In advance of Oracle's earnings report, there is an analysis in Forbes about what to expect -- https://www.forbes.com/sites/greatspeculations/2018/09/14/what-to-expect-from-oracles-first-quarter-earnings/amp/. Highlighting one key statement...
"On the other hand, the Software segment has maintained high gross margins of over 95% in recent years. Oracle has managed its operating expenses (particularly sales and marketing expenses) efficiently in FY’18, which led its non-GAAP operating margin to expand by over a percentage point."
Oracle is stuck with the expectation of super high margins and growth. Back in the 90s and 2000s, that came through demonstrating the value of the product. However, the competitive landscape has changed, customers are able to choose other options and Oracle's top line revenue isn't growing like it once was. So the focus is on managing operating expenses. That means not giving raises, cutting back on benefits/perks and pushing wages down (e.g. layoffs along with moving work to India and starting Hubs where new graduates will gladly work for a fraction of what experienced field professionals will). While the article paints a rosy picture of Oracle's continued financial performance, it also makes it clear that this will only continue because internal employees are going to be "managed expenses."
That shouldn't be a surprise for anyone as it is exactly what has been happening ever since MH joined Oracle. He is a one trick pony -- finding ways to cut costs while lining his own pockets. If he continues to recycle what he has done elsewhere, closing offices and shifting janitorial work to employees is bound to show up soon (although the Austin hub already has employees taking their trash out in a so called "green" initiative).
What I believe will be interesting to hear during the earnings call is:
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Does performance meet analyst expectations?
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How much is TK thrown under the bus
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Do any analyists question how much $ is going into stock buyback instead of investing in Cloud