SAP posts strong performance and growth for its cloud business
Multinational software behemoth SAP has released its financial results for Q1 ending 31 March 2019, highlighting strong performance across both its cloud and core businesses.
SAP’s cloud-based revenue exceeded €1.5bn for the first time in a quarter, with a leap in cloud and software orders of 17% on Q1 2018.
Year-on-year, SAP’s cloud revenue grew by 45% while total revenue at the firm rose by 16%.
"SAP's results are another illustration that we are a rarity in the enterprise applications software industry,” said Bill McDermott, CEO at SAP, in the firm’s report.
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“We have a strong core business, the fastest growing cloud at scale in enterprise software and impressive non-IFRS operating profit growth. We are focused on leading a best-run SAP so we can drive significant margin expansion in the quarters ahead."
The firm added that it is now the market leader in experience management as a result of its Qualtrics acquisition late last year.
"I am extremely pleased that we delivered rapid growth in the cloud and a rock-solid core,” said Luka Mucic, CFO at SAP, in the statement.
“Non-IFRS operating profit growth saw the biggest improvement in more than three years, with both cloud gross margin and operating margin beating our expectations. This gives us the confidence to further extend our commitment to mid-term margin improvements and stronger shareholder returns as announced today."