Market Overview

SAP Pre-Announces Outstanding Third Quarter Results

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WALLDORF, Germany, Oct. 10, 2019 /PRNewswire/ -- After an initial review of its third quarter 2019 performance, SAP SE (NYSE:SAP) today announced its preliminary financial results for the third quarter ended September 30, 2019. All 2019 figures in this release are approximate due to the preliminary nature of the announcement.

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Financial Highlights

In the third quarter, new cloud bookings were up 38% (33% at constant currencies) and up 50% excluding Infrastructure-as-a-Service (IaaS). A cloud deal with a major partner contributed 17 percentage points to Q3 new cloud bookings growth. The deal has a term of 3 years, with revenue recognition starting in the fourth quarter 2019.

Cloud revenue grew 37% year over year to €1.79 billion (IFRS), up 37% (non-IFRS) and 33% (non-IFRS at constant currencies). Software licenses revenue was down 1% year over year to €0.93 billion (IFRS), down 1% (non-IFRS) and down 4% (non-IFRS at constant currencies). Cloud and software revenue grew 12% year over year to €5.63 billion (IFRS), up 13% (non-IFRS) and 10% (non-IFRS at constant currencies). Total revenue grew 13% year over year to €6.79 billion (IFRS), up 13% (non-IFRS) and 10% (non-IFRS at constant currencies).

Adding more than 500 customers in the quarter, SAP S/4HANA adoption grew to more than 12,000 customers, up 25% year-over-year.

The share of more predictable revenue grew by 2 percentage points year-over-year to 69% in the third quarter.

Cloud gross margin increased 5.9 percentage points year over year to 64.5% (IFRS) and increased by 5.4 percentage points year over year to 69.0% (non-IFRS) and 5.5 percentage points to 69.0% (non-IFRS at constant currencies).

Operating profit increased 36% year over year to €1.68 billion (IFRS), up 20% (non-IFRS) and up 15% (non-IFRS at constant currencies). Operating margin increased 4.2 percentage points year over year to 24.7% (IFRS) and expanded by 1.7 percentage points year over year to 30.6% (non-IFRS) and 1.5 percentage points to 30.4% (non-IFRS at constant currencies).

Earnings per share was up 28% to €1.04 (IFRS) and up 14% to €1.30 (non-IFRS).

Financial Results at a Glance

Third Quarter 2019


IFRS

Non-IFRS1)

€ billion, unless otherwise stated

Q3 2019

Q3 2018

∆ in %

Q3 2019

Q3 2018

∆ in %

∆ in %
constant
currency

New Cloud Bookings2)

NA

NA

NA

0.57

0.41

38

33

Cloud revenue

1.79

1.30

37

1.81

1.31

37

33

Software licenses revenue

0.93

0.94

–1

0.93

0.94

–1

–4

Software support revenue

2.91

2.76

5

2.91

2.77

5

3

Software licenses and support revenue

3.84

3.70

4

3.84

3.70

4

1

Cloud and software revenue

5.63

5.01

12

5.65

5.02

13

10

Total revenue

6.79

6.02

13

6.81

6.03

13

10

Share of more predictable revenue (in %)

69

68

2pp

69

68

2pp


Operating profit (loss)

1.68

1.24

36

2.09

1.74

20

15

Profit (loss) after tax

1.26

0.97

30

1.56

1.36

15


Operating margin (in %)

24.7

20.5

4.2pp

30.6

28.9

1.7pp

1.5pp

Basic earnings per share (in €)

1.04

0.81

28

1.30

1.14

14


Number of employees (FTE, September 30)

99,710

94,989

5

NA

NA

NA

NA


1) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online.

2) As this is an order entry metric, there is no IFRS equivalent.


All figures are preliminary and unaudited. Due to rounding, numbers may not add up precisely.

Year-to-Date 2019


IFRS

Non-IFRS1)

€ billion, unless otherwise stated

Q1–Q3

2019

Q1–Q3

2018

∆ in %

Q1–Q3

2019

Q1–Q3

2018

∆ in %

∆ in %
constant
currency

New Cloud Bookings2)

NA

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