的填滿，我們的 IaaS 利潤率也隨之提高。我們非常仔細地監控我們的支出，以確保我們的毛利率隨著我們規模的擴大而擴大。截至目前，第一季度雲服務和許可證支持的毛利潤增長了 9%。非 GAAP 營業收入為 51 億美元，比去年增長 12%。營業利潤率為 41%，高於去年的 39%。隨著我們繼續受益於雲中的規模經濟並將 Cerner 的盈利能力提高到 Oracle 標準，我們不僅將繼續增加營業收入，而且還將提高營業利潤率。

The non-GAAP tax rate for the quarter was 18.8% and non-GAAP EPS was USD 1.19, up 16% in USD, up 14% in constant currency. The GAAP EPS was USD 0.86. At quarter end, we had nearly $12.1 billion in cash and marketable securities. The short-term deferred revenue balance was $11.1 billion, up 5%. Operating cash flow for the first quarter was up 9% to $7 billion, while free cash flow was up 21% to $5.7 billion, and I expect that we will see very good results in our free cash flow for the rest of the year. Over the last 4 quarters, operating cash flow was $17.7 billion, up 68%, and free cash flow was $9.5 billion, up 76%.

本季度非 GAAP 稅率為 18.8%，非 GAAP 每股收益為 1.19 美元，按美元計算增長 16%，按固定匯率計算增長 14%。 GAAP 每股收益為 0.86 美元。截至季度末，我們擁有近 121 億美元的現金和有價證券。短期遞延收入餘額為111億美元，增長5%。第一季度的運營現金流增長 9%，達到 70 億美元，而自由現金流增長 21%，達到 57 億美元，我預計今年剩餘時間我們的自由現金流將取得非常好的結果。過去 4 個季度，運營現金流為 177 億美元，增長 68%，自由現金流為 95 億美元，增長 76%。

Capital expenditures were $8.3 billion over the last 4 quarters, and we're clearly beginning to see the cash flow benefits stemming from our cloud transformation. CapEx was $1.3 billion in Q1 as we continue to build capacity for bookings and our customers' growing needs. Given the demand we have and see in the pipeline, I expect that fiscal year 2024 CapEx will be similar to this past year's CapEx. As always, we remain careful to pace our investments appropriately and in line with booking trends, which is why our gross margins are up in our cloud business. We now have 64 cloud regions live with 44 public cloud regions around the world and another 6 being built. 12 of these public cloud regions interconnect with Microsoft Azure. We also have 9 dedicated regions live and 11 more planned, 9 security regions and 12 EU sovereign regions live with increasing demand for more of each. And of course, we have many, many Cloud at Customer implementations.

過去 4 個季度的資本支出為 83 億美元，我們顯然開始看到雲轉型帶來的現金流收益。隨著我們繼續增強預訂能力並滿足客戶不斷增長的需求，第一季度的資本支出為 13 億美元。考慮到我們已經掌握和看到的需求，我預計 2024 財年的資本支出將與去年的資本支出類似。一如既往，我們仍然謹慎地適當調整我們的投資節奏，並與預訂趨勢保持一致，這就是我們的雲業務毛利率上升的原因。我們現在有 64 個雲區域，其中全球有 44 個公共雲區域，另外 6 個正在建設中。其中 12 個公共雲區域與 Microsoft Azure 互連。我們還有 9 個專用區域和 11 個正在規劃的區域、9 個安全區域和 12 個歐盟主權區域，並且對每個區域的需求都在不斷增加。當然，我們有很多很多的客戶雲實施。

The cost advantages, sizing flexibility and deployment optionality of our cloud region continue to make us so compelling in the marketplace to customers. As we've said many, 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 1.3 million shares for a total of $150 million. In addition, we paid out dividends of $3.9 billion over the last 12 months, and the Board of Directors declared a quarterly dividend of $0.40 per share.

我們的雲區域的成本優勢、規模靈活性和部署可選性繼續使我們在市場上對客戶如此有吸引力。正如我們之前多次說過的，我們致力於通過技術創新、戰略收購、股票回購、審慎使用債務和股息來為股東回報價值。本季度，我們回購了 130 萬股股票，總金額為 1.5 億美元。此外，我們在過去 12 個月內支付了 39 億美元的股息，董事會宣布季度股息為每股 0.40 美元。

Now before I dive into Q2 guidance, I'd like to share some thoughts on what I see longer term. Per my earlier remarks, we have a great line of sight into the trajectory of the business, given the bookings momentum. We are extremely confident about our revenue acceleration for the year even though in any quarter, there may be small fluctuations. Because we have far more demand than we can supply, our biggest challenge is building data centers as quickly as possible. In addition, we are in an accelerated transition of Cerner to the cloud. This transition is resulting in some near-term headwinds to the Cerner growth rate as customers move from license purchases, which are recognized upfront, to cloud subscriptions which are recognized ratably. Again, excluding Cerner, I remain committed to accelerating our total revenue growth rate this fiscal year as well as maintaining our current high cloud growth rates for the year. And as you will hear at our Financial Analyst Meeting next week, we remain firmly committed to our fiscal '26 financial goals.

現在，在深入研究第二季度指導之前，我想分享一些關於我的長期看法的想法。根據我之前的言論，鑑於預訂勢頭，我們對業務發展軌蹟有很好的了解。我們對今年的收入加速充滿信心，儘管任何季度都可能出現小幅波動。由於我們的需求遠遠超過我們的供應能力，因此我們面臨的最大挑戰是盡快建設數據中心。此外，我們正在加速 Cerner 向雲的過渡。隨著客戶從預先認可的許可證購買轉向按比例認可的雲訂閱，這種轉變會給 Cerner 增長率帶來一些短期阻力。再次強調，除了 Cerner 之外，我仍然致力於加快本財年的總收入增長率，並維持當前的高雲增長率。正如您將在下週的財務分析師會議上聽到的那樣，我們仍然堅定地致力於實現 26 財年的財務目標。

Let me now turn to my guidance for Q2, which I'll review on a non-GAAP basis. If currency exchange rates remain the same as they are now, currency should have a 2% positive effect on total revenue and a $0.03 positive effect on EPS in Q2. However, the actual currency impact may be different. Here we go. Total revenues, including Cerner, are expected to grow from 3% to 5% in constant currency and are expected to grow 5% to 7% in USD at today's rates. Total revenue, excluding Cerner, are expected to grow from 6% to 8% in constant currency and expected to grow 8% to 10% in USD.

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進行審查。如果貨幣匯率保持與現在相同，貨幣對第二季度總收入應產生 2% 的積極影響，並對每股收益產生 0.03 美元的積極影響。然而，實際的貨幣影響可能有所不同。開始了。按固定匯率計算，包括 Cerner 在內的總收入預計將增長 3% 至 5%，按目前的匯率計算，預計將增長 5% 至 7%。按固定匯率計算，不包括 Cerner 的總收入預計將從 6% 增長至 8%，按美元計算預計將增長 8% 至 10%。

Total cloud revenue, excluding Cerner, again, I give you these numbers so you can see the mainline business, is expected to grow from 27% to 29% in constant currency and is expected to grow 29% to 31% in USD. Non-GAAP EPS is expected to grow between 5% to 9% and be between $1.27 and $1.31 in constant currency. Non-GAAP EPS is expected to grow between 7% to 11% and be between USD 1.30 and USD 1.34. My EPS guidance for Q2 assumes a tax rate of 19%. However, onetime tax events could cause actual tax rates to vary. And with that, I'll turn it over to Larry for his comments.

不包括 Cerner 的云總收入，我再次向您提供這些數字，以便您可以看到主線業務，按固定匯率計算預計將從 27% 增長到 29%，按美元計算預計將增長 29% 到 31%。非 GAAP 每股收益預計將增長 5% 至 9%，按固定匯率計算將在 1.27 美元至 1.31 美元之間。非 GAAP 每股收益預計增長 7% 至 11%，介於 1.30 美元至 1.34 美元之間。我對第二季度 EPS 的指導假設稅率為 19%。然而，一次性稅務事件可能會導致實際稅率發生變化。接下來，我將把它交給拉里徵求他的意見。

Thank you, Safra. So, is generative AI the most important new computer technology ever? Maybe. We're about to find out. Self-driving cars, computer-designed antiviral drugs, voice user interfaces. Generative AI is changing the automobile industry, the pharmaceutical industry, how people communicate with their computers. Generative AI is changing everything. As of today, AI development companies have signed contracts to purchase more than $4 billion of AI training capacity in Oracle's Generation2 Cloud. That's twice as much AI training as we have booked at the end of the last Q4.

謝謝你，薩弗拉。那麼，生成式人工智能是有史以來最重要的新計算機技術嗎？或許。我們即將找到答案。自動駕駛汽車、計算機設計的抗病毒藥物、語音用戶界面。生成式人工智能正在改變汽車行業、製藥行業以及人們與計算機的溝通方式。生成式人工智能正在改變一切。截至目前，人工智能開發公司已簽署合同，購買甲骨文第二代云中超過 40 億美元的人工智能培訓能力。這是我們在上個季度末預訂的人工智能培訓數量的兩倍。

I'm also very pleased to announce that XAI has signed a contract to do training in Oracle's Gen2 Cloud. The largest AI technology companies and the leading AI start-ups continue to expand their business with Oracle for one simple reason: Oracle's RDMA-interconnected NVIDIA superclusters train AI models at twice the speed and much less than half the cost of other clouds.

我還非常高興地宣布，XAI 已簽署一份在 Oracle Gen2 雲中進行培訓的合同。最大的AI 技術公司和領先的AI 初創企業繼續擴大與Oracle 的業務，原因很簡單：Oracle 的RDMA 互連NVIDIA 超級集群訓練AI 模型的速度是其他雲的兩倍，成本遠低於其他雲的一半。

But growth in our AI cloud infrastructure business is not the only exciting news we have to report in Oracle. Our cloud applications business is doing quite well and it's about to get even better. In the current quarter, we expect our Cerner Health business to be awarded 2 large new contracts with a total value of over $1 billion. And I'm now also able to announce that all 9 utility companies owned by Berkshire Hathaway are in the process of replacing all their existing ERP systems and standardizing on Oracle's Fusion Cloud applications.

但我們的人工智能雲基礎設施業務的增長並不是我們要在甲骨文報告的唯一令人興奮的消息。我們的雲應用業務做得很好，而且還會變得更好。在本季度，我們預計我們的 Cerner Health 業務將獲得 2 份總價值超過 10 億美元的大型新合同。我現在還可以宣布，伯克希爾哈撒韋公司旗下的所有 9 家公用事業公司正在更換所有現有的 ERP 系統，並對 Oracle 的 Fusion Cloud 應用程序進行標準化。

Let me conclude with a few words about our database business and our upcoming announcement with Microsoft later this week. We will be substantially expanding our existing multi-cloud partnership with Microsoft by making it easier for Microsoft Azure customers to buy and use the latest Oracle cloud database technology in combination with Microsoft Azure cloud services. Safra and I will discuss the details of our expanding partnership at Microsoft headquarters in Redmond on the 14th. Please tune in. And thank you. Back to you, Safra.

最後，我想簡單介紹一下我們的數據庫業務以及我們即將在本週晚些時候與 Microsoft 發布的公告。我們將大幅擴展我們與 Microsoft 現有的多雲合作夥伴關係，讓 Microsoft Azure 客戶能夠更輕鬆地購買和使用最新的 Oracle 雲數據庫技術以及 Microsoft Azure 雲服務。 Safra 和我將於 14 日在雷德蒙德微軟總部討論擴大合作夥伴關係的細節。請收聽。謝謝。回到你身邊，薩弗拉。

Thanks, Larry, and maybe Ken, we could start taking questions at this point.

謝謝拉里，也許還有肯，我們現在可以開始提問了。

Absolutely. Before we do that, Lisa, just one quick clarification that we currently have 2 EU sovereign regions live with more to come. Lisa, please poll the audience for questions.

絕對地。麗莎，在此之前，請先快速澄清一下，我們目前有 2 個歐盟主權地區，未來還會有更多主權地區。麗莎，請向觀眾提問。

(Operator Instructions)

（操作員說明）

We'll take our first question from Brad Zelnick with Deutsche Bank.

我們將回答德意志銀行的 Brad Zelnick 提出的第一個問題。

Congrats on the strong start to the year. Larry, I think it's fair to say you understand the laws of data gravity better than anyone, and you've monetized this fundamental concept as well as anyone over the years. And I recently heard someone say we're moving from a world of data gravity to one of AI gravity, and I'm not sure exactly what that means or if they even knew what that meant.

祝賀今年的強勁開局。拉里，我認為可以公平地說，你比任何人都更了解數據引力定律，而且多年來你和任何人一樣將這一基本概念貨幣化。我最近聽到有人說我們正在從數據引力的世界轉向人工智能引力的世界，我不確定這到底意味著什麼，或者他們是否知道這意味著什麼。

But with AI and other use cases attracting more and more data to central clouds with many vendors preaching data sharing instead of what used to be making multiple copies of things and keeping them synchronized, does AI plus cloud in any way break what we've always understood about data gravity? And what does that mean for Oracle?

但是，隨著人工智能和其他用例將越來越多的數據吸引到中央雲，許多供應商提倡數據共享，而不是過去製作多個副本並保持同步，人工智能加雲是否會以任何方式打破我們一直以來的做法了解數據引力嗎？這對甲骨文意味著什麼？

Well, you can't build any of these AI models without enormous amounts of training data. So if anything, what AI, generative AI has shown that the big issue about training one of these models is just getting -- that there's a vast amount of data ingested into your GPU supercluster. It is a huge data problem in the sense you need so much data. To train OpenAI, to train ChatGPT 3.5, they read the entire public Internet. They read all of Wikipedia. They read everything. They ingested everything.

如果沒有大量的訓練數據，你就無法構建任何這些人工智能模型。因此，如果說有什麼不同的話，那就是人工智能，生成式人工智能已經表明，訓練這些模型之一的一個大問題就是——有大量數據被攝入到你的 GPU 超級集群中。從需要大量數據的意義上來說，這是一個巨大的數據問題。為了訓練 OpenAI、訓練 ChatGPT 3.5，他們閱讀了整個公共互聯網。他們閱讀了所有維基百科。他們閱讀了所有內容。他們吞下了一切。

And to specialize, and you take something like ChatGPT 4.0 and you want to specialize it, you need specialized training data from electronic health records to help doctors diagnose and treat cancer, let's say. And we have Partners Imaging, for example, that is ingesting huge amounts of image data to train their AI models. We have another partner of ours in AI ingesting huge amounts of electronic health records to train their models. AI doesn't work without getting access to and ingesting enormous amounts of data.

為了專業化，如果您採用像 ChatGPT 4.0 這樣的東西並且想要對其進行專業化，那麼您需要來自電子健康記錄的專門訓練數據來幫助醫生診斷和治療癌症。例如，我們有 Partners Imaging，它正在攝取大量圖像數據來訓練他們的人工智能模型。我們在人工智能領域有另一個合作夥伴，他們攝取大量電子健康記錄來訓練他們的模型。如果不訪問和攝取大量數據，人工智能就無法發揮作用。

So in terms of a shift away from data or a change in gravity to AI, AI is utterly dependent upon vast amounts of training data. Trillion developments went into building ChatGPT 3.5. Multiple times that for ChatGPT 4.0 because you had to deal with all the image data and ingest all of that to train image recognition. So we think this is very good for our database business. And Oracle's new vector database will contain the highly specialized training data like electronic health records while keeping that data anonymized and private yet still training the specialized models that can help doctors improve their diagnostic capability and their treatment prescriptions for cancer and heart disease and all sorts of other diseases.

因此，就從數據的轉變或人工智能引力的變化而言，人工智能完全依賴於大量的訓練數據。 ChatGPT 3.5 的開發投入了數万億美元。 ChatGPT 4.0 的數量是 ChatGPT 4.0 的數倍，因為您必須處理所有圖像數據並攝取所有這些數據來訓練圖像識別。所以我們認為這對我們的數據庫業務非常有好處。甲骨文的新矢量數據庫將包含電子健康記錄等高度專業化的培訓數據，同時保持這些數據的匿名性和私密性，同時仍然培訓專業模型，幫助醫生提高癌症、心髒病和各種疾病的診斷能力和治療處方。其他疾病。

So we think it's a boon to our business, and we are now getting into the deepwater of the information age. Nothing has changed about that. The demands on data are getting stronger and more important.

所以我們認為這對我們的業務來說是一個福音，而我們現在正進入信息時代的深水區。這一切都沒有改變。對數據的要求越來越強烈、越來越重要。

We'll take our next question from Mark Murphy with JPMorgan.

我們將回答摩根大通的馬克·墨菲提出的下一個問題。

So Larry, companies are starting to understand that OCI has a very fundamentally different architecture than anything else out there in the market because of the nonblocking low-latency network design. I'm wondering if you think it's possible to actually pull farther ahead through some of your other initiatives. For instance, the Azure interconnect, it sounds like you're going to expand that having more regions, running a stronger database, providing greater isolation. Just wondering if you think there's a possibility of extending the lead.

Larry，各公司開始認識到，由於非阻塞低延遲網絡設計，OCI 具有與市場上其他任何產品截然不同的架構。我想知道您是否認為有可能通過其他一些舉措真正取得更大進展。例如，Azure 互連，聽起來您將擴展它，擁有更多區域，運行更強大的數據庫，提供更大的隔離。只是想知道您是否認為有可能擴大領先優勢。

Well again, we have -- we're on our second generation of data center and our second generation of cloud. Now a lot of people noticed that we were a little bit late to the party. That's because we moved from a first generation, which we were not very happy with, to a second generation which we think solves a lot of problems the other cloud companies have not yet solved. So the nonblocking ultrafast RDMA network is not only useful for training AI models, it's useful for almost everything. It's certainly useful for building a much faster database. It's useful for -- in terms of the automation level we have in our data centers.

再說一遍，我們擁有第二代數據中心和第二代云。現在很多人注意到我們參加聚會有點晚了。這是因為我們從第一代（我們對此不太滿意）轉向了第二代，我們認為第二代解決了其他雲公司尚未解決的許多問題。因此，無阻塞超快 RDMA 網絡不僅適用於訓練 AI 模型，而且幾乎適用於所有事物。它對於構建更快的數據庫當然很有用。就我們數據中心的自動化水平而言，它很有用。

Our data centers are 100% automated. They configure themselves. They run themselves. We don't have a lot of labor. Now that saves us a huge amount of money, a lot of labor cost is saved. But the biggest advantage is if you don't have human beings involved, you don't have human labor, you don't have human errors. You don't have mistakes. You can ensure security. Most security problems are caused by people that make mistakes or people that engage in mischief. We don't have that in our data center. That's another huge advantage.

我們的數據中心 100% 自動化。他們自己配置。他們自己跑。我們沒有很多勞動力。現在這為我們節省了大量的資金，節省了大量的勞動力成本。但最大的優勢是，如果沒有人類參與，就沒有人類勞動，就沒有人為錯誤。你沒有錯誤。您可以確保安全。大多數安全問題都是由犯錯誤或惡作劇的人引起的。我們的數據中心沒有這個。這是另一個巨大的優勢。

Our data centers are -- because they're identical, the only way we could automate them was to make them all the same and they vary only by scale. There are big ones and small ones but they're identical. They all have the same hardware pieces and the same software pieces. They all have the same automation. And that automation allows us to put these data centers in very small countries. We expect to have many, many more data centers than any other cloud provider.

我們的數據中心是 - 因為它們是相同的，所以我們實現它們自動化的唯一方法就是使它們全部相同，並且它們僅在規模上有所不同。有大有小，但它們是相同的。它們都具有相同的硬件部分和相同的軟件部分。它們都具有相同的自動化。這種自動化使我們能夠將這些數據中心設在非常小的國家。我們預計將擁有比任何其他雲提供商更多的數據中心。

But we also put those data centers at customers. Nomura Research, NRI, which resells Oracle cloud capacity in Japan, has 2 dedicated regions and are building 2 more. They run the Tokyo Stock Exchange. I don't know of any clouds that are running stock exchanges other than ours. And again, it's because of the extreme reliability and security that we get with all of the automation that's included with our data center. So we have cost advantages. We have performance advantages. We have security advantages. And that's why we're growing much faster than any of the other hyperscalers.

但我們也將這些數據中心放在客戶處。野村研究公司 (Nomura Research, NRI) 在日本轉售 Oracle 雲容量，擁有 2 個專用區域，並且正在建設另外 2 個區域。他們經營東京證券交易所。我不知道除了我們之外還有哪個雲在運行證券交易所。同樣，這是因為我們的數據中心包含的所有自動化功能都具有極高的可靠性和安全性。所以我們有成本優勢。我們有性能優勢。我們有安全優勢。這就是為什麼我們的增長速度比任何其他超大規模企業都要快得多。

We'll take our next question from Raimo Lenschow with Barclays Capital.

我們將回答巴克萊資本 Raimo Lenschow 的下一個問題。

Larry, you mentioned Berkshire and then moving over to Fusion. I just wanted to talk more in a more bigger picture on the back office systems. Like in the olden days, back office, you wouldn't touch in kind of tougher times because you had big complex projects. But you guys are still kind of growing this nicely with over 20%. Like what are you seeing there? And do you see a change, a pipeline change in customer interest of doing something there?

拉里，你提到了伯克希爾，然後轉向融合。我只是想從更宏觀的角度來談談後台系統。就像過去一樣，在後台，你不會在困難時期接觸，因為你有大型複雜的項目。但你們仍然以超過 20% 的速度快速增長。就像你在那裡看到了什麼？您是否看到客戶對在那裡做某事的興趣發生了變化？

Yes. Well, the back office in the cloud is very different than the back office on-premise. And we have a big advantage that we are, by far and away, the biggest, I don't know, 95% of the cloud ERP market in terms of actual live customers using it. And we have an important partnership with JPMorgan Chase, and we'll be announcing some more partnerships in the financial community at the upcoming CloudWorld, where we automate a lot of e-commerce, B2B e-commerce right in the cloud.

是的。嗯，雲中的後台辦公室與本地後台辦公室有很大不同。我們有一個很大的優勢，就實際使用雲 ERP 的客戶而言，我們是迄今為止最大的（我不知道）雲 ERP 市場的 95%。我們與摩根大通建立了重要的合作夥伴關係，我們將在即將舉行的 CloudWorld 上宣布與金融界建立更多合作夥伴關係，我們將在雲中實現大量電子商務、B2B 電子商務的自動化。

So what is B2B e-commerce between 2 Oracle Cloud customers, 2 Oracle ERP Cloud customers? It's 1 Oracle procurement system talking to another Oracle order management system and financing the transaction through their bank. We automate that entirely in the cloud. If your bank is JPMorgan Chase, they originate the loan right along with your purchase. It's e-commerce for B2B with banking and shipping and insurance, all included enrolled together.

那麼什麼是 2 個 Oracle Cloud 客戶、2 個 Oracle ERP Cloud 客戶之間的 B2B 電子商務？這是一個 Oracle 採購系統與另一個 Oracle 訂單管理系統通信並通過其銀行為交易融資。我們完全在雲端實現自動化。如果您的銀行是摩根大通，他們會在您購買商品時發放貸款。它是 B2B 電子商務，包含銀行、航運和保險，所有這些都包含在一起。

No one -- we've done a great job as an industry automating e-commerce for B2C. I mean, Amazon, Walmart, others have done a brilliant job in that. We've been doing that for a long time. We have not got the equivalent in B2B commerce because B2B transactions are much more complex. In the cloud, you can get all the parties together, the shippers, the insurance company, the manufacturers, the purchasers, and we can automate that entirely within the Oracle Cloud, one ERP system talking to another, talking to their bank, talking to their insurance, doing the loan origination, getting it shipped and insured. So we make doing business much easier for our customers when they move to a modern cloud ERP system versus the on-premise ERP system that came before.

沒有人——作為 B2C 電子商務自動化行業，我們做得非常出色。我的意思是，亞馬遜、沃爾瑪和其他公司在這方面做得非常出色。我們這樣做已經很長時間了。我們在 B2B 商務領域還沒有類似的東西，因為 B2B 交易要復雜得多。在雲中，您可以將所有各方聚集在一起，包括托運人、保險公司、製造商、購買者，我們可以在Oracle 雲中完全實現自動化，一個ERP 系統與另一個系統對話，與他們的銀行對話，與他們的保險，進行貸款發放，運送並投保。因此，當我們的客戶遷移到現代云 ERP 系統（而不是之前的本地 ERP 系統）時，我們可以讓他們更輕鬆地開展業務。

We'll take our next question from Mark Moerdler with Bernstein.

我們將回答馬克·莫德勒和伯恩斯坦提出的下一個問題。

The top of mind questions I'm getting are related to AI in general as you'd expect. And more specifically as it relates to Oracle, what impact of AI will be on OCI Gen2. Two related parts to the question. The first is the profitability of AI supercomputers and whether, as some clients try to tell me, its low-calorie, empty calorie revenue, or can you maintain margins as this business grows?

正如您所期望的，我收到的最重要的問題通常與人工智能相關。更具體地說，因為它與 Oracle 有關，人工智能將對 OCI Gen2 產生什麼影響。與問題相關的兩個部分。首先是人工智能超級計算機的盈利能力，以及是否像一些客戶試圖告訴我的那樣，它的低熱量、空熱量收入，或者隨著這項業務的增長，你能否保持利潤？

And the second part is about the Oracle ecosystem, and is it strong enough that as workloads transition from model training to inferencing and grounding, could AI compute create a revenue air pocket or are these kind of systems strong enough so you don't have that?

第二部分是關於Oracle 生態系統，當工作負載從模型訓練過渡到推理和基礎時，它是否足夠強大，人工智能計算是否可以創造收入空間，或者這些類型的系統是否足夠強大，以至於你不需要這樣的系統？ ？

Well, if -- you're constantly training these models. Keep in mind, you have to bring in new data if you're obviously in the health care field, in the legal field, new cases are being judged, new research is being published all the time. And for your AI models to be relevant, they have to be up to date. So it's not that you train and then do nothing but inferencing thereafter. So your training and your inferencing sit right next to each other.

好吧，如果——你不斷地訓練這些模型。請記住，如果您顯然在醫療保健領域、法律領域、正在審理新案件、一直在發表新研究，則必須引入新數據。為了讓你的人工智能模型具有相關性，它們必須是最新的。所以並不是說你訓練之後什麼都不做，只是進行推理。所以你的訓練和你的推理是緊挨著的。

As long as we can do this stuff twice as fast as everybody else, that's on the -- by the way, not just on the training side, that's also on the inferencing side, then we're going to be half the cost or better. So we think we're going to be very, very competitive across the board, whether it's training or in inferencing. So we don't -- so we're pretty confident that we've got a cost performance advantage. Again, if you run twice as fast in the cloud, you cost half as much because you pay by the hour.

只要我們做這些事情的速度是其他人的兩倍，順便說一句，不僅僅是在訓練方面，也在推理方面，那麼我們的成本就會是一半或更好。因此，我們認為無論是在訓練還是在推理方面，我們在各個方面都會非常非常有競爭力。所以我們沒有——所以我們非常有信心我們擁有性價比優勢。同樣，如果您在雲中的運行速度是原來的兩倍，那麼您的成本就會減少一半，因為您是按小時付費的。

So the performance advantage is really an enormous cost advantage for us. We don't see that going away anytime soon. And it applies to inferencing as well as training. Now as far as GPUs -- our GPU is a low-margin business. Not for 100% automated cloud with very, very low cost. We think in some cases, our prices for GPU training, which are very profitable by the way, for us, but are often lower -- our prices are lower than the cost of other hyperscalers doing the training.

所以性能優勢對我們來說確實是一個巨大的成本優勢。我們認為這種情況不會很快消失。它適用於推理和訓練。現在就 GPU 而言——我們的 GPU 是一項低利潤業務。不適用於成本非常非常低的 100% 自動化雲。我們認為，在某些情況下，我們的 GPU 訓練價格對我們來說非常有利可圖，但通常較低——我們的價格低於其他超大規模企業進行訓練的成本。

We'll take our next question from Keith Weiss with Morgan Stanley.

我們將回答摩根士丹利的基思·韋斯 (Keith Weiss) 提出的下一個問題。

I wanted to drill in on Cerner, basically the 1-year anniversary of that acquisition. And maybe from Larry, get an update on where we are with modernizing that solution and modernizing that product. And basically, whether Cerner has kind of lived up to your expectations thus far? And then maybe for Safra, if we could dig into the expense synergy side of the equation. You guys have done a great job increasing margins on a year-on-year basis in this quarter. How much is left to go within Cerner and getting that margin profile to match the broader Oracle margin profile?

我想深入研究 Cerner，基本上是那次收購一周年紀念日。也許可以從 Larry 那裡了解我們在解決方案現代化和產品現代化方面的最新進展。基本上，到目前為止，塞納是否達到了您的期望？然後，也許對於 Safra 來說，如果我們能夠深入研究等式的費用協同方面。你們在本季度的利潤率同比增長方面做得非常出色。 Cerner 內部還需要多少資金才能使保證金概況與更廣泛的 Oracle 保證金概況相匹配？

Okay, I'll talk about the progress on taking the existing Millennium Cerner software and moving it to new Millennium, basically rewriting that software a piece at a time, by the way. It's not going to be a big rip and replace that all. There's a 2-phase process with Cerner. The first thing is to get -- to lift and shift and get the existing system hardened, which we've done and moving the customers to the cloud, which we're in the process of moving everybody to the cloud. That will give them better performance, better security and new features will then start showing up with the system.

好的，我將談談現有的 Millennium Cerner 軟件並將其遷移到新的 Millennium 的進展，順便說一句，基本上是一次重寫該軟件。這不會是一個大的撕裂並取代這一切。 Cerner 的流程分為兩個階段。第一件事是提升和轉移並強化現有系統，我們已經做到了這一點，並將客戶轉移到雲端，我們正在將每個人轉移到雲端。這將為他們提供更好的性能、更好的安全性，然後新功能將開始隨系統一起出現。

And so there's a 2-phase shift to the cloud, We're well on our way. The next is replace feature after feature after feature of the older Cerner system with a new Cerner system, new Millennium, which we are not coding in Java like we usually do. The new Cerner system is being generated, as you know, generative AI generates code. We have an application generator called APEX. And we are not writing code for the new Cerner. We are generating that code in APEX and it's going extremely well.

因此，向雲的轉變分為兩個階段，我們正在順利進行。接下來是用新的 Cerner 系統（新的 Millennium）替換舊 Cerner 系統的一個又一個功能，我們不像通常那樣用 Java 進行編碼。新的 Cerner 系統正在生成，如您所知，生成式 AI 生成代碼。我們有一個名為 APEX 的應用程序生成器。我們並不是為新的 Cerner 編寫代碼。我們正在 APEX 中生成該代碼，並且進展非常順利。

Again, one of the great things about code generators is they don't make mistakes. Well, either they make the same mistake over and over again or they don't -- once you fixed the mistake, you fixed it everywhere. So the code -- we're using a code generator to write the new features in Cerner, and it's coming along very, very nicely. Also on the business side of things, again, we think that Cerner business is going to get stronger and stronger.

同樣，代碼生成器的一大優點是它們不會犯錯誤。好吧，要么他們一遍又一遍地犯同樣的錯誤，要么他們不會——一旦你改正了錯誤，你就在所有地方改正了它。所以代碼——我們使用代碼生成器在 Cerner 中編寫新功能，並且進展得非常非常好。同樣在業務方面，我們再次認為 Cerner 業務將會變得越來越強大。

Again, Safra made the point. The old Cerner business, you'd sell license so you sell a big contract and you get a big chunk of revenue in that quarter. Our new business model, as you know, is cloud. So we get a big Cerner award and we get that money now over time rather than all upfront. So that's, if you will, a bit of a revenue headwind, but the Cerner business is doing extraordinarily well.

薩弗拉再次強調了這一點。舊的 Cerner 業務，你會出售許可證，這樣你就可以出售一份大合同，並在該季度獲得很大一部分收入。如您所知，我們的新業務模式是雲。因此，我們獲得了一項重大的 Cerner 獎項，並且隨著時間的推移，我們現在會得到這筆錢，而不是全部預付。所以，如果你願意的話，這對收入來說是一個不利因素，但 Cerner 的業務卻表現得非常好。

And on the expense side, we still have a ways to go, but I think it will become more obvious to you next quarter, the changes we've made as they play out through the income statement more clearly. And so you'll have a better comparison Q2 to Q2, which will be a full non-deal quarter for you to look at. But you know us, we're always looking to save as much as we can and to spend as little while still really transforming Cerner into a modern system in its entirety.

在費用方面，我們還有很長的路要走，但我認為下個季度你們會變得更加明顯，我們所做的改變會在損益表中更清晰地體現出來。因此，您將可以更好地比較第二季度和第二季度，這將是一個完整的非交易季度供您查看。但你知道我們，我們總是希望盡可能多地節省開支，同時仍然真正將 Cerner 轉變為一個完整的現代系統。

Let me just reinforce what Safra just said. We love to save money. One of the things we did with our data centers is we automated them. We saved labor costs and we saved -- we have better security and better reliability because we eliminated human error. With Cerner, the rewrite of Cerner, it's not armies of programmers that are going to be rewriting this. We are generating the new Millennium software using APEX. And that's also going to save us a lot of human labor and generate higher-quality code and higher-quality user interfaces and better security all at once.

讓我重申薩弗拉剛才所說的話。我們喜歡省錢。我們對數據中心所做的事情之一就是實現自動化。我們節省了勞動力成本，而且我們節省了成本——因為我們消除了人為錯誤，所以我們擁有更好的安全性和可靠性。有了 Cerner，Cerner 的重寫版，就不會再有大批程序員來重寫它了。我們正在使用 APEX 生成新的 Millennium 軟件。這也將為我們節省大量人力，同時生成更高質量的代碼和更高質量的用戶界面以及更好的安全性。

We'll take our last question from John DiFucci with Guggenheim.

我們將回答古根海姆約翰·迪福奇的最後一個問題。

My question is for Safra, I think. Safra, if the organic constant currency cloud growth was in line with what you did last year and what you want to do for this year at 29%, while license, though it was a difficult comp, it was a bit weaker, at least, than the Street was expecting. And I also -- we also realized that cloud revenue for the same amount of business booked will be a lot less than the equivalent license revenue in the quarter.

我想我的問題是問薩夫拉的。 Safra，如果有機恆定貨幣雲增長與您去年所做的以及今年想要做的 29％ 一致，而許可證雖然是一個困難的比較，但至少有點弱，超出了華爾街的預期。我還 - 我們還意識到，預訂相同數量業務的雲收入將遠低於本季度的同等許可證收入。

But does this mean we're seeing a move with stronger momentum to the cloud this quarter than we have seen? And I guess just to clarify, given your guidance for the second quarter. You said you're maintaining your longer-term stuff. But I just want to clarify, are you maintaining your constant currency organic cloud guidance for the year?

但這是否意味著本季度我們看到雲計算的發展勢頭比我們所看到的更強勁？鑑於您對第二季度的指導，我想只是為了澄清一下。你說你正在維護長期的東西。但我只是想澄清一下，您是否維持今年的固定貨幣有機雲指導？

Yes. Okay, let me start with yes. And as I want to remind you, of course, as I want to remind you, 29% of bigger numbers is more, okay? So last year, we were smaller, and this year, we continue to plan on doing the 29%, maybe better. All of it is dependent on us getting our data centers filled up and built out as fast as possible. The level of demand we have is stunning. Stunning is the only word I can use.

是的。好吧，讓我從“是”開始。當然，正如我想提醒你的那樣，29% 的數字越大越好，好嗎？所以去年我們規模較小，今年我們繼續計劃做 29%，也許更好。所有這一切都取決於我們盡快填滿和建設我們的數據中心。我們的需求水平令人震驚。令人驚嘆是我唯一能用的詞。

And I don't want to get overly exuberant simply because we do have to continue to build out our systems, et cetera. And so yes, a very strong momentum to the cloud. And again, with the focus -- we told you, we're bringing our customers to the cloud, and that's going to have us focusing on growing that and stronger momentum there.

我不想僅僅因為我們必須繼續構建我們的系統等等而變得過於興奮。是的，雲計算的勢頭非常強勁。再次強調，我們告訴過你，我們正在將我們的客戶帶到雲中，這將使我們專注於發展雲計算並增強那裡的勢頭。

Okay, great. Very clear. Yes and yes. Got it.

好的，太好了。非常清楚。是的，是的。知道了。

All right. Thank you, John, and thank you, Lisa. A telephonic 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 Lisa for closing.

好的。謝謝你，約翰，謝謝你，麗莎。我們的投資者關係網站將提供 24 小時電話會議的電話重播。感謝您今天加入我們，接下來我會將電話轉回麗莎以結束通話。

That does conclude today's presentation. Thank you for your participation, and you may now disconnect.

今天的演講到此結束。感謝您的參與，您現在可以斷開連接。