“As we drive Cerner and its profitability to Oracle standards, and continue to benefit from economies of scale in the cloud, we will not only continue to grow margin dollars, but also grow margin percentages significantly.”

In context

“we no longer operate in Russia, this negatively affected revenue by over 1 point of growth. Had we still, had we not left, actually, our growth rate would be over 9% this quarter. Operating expenses were up 34%, mainly due to adding in Cerner's expenses, and the mix of our business. The gross margin for cloud services and license support was 81% and the associated gross profit dollars grew 15% with Cerner and 7% excluding Cerner. In fact, the gross margin percentage on IaaS increased dramatically in the quarter. Non-GAAP operating income was $4.5 billion, up 10% from last year. And I expect that we'll see strong operating income growth again in Q2. The operating margin, including Cerner was 39%, which is lower than in the past, since we only just began to integrate Cerner in the quarter. As we drive Cerner and its profitability to Oracle standards, and continue to benefit from economies of scale in the cloud, we will not only continue to grow margin dollars, but also grow margin percentages significantly. The non-GAAP tax rate for the quarter was 19.4%, slightly above the guidance rate and non-GAAP EPS was $1.03, unchanged in USD and up 8% in constant currency. GAAP EPS was $0.56, down 34% and down 26% in constant currency, that's our GAAP EPS. Over the last four quarters, operating cash flow was $10.5 billion and free cash flow was $5.4 billion with capital expenditures of $5.2 billion. For the quarter, operating cash flow was $6.4 billion and free cash flow was $4.7 billion with capital expenditures of $1.7 billion. At quarter end, we had $11.2 billion in cash and marketable securities. In the short-term, deferred revenue balance was $10.5 billion, up 11% in constant currency. The remaining performance obligation or RPO balance is $16.7 billion, up 62% in constant currency due to strong”