๐ SAP Q2 results a mixed bag
๐ก Newskategorie: IT Security Nachrichten
๐ Quelle: cio.com
SAP announced its Q2 2022 results yesterday, reporting revenue of โฌ7.5 billion, which is up 12.7% year-on-year.
However, it was not all good news for the German business software group. SAPโs IFRS operating profit was down 32% to โฌ673 million and its non-IFRS profit was down 13% to โฌ1.68 billion.
In comments published alongside the results, SAP said this was mainly driven by โreduced contribution from software licenses revenueโ, as well as โsignificant bad debt expenses related to the war in Ukraine.โ
Earlier this year, SAP estimated that the financial impact of the war in Ukraine would cause the company to take a revenue hit of around โฌ300 million, due to pulling out of that market. In its Q2 statement, SAP said it still expects to see those losses.
Strong segment growth
While the geopolitical climate has had an impact on SAPโs overall revenue, the companyโs two business segments performed strongly during the quarter.
The Applications, Technology and Services segment was up 11% to โฌ7.1 billion, mainly due to strong cloud revenue growth, driven by increased adoption of S/4HANA and double-digit growth across the SaaS and PaaS portfolio. Cloud revenue alone was up 34% to โฌ3.1 billion, making it the vendorโs largest revenue stream. This is despite a decrease in traditional software licenses revenue due to the shift to the cloud, as more customers adopted the companyโs RISE with SAP offering.
SAPโs Qualtrics revenue was up 57% to โฌ330 million year over year, driven by robust renewal rates and expansions.
โOur transition to the cloud is ahead of schedule and we have exceeded topline expectations, with cloud revenue becoming SAPโs largest revenue stream,โ SAP CEO, Christian Klein, said following the results. โOur pipeline is strong, and we are winning market share underpinned by the very strong 100% growth of S/4HANA current cloud backlog.โ