SAP (NYSE: SAP), will post revenues higher than $34 billion by the fiscal year 2020.
To protect profitability, SAP responded quickly to the COVID-19 crisis by slowing hiring and reducing discretionary spend in addition to natural savings e.g.
"Business activity in the first two months of the quarter was healthy. When SAP announced on Sunday that it was spinning out Qualtrics, a company it bought less than two years ago for an eye-popping $8 billion, it was enough to …
In particular, the APJ region had a strong recovery in software licenses revenue.
We simplify technology for companies so they can consume our software the way they want – without disruption. Choose your country or region Accounts Receivable, Billing and Revenue ManagementGovernance, Risk, Compliance (GRC), and Cybersecurity Earlier this year in its first quarter 2020 earnings call, SAP announced that Christian Klein would take the helm as sole CEO of the software company.Despite the pandemic, company leaders shared that overall profit was up 7% year over year.
Amazon's stock has run up 10.6% in July through Thursday, while the S&P 500 has gained 4.7%. The average price target is now at $3,464.25, which is 13.5% above Thursday's closing price of $3,051.88. By using this site you agree to the from lower travel, facility related costs and virtualized events.
Current cloud backlog is expected to be up 20% to €6.65 billion (up 21% at constant currencies). SAP said Sunday that it would sell some shares of its Qualtrics survey-software unit on a U.S. public market.
SAP SE (/ ɛ s eɪ ˈ p i /), sometimes known by its full name Systems, Applications, and Products in Data Processing, is a German multinational software corporation that makes enterprise software to manage business operations and customer relations.
Cloud revenue in the second quarter was impacted by lower pay-as-you-go transactional revenue as a result of the COVID-19 crisis.
All 2020 figures in this release are approximate due to the preliminary nature of the announcement and the uncertainty associated with the COVID-19 crisis. Revenue in the cloud business segment grew 29% on year to EUR2.01 billion, while software licenses revenue was down 31% to EUR450 million. The outlook continues to be based on the assumption of a gradually improving demand environment in the third and fourth quarter as economies reopen further and population lockdowns ease.Non-IFRS cloud revenue is still expected to be in a range of €8.3 billion to €8.7 billion at constant currencies (2019: €7.01 billion), up 18% to 24% at constant currencies.Non-IFRS cloud and software revenue is still expected to be in a range of €23.4 to €24.0 billion at constant currencies (2019: €23.09 billion), up 1% to 4% at constant currencies.Non-IFRS total revenue is still expected to be in a range of €27.8 to €28.5 billion at constant currencies (2019: €27.63 billion), up 1% to 3% at constant currencies.Non-IFRS operating profit is still expected to be in a range of €8.1 to €8.7 billion at constant currencies (2019: €8.21 billion), down 1% to up 6% at constant currencies.The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) is still expected to reach approximately 72%.While SAP’s full-year 2020 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year.SAP confirms its 2023 ambition which was previously published in its Q1 2020 Quarterly Statement.The Company remains in its quiet period until reporting its complete second quarter 2020 results on July 27This press release and all information therein is preliminary and unaudited.The 2019 comparative numbers for first half only include Qualtrics revenues and profits from acquisition date of January 23rd.SAP’s second quarter 2020 quarterly statement will be published on July 27, 2020 and will be available for download at www.sap.com/investor.SAP senior management will host a financial analyst conference call on Monday, July 27 at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific).
Software licenses revenue was down 18% year over year to €0.77 billion (IFRS and non-IFRS) and down 18% (non-IFRS at constant currencies), a strong sequential improvement compared to the first quarter. The year 2020 has proven to be full of surprises—both good and bad—for organizations across the globe, including SAP. As a result, our customers can emerge even stronger from the crisis. SAP SE said late Wednesday that revenue for the first quarter rose and adjusted its full-year guidance due to the effect of the coronavirus pandemic on its business. SAP took a gut-punch in the form of an 18 per cent dive in software licensing revenue to €0.77bn for its Q2 ended June 30, but it also chalked up a 20 per cent jump in contractually committed cloud revenue to €6.65bn. Total revenue grew 2% year over year to €6.74 billion (IFRS), up 1% to €6.74 billion (non-IFRS) and up 1% (non-IFRS at constant currencies).The share of more predictable revenue[1] grew by approximately 5 percentage points year over year to approximately 73% in the second quarter.In the second quarter, operating profit increased by 55% year over year to €1.28 billion (IFRS) and was up 8% to €1.96 billion (non-IFRS) and up 7% (non-IFRS at constant currencies).Operating margin increased 6.5 percentage points year over year to 19.0% (IFRS) and increased 1.8 percentage points year over year to 29.1% (non-IFRS) and 1.6 percentage points to 28.9% (non-IFRS at constant currencies) in the second quarter.In the first six months, cloud revenue grew 25% year over year to €4.05 billion (IFRS), up 23% to €4.06 billion (non-IFRS) and up 22% (non-IFRS at constant currencies). The call will be webcast live on the Company’s website at As the Experience Company powered by the Intelligent Enterprise, SAP is the market leader in enterprise application software, helping companies of all sizes and in all industries run at their best: 77% of the world’s transaction revenue touches an SAP system. SAP Tax and Revenue Management for Public Sector provides a service enabled, configurable, upgradable solution that supports an end to end tax administration lifecycle.