Industry Summary Articles

SAP AG Tuesday said its second-quarter profit declined from the prior year, while revenues climbed 20 percent with growth in Cloud and software as well as Software licenses and support revenues. The company backed its full-year outlook.

Profit after tax declined 16 percent to 469 million euros from 556 million euros reported last year. The results are on IFRS basis.

On non-IFRS basis, profit after tax grew 2 percent to 960 million euros.

Operating profit edged up 1 percent to 701 million euros. Non-IFRS operating profit jumped 13 percent to 1.394 billion euros.

Total revenues climbed 20 percent to 4.97 billion euros from 4.15 billion euros. Cloud and software revenues grew 21 percent to 4.06 billion euros with revenues from software licenses and support rising 13 percent to 3.51 billion euros.

Revenues from cloud subscriptions and support surged 129 percent to 552 million euros. New cloud bookings, the key measure for SAP's sales success in the cloud, increased 162 percent in the second quarter to 203 million euros.

Non-IFRS cloud and software revenue also improved 21 percent, with a 10 percent increase in EMEA and a 36 percent increase in the Americas.

SAP CFO Luka Mucic said, "Our second quarter growth in new cloud bookings was significantly higher than in the first quarter. This momentum showed across our entire cloud and business network portfolio."

The company confirmed its outlook for full year 2015. The company expects full-year 2015 non-IFRS operating profit to be in a range of 5.6 billion - 5.9 billion euros at constant currencies, compared to 5.64 billion euros earned in 2014.

SAP expects full-year 2015 non-IFRS cloud subscriptions and support revenue to be in a range of 1.95 - 2.05 billion euros at constant currencies, compared to 1.10 billion euros generated last year.

Full year non-IFRS cloud and software revenue is still expected to increase 8 to 10 percent at constant currencies, from 14.33 billion euros reported last year.

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