SAP’s 2014 preliminary cloud revenue grows by 45% to €1.1bn

SAP’s preliminary 2014 financial results indicate total revenue of €17.58bn, of which €1.1bn was cloud subscriptions and support

SAP’s preliminary full-year 2014 financial results indicate total revenue of €17.58bn, of which €1.1bn was cloud subscriptions and support.

This 6.25% of overall revenue represents 45% growth over 2013. Further, the fourth quarter of 2014 saw 72% growth in cloud revenue compared with the fourth quarter of 2013. 

These figures are SAP’s non-international financial reporting standards (IFRS) measures, which it leans on for reporting to financial markets. As preliminary results, they are as yet unaudited.

The company described itself as the fastest growing enterprise cloud company at scale – compared with peers with more than €1bn in annual cloud revenue. 

"The annual cloud revenue run rate now exceeds €1.7bn  or $2bn,” it said..

SAP stated its in-memory database and software platform Hana had another great quarter and continues to be a major growth engine for the supplier. "Customer adoption this quarter was once again a highlight,” it said.

SAP CEO Bill McDermott (pictured) said the company's cloud business has the most users in the world. 

"With the widespread adoption of the SAP Hana platform, 2015 is all about accelerating the introduction of next-generation applications,” he said.

SAP CFO Luka Mucic said operating profit increased year on year, even as the business stepped up investments in the cloud in response to higher than expected demand for its new cloud offerings. 

"With the powerful shift to the cloud and our growing support revenues we are building a larger, more predictable business over the long term,” he added.

Non-IFRS operating profit was €5.6bn, up by 3% on 2013.

Cloud business acquisitions Fieldglass and Concur contributed €50m and €45m respectively to the supplier’s revenue that comes from the cloud.

The company will report its fourth-quarter and full-year 2014 audited results on 20 January 2015, including the outlook for the next year.

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