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SAP

SAP’s Cloud Adoption Raises Financial Outlook

SAP’s Cloud Adoption Raises Financial Outlook
The Siliconreview
20 July, 2018

Recently SAP was able to beat Wall Street expectations as cloud business revenue continues to elevate. SAP has certainly raised the firm’s financial outlook for the second quarter of 2018. The total revenue was reported as $6.95 billion or €6.014 billion non – IFRS. The company reports earnings per share of €0.60 IFRS with an increase of eight percent year over year. In non-IFRS it comes down to €0.98.

Around 13 percent was increased in operating profits based on IFRS that equals to €104 billion Euros and also non-IFRS was reported as €164 billion Euros. We have also seen cloud bookings growing up to 24 percent to 29 percent at constant currencies. Cloud subscription and support revenue gradually grew for up to 30 percent with 40 percent of non-IFRS.

Currently, SAP has announced the expectation of positive impact on the revenue from the adoption of IFRS 15 this year. Also, in Q2, SAP has enjoyed an increasing number in operating profit of approximately 54 Euros because of IFRS 15.

With the end of six months in 2018, the earnings per share were €120 IFRS, in that based on the total revenue it was about €11.266 billion with a profit that came after the tax was €1.428 billion.

For the second half of 2018, SAP has already updated the firm’s outlook. Not to mention the company even mentioned it has plans that will extend to 2020. SAP has expectations that non-IFRS results in 2020 will reach €28 to €29 billion in total revenue and €8.5 to €9.0 billion in operating profit.