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For the first time, SAP's quarterly revenue topped €10 billion: third-quarter total revenue came to €10.27 billion, up 13% and up 12% at constant currencies. Cloud revenue rose 26% to €6.67 billion, or 25% at constant currencies, and current cloud backlog reached €24.1 billion, up 28% and 26% at constant currencies, according to the company's results release.
"For the first time, SAP crossed €10 billion in total quarterly revenue and €3 billion of non-IFRS operating profit," Chief Financial Officer Dominik Asam said. Non-IFRS operating profit was €3.03 billion, up 18%, and the non-IFRS operating margin widened 1.2 points to 29.5%. Free cash flow climbed 36% to €1.72 billion.
Cloud ERP Suite, which made up most of that cloud total, brought in €5.92 billion, up 29% and 28% at constant currencies. Software licenses revenue fell 9% to €147 million and software support revenue fell 5% to €2.43 billion, and SAP expects the support decline to accelerate in the coming years as more customers move to the cloud. SAP's investor relations summary also says the quarter's cloud growth was helped by several quarter-specific effects, mainly a multi-quarter revenue catch-up from customers returning from financial distress, and that the Reltio, Dremio and Prior Labs acquisitions added €49 million to total revenue.
Constant-currency growth picked up from the second quarter. In its July 23 report, SAP posted constant-currency growth of 24% in cloud revenue and 11% in total revenue, with current cloud backlog of €22.9 billion. Backlog growth held at 26% at constant currencies in both quarters. |
