SAP cloud services soar to €2.3bn in 2015
End-of-year financial results see SAP’s cloud services double in revenue
Enterprise software supplier SAP announced its fourth quarter and full year 2015 financial findings, which showed exceptional momentum in cloud and its core license business.
The results revealed, overall, cloud subscriptions and support backing, a lead indicator for its cloud growth, increased by 45%, reaching €3.7bn at its year-end. Furthermore, for the full year, non-IFRS cloud and software revenue grew by 20% or 12% at constant currencies and exceeded the outlook of 8-10% growth at constant currencies.
Also, non-IRFRS cloud subscriptions and support revenue was €2.3bn, contributing as 11% of its overall revenue for 2015 financial year of €20.8bn.
However, new cloud bookings drove SAP's sales success in the cloud, as it increased to 103% in 2015 to €883m and 75% in the fourth quarter to €344m.
"Our tremendous 2015 results validate our strategy of innovating across the core, the cloud, and business networks to help our customers become true digital enterprises," said Luka Mucic, CFO of SAP.
In its fourth quarter, adoption of its enterprise resource planning system S/4HANA soared, resulting doubling the number of its customers. By the end of 2015, S/4HANA attracted more than 2,700 customers across all regions.
"Our strength in 2015 shows that the SAP S/4HANA innovation cycle is well underway," said Bill McDermott, CEO of SAP. "Our completeness of vision in the cloud has distinguished SAP from both legacy players and point solution providers. We beat on cloud and software, we beat on operating income, and we are ever confident that SAP will remain a profitable growth business well into the future."
Mucic added: "We have transformed our company and made it leaner by shifting investments from noncore activities to strategic growth areas, enabling us to capture the tremendous growth opportunities in the market. This puts us on a strong path for the future, reflected in an increase of our 2017 ambition."
SAP aims to target up to €4.0bn non-IFRS cloud subscriptions and support revenue by 2017.