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Germany : SAP Announces Second Quarter 2014 Results

July 18, 2014

SAP SE today announced its financial results for the second quarter and first half ended June 30, 2014.

SAP again delivered strong growth in the cloud and a solid performance in its core business. With non-IFRS cloud subscriptions and support revenue increasing 39% at constant currencies (32% at actual currencies) SAP is the fastest growing enterprise cloud company at scale. Non-IFRS software and software-related service revenue grew 8% at constant currencies (4% at actual currencies).

At the Company s user conference SAPPHIRE NOW in May SAP launched the Run simple strategy with cloud and SAP HANA at its core to simplify the business experience and consumption for its customers. HANA is radically simplifying the technology stack. Cloud is radically simplifying the consumption of SAP s solutions. As a first example for Run simple the Company has included the SAP FIORI user experience within underlying licenses of SAP software.

We are successfully executing our shift to the cloud helping customers run simple from total workforce management in the cloud to frictionless commerce through the world s largest business network, said Bill McDermott, CEO of SAP. And we are redefining customer engagement with our omni-channel e-commerce platform all of this in real time demonstrating our clear commitment to be THE Cloud Company powered by SAP HANA.

With 8% constant currency growth in non-IFRS software and software-related service revenue we are delivering solid growth at the high end of our full year outlook range. We continue to improve our profitability with operating profit up 7% on a non-IFRS constant currency basis leading to double-digit growth in non-IFRS EPS, said Luka Mucic, CFO of SAP. As we continue to expand our cloud business we have increased our full year non-IFRS cloud subscriptions and support revenue outlook to 1,000 1,050 million at constant currencies.

SAP s annual cloud revenue run rate is now approaching 1.2 billion or $1.6 billion. Non-IFRS calculated cloud billings increased 37% year-over-year at constant currencies. Non-IFRS deferred cloud subscriptions and support revenue was 448 million as of June 30, 2014, a year-over-year increase of 29% at constant currencies. SAP s cloud applications total subscribers now exceed 38 million, which is the most of any enterprise cloud vendor in the industry today. The Company has also launched Industry Cloud to build the deepest and broadest industry cloud solutions. SAP is redefining customer engagement. Its hybris omni-channel e-commerce platform in combination with Cloud for Sales saw triple-digit growth in software revenue and cloud subscriptions and support revenue.

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Source: TendersInfo (India)

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