Cloud, mobile, HANA help SAP boost Q2 revenue

Margins were however hit by the SuccessFactor acquisition, severance expenses, and new hires

SAP's revenue for the second quarter grew 18 percent over the same quarter last year to ¬3.9 billion (US$4.9 billion) following record software revenue of over ¬1 billion, it reported on Tuesday.

The business software company in Walldorf, Germany, said all regions posted double-digit software revenue gains, while demand for SAP's new offerings continued to grow.

SAP said it benefited in the cloud market from its February acquisition of cloud software company SuccessFactors, leading to a 112 percent increase year-on-year in 12 month new and upsell subscription billings for SuccessFactors on a stand-alone basis. Cloud revenue was ¬69 million in the quarter.

The company said it recorded ¬85 million in business from its in-memory platform HANA in the quarter, putting it on track to meet its forecast of at least ¬320 million for the year. Mobile revenue was ¬54 million against a target of ¬220 million for the year.

In line with preliminary estimates released earlier this month, SAP said its software revenue according to international financial reporting standards (IFRS) was about ¬1.06 billion, up by 26 percent from the same quarter last year, while software and software-related service revenue was up 21 percent to ¬3.12 billion.

The second quarter figures include revenue, profit and cash flows from SuccessFactors which were not included in the second quarter last year.

Net profit was ¬661 million up 12 percent from a year ago.

The company said it had reached the upper end of its second quarter software revenue guidance range and was at the mid-point of the guidance range for software and software-related service revenue.

Operating margins were however down at 23.6 percent from 26 percent a year earlier, because of severance expenses, the acquisition of SuccessFactors, and an increase in headcount.

The company had 60,972 employees at the end of the quarter, up by 13 percent from the same quarter last year. Some of these came from acquisitions.

SAP has forecast full-year 2012 non-IFRS software and software-related service revenue to increase in the range of 10 to 12 percent at constant currencies, which includes a contribution of up to 2 percentage points from the SuccessFactors' business.

The company expects full-year 2012 non-IFRS operating profit to be in the range of ¬5.05 billion to ¬5.25 billion at constant currencies, which is expected to be in a similar range if SuccessFactors is excluded.

SAP said it was on track to achieve its 2015 goals, which includes a revenue target of ¬20 billion.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?