Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
So, there is a tremendous amount of demand, the data centers take longer to build, and we would like that said, we are getting very good at building them quickly and getting the building the power and the communication links in, we're doing faster than we have ever happened in the past
We had another excellent quarter with third-quarter revenue coming in as expected and EPS $0.02 above the high end of my guidance range
These next-generation applications are very attractive
OCI has emerged as the largest driver of our overall revenue acceleration growing much, much faster than our cloud competitors
As demand for our Cloud Services continues getting stronger, our pipeline is growing even faster and our win rates are going higher as well
First, we know better than anyone what it takes to run the full stack of technology that goes into mission-critical workloads
I should also say that we continue to expect the FY '24 of which we are now in the fourth quarter, total revenue excluding Cerner will accelerate from last year as it has for the past three years and will likely be significantly higher in FY '25
The delivery of our new AI-centric healthcare cloud applications, including the Ambulatory Clinic System, the Clinical Digital Assistant, and the Health Data Intelligence System will enable the rapid modernization of our customers' healthcare systems and transform Oracle Health and Cerner into a high-growth business for years to come
Looking forward, 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 expand the operating margin percentages
It's a huge advantage for us
As I mentioned earlier the sizing, flexibility, and deployment optionality of our cloud regions continues to be incredible advantage for us in the marketplace
Support and SaaS gross margin percentages are consistent with last year while IaaS gross margins improved substantially year-over-year
We are actually very good in our GPU access and capability
As I mentioned earlier, total revenue came in at the midpoint of my constant-currency guidance and EPS was above the high-end of guidance
Very importantly, has 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 OCI
I'm talking about running at enterprise scale with comprehensive security and unparalleled support and that's from decades of experience running the world's most important workloads and optimizing clustering technology, which is critical to artificial intelligence, workloads, and database services
Secondly, our AI capabilities are unique as they're built-in to help customers drive business outcomes
Listen, what you put up this quarter in Infrastructure as a Service, it just looks pretty impressive
And this reflects the growing trend of customers wanting larger contracts as they see first-hand how Oracle Cloud Services are benefiting their businesses
Excluding Legacy Hosting Services, OCI Gen2 infrastructure cloud services revenue grew 52% with an annualized revenue of $6.7 billion
So we're very happy that these are now secured
But we were able to do pretty well
So, we think it will be - it will become a very successful product in every cloud
Including Cerner, total cloud revenue was up 24% at $5.1 billion with IaaS revenue of $1.8 billion, up 49%, and SaaS revenue of $3.3 billion, up 14%
Operating margin was 44%, up from 42% last year as we continue to drive more efficiencies in our operating expenses, which continue to trend down as a percentage of revenue
Non-GAAP operating income was $5.8 billion, up 12% from last year
Safra Catz The GPU we are good
And it is one of the most exciting things we're doing, of course, we do procurement and accounting and human resources and recruiting for the government, we do all of those applications
So it allows us to modernize their infrastructure very, very rapidly, deliver the Voice - Clinical Digital Assistant, make the system easier to use, save doctor's time, deliver a lot more value put it in the diagnostic imaging systems that help data intelligence system, deliver all of that automatically on a regular three-months cadence
Infrastructure cloud services revenue was up 49%
       

Bearish Statements during earnings call

Statement
Software license revenues were $1.3 billion, down 3%
However, some of these goals might prove to be too conservative given our momentum
But anyway, so $2.1 billion for this quarter and you've got Q1 and Q2 and I'm going to be somewhere between $7 billion and $7.5 billion for the full year, which is actually a little bit lower than I thought
As was the case when I gave guidance last quarter, currency had little effects in Q3
So with that, non-GAAP EPS is expected to be down 2% or to flat and be between a $1.62 and $1.66
In addition, Cerner, which is a significant headwind this year, we expect to return to growth next year
These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from statements being made today
   

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