SAP Outpaces Market with Record 2015 Cloud and Software Revenue, Up 20% – SAP S/4HANA Adoption Soaring
- Full Year Non-IFRS Cloud and Software Revenue Up 20% (12% at Constant Currencies, Beating Company Guidance)
- SAP S/4HANA Adoption Surges – More Than Doubling the Number of Customers in the Fourth Quarter, Now Exceeding 2,700 Customers
- Tremendous Momentum in New Cloud Bookings – Up 103% in the Full Year, Up 75% in the Fourth Quarter
- Full Year Non-IFRS Cloud Subscription and Support Revenue Up 109% to €2.30 Billion (€2.00 Billion at Constant Currencies, Achieving Company Guidance)
- Full Year Non-IFRS Operating Profit Up 13% to €6.35 Billion (€5.902 Billion at Constant Currencies, Beating Company Guidance)
WALLDORF, Germany – January 11, 2016 – After an initial review of its fourth quarter 2015 performance, SAP SE (NYSE: SAP) today announced its preliminary financial results for the fourth quarter and full year ended December 31, 2015. All 2015 figures in this release are approximate due to the preliminary nature of the announcement.
SAP had exceptional momentum with fast growth in cloud and double-digit growth in its core license business in the fourth quarter. For the full year, non-IFRS cloud and software revenue grew by 20% or 12% at constant currencies and exceeded the outlook of 8% – 10% growth at constant currencies. New cloud bookings, the key measure for SAP’s sales success in the cloud, increased 103% in the full year to €0.89 billion and 75% in the fourth quarter to €0.35 billion(1). Non-IFRS cloud subscriptions and support revenue was €2.30 billion (€2.00 billion(2) at constant currencies, achieving the outlook of €1.95 to €2.05 billion at constant currencies) for the full year. Non-IFRS operating profit was €6.35 billion (€5.902 billion at constant currencies, beating the full year outlook of €5.6 – €5.9 billion at constant currencies).
Customer adoption of SAP S/4HANA continues to accelerate sharply, with more than 2,700 customers across all regions at the end of 2015, more than doubling quarter over quarter. SAP S/4HANA, built on
SAP HANA, the most advanced in-memory platform available today, provides the digital core that companies need to reduce complexity, digitize their business and connect every part of their enterprise.
“We decisively beat our full year guidance for cloud and software revenue,” said Bill McDermott, CEO of SAP. “SAP gained significant share against core and best of breed competitors. Across markets and industries SAP is extending its lead as the trusted innovator in the business software industry. Our completeness of vision in the cloud and soaring adoption of S/4HANA gives us tremendous confidence in our business in 2016 and beyond.”
Luka Mucic, CFO of SAP, said: “SAP is unique in combining a growing core and a rapidly expanding cloud business. In particular, S/4HANA is boosting broad customer adoption of our entire innovation portfolio. With our strong top line and the success of our business transformation we generated the highest non-IFRS operating profit in SAP’s history.”
The Company is providing the following 2016 outlook:
- Based on the continued strong momentum in SAP’s cloud business the Company expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of €2.95 – €3.05 billion at constant currencies (2015: €2.30 billion). The upper end of this range represents a growth rate of 33% at constant currencies.
- The Company expects full year 2016 non-IFRS cloud and software revenue to increase by 6% – 8% at constant currencies (2015: €17.23 billion).
- The Company expects full-year 2016 non-IFRS operating profit to be in a range of €6.4 billion – €6.7 billion at constant currencies (2015: €6.35 billion).
SAP will report detailed preliminary fourth quarter and full year 2015 results on January 22nd.
- (1) New cloud bookings consist of all order entry of a given period that is expected to be classified as cloud subscription and support revenue and results from purchases by new customers and from incremental purchases by existing customers. The order amount must be contractually committed (i.e. variable amounts from pay-per-use and similar arrangements are not included). Consequently, due to their uncommitted pay-per-use nature Ariba and Fieldglass transaction-based fees are not reflected in the new cloud bookings metric. Amounts included in the measure are annualized. Concur contributed approximately €0.04 billion to SAP’s new cloud bookings in the fourth quarter 2015.
- (2) For the fourth quarter 2015, Concur contributed approximately €0.16 billion to SAP’s Non-IFRS cloud subscriptions and support revenue at constant currencies. The Concur acquisition was closed on December 4th, 2014.
For more information see: SAP Announces Preliminary Fourth Quarter and Full Year 2015 Results
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