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SAP AG (SAP)

- NYSE
  • Yesterday, 6:12 AM
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  • Fri, May. 1, 4:36 PM
    • Salesforce (NYSE:CRM) CEO Marc Benioff and SAP CEO Bill McDermott "held discussions last year about possible strategic alliances between the two companies," Bloomberg reports.
    • The news service adds the talks covered "a potential acquisition of Salesforce by SAP." But it also states SAP wasn't the company that recently approached Salesforce about a possible acquisition (reported on Wednesday). With SAP currently worth $93B and Salesforce $48B, a deal would be closer to a merger than an acquisition after factoring an M&A premium.
    • SAP, like Oracle, is a major rival of Salesforce in the CRM software market. Gartner estimates Salesforce and SAP respectively had 16% and 13% of the 2013 CRM market, #1 and #2 overall. They were followed by Oracle (10%), Microsoft (7%), and IBM (4%). Salesforce's 30.3% 2013 CRM sales growth outpaced all major rivals.
    • Bloomberg's latest report follows remarks from Oracle co-CEO Safra Catz suggesting Oracle wasn't the company that recently approached Salesforce, and a BuzzFeed report to the same effect. Microsoft's name has often popped up in speculation about the suitor; IBM and Google have been mentioned to a lesser extent.
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  • Tue, Apr. 21, 4:33 AM
    • With a weaker euro boosting revenue from markets including the U.S., SAP reported first-quarter sales that topped analysts' estimates, rising 22% to €4.5B.
    • Revenue from software licenses and support rose 16% to €3.15B, while sales from cloud subscriptions and support more than doubled to €509M.
    • "Our plan is to be a growth company," CEO Bill McDermott said on a conference call. "We have no interest in announcing that we didn’t grow and then detailing the costs we cut to hold expenses in line."
    • Excluding the boost from currency swings, operating profit and profit margins declined during the quarter, mainly due to acquisitions including Concur Technologies and Fieldglass.
    • SAP also reiterated its full-year forecasts of for non-IFRS operating profit of between €5.6B-€5.9B at constant currencies, and non-IFRS revenue for cloud subscriptions and support of €1.95B-€2.05B.
    • SAP +1.4% premarket
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  • Mon, Apr. 20, 5:30 PM
  • Thu, Mar. 19, 12:45 PM
    • SAP (SAP -0.7%) has proposed a €1.10/share ($1.17/share) fiscal 2014 dividend, up 10% from fiscal 2013's €1.00/share and good for a 1.7% yield at current levels. The dividend will be paid on or after May 21, provided shareholders approve (as expected) at the May 20 annual meeting.
    • The German software giant adds it now plans to pay out over 35% of its post-tax profits via dividends, up from a prior target of more than 30%. The 2014 dividend (involves payments of €1.3B) is good for a 40% payout ratio.
    • SAP hiked its dividend by 18% on a euro basis last year. On a dollar basis, this year's payout is down Y/Y, thanks to the euro's plunge.
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  • Fri, Mar. 6, 3:42 AM
    • SAP is embarking on the second downsizing under CEO Bill McDermott, cutting about 2,200 jobs, about 3% of its workforce.
    • The company is continuing to pivot toward cloud computing rather than traditional licensing, and that means a move toward less profitable software delivered more quickly with payments stretched over time.
    • SAP is learning that the cloud environment is calling for engineers with different skills than those optimized for its old-line business.
    • The stock is down 12.8% over the past 12 months.
    | 6 Comments
  • Thu, Feb. 12, 2:22 PM
    • A slew of enterprise IT names are outperforming after Cisco beat estimates and respectively reported 10%, 8%, and 7% Y/Y growth in enterprise, SMB, and public sector orders. The Nasdaq overall is up 1%.
    • Cisco reported particularly strong figures for enterprise-focused business lines: Switching revenue rose 11%, wireless (Wi-Fi-dominated) 18%, collaboration 10%, and data center (UCS servers) 40%. Service provider demand (orders -1%) remained soft.
    • Enterprise standouts include EMC (EMC +2.5%), VMware (VMW +2.3%), SAP (SAP +3.1%), Salesforce.com (CRM +3.8%), NetSuite (N +2.6%), Teradata (TDC +4.6%), Splunk (SPLK +2.5%), Varonis (VRNS +3.9%), Gigamon (GIMO +2.8%), and NetScout (NTCT +2.7%).
    • EMC's gains comes in spite of rival NetApp's FQ3 miss and soft FQ4 guidance; share loss to EMC, which has been seeing healthy mid-range and scale-out NAS storage growth, could be partly to blame. VMware is adding to the Wednesday gains seen following a Bernstein upgrade.
    • Earlier: Telecom/networking stocks rally thanks to Cisco
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  • Tue, Feb. 3, 6:53 PM
    • S/4HANA, a new version of SAP's mainstay Business Suite (contains the company's core ERP apps), runs only on top of the company's Hana in-memory database, and is declared by SAP to fully leverage Hana's in-memory and real-time transaction-processing abilities.
    • SAP is also providing a simplified data model with its update, and a revamped UI. On-premise, cloud and hybrid deployments will be supported. SAP has already been offering a cloud-based version of the Business Suite that runs on top of Hana. However, S/4HANA will sport a code base created specifically for Hana.
    • CEO Bill McDermott calls S/4HANA SAP's biggest product launch since 1992, when it unveiled its R/3 ERP suite. While the company's traditional software license sales have come under pressure thanks to the cloud transition, the hit to Business Suite has been buffered by the fact enterprises (for now, at least) are more nervous about migrating core ERP apps to the cloud than they are about migrating CRM or HR apps.
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  • Tue, Jan. 20, 9:16 AM
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  • Tue, Jan. 20, 6:06 AM
    • SAP AG (NYSE:SAP): Q4 EPS of €1.09 misses by €0.24.
    • Revenue of €5.46B (+6.8% Y/Y) beats by €10M.
    • Press Release
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  • Tue, Jan. 20, 2:50 AM
    • SAP (NYSE:SAP) has lowered its profit outlook for 2017, saying its push into cloud-based software would eat into its profit margins.
    • "I think we're doing the right transition, we're a growth company and this is what the investor wants," said SAP Chief Executive Bill McDermott.
    • The company announced earlier that it expected to reach an operating margin of 35% on revenues of up to €22B in 2017 resulting in an operating profit of around €7.7B, but now expects operating profit of €6.3B-€7B on revenues of €21B-€22B.
    | 1 Comment
  • Mon, Jan. 19, 5:30 PM
  • Mon, Jan. 12, 10:34 AM
    • SAP reports non-IFRS preliminary Q4 revenue of €5.47B ($6.45B), +7% Y/Y (+4% at constant currency) and above a €5.37B consensus. Q3 growth was 5% in both euros and constant currency.
    • Q4 growth was fueled by a 72% Y/Y increase in cloud subscription/support revenue (boosted by the Concur deal, which closed on Dec. 4) to €360M. Traditional software license revenue -2% to €1.87B; support revenue (driven by past software deals) +10% to €2.51B. Cloud billings +115% to €591M.
    • Op. profit +1% (-2% at constant currency) to €2.13B, and op. margin -210 bps to 38.9%. For the whole of 2014, revenue rose 4% to €17.56B ($20.7B), and op. profit fell 3% to €4.33B.
    • Full Q4 results, along with SAP's 2015 outlook, are due on Jan. 20.
    | 1 Comment
  • Mon, Jan. 5, 9:57 AM
    • With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
    • Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
    • Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
    | 23 Comments
  • Nov. 19, 2014, 7:05 AM
    • Coming on the heels of SAP's (NYSE:SAP) $7.3B Concur acquisition in September, Chief Executive Bill McDermott has ruled out any big acquisitions the next few years.
    • "Faced with a choice of stepping up or stepping it down, we are going to step it down," says McDermott. "If we do something it will be tuck in. It will probably put you to sleep."
    • SAP will close the Concur deal in the next three weeks.
    • Previously: SAP acquiring Concur for $8.3B
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  • Nov. 14, 2014, 2:43 AM
    • SAP (NYSE:SAP) has agreed to pay Oracle (NYSE:ORCL) $359M to settle a long-running legal battle over software copyrights.
    • Oracle filed suit in 2007 alleging that TomorrowNow, a company that SAP had acquired, illegally downloaded Oracle’s software.
    • SAP admitted liability, but the lawsuit dragged on for years over the amount of damages the company should pay.
    | 2 Comments
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Company Description
SAP SE sells licenses for software solutions and related support services. It also offers consulting, training and other services for its software solutions.
Sector: Technology
Country: Germany