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SAP Q1 2017 results: cloud revenue €906m, 5,800 customers for S/4
SAP has announced €5.29bn in first quarter 2017 revenue, of which €906m was for cloud subscription and support, 17% of the total. Supplier adds 400 S/4 Hana customer in quarter
SAP has announced €5.29bn in first quarter 2017 revenue, of which €906m was for cloud subscription and support, or 17% of the total.
This compares with €4.73bn top-line revenue in the same quarter last year, an increase of 12% – and an increase in cloud revenue of €228m, up by 34% on the Q1 2016 figure of €678m.
The supplier’s enterprise resource planning (ERP) system S/4 Hana, based on its own in-memory columnar database, has been taken up by more customers. It now has 5,800 customers, up from 5,400 in the closing quarter of 2016.
In a statement, the supplier said almost 50% of the new customers were net new to SAP, and cited German energy company Innogy as a new customer. It also said Citrix has chosen the cloud version of S/4.
In the same statement, CEO Bill McDermott said: “Our first quarter results are a decisive follow-on to our record-setting 2016. Led by S/4 Hana, we are seeing mass customer adoption of our solutions globally.”
Luka Mucic, chief financial officer, said: “We continued our rapid expansion in cloud, accelerating to 49% growth in new cloud bookings.”
Operating profit was almost €1.2bn, compared with €1.1bn in Q1 2016, which saw an increase of 9%, and the same operating margin, 23% as in Q1 2016.
In the Europe, Middle East and Africa (EMEA) region, cloud and software revenue was reported to have increased by 10% to €1.8bn, while cloud subscriptions and support revenue grew 43% to €229m. The supplier said its performance was an “especially strong quarter in Germany, France and Italy”.
Read more about enterprise software results
- SAP declares full-year 2016 revenue of €22bn, of which nearly €3bn was cloud – almost 14%.
- Oracle’s third-quarter results for fiscal year 2017 show 2% growth in overall revenue, with cloud representing 13% of the total. Executives are bullish on cloud ERP growth prospects.
- Cloud computing is making significant contributions to driving the revenues for companies in the technology sector, according to quarterly results posted by Alphabet, Microsoft and Intel.
In the Americas, the company reported cloud and software revenue growing by 12% to €1.7bn, less than EMEA, while cloud subscriptions and support revenue was up 27% to €561m, ahead of EMEA.
In Asia Pacific and Japan, cloud and software revenue was reported up 21% with cloud subscriptions and support revenue growing by 65%. Japan and India were said to be “highlights in the quarter with strong results in both cloud subscriptions and software revenue.
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