GLOBAL company SAP is bullish on meeting its full-year target on the back of the strong momentum of its cloud business.
For 2015, the company expects non-IFRS (International Financial Reporting Standards) cloud subscriptions and support revenue to increase by 86 percent, or in a range of €1.95 billion to €2.05 billion at constant currencies. Concur and Fieldglass are expected to contribute around 50 percentage points to this growth.
Meanwhile, non-IFRS cloud and software revenue is seen to increase by 8 percent to 10 percent by the end of this year.
“Our operating profit performance is beginning to reflect the business transformation we initiated to make SAP ready for the future,” SAP Chief Financial Officer Luka Mucic said.
We are on track to achieve our full-year business outlook,” Mucic added. For the second quarter, SAP reported a 92-percent growth in non-IFRS cloud subscriptions and support revenue to €555 million from €242 million last year. Contributing to this improved result were Fieldglass with €21 million and Concur with €137 million at constant currencies. Region-wise, Europe, Middle East and Africa saw a 10-percent increase in non-IFRS cloud and software revenue, while the Americas posted a 36-percent hike, and Asia Pacific and Japan (APJ), 19 percent.
As for non-IFRS cloud subscriptions and support revenue, Emea, Americas and APJ registered 94 percent, 141 percent and 138 percent, respectively.
Germany-grown SAP is a provider of enterprise application software.
From back office to boardroom, warehouse to storefront, desktop to mobile device, it enables people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition.
SAP applications and services empower over 293,500 customers to operate profitably, adapt continuously and grow sustainably.
The company fully acquired Fieldglass on May 2, 2014, to help companies manage contract employees. The leader in the multibillion market for travel and expense management software Concur, on the other hand, was bought by SAP in September last year for $8.3 billion. Its cloud solutions are network-based and enable context-aware applications for travelers to use on any mobile device.