Enterprise IT business suite customers up 41%
SAP’s new cloud bookings nearly doubled on the previous quarter, the German software giant’s Q2 results showed today.
‘New Cloud Bookings’ shot up to €421 million from €245 million in Q1.
The surge in cloud bookings was the standout in a set of particularly strong results from the company, which offers a broad range of software and enterprise applications to clients, including Mercedes-Benz Formula E team and the New York Yankees.
It also reported a four percent increase year-over-year in its cloud and software revenue businesses to €4.94 billion, despite currency headwinds, the company said.
Overall, the company’s operating profit growth was up 13 percent up, whilst total revenue rose to a solid €6.014 billion.
With strong figures in their Q2 results, SAP has updated their Ambition 2020 plans due to growth within its cloud business.
Looking beyond 2018, SAP is updating its 2020 guidance. This update reflects the strong momentum in SAP’s cloud business, the acquisition of Callidus Software as well as a more challenging currency environment compared to 2017, the company said.
While it is keeping expectations of €8.5 to €9.0 billion non-IFRS operating profit, SAP now expects 2020 non-IFRS cloud subscriptions and support revenue in a range of €8.2 to €8.7 billion (previously: €8.0 to €8.5 billion).
SAP S/4HANA Growing in Customers
SAP’s enterprise IT business suite, SAP S/4HANA saw its customer adoption grow to more than 8,900 customers, up by 41 percent year-over-year.
Of those 8,900 customers who signed up to SAP S/4HANA, there were approximately 600 customers were new.
Their C/4 HANA Experience business segment also recorded good growth figures in new cloud bookings. Total revenue was up 65 percent to €242 million at constant currencies.
Deutsche Telekom and Coty were a few of the companies that had chosen SAP C/4 HANA’s business solutions within this quarter.
EMEA Performs Strongly for SAP
The Europe, Middle East and Africa (EMEA) region performed very strongly for SAP as cloud and software revenue increased by 10 percent.
While in the Americas, cloud and software revenue decreased by three percent despite a 24 percent increase within cloud subscriptions.
Bill McDermott, CEO at SAP commented: “SAP is presenting a clear strategy, customers are already validating it in Q2 and we are increasing guidance as a signal that a new wave of growth has been unleashed.”
The company’s CFO, Luka Mucic added: “This quarter is exemplary for the road we have chosen: rapidly transforming the company to the cloud while substantially growing profits and margins. I am very confident that this momentum will continue to expand. That’s why we raised our 2018 outlook and 2020 ambition.”