SAP Q3 Earnings Rise Y/Y, Cloud Strength Aids Top-Line Growth
Zacks Investment Research | Oct 20, 2019 11:58PM ET
SAP SE (DE:SAPG) (NYSE:SAP) reported third-quarter 2019 non-IFRS earnings of €1.30 (approximately $1.45) per share, which improved 14% from the year-ago figure. The Zacks Consensus Estimate was pegged at $1.44.
On IFRS basis, the company reported earnings of €1.04 (almost $1.16) per share, up 28% year over year.
Total revenues, on non-IFRS basis, came in at €6.809 billion (around $7.569 billion), up 13% year over year (up 10% at constant currency). The Zacks Consensus Estimate was pegged at $7.570 billion.
On IFRS basis, revenues were €6.791 billion (roughly $7.549 billion), up 13% year over year.
New cloud bookings advanced 39% (34% at cc) to €572 million.
Impressive Cloud Results
On a non-IFRS basis, Cloud and software business (82.9% of total revenues) reported revenues of €5.647 billion, up 13% year over year (up 10% at cc).
Cloud revenues came in at €1.807 billion, up 37% year over year on a non-IFRS basis (33% at cc). Software licenses & support reported revenues of €3.840 billion, up 4% (up 1% at cc).
Cloud revenues — related to Software as a Service (SaaS)/Platform as a Service (PaaS) — surged 34% at cc to €1.582 billion. Cloud revenues — Infrastructure as a Service (IaaS) related — rallied 29% year over year at cc to €170 million.
Services revenues (17.1% of total revenues) improved 15% from the year-ago quarter (up 11% at cc) to €1.162 billion (non-IFRS).
SAP provides collaborative commerce capabilities (Ariba), flexible workforce management (Fieldglass) and effortless travel and expense processing (Concur) under its Intelligent Spend Group (formerly named Business Network). Approximately $3.4 trillion in global commerce is transacted annually through this platform across more than 180 countries.
Segment wise, Applications, Technology & Services (AT&S) revenues increased 9% (6% at cc) to €5,518 billion. Intelligent Spend Group revenues jumped 23% (18% at cc) to €828 million. Moreover, Customer and Experience Management (CXM) revenues were up 75% year over year (69% at cc) to €371 million.
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