Call Start: 17:00 January 1, 0000 5:40 PM ET

Oracle Corporation (NYSE:ORCL)
Q2 2025 Earnings Conference Call
December 09, 2024, 05:00 PM ET

Company Participants

Ken Bond - Head, IR
Safra Catz - CEO
Lawrence Ellison - Chairman and CTO

Conference Call Participants

Mark Moerdler - Bernstein
Siti Panigrahi - Mizuho
Brad Zelnick - Deutsche Bank
Raimo Lenschow - Barclays
Kirk Materne - Evercore ISI
John DiFucci - Guggenheim Securities

Operator

Thank you for standing by, and welcome to the Oracle Corporation Second Quarter Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Thank you.

I'd now like to turn the call over to Ken Bond, Head of Investor Relations. You may begin.

Ken Bond

Thank you, Rob, and good afternoon, everyone, and welcome to Oracle's second quarter fiscal year 2025 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 as well.

On the call today are Chairman and Chief Technology Officer, Larry Ellison; and Chief Executive Officer, 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. And these 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. Before taking questions, we'll begin with a few prepared remarks.

And with that, I'd like to turn the call over to Safra.

Safra Catz

Thanks, Ken, and good afternoon, everyone.

Q2 was another excellent quarter with total revenue at the high end of my constant currency guidance, and EPS was actually $0.01 above the high end. These results are being driven by the fact that our largest revenue component, cloud services and license support, now represents 77% of total revenue and is also our fastest-growing line item, which in turn, is driving the acceleration of overall revenue growth. We expect cloud revenue to reach $25 billion this fiscal year. This is happening for several reasons.