Connect with us


SAP says new cloud package a hit, confirms outlook

SAP says new cloud package a hit, confirms outlook

BERLIN (Reuters) – Software group SAP said on Thursday its new all-in cloud package was proving to be a hit with its customers, as it confirmed its first-quarter results and recently raised guidance.

“We are seeing very strong order entry growth across our applications portfolio,” said CEO Christian Klein. SAP’s new business transformation product, Rise with SAP, was “rapidly becoming a massive accelerator”.

SAP confirmed its guidance after earlier this month nudging up expectations for cloud and software revenue to 23.4-23.8 billion euros ($28.15-$28.64 billion) this year, representing a rise of 1%-2% year on year.

Klein said SAP had “an absolute blowout in the cloud” in the first quarter, with the Rise initiative driving a 19% increase in its current cloud backlog – a management measure of incoming business – at constant currencies.

It also added 400 customers for S/4 HANA, its premium enterprise resource software platform, to bring the total to 16,400, of which 9,600 are live. Customer wins in the quarter included Google and Toshiba.

As already reported, total revenue including SAP’s traditional mainstays of license sales and service revenues, rose by 2% in the first quarter at constant currency to 6.35 billion euros.

Reported operating profit was depressed by executive share compensation, which SAP accounts for as a cash expense. After stripping out the effect of that, adjusted operating profit rose by 24% to 1.74 billion euros at constant currency.

($1 = 0.8311 euros)

(Reporting by Douglas Busvine; Editing by Maria Sheahan)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate


Newsletters with Secrets & Analysis. Subscribe Now