SAP Announces Q4 Results for 2019: Meeting All Financial Goals
SAP has announced the 2019 Q4 and yearly earnings results. They reported they reached all expected financial goals and experienced cloud growth over the past 12 months. The results continue to show growth for SAP S/4HANA. This growth mirrors Approyo's growth and aligns with our vision as the premier SAP Platform as a service partner. Visit SAP.com to view the full report.
The total revenue of SAP hit the 8 billion mark in Q4, growing 8 percent (IFRS), up 8 percent (non-IFRS) and up 6 percent (non-IFRS at constant currencies), to reach a total of €8.04 billion. Cloud revenue alone grew 35 percent in Q4, reaching €1.90 billion (IFRS), up 35 percent (non-IFRS) and up 32 percent (non-IFRS at constant currencies). Cloud and software revenue grew to reach €6.85 billion (IFRS), increasing 8% (IFRS), 8% (non-IFRS) and 8%(non-IFRS at constant currencies).
With all of this growth, SAP reported that operating profits decreased by 11% year over year to €2.12 billion (IFRS), up 12 percent (non-IFRS) and up 9 percent (non-IFRS at constant currencies). Software licenses revenue went down by 4 percent year over year to €2.00 billion (IFRS), down 4 percent (non-IFRS) and down 6 percent (non-IFRS at constant currencies).
In 2019 Q4, new cloud bookings were €878 million, up 19 percent (up 17 percent at constant currencies), 10 percent of this was from a single on premise customer. They also experienced 20 percent in growth excluding Infrastructure- as-a-Service (IaaS).
Q4's main segment were in Applications, Technology and Services. The revenue from these segments were up 5 percent to €6.97 billion year-over-year (up 3 percent at constant currencies). The solutions that contributed to this number include SAP S/4HANA, Human Experience Management (HXM), SAP C/4HANA, Business Technology Program, Intelligent Spend Group (ISG), and Qualtrics.
SAP S/4HANA accounted for a large sum of the growth in revenue. In Q4, approximately 1,200 customers were added using SAP S/4HANA. The total of customers currently using the platform grew 24 percent over the entire year, reaching a total of 13,900 customers.
Their main focuses for 2019 were SAP Cloud Growth, Margin Focus and S/4HANA Adoption Power, here are the results for those categories:
New Cloud Bookings Up 25 percent; Up 31 percent Excluding Infrastructure as-a-Service in FY 2019
IFRSCloud Revenue Up 39 percent; Non-IFRS Cloud Revenue Up 40 percent in FY 2019
Cloud and Software as Well as Total Revenue Up 12 percent in FY 2019
Cloud Gross Margin Up 5pp in FY 2019
IFRS Operating Profit Down 21 percent; Non-IFRS Operating Profit Up 15 percent in FY 2019
IFRS Operating Margin Down 6.8pp; Non-IFRS Operating Margin Up 0.8pp in FY 2019
IFRS Earnings per Share Down 18 percent; Non-IFRS Earnings per Share Up 18 percent in FY 2019
2020 Total Revenue and Operating Profit Outlook Increased from Previous 2020 AmbitionGreenhouse Gas Emissions Reduced for the Fifth Year in a Row; On Track for Being Carbon Neutral by 2025
Women Representation in Workforce-34 percent; Women in Management-26 percent, Remains Committed to Goal of 30 percent by 2022
SAP has reported total revenue of €27.55 billion (IFRS) (growth of 12 percent (non-IFRS) and up 9 percent (non-IFRS at constant currencies))
New cloud bookings were €2.27 billion, up 25 percent (up 21 percent at constant currencies) and up 31 percent excluding Infrastructure-as-a- Service (IaaS).
Cloud subscriptions and support backlog increased 23 percent, exceeding €12 billion at year-end. Cloud revenue was €6.93 billion (IFRS) or €6.77 billion (non-IFRS at constant currencies).
Software licenses revenue decreased 2 percent (down 5 percent at constant currencies) year over year to €4.53 billion. New cloud and software license order entry exceeded €11.5 billion and grew by 10 percent year over year (7% at constant currencies). Cloud and software revenue was €23.01 billion (IFRS) or €22.49 billion (non-IFRS at constant currencies).
SAP Reported their 2020 financial ambitions, with a goal of Non-IFRS cloud revenue is expected to increase 24-28 percent, reaching €8.7 − €9.0 billion at constant currencies in 2020. They also predict that the share of more predictable revenue (defined as the total of cloud revenue and software support revenue) is expected to reach approximately 70 percent. More of their 2020 goals are listed in the full press release.