OREANDA-NEWS. April 11, 2016. After an initial review of its first quarter 2016 performance, SAP SE (NYSE: SAP) today announced its preliminary financial results for the first quarter ended March 31, 2016. All 2016 figures in this release are approximate due to the preliminary nature of the announcement.

SAP had strong growth in the cloud, ahead of its mid-term aspirations. First quarter non-IFRS cloud subscriptions and support revenue grew 33% year-over-year (33% at constant currencies) to ˆ0.68 billion. New cloud bookings1) grew a solid 22% (25% at constant currencies) in the first quarter and reached ˆ0.14 billion.

The rapidly growing cloud business together with solid growth in support revenue drove a record share of more predictable revenue. The total of cloud subscriptions & support revenue and software support revenue reached 69% share of total revenue in the first quarter 2016.

The Company had a solid software revenue performance in EMEA and APJ. Continuing political and macroeconomic instability in Latin America, in particular in Brazil, weighed on first quarter performance. North America, coming off a very strong fourth quarter in 2015, had a slower than anticipated start to the year. SAP’s pipeline remains strong across all regions.

SAP S/4HANA momentum continued in the first quarter as customers increasingly embrace the benefits of running simple and real time. SAP added more than 500 S/4HANA customers in the quarter, of which approximately 30% are net new SAP customers. The S/4HANA innovation cycle is contributing significantly to SAP’s global pipeline.

IFRS operating profit was up 28% to ˆ0.81 billion. Non-IFRS operating profit grew 5% to ˆ1.1 billion (4% at constant currencies). IFRS earnings per share increased 37% to ˆ0.48. Non-IFRS earnings per share increased 9% to ˆ0.64.

FINANCIAL HIGHLIGHTS

FIRST QUARTER 2016

 

First Quarter 201611)
 

IFRS

Non-IFRS2)
ˆ billion, unless otherwise stated

Q1 2016

Q1 2015

∆ in %

Q1 2016

Q1 2015

∆ in %

∆ in % const. curr.
New Cloud Bookings

0.14

0.12

22

N/A

N/A

N/A

N/A
Cloud subscriptions and support

0.68

0.50

35

0.68

0.51

33

33
Software licenses

0.61

0.70

–13

0.61

0.70

–13

–10
Software support

2.56

2.45

4

2.56

2.45

5

5
Software licenses and support

3.17

3.15

1

3.17

3.15

1

2
Cloud and software

3.85

3.65

5

3.85

3.66

5

6
Total revenue

4.73

4.50

5

4.73

4.50

5

6
Operating profit

0.81

0.64

28

1.10

1.06

5

4
Operating margin (in %)

17.2

14.2

3.0pp

23.3

23.5

–0.1pp

–0.4pp
Earnings per share, basic (in ˆ)

0.48

0.35

37

0.64

0.58

9

IFRS cloud subscriptions and support revenue was ˆ0.68 billion (2015: ˆ0.50 billion), an increase of 35% . Non-IFRS cloud subscriptions and support revenue was ˆ0.68 billion (2015: ˆ0.51 billion), an increase of 33% (33% at constant currencies). IFRS software licenses revenue was ˆ0.61 billion (2015: ˆ0.70 billion), a decrease of 13%. Non-IFRS software licenses revenue was ˆ0.61 billion (2015: ˆ0.70 billion), a decrease of 13% (10% at constant currencies). IFRS software licenses and support revenue was ˆ3.17 billion (2015: ˆ3.15 billion), an increase of 1%. Non-IFRS software licenses and support revenue was ˆ3.17 billion (2015: ˆ3.15 billion), an increase of 1% (2% at constant currencies). IFRS cloud and software revenue was ˆ3.85 billion (2015: ˆ3.65 billion), an increase of 5% . Non-IFRS cloud and software revenue was ˆ3.85 billion (2015: ˆ3.66 billion), an increase of 5% (6% at constant currencies). IFRS total revenue was ˆ4.73 billion (2015: ˆ4.50 billion), an increase of 5%. Non-IFRS total revenue was ˆ4.73 billion (2015: ˆ4.50 billion), an increase of 5% (6% at constant currencies).

IFRS operating profit was ˆ0.81 billion (2015: ˆ0.64 billion), an increase of 28%. Non-IFRS operating profit was ˆ1.10 billion (2015: ˆ1.06 billion), an increase of 5% (4% at constant currencies). IFRS operating margin was 17.2% (2015: 14.2%, an increase of 3.0 percentage points. Non-IFRS operating margin was 23.3% (2015: 23.5% , a decrease of 0.1 percentage points (0.4 percentage points at constant currencies).

IFRS basic earnings per share was ˆ0.48 (2015: ˆ0.35), an increase of 37%. Non-IFRS basic earnings per share was ˆ0.64 (2015: ˆ0.58), an increase of 9%.

BUSINESS OUTLOOK 2016

The Company reiterates the following 2016 outlook:

  • Based on the continued strong momentum in SAP’s cloud business the Company expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of ˆ2.95 – ˆ3.05 billion at constant currencies (2015: ˆ2.30 billion). The upper end of this range represents a growth rate of 33% at constant currencies.
  • The Company expects full year 2016 non-IFRS cloud and software revenue to increase by 6% – 8% at constant currencies (2015: ˆ17.23 billion).
  • The Company expects full-year 2016 non-IFRS operating profit to be in a range of ˆ6.4 billion – ˆ6.7 billion at constant currencies (2015: ˆ6.35 billion).

The Company will report its complete first quarter 2016 results on April 20th.

Additional Information

For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.

First Quarter 2016 Quarterly Statement
SAP’s first quarter 2016 quarterly statement will be published on April 20, 2016 and will be available for download at www.sap.com/investor.

Webcast
SAP earnings conference call for financial analysts will take place on Wednesday, April 20th at 2:00 PM (CEST) / 1:00 PM (GMT) / 8:00 AM (EDT) / 5:00 AM (PDT). The conference call will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay.

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 300,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

For more information, financial community only:
Stefan Gruber             +49 (6227) 7-44872    investor@sap.com, CET

Follow SAP Investor Relations on Twitter at @sapinvestor.

For more information, press only:
Nicola Leske               +49 (6227) 7-50852    nicola.leske@sap.com, CET
Daniel Reinhardt         +49 (6227) 7-40201    daniel.reinhardt@sap.com, CET
Rajiv Sekhri                +49 (6227) 7-74871    rajiv.sekhri@sap.com, CET

For customers interested in learning more about SAP products:
Global Customer Center:                   +49 180 534-34-24
United States Only:                1 (800) 872-1SAP (1-800-872-1727)

Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV.

# # #

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

© 2016 SAP SE.  All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE.  The information contained herein may be changed without prior notice.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials.  The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any.  Nothing herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries.  Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

1 New cloud bookings consist of order entry of a given period that is expected to be classified as cloud subscription and support revenue and results from purchases by new customers and from incremental purchases by existing customers. Consequently, orders to renew existing contracts are not included. The order amount must be committed. Consequently, due to their pay-per-use nature, business network transaction fees which do not include a committed minimum consumption are not reflected in the bookings metric (e.g. SAP Ariba and SAP Fieldglass transaction-based fees). Amounts included in the measures are generally annualized.