“Additionally, I would note that IaaS gross margins improved substantially from last year, and I expect IaaS gross margins will continue to improve.”

In context

“ues were $2.2 billion, down 14%, following the 25% growth we saw a year ago in Q4. So, all-in total revenues for the quarter, including Cerner's revenue contribution of $1.5 billion, were $13.8 billion, up 18%. Shifting to margins, the gross margin percentage for cloud services and license support was 78%, as a result of the mix between support and cloud. Last year, Oracle license support revenues, with its mid-90s gross margins, represented about 62% of cloud services and license support revenue, and now it's down to 53%. But this is happening because our cloud services are growing much, much faster than license support, even as license support continues to grow. Most importantly, gross profit dollars of cloud services and license support grew 19% with Cerner, 10% excluding Cerner in Q4. Additionally, I would note that IaaS gross margins improved substantially from last year, and I expect IaaS gross margins will continue to improve. While we have continued to build data center capacity, we've also seen our margins go higher as these new cloud regions fill up. Non-GAAP operating income was $6.2 billion, up 12% from last year. The operating margin was 44% as we continued to integrate Cerner. As we drive Cerner profitability to Oracle standards and continue to benefit from economies of scale in the cloud, we will not only continue to grow operating income, but we will also grow the operating margin percentages. The non-GAAP tax rate for the quarter was 9.2%, and the non-GAAP EPS was $1.47 in U.S. dollars, up 8% in USD, 10% in constant currency. The GAAP EPS was $1.19. For the full fiscal year, total company revenue was $50 billion, up 22%. And excluding revenue, total revenue grew 7%. Total application subscriptions wer”