INTERNATIONAL enterprise application software provider SAP posted robust financial growth in the second quarter on the back of the digitization of its clients.
From April to June this year, International Financial Reporting Standards (IFRS) cloud subscriptions and support revenue grew by 129 percent to €552 million from €241 million during the same period in 2014.
Non-IFRS cloud subscriptions and support revenue, likewise, expanded on the same rate from €242 million to €555 million year-on-year (YOY). Its growth is 92 percent at constant currencies.
Contributing to the latter results were Fieldglass with €21 million, and Concur with €137 million at constant currencies.
The former was just fully acquired by SAP in May 2014. It helps companies manage contract employees.
The leader in the multibillion-dollar market for travel and expense management software Concur, on the other hand, was bought by the company 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.
SAP CEO Bill McDermott attributed such strong results to their complete vision for how to make this transition to digital business simple.
“When I speak with CEOs, they are looking for a road map to digitize their business and to create new business models,” he said. “I am confident that our strategy to deliver a platform, applications and business networks is exactly what customers need from SAP.”
SAP’s cloud sales posted a 162-percent hike in new cloud bookings amounting to €203 million, of which €46 million came from Concur.
“Our second-quarter growth in new cloud bookings was significantly higher than in the first quarter,” noted Luka Mucic, chief financial officer of SAP.
This momentum, he said, was reflected across their entire cloud and business network portfolio.
IFRS and non-IFRS software licenses revenues for the period in review stood at €979 million, or 2 percent higher than €957 million last year.
At an increase of 13 percent, software licenses and support revenue of both hit €3.51 billion from €3.12 billion recorded a year ago.
The company had very strong IFRS and non-IFRS cloud and software revenue performances with 21 percent to €4.06 billion from €3.36 billion. Total revenues of both reached €4.97 billion, up 20 percent from €4.15 billion.
IFRS operating profit was €701 million, or 1 percent over 2014’s €698 million.
Non-IFRS operating profit increased by 13 percent to €1.39 billion from €1.24 billion.
“Our operating profit performance is beginning to reflect the business transformation we initiated to make SAP ready for the future. We are on track to achieve our full-year business outlook,” Mucic stressed.
German firm SAP said its applications and services “empower over 293,500 customers to operate profitably, adapt continuously and grow sustainably.”