SAP AG Tuesday said its third-quarter profit increased from last year, supported by double-digit growth in revenues. The company said it again delivered strong growth in the cloud, outpacing most pure cloud competitors even without the contribution from the Concur acquisition.
New cloud bookings, the key measure for SAP's sales success in the cloud, increased 102 percent in the third quarter to 216 million euros.
SAP CFO Luka Mucic said, "What I am particularly pleased about is that our operating profit grew even faster than our revenue. This reflects the positive impact of our business transformation and our continued focus on operating excellence across all of our lines of business, as shown in particular by an almost 9 percentage point year-over-year increase in our cloud gross margin."
Profit attributable to owners of parent increased to 898 million euros from last year's 880 million euros.
Operating profit rose 5 percent to 1.21 billion euros from 1.16 billion euros last year. Meanwhile, non-IFRS operating profit jumped 19 percent to 1.62 billion euros.
Total revenue jumped 17 percent to 4.985 billion euros from 4.254 billion euros during the corresponding period last year. Within this, Cloud and software revenue climbed 19 percent to 4.12 billion euros. Cloud subscriptions and support revenues surged 116 percent while revenue from Software licenses were 7 percent higher.
Non-IFRS total revenue climbed 17 percent to 4.99 billion euros while it was up 10 percent at constant currencies.
Non-IFRS cloud and software revenue was 4.12 billion euros, compared to 3.46 billion euros last year, with a 13 percent increase in the EMEA region alone.
SAP reiterated its full year 2015 outlook. SAP expects full-year 2015 non-IFRS operating profit to be in a range of 5.6 billion euros - 5.9 billion euros at constant currencies, compared with 5.64 billion euros reported in 2014.
The company expects full-year 2015 non-IFRS cloud and software revenue to increase by 8 - 10 at constant currencies, versus 14.33 billion euros reported in the previous year.