By Eleanor Reader
SAP has announced an increase of 23 per cent growth in non-IFRS software and cloud subscription revenue in its financial results for the first quarter of 2013.
This was the strongest area of growth for the company, boosted by a 49 per cent revenue growth in the Americas and 13 per cent growth in the EMEA region, which the company claims was an impressive result despite “continued market uncertainty”.
Despite growth in the rest of the world, non-IFRS software and cloud subscription revenue in the Asia Pacific Japan (APJ) region declined. SAP said in a statement it expects the APJ region to be back on track in the second quarter.
SAP HANA tripled year-on-year, contributing €86 million to Q1 software revenue.
With its annual cloud revenue run rate reaching €900 million, SAP said they are continuing to see strong growth in the area.
First quarter 2013 Non-IFRS cloud subscription and support revenue was €167 million, up 380{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09} year-over-year. Non-IFRS deferred cloud subscription and support revenue was €377 million, which is a year-over-year increase of 95{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09}.
“Our industry is at a fundamental transformation point, driven by the convergence of mobile, cloud and big data. SAP’s 25{db8ca4bbfe57dc8f9b6df9233a3a6c04f4968125edf9bb330d4f787c3a87cd09} growth shows that we are not only leading this change but also gaining significant worldwide market share,” said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe.
“Customers continue to choose our innovations to help them run better, and SAP HANA is the next-generation platform for all companies to innovate their business, drive speed across the entire enterprise and reduce costs. SAP’s pipeline is strong, and we are confident that we will achieve our full-year outlook.”
“Non-IFRS software and cloud subscription revenue exceeded €800 million for the first time in a first quarter. We saw very strong revenue contribution from SAP HANA and continued growth in the cloud. The solid top line performance and continued cost discipline resulted in double-digit growth in Non-IFRS operating profit at constant currencies,” said Werner Brandt, CFO of SAP.
According to Brandt, the company is still on track to deliver on its 2015 goals and its overall financial objective of profitable growth over the long term.
