financial analyst meeting 2015 - oracle · gaap financial measures are not meant to be considered...

Financial Analyst Meeting 2015

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

October 29, 2015

Oracle Cloud Update

Mark Hurd Chief Executive Officer

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. |

Safe Harbor Statement Statements in this presentation relating to Oracle’s future plans, expectations, beliefs, intentions and prospects, are “forward-looking statements” and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. A detailed discussion of these factors and other risks that affect our business is contained in our U.S. Securities and Exchange Commission (SEC) filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or by contacting Oracle’s Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle’s Investor Relations website at http://www.oracle.com/investor. All information set forth in this presentation is current as of October 29, 2015. Oracle undertakes no duty to update any statement in light of new information or future events.


To supplement our financial results presented on a GAAP basis, we use non-GAAP measures, which exclude certain business combination accounting entries and expenses related to acquisitions and other significant expenses including stock based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Today’s discussion includes certain non-GAAP financial measures, which were included in our earnings releases. A PDF copy of these press releases and financial tables, which include a GAAP to non-GAAP reconciliation, can be viewed and downloaded on the Oracle Investor Relations website at www.oracle.com/investor.

Non-GAAP Financial Measures


On-Premise Apps . . . STEADY GROWTH

On-Premise Apps + SaaS . . . SOLID GROWTH

PaaS . . . Early But BIGGER & BETTER

SaaS . . . BIG, GROWING & ACCELERATING

Oracle Cloud


FY 2013 FY 2014 FY 2015

SaaS Revenue

SaaS Revenue . . . DRIVING HIGHER

+36%

+23%

Amounts are non-GAAP constant currency and exclude vertical SaaS services. Growth rates are year over year.


FY 2013 FY 2014 FY 2015

SaaS-PaaS Gross Deferred Revenue

SaaS-PaaS Deferred Revenue . . . BREAKOUT FY 2015

+81%

+21%

SaaS-PaaS Gross Deferred Revenue is reported SaaS-PaaS Deferred Revenue Less Billed but Unpaid SaaS-PaaS Invoices.


FY 2013 FY 2014 FY 2015

SaaS New & Expansion Bookings (ARR)

SaaS Bookings (ARR) . . . ACCELERATING +106%

+41%

ARR amounts are non-GAAP constant currency and exclude vertical SaaS services. Growth rates are year over year.


FY 2014 FY 2015 FY 2016

Beginning SaaS Pipeline

SaaS Pipeline . . . BIG and GROWING

Pipeline figures in constant currency. Pipeline growth rates are year over year.

+60%

+71%


FY 2013 FY 2014 FY 2015

SaaS Customers

SaaS Customers . . . REFERENCABLE & RAMPING

3,231

6,596

1,339


FY 2013 FY 2014 FY 2015

ERP SaaS Customers

SaaS Customers . . . ERP BREAKOUT

210

1298

37




PaaS . . . Early But BIGGER OPPORTUNITY


Oracle Cloud


FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Software Support

Horizontal Apps Software Support . . . STEADY GROWTH

Amounts are non-GAAP constant currency and exclude vertical SaaS services.


FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

New Software License SaaS

48%

Horizontal Apps NSL + SaaS . . . MIX SHIFT TO RECURRING

37% 32% 15% 8% 6%

Recurring

Transactional

63% 52% 68% 85% 92% 94%

Amounts are non-GAAP constant currency and exclude vertical applications. Percentages indicate portion of total.


FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

New Software License SaaS

Recurring

54%

Horizontal Apps NSL + SaaS . . . LED BY NORTH AMERICA

45% 39% 17% 10% 2%

Transactional

55% 46% 61% 83% 90% 98%

Amounts are non-GAAP constant currency and exclude vertical applications. Percentages indicate portion of total.




PaaS . . . Early But BIGGER OPPORTUNITY


Oracle Cloud


FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

On-Premise SaaS

+36%

Horizontal Apps On-Premise + SaaS . . . SOLID GROWTH

+63% +113% +138% +23%

Amounts are non-GAAP constant currency and exclude vertical applications. Growth rates are year over year.


Internal Estimates

+10%

SaaS ARR from Software Support Conversion . . . MINIMAL

• Applications Support is > $5B and GROWING

• Renewal Rate Essentially Unchanged

• Support Converted to SaaS < $50M

• Support Converted 0.8% . . . MINIMAL

• SaaS ARR Multiple on Support Converted is ~ 3X


1.00

3.00 3.00 3.00

0.94 1.20 1.80

2.40

0.00

1.00

2.00

3.00

On-Premise Support w/ 94% Gross Margin

SaaS w/ Current 40% Gross Margin

SaaS w/ Assumed 60% Gross Margin

SaaS w/ Assumed 80% Gross Margin

Revenue Gross Profit

Conversion of Support . . . MORE REVENUE & PROFIT

Internal Estimates


SaaS Summary . . . BIG, GROWING & ACCELERATING

• SaaS Pipeline ~2X Year Ago Level . . . Win Rates Higher

• Sales Force . . . Bigger, Ramped and Selling

• Competitive Position . . . Leading in Many Markets

• Thousands of Customers . . . Hundreds of References

• Bookings Strong in Q1 . . . Remainder of Year Will Be Strong




PaaS . . . Early But BIGGER & BETTER

SaaS . . . Revenue Accelerating

Oracle Cloud


financial analyst meeting 2015 - oracle · gaap financial measures are not meant to be considered...

Documents