170509 jefferies conference -...
TRANSCRIPT
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JefferiesTechnologyConference
KenBondSeniorVicePresidentMay3,2017
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StatementsinthispresentationrelatingtoOracle’sfutureplans,expectations,beliefs,intentionsandprospects,are“forward-lookingstatements”andaresubjecttomaterialrisksanduncertainties.Manyfactorscouldaffectourcurrentexpectationsandouractualresults,andcouldcauseactualresultstodiffermaterially.AdetaileddiscussionofthesefactorsandotherrisksthataffectourbusinessiscontainedinourU.S.SecuritiesandExchangeCommission(SEC)filings,includingourmostrecentreportsonForm10-KandForm10-Q,particularlyundertheheading“RiskFactors.”CopiesofthesefilingsareavailableonlinefromtheSECorbycontactingOracle’sInvestorRelations(IR)Departmentat(650)506-4073orbyclickingonSECFilingsonOracle’sIRwebsiteathttp://www.oracle.com/investor.AllinformationsetforthinthispresentationiscurrentasofMay9,2017.Oracleundertakesnodutytoupdateanystatementinlightofnewinformationorfutureevents.
SafeHarborStatement
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TosupplementourfinancialresultspresentedonaGAAPbasis,weusenon-GAAPmeasures,whichexcludecertainbusinesscombinationaccountingentriesandexpensesrelatedtoacquisitionsandothersignificantexpensesincludingstockbasedcompensation,thatwebelievearehelpfulinunderstandingourpastfinancialperformanceandourfutureresults.Ournon-GAAPfinancialmeasuresarenotmeanttobeconsideredinisolationorasasubstituteforcomparableGAAPmeasures,andshouldbereadonlyinconjunctionwithourconsolidatedfinancialstatementspreparedinaccordancewithGAAP.Today’sdiscussionincludescertainnon-GAAPfinancialmeasures,whichwereincludedinourearningsreleases.APDFcopyofthesepressreleasesandfinancialtables,whichincludeaGAAPtonon-GAAPreconciliation,canbeviewedanddownloadedontheOracleInvestorRelationswebsiteatwww.oracle.com/investor.
Non-GAAPFinancialMeasures
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RevenueOpportunity
4
Software
Labor
Hardware
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RevenueOpportunity
5
OracleCloud
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6
OracleCloud
Enterprise(5,000+)
Software
Labor
Hardware
Mid-Market(1,000- 5,000)
Software
Labor
Hardware
SmallBusiness(100- 1,000)
Software
Labor
Hardware
MicroBusiness(<100)
RevenueOpportunity
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7
OracleCloud
Enterprise(5,000+)
OracleCloud
Mid-Market(1,000- 5,000)
SmallBusiness(100- 1,000)
Software
Labor
Hardware
MicroBusiness(<100)
RevenueOpportunity
Software
Labor
Hardware
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8
OracleCloud
Enterprise(5,000+)
OracleCloud
Mid-Market(1,000- 5,000)
NetSuiteCloud
SmallBusiness(100- 1,000)
Software
Labor
Hardware
MicroBusiness(<100)
RevenueOpportunity
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RevenueModel:CumulativeRevenue- On-Premise
9
-250
0
250
500
750
1000
Year0 Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10
On-Premise
AssumesNSLof$100andsupportof$20/yearthereafter.
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RevenueModel:CumulativeRevenue- CloudSubscription
10
-250
0
250
500
750
1000
-250
0
250
500
750
1000
Year0 Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10
Cloud On-Premise
2.7X
1.3X
AssumesthatSaaSorPaaSspendis~2Xto~4Xsoftwaresupportspend.
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RevenueModel:CumulativeRevenue- Comparison
11
-250
0
250
500
750
1000
-250
0
250
500
750
1000
Year0 Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10
Cloud On-Premise
2.7X
1.3X
AssumesthatSaaSorPaaSspendis~2Xto~4Xsoftwaresupportspend.
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RevenueModel:CumulativeRevenue- Difference
12
-250
0
250
500
750
1000
-250
0
250
500
750
1000
Year0 Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10
DifferenceinCumulativeRevenue
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CustomerAdoptionCurve
13
-5
22.5
50
77.5
105
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-250
0
250
500
750
1000
-250
0
250
500
750
1000
Year0 Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10
-5
22.5
50
77.5
105
WhathappenswhentheCustomerAdoptionCurvemeetstheBusinessModelChange?
14
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15Trailing12MonthNon-GAAPresultsinUSD.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17SoftwareSupport NewSoftwareLicense SaaS-PaaS
On-Premise&CloudRevenue– TrailingTwelveMonths
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16Trailing12MonthNon-GAAPresultsinUSD.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17SoftwareSupport NewSoftwareLicense SaaS-PaaS
On-Premise&CloudRevenue– TrailingTwelveMonths
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17Trailing12MonthNon-GAAPresultsinUSD.Columnsrepresenty/ydollargrowthofTTMresults,whilelinerepresentstotalofcolumns.
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
2,500
Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17
SoftwareSupport NewSoftwareLicense SaaS-PaaS Total
Revenue$Growth– TrailingTwelveMonth
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18
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
2,500
Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17
Software Hardware Services Total
Trailing12MonthNon-GAAPresultsinUSD.Columnsrepresenty/ydollargrowthofTTMresults,whilelinerepresentstotalofcolumns.
GrossProfit$Growth– TrailingTwelveMonth
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Cloud:Software-as-a-Service
HumanCapitalManagement
SupplyChainManagement
EnterpriseResourcePlanning
EnterprisePerformanceMgmt
VerticalIndustryApplications
GovernanceRisk&Compliance
B2CCustomerExperience
B2BCustomerExperience
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Cloud:Software-as-a-Service
HumanCapitalManagement
SupplyChainManagement
EnterpriseResourcePlanning
EnterprisePerformanceMgmt
VerticalIndustryApplications
GovernanceRisk&Compliance
B2CCustomerExperience
B2BCustomerExperience
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ERP/EPM
21*DoesNOTinclude~12,000NetSuitecustomersContentwaspresentedat2016FinancialAnalystMeeting,September2016..
2,800ERP/EPMSaaScustomerswith
$300KARRavg
NumberofCustomers
AverageDe
alSize
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ERP/EPM...addingnewcustomers&growingARR
22
2,800ERP/EPMSaaScustomerswith
$300KARRavg
NumberofCustomers
AverageDe
alSize
>15KOn-PremCustomers
>8KCustomersinPipeline
MarketShareGain
SCM
MFG
Up-Sell
CloseBiggerDeals
*DoesNOTinclude~12,000NetSuitecustomersContentwaspresentedat2016FinancialAnalystMeeting,September2016..
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ERP/EPM...addingnewcustomers&growingARR
23
2,800ERP/EPMSaaScustomerswith$300KARRaverage
NumberofCustomers
AverageDe
alSize
>15KOn-PremCustomers
>8KCustomersinPipeline
MarketShareGain
SCM
MFG
Up-Sell
CloseBiggerDeals
GainShareOrganicallyand
GrowtheARR
3,700+ERP/EPMCustomersasofQ3FY17
*DoesNOTinclude~12,000NetSuitecustomersContentwaspresentedat2016FinancialAnalystMeeting,September2016..
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ShareofM
arket
Applications/SaaSMarketSize&Players
24
SAP
Other
Intuit
Oracle
MicrosoftSage
SAP
Other
Oracle
ADP
Workday
Kronos
Salesforce
Other
IBM
Oracle
AdobeGoogle
ERP HCM Marketing
SizeofMarket
Source:AnnualizeddatafromIDC20161HSoftwareTracker,includingpure-playcloudcompanies.
Salesforce
Other
SAP
Oracle
MicrosoftVeeva
Sales
Salesforce
Other
SAP
Oracle
ZendeskAmdocs
Service
SAP
Other
Oracle
InforJDA
Microsoft
SCM
SAP
Other
Oracle
IBM
Anaplan
Infor
EPM
Adobe
$31B $16B $5B $8B $6B$13B $4B
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ShareofM
arket
Applications/SaaSMarketSize&Players
25
SAP
Other
Intuit
Oracle
MicrosoftSage
SAP
Other
Oracle
ADP
Workday
Kronos
Salesforce
Other
IBM
Oracle
AdobeGoogle
ERP HCM Marketing
SizeofMarket
Source:AnnualizeddatafromIDC20161HSoftwareTracker,includingpure-playcloudcompanies.
Salesforce
Other
SAP
Oracle
MicrosoftVeeva
Sales
Salesforce
Other
SAP
Oracle
ZendeskAmdocs
Service
SAP
Other
Oracle
InforJDA
Microsoft
SCM
SAP
Other
Oracle
IBM
Anaplan
Infor
EPM
Adobe
$31B $16B $5B $8B $6B$13B $4B
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ShareofM
arket
Applications/SaaSMarketSize&Players
26
SAP
Other
Intuit
Oracle
MicrosoftSage
SAP
Other
Oracle
ADP
Workday
Kronos
Salesforce
Other
IBM
Oracle
AdobeGoogle
ERP HCM Marketing
SizeofMarket
Source:AnnualizeddatafromIDC20161HSoftwareTracker,includingpure-playcloudcompanies.
Salesforce
Other
SAP
Oracle
MicrosoftVeeva
Sales
Salesforce
Other
SAP
Oracle
ZendeskAmdocs
Service
SAP
Other
Oracle
InforJDA
Microsoft
SCM
SAP
Other
Oracle
IBM
Anaplan
Infor
EPM
Adobe
$31B $16B $5B $8B $6B$13B $4B
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