Thank you very much and congratulations on the double-digit growth in the quarter. So Larry, your vision of a national health record database is very compelling. It would be a profound benefit to society. Just considering that several trillion dollars are spent on healthcare, what do you see as the size of the opportunity for Oracle and Cerner if you solve that particular problem? Lawrence Ellison (Chairman): The national health records database addresses two key issues. Firstly, it enables patients to ensure their caregivers have immediate access to their health records during emergencies, which significantly improves health outcomes. Secondly, it provides public health officials with better data regarding the health status of their populations. This access to information dramatically enhances healthcare and leads to considerable cost savings. For instance, when we dispatched a hospital ship to New York City, officials believed they were on the verge of running out of hospital beds, but they were mistaken. They lacked the necessary data to assess the situation accurately. It was evident that many public health officials were operating without crucial information during the pandemic. By offering this kind of data, we can save numerous lives and substantial amounts of money. The potential here is enormous, extending beyond just national implications to a global scale. In Western Europe, where healthcare budgets are significant, modern information systems that can save lives and reduce costs will be adopted quickly. This will undoubtedly become our largest business.

Congratulations on a really solid quarter. So Safra, you mentioned on the conference call that you guys are putting up this type of result even on the backdrop that's not the most stable kind of macro backdrop. And we're seeing a lot of other software companies seeing slipped deals, seeing issues with the consumer, Internet companies lowering their spend. You guys seem to be working through this very well. Can you give us some color into how you're doing it? Is it better execution? Is the Oracle value proposition going through more clearly? Can you help us understand where you're able to put up a bigger beat when a lot of guys are working with skinnier beat if at all during this period? Safra Catz (CEO): First of all, it's important to note that we are a very large company with hundreds of thousands of existing customers. Our products are compelling enough that many customers save money when they switch to OCI. During the pandemic, many customers recognized the necessity of modern systems, and those without them struggled to survive. Companies require a digital connection with their customers, employees, and suppliers, and we offer the kinds of products that fulfill those needs. When customers transition from Amazon to us, they often find that our services are superior and more cost-effective. Additionally, for Oracle workloads, our capabilities are unmatched. Our Fusion products are exceptional, and we have an extensive customer base that is too vast to mention in this call. Similarly, NetSuite is leading its industry and gaining tremendous momentum. It's worth noting that in light of the situation in Ukraine, we ceased charging our customers there while continuing to support them, and we also halted all operations in Russia. Our focus remains on addressing our customers' needs. The main challenge we face is meeting the high demand, but I’m pleased with how we managed our supply chain last quarter and am optimistic about further improvements. This will enhance our capacity to deliver to customers. We have significant momentum, many satisfied customers, and an increasing number of new customers making larger purchases. This creates a virtuous cycle, building confidence in our ability to deliver and the economic value we provide. We have always aimed to present a compelling financial offering, which I believe resonates with customers during these times.

Thanks very much for taking my questions and congrats on the great results. Larry, we picked up a meaningful uptick in the number of large enterprise agreements or ULAs that customers are doing with Oracle. And in particular, to satisfy their database needs, both on-premise and also in the cloud. Do you have any telemetry or other insights into customer behavior to see where they're deploying these licenses? And can you talk about why BYOL is so important to your strategy and the longevity of Oracle database? And maybe just for Safra as well, that license number was so strong. And in your prepared remarks, you mentioned license growth was led by database use in the cloud by major app cloud SaaS companies. Just wondering if there's any more color you can provide there. Lawrence Ellison (Chairman): Yes. Aside from Workday, most of the major application companies, including Salesforce.com, are significant users of Oracle’s database, which they license for their cloud services. Many SaaS companies utilize our database in the cloud, contributing to the strength of our licensing business. Our database license business remains very robust. We differentiate between on-premise licenses and those designed for cloud use. While some licenses are traditionally used on-premise, many new licenses we sell enable customers to run them in the cloud, whether it’s on our platform, other cloud services, or specifically in Salesforce's cloud. The Oracle database continues to be the leading database globally by a large margin and holds the top position in the cloud, particularly among the SaaS companies that rely on our database.

Congratulations on the strong quarter and the very positive commentary and guidance. I'd like to drill a little more on this question of people's concerns. With the increasing concerns of recession by many, can you tell me what you're seeing for the apps part of the business and more specifically for ERP? What I'm trying to understand is how will the shift in ERP to the cloud be impacted by any economic slowdown or won't it be? How should we think about that? Lawrence Ellison (Chairman): Well, I'm not sure I'd call it that. I'm sorry, Safra, please go ahead. Safra Catz (CEO): No. You go ahead, Larry. You go ahead. Lawrence Ellison (Chairman): I'm not sure I would label it as countercyclical, but cloud systems are considerably cheaper to run compared to on-premise systems. They provide much better data, help manage expenses more effectively, and their implementation costs are lower since you can pay for them over time. For instance, looking at NetSuite, which targets the lower end of the market, one might expect those businesses to be most impacted by the recession. However, it's not the larger firms like JPMorgan Chase that are pulling back; they continue to invest in new systems. In fact, smaller entrepreneur-led companies, which you might think would be struggling, actually generated our highest revenue and growth rate from NetSuite this past quarter. They are moving forward during the recession because they see significant benefits, which enables them to compete more effectively. We are not observing any slowdown in this area; rather, we see both our Fusion and NetSuite ERP businesses accelerating, despite the overall economic climate. Safra Catz (CEO): Yes, many people underestimate the high costs associated with operating large SAP systems. These systems require dedicated data centers and often need hundreds or even thousands of technicians to maintain them. They are outdated and cumbersome, while transitioning to Fusion ERP represents a completely different and more cost-effective approach. The expenses involved in making this shift are significantly lower. This observation applies to all on-premise systems, particularly the older SAP systems. Our cloud offering in this sector is truly unmatched. Our win rates continue to improve, and we are very optimistic about this trend, having secured many sales. Numerous implementations are still in progress, and we anticipate this will be reflected in our financial results, as our customers will end up spending less compared to their previous on-premise systems.

Last quarter, Safra, you expected organic revenue growth to reach double digits next fiscal year. And so congratulations on reaching that double-digit milestone this quarter. Now within today's results, two numbers really stood out to us. First was the upside to license revenue. And then second was your commentary about total database revenue growing in the double digits. So my question is, Safra, Larry, can you give us more color on what's driving that reacceleration in license revenue in particular? Even as cloud revenue inflected to its highest growth rate in more than four years, is this BYOL bringing the heat? Is this autonomous database getting big enough and growing fast enough to lift the overall number, et cetera? And is this the broad-based demand that you mentioned on the Q3 call? Or is this more big deal-driven? Safra Catz (CEO): It's a combination of factors. Large enterprises recognize that having an unlimited agreement for a certain period provides them with exceptional flexibility. Any large customer or database user who lacks an unlimited agreement is not maximizing their spending, as it allows for considerable adaptability. They can utilize on-premise solutions for as long as needed, transition to the cloud at a lower cost with Bring Your Own License (BYOL), and switch back and forth as required. These agreements are foundational to many operations. Moreover, our leading Java business complements this; customers can utilize Java on-premise extensively, and in the cloud, it's offered at no charge. This incentivizes them to transition their Java programs to the Oracle Cloud without additional costs. Both the database and Java integration are crucial for maintaining our robust license numbers. I've followed Oracle since the '80s and consistently hear about new products that might surpass Oracle. However, the Oracle database remains the gold standard. For businesses needing to manage extensive data securely, it stands out among all products. While some may explore alternatives as they scale, they often return to the Oracle database due to its unmatched technical capabilities. This becomes evident to customers, leading more of them to maintain or extend their unlimited agreements for both on-premise and cloud services. It's not just one or the other; it's both, and that's the optimal approach. Lawrence Ellison (Chairman): I want to highlight that the Oracle Autonomous Database stands out because it operates independently, eliminating the need for database administrators. Currently, the vast majority of databases we deploy in our cloud are autonomous, as hiring database administrators is costly for Oracle Corporation. This shift is more economical and positions the Autonomous Database as a countercyclical option. Transitioning from a traditional Oracle database to an autonomous one results in significant savings. Additionally, it's more secure and reliable, requiring no specialists to manage it. There's also a programming language called APEX, which is a low-code environment allowing us to use only 10% of the programmers typically needed if we were using our other language, Java. APEX is gaining traction within Oracle for application development. These trends show how leveraging modern technology can substantially lower labor costs, which will likely be advantageous in the upcoming years.

Thanks for taking the questions, and congrats on a good quarter. Safra, can you just give any additional color on the CapEx outlook for fiscal '23 relative to what we saw this year? And then just to clarify on the buyback, I just want to make sure I heard it correctly. Is the pace of buyback that we saw this last quarter still reasonable for the near term, even with the incremental debt from Cerner? Safra Catz (CEO): Sure, let me address the buyback first because I realize I may have been a bit lengthy at the end. This past quarter, we repurchased $600 million worth of shares, similar to the previous quarter. I plan to maintain that buyback amount for this quarter as well. Typically, I don't share future buyback figures, but compared to the $7 billion and about $8 billion we previously did, we won't reach those levels. The $600 million figure will likely hold for a few quarters until we assess our debt levels. It could be slightly higher, but that's my aim for now. Regarding capital expenditure, we've significantly increased our operational regions over the past 1.5 to 2 years, possibly even surpassing Amazon in that regard. We plan to build six more and expand our existing ones due to high demand. I anticipate that next year's CapEx will be somewhat higher than this year's, and I'll offer more detailed guidance as the year progresses. Given the strong demand for cloud services, I will continue to invest in capital expenditures, and I'm optimistic about improving our gross margins and operating margins significantly as we experience economies of scale. null (Operator): A telephonic replay of this conference call will be available for 24 hours on the Investor Relations website. Thanks for joining today. With that, I'll turn it back to David for closing. null (Operator): This concludes today's conference call. You may now disconnect.