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Tue, Jan. 20, 6:06 AM
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.
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.
Oct. 20, 2014, 4:29 AM
- SAP (NYSE:SAP) cut its outlook for full-year operating profit as customers moved to cloud-based software rather than packaged software, delaying recognition of those sales.
- The company now expects 2014 operating profit, excluding some special items of €5.6B-5.8B ($7.1B-7.4B), down from 5.8B-6B previously.
- Despite cutting its outlook, SAP reported €880M in net profit for the period ended Sept. 30 vs. €762M for the same period a year ago. Total revenue rose 5% to €4.3B from €4.1B a year earlier.
- SAP -4.8% premarket
Oct. 19, 2014, 5:30 PM
Jul. 17, 2014, 10:20 AM
- Though SAP (SAP +2%) missed Q2 revenue estimates (while beating on EPS), it's reiterating its forecast for 6%-8% constant currency software and software-related service revenue growth. Cloud subscription/support revenue is now expected to make up €1B-€1.05B of that total, up from €950M-€1B.
- 2014 constant op. profit guidance of €5.8B-€6B is being reiterated. If currency rates remain at June levels, forex is expected to have a 2% 2014 impact on revenue and op. profit growth.
- Cloud subscription/support revenue rose 32% Y/Y (to €242M) in Q2, even with Q1's clip. Traditional software license revenue (hurt by cloud competition) fell 2% (to €957M), an improvement from Q1's 5% decline. Support revenue (based on past deals, fairly stable) rose 4% (to €2.28B) vs. 5% in Q1.
- Cost controls helped drive the EPS beat: Opex only rose fractionally Y/Y to €2.92B, even as headcount rose 4% to 67,651.
- SAP's annual cloud revenue run rate rose to ~€1.2B from ~€1.1B at the end of Q1. ~1.2K customers are now running its core Business Suite on top of the Hana in-memory database (up from ~1K), and there are ~3.6K Hana customers altogether (up from ~3.2K). Deferred cloud subscription/support revenue rose 29% Y/Y to €448M.
- Q1 results, PR
Jul. 17, 2014, 6:16 AM
Jul. 16, 2014, 5:30 PM
Apr. 17, 2014, 11:42 AM
- Though SAP's (SAP -2.1%) non-IFRS cloud subscription/support revenue rose 32% Y/Y in Q1 (even with Q4's rate) to €221M, its traditional software license revenue fell 5% to €623M after growing 1% in Q4.
- Much like archrival Oracle's 2013 license revenue misses, the latter figure is bound to trigger fears about the impact of cloud software competition.
- Support revenue (driven by software licenses, relatively steady) rose 5% Y/Y to €2.21B, and all other revenue fell 8% to €643M. Opex rose just 2% Y/Y.
- A strong euro took a toll: Whereas revenue and op. profit each rose 2% Y/Y at current exchange rates, they've would've risen 6% and 7% at constant currency. SAP expects a similar forex impact for the whole of 2014.
- SAP now has 3.2K+ Hana customers, up from 3K+ at the end of 2013, and nearly 1K customers now run its core Business Suite on Hana (up from 800). But no Hana revenue figure is given; Hana revenue rose 61% in 2013 to €633M.
- Cloud billings rose 23% Y/Y to €228M (36% exc. forex), and the cloud deferred revenue balance 20% to €454M (29% exc. forex).
- In spite of the Q1 miss, SAP is reiterating its full-year revenue and op. profit forecasts.
- Q1 results, PR
Apr. 17, 2014, 6:10 AM
Apr. 17, 2014, 12:05 AM
Apr. 16, 2014, 5:30 PM
Jan. 21, 2014, 5:44 AM
Jan. 21, 2014, 2:06 AM
- SAP (SAP) expects 2014 adjusted operating profit of €5.8-6B vs €5.9B in 2013 and consensus of €6.06B.
- The company also forecasts that revenue from software and software-related services will increase 6-8% after four years of double-digit growth.
- SAP has put back its profit goals by two years as part of its transition to cloud-based services from its traditional licensing model. "We choose not to harvest the margin in the short run but to go for share in the cloud," co-CEO Bill McDermott says.
- SAP now expects its adjusted operating profit to reach 35% of sales by 2017 rather than by 2015. The company also predicts that sales will rise to at least €22B ($30B), with cloud revenue €3-3.5B. SAP may make acquisitions in order to hit the cloud target.
- See SAP full-year earnings. (PR)
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