SAP shares fell slightly, even as it reported Q4 revenue of €7.43bn, beating expectations. Full year new cloud bookings were €1.81bn, up 25% (up 28% at constant currencies). Cloud subscriptions and support backlog increased 30%, reaching €10bn at year-end. It now says it will have total sales of €35 bn in Total Revenue by 2023 with cloud revenue tripling by then.
“SAP remains a beacon of growth and stability. New order entry surged 18% in Q4, taking the total for the full year to over €10 billion for the first time ever. This stellar business momentum sets us up perfectly for continued strong profitable growth in 2019 and beyond, while we expect our cloud growth will continue to outperform our business software cloud peers,” says Luka Mucic (pictured), CFO.
SAP had a solid performance in the EMEA region with cloud and software revenue increasing 6% (IFRS) and 7% (non-IFRS at constant currencies). Cloud subscriptions and support revenue was strong and grew by 40% (IFRS) and 39% (non-IFRS at constant currencies) with Germany, Spain and Middle East and Africa being highlights. In addition, SAP had strong software revenue growth in the UK, Italy and Sweden. It reported “exceptional performance” in the Americas region where cloud and software revenue increased by14% (IFRS) and increased by 20% (non-IFRS at constant currencies). Cloud subscriptions and support revenue increased by 41% (IFRS) and 38% (non-IFRS at constant currencies).
