SAP SE / Key word(s): Quarter Results/Preliminary Results
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SAP Announces Preliminary Third Quarter and Nine Months 2015 Results
- Strong Growth in New Cloud Bookings: Up 102%
- Non-IFRS Cloud and Software Revenue Up 19% to EUR4.12 Billion
- Non-IFRS Operating Profit Increased 19% to EUR1.62 Billion
- Reiterates Full Year 2015 Outlook
WALLDORF, Germany - October 13, 2015 - After an initial review of its third quarter 2015 performance, SAP SE (NYSE: SAP) today announced its preliminary financial results for the third quarter and nine months ended September 30, 2015.
SAP again delivered strong growth in the cloud, outpacing most pure cloud competitors even without the contribution from the Concur acquisition. Third quarter non-IFRS cloud subscriptions and support revenue grew 116% year-over-year (90% at constant currencies) to EUR600 million. New cloud bookings, the key measure for SAP's sales success in the cloud, increased 102% in the third quarter to EUR216 million.
The Company had very strong top and bottom line growth. Non-IFRS cloud and software revenue increased 19% (12% at constant currencies) to EUR4.12 billion. Non-IFRS operating profit increased 19% (15% at constant currencies) to EUR1.62 billion. Non-IFRS basic earnings per share was EUR0.98 (2014: EUR0.84), an increase of 16%.
FINANCIAL RESULTS IN THE THIRD QUARTER 2015 (1)
All 2015 figures in this release are approximate due to the preliminary nature of the announcement.
IFRS (2) EUR billion, unless Q3 Q3 % Q3 Q3 % % change otherwise stated 2015 2014 chan 2015 2014 chan const. curr. ge ge
Cloud subscriptions and
support 0.60 0.28 116% 0.60 0.28 116% 90% Software licenses 1.01 0.95 7% 1.02 0.95 7% 4% Software support 2.51 2.23 12% 2.51 2.23 12% 6% Software licenses and
support 3.52 3.18 11% 3.52 3.18 11% 6% Cloud and software 4.12 3.46 19% 4.12 3.46 19% 12% Total revenue 4.98 4.25 17% 4.99 4.26 17% 10% Operating profit 1.21 1.16 5% 1.62 1.36 19% 15% -
Operating margin (in %) 24.3 27.2 2.9pp 32.4 31.8 0.6pp 1.3pp Basic earnings per share
(EUR) 0.75 0.74 2% 0.98 0.84 16%
(2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online
FINANCIAL RESULTS IN THE FIRST NINE MONTHS 2015 (1)
IFRS (2) EUR billion, unless 9M 9M % 9M 9M % % change otherwise stated 2015 2014 chan 2015 2014 chan const. curr. ge ge
Cloud subscriptions and
support 1.65 0.74 124% 1.66 0.74 124% 92% Software licenses 2.69 2.53 6% 2.69 2.53 6% -1% Software support 7.49 6.49 16% 7.49 6.49 15% 7% Software licenses and
support 10.18 9.02 13% 10.18 9.02 13% 4% Cloud and software 11.84 9.76 21% 11.85 9.76 21% 11% Total revenue 14.45 12.10 19% 14.46 12.11 19% 9% Operating profit 2.55 2.58 -1% 4.07 3.51 16% 5% - - Operating margin (in %) 17.7 21.3 3.6pp 28.1 29.0 0.9pp -1.0pp Basic earnings per share
(EUR) 1.49 1.65 -10% 2.37 2.19 8%
(2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online.
BUSINESS OUTLOOK 2015
The Company reiterates the following 2015 outlook:
- Based on the strong momentum in SAP's cloud business the Company expects full-year 2015 non-IFRS cloud subscriptions and support revenue to be in a range of EUR1.95 - EUR2.05 billion at constant currencies (2014: EUR1.10 billion). The upper end of this range represents a growth rate of 86% at constant currencies. Concur and Fieldglass are expected to contribute approximately 50 percentage points to this growth.
- The Company expects full year 2015 non-IFRS cloud and software revenue to increase by 8% - 10% at constant currencies (2014: EUR14.33 billion).
- The Company expects full-year 2015 non-IFRS operating profit to be in a range of EUR5.6 billion - EUR5.9 billion at constant currencies (2014: EUR5.64 billion).
The company will report its complete third quarter and nine months 2015 results
on October 20th.
Information and Explanation of the Issuer to this News:
'SAP is uniquely positioned to help our customers become digital businesses. Our flagship S/4HANA is rapidly gaining market share. HANA is redefining the database industry as the standard real-time platform. Our cloud solutions for workforce engagement are best in class and our omni-channel customer experience solutions are growing faster than best of breed competitors. Our HANA Cloud Platform for the Internet of Things and Business Networks for inter-enterprise collaboration are redefining the business software industry. We are firmly reiterating our full year guidance', said SAP CEO Bill McDermott.
SAP CFO Luka Mucic said: 'Our strong double-digit growth in cloud and software revenue was mainly driven by excellent results in mature markets. SAP's global resilience helped us also sail through stormy waters in emerging markets where we expect to continue to see volatility and economic challenges. Our surge in operating profit reflects our business transformation's continued success and the improving profitability of our cloud offerings.'
2015 revenue and profit figures include the full revenue and profit from Concur and Fieldglass. The comparative numbers for 2014 include Concur starting December 4 and May 2.
For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.
Third Quarter 2015 Interim Report
SAP's third quarter 2015 Interim Report will be published on October 20, 2015 and will be available for download at www.sap.com/investor.
SAP earnings conference call for financial analysts will take place on Tuesday, October 20th at 2:00 PM (CEST) / 1:00 PM (GMT) / 8:00 AM (EDT) / 5:00 AM (PDT). The conference call will be web cast live on the Company's website at www.sap.com/investor and will be available for replay.
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device - SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 293,500 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
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