SAP CFO says pipeline looks very healthy

Europe’s largest software maker reported total revenue €4.97bn ($5.38bn), up 20 per cent from €4.15bn, or 8 per cent excluding currency effects.

On non-IFRS basis, profit after tax grew 2 percent to 960 million euros.

The total revenue of the company upped twenty percent Ä4.97 billion.

German business software maker SAP AG ( SAP ) Tuesday said its second-quarter profit declined from the prior year, while revenues climbed 20 percent with growth in Cloud and software as well as Software licenses and support revenues.

Revenues from cloud subscriptions and support surged 129 percent to 552 million euros.

SAP’s pure cloud-based rival Salesforce.com reported a profit for the first time in seven quarters in May and raised its revenue forecast for the full year.

New cloud bookings for Customer Engagement and Commerce once again saw strong triple digit growth, the company said. Without currency effects, software licenses grew 3 percent. “Our pipeline across cloud and software is looking very healthy for the second half”.

“I am confident that our strategy to deliver a platform, applications and business networks is exactly what customers need from SAP”. Our business is thriving because we have the most complete vision for how to make this transition to digital business a simple one. S/4HANA’s robust early traction – more than 900 SAP S/4HANA customers by the end of the second quarter compared to over 370 at the end of the first quarter.

The net attributable profit in the Q2 that ended on 30 June was Ä471 million approximately $510.4 million which was lower than last year’s Ä557 million reported last year during the same period.

With the operating margin, excluding special items, falling to 28.0 percent from 29.8 percent a year ago, the result was underlying operating profit at the bottom end of expectations – up just 1 percent at constant currencies to 1.39 billion euros. Full year 2015 non-IFRS cloud and software revenue are expected to increase by 8-10 percent at constant currencies. SAP expects full-year 2015 non-IFRS cloud subscriptions and support revenue to be in a range of €1.95 – €2.05 billion at constant currencies, rising from €1.10 billion in 2014 and representing a growth rate of 86 percent.