SAP has released its second quarter results, which show strong demand for RISE and cloud services, although the company continues to struggle with declining operating profit.
SAP results for the second quarter of 2021 ( communique ), which ends on June 30, 2021, report a turnover of 6.67 billion euros euros IFRS, down 1% year-over-year (or up 3% at constant currencies). In the first quarter of 2021, SAP reported revenue of 6.35 billion euros 'euros in IFRS standards.
SAP reported operating profit of 0.98 billion euros (IFRS), a decrease of 23% compared to the previous year. Operating cash flow for Q2 2021 was stable at 3.77 billion euros and the operating margin decreased by 4.3% to 14, 8%.
SAP says this sharp drop in operating profit is due to "higher stock compensation expense (mostly related to Qualtrics).
The Cloud business revenue grew 11% from ayear on year, at 2.28 billion euros (IFRS), and 17% at constant exchange rates. In the first quarter, SAP reported IFRS cloud revenue of 2.14 billion euros.
The RISE program has acquired 250 additional clients. Software license revenue decreased 16% year-on-year to 0.65 billion euros (IFRS and non-IFRS) and 13% (at constant exchange rates).
Global cloud and software license revenue increased 1% year-on-year to 5.75 billion euros (IFRS) and 5% at constant currencies .
SAP S / 4HANA welcomed 600 additional customers in the second quarter of 2021, an increase of 16% from the previous year. SAP S / 4HANA now has more than 17,000 customers, of which approximately 10,100 are now operational.
The current cloud order book stands at 7.77 billion euros, with a figure ofbusiness up 17% under IFRS and 20% at constant exchange rates. S / 4HANA cloud revenue increased 33% to 257 million euros and 39% (at constant currencies).
SAP reports on three main lines of business: "Applications, Technology & Services ", "Qualtrics " and "Services ".
Applications, Technology and Services segment sales remained stable at 5.62 billion euros year-on-year, or up 4% at constant exchange rates. Qualtrics' revenue stands at 211 million euros, an increase of 25% over the previous year, or 37% at constant exchange rates. The Services segment, including digital transformation and the Intelligence team, recorded a turnover of 796 million euros, down 7% from the previous year and 3% ( at constant exchange rates).
The cabinet adds que Concur, the travel arm of SAP, has "stabilized its sequential performance for the first time since the start of the pandemic.
" We are seeing strong adoption in our cloud portfolio, with customers choosing SAP to transform their business "commented Christian Klein, CEO of SAP. " Our strategy is working; This is the third quarter in a row of strong execution, and we continue to deliver unmatched customer value through the strength of our platform and applications.
SAP has also published a semi-annual management report . SAP has raised its outlook for full year 2021 and expects customers to continue to turn to the RISE program, which will increase revenue for the SAP subion service while reducing revenue from standard software licenses.
SAP foresees a figure of Global cloud business between 9.3 and 9.5 billion euros, cloud and software revenue between 23.6 and 24 billion euros, and operating profit between 7.95 and 8.25 billion euros. All figures predicted by SAP are based on constant currencies.
Source: " HFrance.com