WALLDORF, Germany, April 13, 2021 /PRNewswire/ --
- IFRS Cloud Revenue Up 7%; Non-IFRS Cloud Revenue Up 13% At
Constant Currencies
- IFRS Software Licenses Revenue Up 7%; Non-IFRS Software
Licenses Revenue Up 11% At Constant Currencies, Fastest Growth in
Five Years
- IFRS Cloud & Software Revenue Up 1%; Non-IFRS Cloud &
Software Revenue Up 6% At Constant Currencies
- IFRS Operating Profit Down 21%; Non-IFRS Operating Profit
Sharply Up 24% At Constant Currencies
- IFRS Operating Margin Down 3.4pp; Non-IFRS Operating Margin Up
4.9pp At Constant Currencies
- IFRS EPS Up 29%; Non-IFRS EPS Up 63%
- Raises Full-Year Outlook
"We are seeing very strong growth across all our applications.
And we are just getting started. Our new offering 'RISE with SAP'
is rapidly becoming a massive accelerator to our customers'
business transformations with our platform at the center. Together
with our unique ecosystem of more than 22,000 partners and with a
strong innovation pipeline for the year, we are well on track with
our strategy to deliver robust cloud growth."
Christian Klein,
CEO
"The first quarter of 2021 was unique in many ways. We had the
highest order entry growth across cloud and software in five years
while posting the strongest increase in Non-IFRS operating profit
and margin in a decade. In the mid term SAP's expedited shift to
the cloud will accelerate topline growth and significantly increase
the resiliency and predictability of our business."
Luka Mucic, CFO
First Quarter Business Update
After an initial review of its first quarter 2021 performance,
SAP SE (NYSE: SAP) today announced its preliminary financial
results for the first quarter ended March
31, 2021. All 2021 figures in this release are approximate
due to the preliminary nature of the announcement.
SAP saw a sharp acceleration in new cloud business across its
cloud portfolio, as well as a strong start for 'RISE with SAP'
which is driving customers' business transformation in the cloud.
Software licenses had strong, double-digit growth at constant
currencies. SAP had significant competitive wins in ERP, digital
supply chain and across its broader cloud solution portfolio.
Despite the continued impact of global travel restrictions on
Concur's business, SAP's cloud revenue growth was resilient in the
first quarter, up 13% at constant currencies. SaaS/PaaS cloud
revenue outside the Intelligent Spend business was up 24% at
constant currencies. Looking forward, SAP's strong new cloud
business performance is expected to reaccelerate cloud revenue
growth.
Throughout the COVID-19 crisis, SAP continues to serve its
customers effectively with an embedded virtual sales and remote
implementation strategy. The company retains a disciplined
approach to hiring and discretionary spend while capturing natural
savings e.g. from lower travel, facility-related costs and virtual
events. The prior year included a cost of approximately €36 million
in relation to the cancellation of its in-person annual SAPPHIRE
NOW and other customer events, as well as normal travel behavior.
These factors in combination with the strong topline performance
drove materially higher operating profit (non-IFRS at constant
currencies) and operating margin both of which were significantly
above market expectations.
First Quarter Financial Performance
Current cloud backlog was up 15% to €7.63 billion and up 19% (at
constant currencies). Cloud revenue was up 7% year over year to
€2.14 billion (IFRS), up 7% to €2.15 billion (non-IFRS) and up 13%
(non-IFRS at constant currencies). Software licenses revenue was up
7% year over year to €0.48 billion (IFRS and non-IFRS) and up 11%
(non-IFRS at constant currencies). Cloud and software revenue was
up 1% to €5.43 billion (IFRS and non-IFRS) and up 6% (non-IFRS at
constant currencies). Services revenue was down 18% year over year
to €0.9 billion (IFRS and non-IFRS) and down 14% (non-IFRS at
constant currencies). This revenue decline reflects the
November 2020 divestiture of SAP
Digital Interconnect, which contributed approximately €90 million
of services revenue (IFRS and non-IFRS) in the first quarter of
2020. Total revenue was down 3% year over year to €6.35 billion
(IFRS and non-IFRS) and up 2% (non-IFRS at constant
currencies).
The share of more predictable revenue1 grew by
approximately 2 percentage points year over year to approximately
78% in the first quarter.
IFRS operating profit decreased 21% to €0.96 billion and IFRS
operating margin decreased by 3.4 percentage points to 15.1% due to
higher share-based compensation expenses (primarily related to
Qualtrics IPO awards) and restructuring expenses related to the
accelerated harmonization of SAP's cloud delivery infrastructure.
Non-IFRS operating profit increased 17% to €1.74 billion, up 24%
(non-IFRS at constant currencies) and operating margin increased by
4.7 percentage points to 27.4%, up 4.9 percentage points (non-IFRS
at constant currencies).
Earnings per share increased 29% to €0.88 (IFRS) and increased
63% to €1.40 (non-IFRS) reflecting another strong contribution from
Sapphire Ventures.
1 Share of more predictable revenue is the total
of non-IFRS cloud revenue and non-IFRS software support revenue as
a percentage of total revenue.
Financial Results at a Glance
First Quarter 2021
|
IFRS
|
Non-IFRS1)
|
€ billion, unless
otherwise stated
|
Q1 2021
|
Q1 2020
|
∆ in %
|
Q1 2021
|
Q1 2020
|
∆ in %
|
∆ in %
constant
currency
|
Current Cloud
Backlog2)
|
NA
|
NA
|
NA
|
7.63
|
6.63
|
15
|
19
|
Cloud
revenue
|
2.14
|
2.01
|
7
|
2.15
|
2.01
|
7
|
13
|
Software licenses
revenue
|
0.48
|
0.45
|
7
|
0.48
|
0.45
|
7
|
11
|
Software support
revenue
|
2.80
|
2.93
|
–5
|
2.80
|
2.93
|
–5
|
0
|
Software licenses and
support revenue
|
3.28
|
3.39
|
–3
|
3.28
|
3.39
|
–3
|
1
|
Cloud and software
revenue
|
5.43
|
5.40
|
1
|
5.43
|
5.40
|
1
|
6
|
Total
revenue
|
6.35
|
6.52
|
–3
|
6.35
|
6.52
|
–3
|
2
|
Share of more
predictable revenue (in %)
|
78
|
76
|
2pp
|
78
|
76
|
2pp
|
|
Operating profit
(loss)
|
0.96
|
1.21
|
–21
|
1.74
|
1.48
|
17
|
24
|
Profit (loss) after
tax
|
1.07
|
0.81
|
32
|
1.72
|
1.01
|
70
|
|
Operating margin (in
%)
|
15.1
|
18.6
|
–3.4pp
|
27.4
|
22.7
|
4.7pp
|
4.9pp
|
Basic earnings per
share (in €)
|
0.88
|
0.68
|
29
|
1.40
|
0.85
|
63
|
|
Number of employees
(FTE, March 31)
|
103,142
|
101,150
|
2
|
NA
|
NA
|
NA
|
NA
|
|
1) For a detailed description of
SAP's non-IFRS measures Explanation of Non-IFRS
Measures online.
|
2) As
this is an order entry metric, there is no IFRS
equivalent.
|
|
All figures are
preliminary and unaudited. Due to rounding, numbers may not add up
precisely.
|
Non-IFRS Adjustments
The total difference between non-IFRS revenue metrics and the
respective IFRS revenue metrics results from adjusting the impact
of business combination fair value accounting. In the first
quarter, the difference between non-IFRS operating profit and IFRS
operating profit includes, in addition to the revenue adjustments
of €0.00 billion (Q1 2020: €0.00 billion),
- adjustments for acquisition-related charges of €0.15 billion
(Q1 2020: €0.16 billion),
- adjustments for share-based payment expenses of €0.47 billion
(Q1 2020: €0.09 billion) and
- adjustments for restructuring expenses of €0.16 billion (Q1
2020: €0.02 billion).
For more details on the individual adjusted expense and revenue
categories, our reasons for providing non-IFRS measures and the
limitations of our non-IFRS measures please refer to Explanation of
Non-IFRS Measures.
Business Outlook
SAP raises its full-year 2021 outlook reflecting the strong new
cloud business performance which is expected to reaccelerate cloud
revenue growth. The Company continues to expect a software licenses
revenue decline for the full year as more customers turn to the
"RISE with SAP" subscription offering for their mission-critical
core processes. This outlook also continues to assume the COVID-19
crisis will begin to recede as vaccine programs roll out globally,
leading to a gradually improving global demand environment in the
second half of 2021.
SAP now expects:
- €9.2 – 9.5 billion non-IFRS cloud revenue at constant
currencies (2020: €8.09 billion), up 14% to 18% at constant
currencies. The previous range was €9.1 – 9.5 billion at constant
currencies.
- €23.4 – 23.8 billion non-IFRS cloud and software revenue at
constant currencies (2020: €23.23 billion), up 1% to 2% at constant
currencies. The previous range was €23.3 – 23.8 billion at constant
currencies.
- €7.8 – 8.2 billion non-IFRS operating profit at constant
currencies (2020: €8.28 billion), down 1% to 6% at constant
currencies.
- The share of more predictable revenue (defined as the total of
cloud revenue and software support revenue) to reach approximately
75% (2020: 72%).
Additional Information
This press release and all information therein is preliminary
and unaudited.
First Quarter 2021 Quarterly Statement
SAP's first quarter 2021 quarterly statement will be published
on April 22, 2021 and will be
available for download at www.sap.com/investor.
Webcast
SAP senior management will host a financial analyst conference
call on Thursday, April 22nd at
2:00 PM (CET) / 1:00 PM (GMT) / 8:00
AM (Eastern) / 5:00 AM
(Pacific), The conference will be webcast live on the Company's
website at www.sap.com/investor and will be available for replay.
Supplementary financial information pertaining to the first quarter
results can be found at www.sap.com/investor.
About SAP
SAP's strategy is to help every business run as an intelligent
enterprise. As a market leader in enterprise application software,
we help companies of all sizes and in all industries run at their
best: 77% of the world's transaction revenue touches an SAP®
system. Our machine learning, Internet of Things (IoT), and
advanced analytics technologies help turn customers' businesses
into intelligent enterprises. SAP helps give people and
organizations deep business insight and fosters collaboration that
helps them stay ahead of their competition. We simplify technology
for companies so they can consume our software the way they want –
without disruption. Our end-to-end suite of applications and
services enables business and public customers across 25 industries
globally to operate profitably, adapt continuously, and make a
difference. With a global network of customers, partners,
employees, and thought leaders, SAP helps the world run better and
improve people's lives. For more information, visit
http://www.sap.com.
For customers interested in learning more about SAP
products:
Global Customer Center: +49 180 534-34-24
United States Only: +1 (800) 872-1SAP (+1-800-872-1727)
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