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SAP: STEEP CRM GROWTH AHEAD Featured

Bill McDermott, SAPSAP beat the drums from its ambitions for the front office as it reported financial results for the second quarter ended June 30. CEO Bill McDermott said in this week’s earnings webcast the software company will highlight results of its C/4 Hana front office sales quarterly.

“C/4 Hana is growing at steep triple digits,” McDermott said. “Our organic growth is five times our primary competitor.” He promised continuing triple-digit growth with C4 and took aim at Salesforce, the CRM. Market leader. “C4/Hana front office suite is playing in a different league than Salesforce automation,” he says. SAP reported after-tax profit of about $843 million for the most recently ended quarter, up 8 percent from a year ago. Revenue was approximately $7 billion, an increase of 4 percent from last year’s corresponding period. Sales for the CRM business, its Customer Experience segment, were roughly $283 million. Software license revenue of about $4.4 billion was down 2 percent over a year earlier, although in constant currencies on a non-IFRS base, the measurement was up 3 percent. All previous figures were IFRS based. Cloud subscription and support revenue of about $1.4 billion rose by 30 percent, 40 percent on a non-IFRS basis in constant currencies. IFRS revenue for the United States of approximately $2.2 billion was virtually unchanged from a year earlier, but up 8 percent in constant currencies.

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