Estimated reading time: 1 minute, 10 seconds

SAP RAISES OUTLOOK AGAIN Featured

Bill McDermott, SAPWith its third quarter in hand, SAP revised its financial forecast for 2018, the third during the current year. “We are raising the full year outlook in cloud total revenue and operating profits,” CEO Bill McDermott said in this week’s earnings webcast.

SAP forecast 2018 non-IFRS Cloud subscriptions and support revenue will range from €5.15 billion to €5.25, an increase of 36.5 percent over 2017 results. The previous range was €5.05 billion to €5.20 billion Profit after Tax fell to about $1.2 billion, down 2 percent IFRS, but up 12 percent non-IFRS to roughly $1.56 billion. Most other numbers, all on an IFRS basis, rose. Total revenue for the most recently ended quarter was approximately $6.9 billion, up 8 percent. Cloud subscription and support revenue rose 39 percent to about $1.5 billion. Service and support was flat at about $4.25 billion, but that is a category that is generally impacted by the switch to the cloud. CFO Luca Mucic noted strong performance in North America and EMA where customers “were moving faster than expected to the hybrid model.” S/4Hana performance continued to be hot as the company ended the quarter with about 9,500 customers, an increase of 37 percent over a year ago with 50 percent of additional customers net new to SAP. Business network revenue was approximately $775 million, an increase of 22 percent, reflecting results from Ariba, Concur and Fieldglass. Customer experience revenue reached roughly $266.6 million, rising 54 percent year-over-year. That area reflects CRM sales, an area in which SAP has high ambitions.

Read 1462 times
Rate this item
(0 votes)

Visit other PMG Sites:

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.