SAP’s 2016 overall revenue of €22.2 billion increased 7 per cent over the previous year, reflecting a strong fourth quarter and ongoing success in the cloud market, both of which were mirrored in the APJ region with overall revenue of €3.3 billion, up 5 per cent over 2015.
Based on strong 2016 financial results, SAP increased its overall 2020 revenue target to €28-29 billion, up from €26-28 billion. For 2017, SAP is predicting overall revenue of €23.2-23.6 billion, with cloud subscriptions and support accounting for €3.8-4.0 billion of that total. That represents 34 per cent growth in cloud revenue.
New cloud bookings, the key measure for SAP’s sales success in the cloud, increased 31 per cent in 2016 to €1.15 billion. New cloud bookings were up 40 per cent in the fourth quarter to €483 million. Cloud subscriptions and support revenue increased 47 per cent for a total of €5.4 billion by year-end.
The APJ region’s revenue growth in 2016 of 5 per cent trailed the other regions with growth of 8 per cent in EMEA and 6 per cent in the Americas. However, the APJ region’s cloud subscription and support revenue growth of 43 per cent surpassed all other regions, with growth of 41 per cent reported in EMEA and 26 per cent in the Americas. The APJ region’s growth in cloud and software of 6 per cent compared favourably to growth in the Americas of 6 per cent, with EMEA growth coming in at 8 per cent.
In the fourth quarter, cloud and software revenue grew 6 per cent while cloud subscriptions and support revenue grew 29 per cent (non-IFRS at constant currencies). In the fourth quarter regionally, the APJ region’s revenue growth of 4 per cent trailed the EMEA at 8 per cent but outstripped the Americas at 1 per cent. In cloud subscription and support revenue, APJ showed the strongest revenue growth of 48 per cent, compared to the EMEA at 37 per cent and the Americas at 24 per cent. In cloud and software revenue growth, APJ posted 5 per cent growth, trailing the EMEA at 10 per cent but again outstripping the Americas at 2 per cent. In APJ, SAP had double-digit software licensesrevenue growth in China, India and Japan.
S/4HANA was another success story for 2016, with adoption doubling year over year to more than 5400 customers. In the fourth quarter, 1300 customers signed up, with approximately 30 per cent being net new SAP customers.
“SAP’s outstanding 2016 performance is the latest in our seven year run of profitable growth. We expanded our addressable market, acquired best in class assets and innovated a new generation of ERP with SAP S/4HANA,” said Bill McDermott, CEO, SAP.
“Our innovation agenda is accelerating in machine learning, the Internet of Things and blockchain. SAP is winning big and we have enormous confidence in our accelerated 2020 ambition!” he added.
