SAP Clocks 11% Revenue In Q1 Growth Backed By Cloud, SAP S/4HANA - SAP (NYSE:SAP)

SAP SE SAP reported first-quarter FY22 Non-IFRS revenue growth of 7% year-on-year to €6.81 billion at constant currencies. Total revenue of €7.08 billion improved 11% Y/Y.
Cloud revenue increased 25% Y/Y to €2.69 billion at CC. S/4HANA cloud revenue grew 71% Y/Y to €404 million at CC.
Software licenses and support revenue declined 4% Y/Y to €3.14 billion at CC. Cloud and software revenue increased 7% Y/Y to €5.83 billion at CC. Services revenue grew 7% Y/Y at €979 million at CC.
The current cloud backlog was up 23% year-on-year to €9.73 billion at CC. S/4HANA's current cloud backlog rose 79% Y/Y to €1.93 billion at CC.
The non-IFRS operating margin contracted 370 bps to 23.7% at CC. Non-IFRS EPS was €1.00.
CEO Christian Klein said: "Customers powered another quarter of strong cloud growth as they turned to us for solutions to make their businesses more sustainable, their supply chains more resilient, and their enterprises more future-proof. Our signature ERP offering SAP S/4HANA grew at record levels demonstrating the confidence customers place in us to support their business transformations."
Outlook: SAP reaffirmed the 2022 outlook for revenue, non-IFRS operating profit, and free cash flow.
SAP sees FY22 cloud revenue at CC of €11.55 billion – €11.85 billion.
SAP expects FY22 cloud and software revenue at CC of €25 billion – €25.5 billion.
Price Action: SAP shares traded lower by 2.07% at $104.14 in premarket on the last check Friday.