SAP Resilient Amid COVID-19 Crisis
Sharp Increase in Operating and Free Cash Flow
Strong Current Cloud Backlog of €6.65 Billion, Up 21% At Constant Currencies
IFRS Cloud Gross Margin Up 3.4pp; Non-IFRS Cloud Gross Margin Up 1.6pp
IFRS Operating Margin Up 6.6pp; Non-IFRS Operating Margin Up 1.8pp
IFRS EPS At €0.73, Up 54%; Non-IFRS EPS At €1.17, Up 7%
Operating Cash Flow Up 41%, Free Cash Flow Up 59% in First Six Months
This quarter demonstrated that our Intelligent Enterprise strategy clearly resonates with customers around the world. More than ever, the pandemic has proven that digitalization is no longer an option but a must-have to withstand challenging times and to achieve desired business outcomes. We will continue to invest in innovative offerings for our customers to drive business transformations and run complex business processes. We also aim to expand the ecosystem on our business technology platform to complement our solutions and foster growth.
Christian Klein, CEO
"We were happy to see such a strong sequential improvement in software licenses revenue and a robust margin expansion. Our broad solution portfolio, unmatched industry and geographic diversification coupled with our strong base of more predictable revenue have allowed us to manage the COVID-19 crisis this quarter. With our investments in strategic growth areas we are confident we will not only weather the crisis but emerge even stronger. We were also pleased to see a strong acceleration in free cash flow despite the current market dynamics."
