SAP Announces Record Full Year and Fourth Quarter 2012 – Full Year 2012 Non-IFRS Software and Software-Related Service Revenue Increases 17% to €13.2 Billion

• 12th Consecutive Quarter of Double-Digit Growth in Non-IFRS Software and Software-Related Service Revenue
• Revenue Guidance Exceeded: At Constant Currencies, Full Year 2012 Non-IFRS Software and Software-Related Service Revenue Increased 13%
• Full Year Non-IFRS Software & Cloud Subscriptions Revenue¹ Increased 21% to €5.00 Billion (17% At Constant Currencies)
• Very Strong Software Revenue Contribution From Innovations in Full Year 2012: €392 Million from SAP HANA and €222 Million from Mobile
• Accelerating Cloud Momentum: Annual Cloud Revenue Run Rate Approaching €850 Million²
• Full Year 2012 Non-IFRS Operating Profit Increased 11% to €5.21 Billion (7% to €5.02 Billion at Constant Currencies Compared to Guidance Range of €5.05 - €5.25 Billion)

SAP AG (NYSE: SAP) today announced its preliminary financial results for the fourth quarter ended December 31, 2012.

BUSINESS HIGHLIGHTS IN THE FOURTH QUARTER AND FULL YEAR 2012

SAP delivered record revenues in 2012. Non-IFRS total revenue grew 14% year-on-year and exceeded €16 billion. Non-IFRS software and software-related service revenue grew 17% year-on-year to €13.2 billion. Non-IFRS software and cloud subscriptions revenue grew 21% year-on-year to €5 billion.

SAP delivered strong overall growth in the fourth quarter. The company achieved strong software revenue performance in the APJ region. The EMEA region delivered impressive results in light of the continued uncertain market environment and the Americas region had a solid software revenue performance considering a tough year-over-year comparison. SAP delivered exceptional growth in its key innovation areas SAP HANA, Mobile and Cloud: SAP HANA had an outstanding quarter reaching nearly €200 million in software revenue in the fourth quarter and achieving almost €400 million for the full year. SAP’s mobile business contributed more than €220 million to software revenue achieving its full year revenue target.

SAP’s strong cloud momentum continued in the fourth quarter: Derived from the total revenue of SAP’s two cloud segments (Cloud Applications and Ariba) the annual cloud revenue run rate is approaching €850 million. For the SAP cloud applications segment alone 12 month new and upsell subscription billings increased nineteenfold in the fourth quarter. Even when including SuccessFactors in SAP’s 2011 numbers the growth is triple digit at 102%³. For SuccessFactors on a stand-alone basis, 12 month new and upsell subscription billings grew 95%.

"In 2012, SAP empowered best-run businesses to meet real-time consumer demands. We invested in our flagship innovation SAP HANA and strengthened the industry’s best portfolio in the cloud. We delivered industry-specific solutions, accessible anywhere on the mobile device," said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe. "Our momentum has never been stronger. We are very well positioned to achieve our 2015 goals."

"We achieved €5 billion in full year non-IFRS software and cloud subscription revenue, an increase of 21%. We saw very strong revenue contribution from our key innovations SAP HANA and Cloud. We are confident we will continue our double-digit growth momentum in 2013 and further improve our profitability," said SAP CFO Werner Brandt.

²The annual revenue run rate is derived from the total revenue of SAP’s two cloud segments (Cloud Applications and Ariba) in the fourth quarter of 2012 and includes Ariba (before any future growth). The annual run rate is calculated by taking the fourth quarter cloud division total revenue and multiplying it by 4.

³Q4 2012 year-over-year growth rate in 12 month new and upsell subscription billings which relates to SAP cloud applications business (excluding Ariba). The growth rate is a pro forma growth rate assuming that the acquisition of SuccessFactors was completed as of January 1, 2011. For more information on our non-IFRS billings see Explanation of Non-IFRS Measures online.

Full press release can be found here

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