By Emily Jacobs
SAP AG has shown continuing growth in its Q3 2013 quarter, ending 30 September 2013.
Standout results include a 13 per cent increase in non-IFRS software and cloud subscription revenue (constant currencies), a 12 per cent increase in non-IFRS software and software-related service revenue (constant currencies), a 90 per cent year-over-year growth in HANA software revenue and the annual cloud revenue run rate exceeding €1 billion.
“SAP is clearly leading the transition to cloud and in-memory. SAP HANA is the market’s most advanced in-memory database and we are well on our way to reach €1 billion in HANA software revenue since market launch,” said Bill McDermott and Jim Hagemann Snabe, co-CEOs of SAP.
“We now are the second largest enterprise cloud company with an annual cloud revenue run rate exceeding €1 billion. We continue to gain market share and grow significantly faster than our primary competitor in all regions.”
SAP has the largest subscriber base in the cloud market, with approximately 33 million users. Non-IFRS deferred cloud subscription and support revenue was €382 million (A$5.4 million) as of the end of the quarter, a year-over-year increase of 79 per cent.
Of the product set, SAP HANA continues to show the most growth with a 90 per cent year-over-year increase at constant currencies. HANA now has 2100 customers, and SAP Business Suite powered by SAP HANA has over 450 customers.
Overall, non-IFRS software and software-related service revenue increased by 12 per cent at constant currencies (5 per cent at actual currencies) to €3.36 billion (A$4.75 billion).
“SAP had a very strong performance in the third quarter, considering the mixed macroeconomic environment and the strong currency headwinds,” said Werner Brandt, CFO of SAP.
“Our ongoing focus on operating discipline while successfully scaling our cloud business is paying off. We continued our double-digit growth momentum and increased our Non-IFRS operating margin by 180 basis points at constant currencies.”
In the third quarter, the Asia Pacific region saw non-IFRS software and cloud subscription revenue return to growth with single-digit growth at constant currencies, a result of strong performances in China. However, over the nine months to end September 2013, non-IFRS software and cloud subscriptions declined by 2 per cent.
SAP’s full-year outlook remains unchanged, with non-IFRS software and software-related service revenue expected to increase by 10 per cent, and full year non-IFRS cloud subscription and revenue forecast to be €750 million.
SAP HANA revenue is expected to be in the range of €650-700 million for the full year, while non-IFRS operating profit should be in the range of €5.85-5.95 billion at constant currencies.
