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January 20, 2015updated 21 Oct 2016 5:36pm

SAP cuts projections but says cloud is bursting

SAPs fourth quarter and full year results

By Sam

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%.

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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."

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