Announcing its preliminary third quarter 2015 results, SAP SE has reported growth of 116 per cent in non-IFRS cloud subscriptions and support revenue year-over-year to €600 million.
New cloud bookings, which SAP regards as its key measure for sales success in the cloud, also increased 102 per cent to €216 million in the quarter to end September 2015.
Overall, non-IFRS cloud and software revenue increased at 19 per cent to €4.12 billion, while non-IFRS operating profit increase 19 per cent to €1.62 billion.
“Our strong double-digit growth in cloud and software revenue was mainly driven by excellent results in mature markets. SAP’s global resilience helped us also sail through stormy waters in emerging markets where we expect to continue to see volatility and economic challenges. Our surge in operating profit reflects our business transformation’s continued success and the improving profitability of our cloud offerings,” said Luka Mucic, SAP CFO.
The company also reiterated its outlook for the full 2015 year, predicting that non-IFRS cloud and software revenue will increase by 8 per cent, with non-IFRS cloud subscriptions and support revenue to be in the range of €1.95 – €2.05 billion, with the upper end of this range representing a growth rate of 86 per cent. This does include a contribution of approximately 50 percentage points by Concur and Fieldglass – the full revenue and profits of which are being included in SAP’s numbers for the full year for the first time. Non-IFRS operating profit is expected to be between €5.6 billion – €5.9 billion.
“SAP is uniquely positioned to help our customers become digital businesses. Our flagship S/4HANA is rapidly gaining market share. HANA is redefining the database industry as the standard real-time platform. Our cloud solutions for workforce engagement are best in class and our omni-channel customer experience solutions are growing faster than best of breed competitors. Our HANA Cloud Platform for the Internet of Things and Business Networks for inter-enterprise collaboration are redefining the business software industry,” said SAP CEO Bill McDermott.
Final results for Q3 2015 and the nine months to September 2015 will be available on 20 October.
