“We continue to focus on operating expense discipline, which collectively continue to grow slower expense discipline. So expenses continue to grow slower than revenue, a trend that I expect will continue.”

In context

“ill be the third driver of revenue growth alongside OCI and strategic SaaS. We are currently live in 18 cloud regions with database at cloud services with our partners and have another 40 planned with Azure, Google and AWS. Now finally, database subscription revenues, which includes license support, were up 6%. Application subscription revenues, which again, include product support, were $4.8 billion and up 6% [too] (ph). Our strategic back-office SaaS applications now have annualized revenue of $8.6 billion and were up 8%. Software license revenues were down 8% to $1.1 billion. So all in, total revenues for the quarter were $14.1 billion, up 8% from last year. Now shifting to gross profit and operating income, the gross profit dollars of cloud services and license support grew 10% in Q3. We continue to focus on operating expense discipline, which collectively continue to grow slower expense discipline. So expenses continue to grow slower than revenue, a trend that I expect will continue. The Q3 operating income grew 9% and the operating margin was 44%, up slightly from last year. The non-GAAP tax rate for the quarter was 19.9%, which was higher than my 19% guidance and lowered EPS by $0.02. And EPS currency headwind ended up at $0.04 more than I thought would be hurt by currency -- as currency continued to strengthen. The non-GAAP EPS was $1.47, up 4% in USD, up 7% in constant currency. The GAAP EPS was $1.02, up 20% in USD, up 25% in constant currency. At quarter end, we had $17.8 billion in cash and marketable securities. The short-term deferred revenue balance was $9 billion, up 3% and operating cash flow for Q3 was $5.9 billion, slightly more than our $5.9 billion in CapEx, as we front-loaded some purchases into the quarter, given the demand that you see in our RPO gr”