Estimated reading time: 1 minute, 5 seconds

SAP POSTS STRONG EARNINGS Featured

Jim Hagemann Snabe, SAPSAP continued to push its image of being the irresistible force in software for the third quarter ended September 30. There is to least some truth about that as after-tax profit was up 23 percent over last year's corresponding quarter. But revenue growth was more modest. After-tax profit was about $762 million. Revenue hit about $5.58 billion, up 2 percent from last year's corresponding period and an increase of 9 percent in constant currencies. Those were the IFRS numbers. SAP pushed the non-IFRS numbers which showed software and cloud subscription revenue as being up 13 percent just as rival NetSuite pushes its non-GAAP earnings, but not its GAAP loss. Co-CEO Bill McDermott stressed  the fact that growth was up in all geographies in all product lines. McDermott says the company's Hana in-memory products is the industry standard in in-memory and grew at 90 percent over the prior year. As important as the numbers during this week's webcast was SAP's announcement that Hana is a platform for all its applications with McDermott terming Hana "the best platform on earth." Co-CEO Jim Hagemann Snabe reported that the company had 17-percent growth in software and subscription cloud in the Americas. Separating out cloud and software products yields no surprise. In terms of IFRS, software revenue was off 5 percent but cloud subscriptions and support revenue was up 230 percent.

Read 661 times
Rate this item
(0 votes)

Visit other PMG Sites: