SAP said it had another solid performance in EMEA, despite the macroeconomic conditions weighing on the business in Russia and Ukraine. Non-IFRS software and software-related service revenue increased 5% (5% at constant currencies) with a strong software revenue performance in the UK. Non-IFRS cloud subscriptions and support revenue in EMEA grew 85% (75% at constant currencies).
Read the interview with Franck Cohen, President SAP EMEA.
Globally software and software-related service revenue grew 7% at constant currencies (6% at actual currencies to €14.87 billion) achieving the full year target of 6% – 8% growth at constant currencies. Read the prelimiary figures.
Non-IFRS operating profit increased by 3% at constant currencies to €5.63 billion (3% at actual currencies to €5.64 billion), achieving the full year outlook of €5.6 – €5.8 billion at constant currencies.
SAP declared itself as the fastest growing enterprise cloud company at scale,. It said fourth quarter non-IFRS cloud subscriptions and support revenue increasing 72% year-over-year (59% at constant currencies). The annual total cloud revenue run rate now exceeds €1.7 billion) or $2.0 billion)
Non-IFRS calculated cloud billings increased 104% (78% at constant currencies) in the fourth quarter(5). Non-IFRS deferred cloud subscriptions and support revenue was €699 million as of December 31, 2014, a year-over-year increase of 56% (40% at constant currencies)(6).
The Company’s cloud subscriptions and support backlog as of December 31, 2014 was €2.3 billion, a year-over-year increase of 94%.
By 2017 it expects operating profit of 6.3 billion to 7 billion euros with revenues of 21 to 22 billion euros.
"We are in a market-share game," SAP Chief Executive Bill McDermott said. "The more users and the more scale and reach you get, ultimately the more you win on the back-end when you have high renewal rates."
