After an initial review of its fourth quarter 2014 performance, SAP SE today announced its preliminary financial results for the fourth quarter and full year ended December 31, 2014.
For the full year 2014, SAP delivered exceptionally strong growth in the cloud and continues to lead in this industry-wide transformation. Achieving guidance, full year non-IFRS cloud subscriptions and support revenue increased 45% at actual and constant currencies to €1.10 billion1. The company also showed solid software and software-related service revenue performance despite the accelerated shift from upfront to more ratable revenue. Non-IFRS software and software-related service revenue grew 7% at constant currencies (6% at actual currencies to €14.87 billion) achieving the full year target for 6% - 8% growth at constant currencies. Non-IFRS operating profit increased by 3% at constant currencies to €5.63 billion (3% at actual currencies to €5.64 billion), achieving the full year outlook of €5.6 - €5.8 billion at constant currencies.
With fourth quarter non-IFRS cloud subscriptions and support revenue increasing 59% year-over-year at constant currencies (72% at actual currencies), SAP is the fastest growing enterprise cloud company at scale2. The annual cloud revenue run rate now exceeds €1.7 billion3 or $2.0 billion4. Non-IFRS calculated cloud billings increased 115% (87% at constant currencies) in the fourth quarter. Non-IFRS deferred cloud subscriptions and support revenue was €729 million as of December 31, 2014, a year-over-year increase of 63% (45% at constant currencies)5.
SAP HANA, the platform for real-time business applications, had another great quarter and continues to be a major growth engine for SAP. Customer adoption this quarter was once again a highlight.
“In 2014 we continued to deliver on our winning growth strategy. We are the fastest growing enterprise cloud business at scale with the most users in the world. SAP HANA is delivering massive simplification for our customers,” said Bill McDermott, CEO of SAP. “With the wide-spread adoption of the SAP HANA platform, 2015 is all about accelerating the introduction of next generation applications on HANA and scaling the world's largest Business Network. The roadmap for our customers and ever expanding ecosystem to Run Simple couldn’t be more clear."
“In 2014, we achieved a solid 7% growth in non-IFRS software and software-related service revenue at constant currencies – in line with our full-year outlook range despite less upfront and significantly more ratable new business,” said Luka Mucic, CFO of SAP. “Operating profit also increased year over year even as we stepped up investments in the cloud in response to higher than expected demand for our new cloud offerings. With the powerful shift to the cloud and our growing support revenues we are building a larger, more predictable business over the long term.”
To view an unabridged version of this press release, visit: http://global.sap.com/news-reader/index.epx?articleId
