4 Key Takeaways From Oracle's Earnings Call

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After Oracle (ORCL) reported fiscal fourth-quarter net that missed estimates and announced ample unreality infrastructure deals pinch Microsoft (MSFT), OpenAI, and Alphabet's (GOOGL) Google Cloud, institution executives joined nan company's net telephone Tuesday to talk nan caller partnerships, really artificial intelligence (AI) could thrust maturation for Oracle, and more.

Cloud Infrastructure Deal With Microsoft and OpenAI for AI Training

Oracle announced a business pinch Microsoft and ChatGPT maker OpenAI to widen Azure Al to Oracle Cloud Infrastructure (OCI) to supply further capacity for OpenAl.

The institution reported that it already has 11 databases astatine Azure sites and has much locations pinch Microsoft "coming online soon."

Oracle Chief Technology Officer (CTO) Larry Ellison said nan institution is building "a very, very ample information center" pinch "lots of Nvidia chips" for AI exemplary training, noting that ample information centers are basal for analyzable AI training, particularly arsenic models' capabilities expand.

Ellison said alongside Microsoft and OpenAI, customers utilizing Oracle's unreality infrastructure and information centers see Nvidia (NVDA), Google, and Elon Musk's xAI, among others.

Google Interconnecting Cloud With Oracle

The institution besides announced a multi-cloud business pinch Google. OCI and Google Cloud web interconnect were disposable connected Tuesday successful 10 regions, Oracle CEO Safra Catz told investors.

Oracle databases astatine Google Cloud are going unrecorded successful September, giving customers nonstop entree to Oracle database services moving connected OCI deployed successful Google Cloud. Catz said nan institution will person 12 Oracle databases astatine Google Cloud sites unrecorded this year.

Amazon's (AMZN) AWS was not successful nan operation of Oracle's ample unreality customers, but Ellison said nan institution "would emotion to do nan aforesaid point [as it's doing pinch Microsoft and Google] pinch AWS."

AI Era To Drive Incremental Growth

Catz underlined that Oracle expects gross to proceed to grow, fueled by nan information halfway and unreality capacity required by advancing AI models.

Catz said she "expect[s] continued beardown unreality request to push Oracle Sales and RPO moreover higher and consequence successful double-digit gross maturation this fiscal year," adding that "each successive 4th should turn faster than nan erstwhile 4th arsenic OCI capacity increases to meet demand."

The CEO said nan "current momentum will proceed arsenic our pipeline is increasing moreover faster than bookings." She noted that fiscal 2025 unreality infrastructure services will turn faster than they did successful fiscal 2024.

Meeting Customers' Needs With Comprehensive Services

Oracle said that portion of what sets it isolated from competitors is that it tin connection customers broad information halfway services.

"Whatever nan deployment exemplary is, [Oracle's customers] don't person to compromise," Catz said, adding "some of our competitors whitethorn connection immoderate level of sovereignty aliases immoderate level of disconnected but they don't really person each nan services."

She said that "the logic we've been truthful successful is whether it's disconnected aliases sovereign, nan customer ever gets everything—all services, not conscionable immoderate services, and they get to deploy it immoderate measurement they want."

The CEO besides highlighted that sovereignty "may beryllium very critical" for authorities and immoderate customers, which could group nan institution isolated arsenic organizations look for sovereign solutions to guarantee information security.

Oracle shares were up astir 9.4% astatine $135.55 in extended trading arsenic of astir 7:15 p.m. ET Tuesday pursuing nan company's net call.

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