SAP does well in EMEA cloud
SAP's fast revenue growth in the cloud continued in the third quarter. New cloud bookings grew by 14% (19% at constant currencies) in the third quarter and reached €302m. IFRS cloud subscriptions and support revenue grew 22% year over year to €937m and non-IFRS cloud subscriptions and support revenue grew 22% year over year (27% at constant currencies) to €938m. IFRS and non-IFRS software revenue was €1.03bn, stable year over year (up 3% at constant currencies).
New cloud and software license order entry grew by 15% year over year in the third quarter. IFRS and non-IFRS cloud and software revenue was €4.66bn, an increase of 5% (8% at constant currencies). SAP's "predictable revenue", i.e. the total of cloud subscriptions & support revenue and software support revenue, was 65% of total revenue, up 1 percentage point year over year.
IFRS operating profit was up 19% to €1.3bn. Non-IFRS operating profit was stable at €1.64bn (up 4% at constant currencies).
SAP had a strong performance in the EMEA region with cloud and software revenue increasing 8% (IFRS) and 9% (non-IFRS constant currencies). Cloud subscriptions and support revenue grew by 42% (IFRS) and 46% (non-IFRS at constant currencies) with an especially strong quarter in Germany and Spain. In addition, SAP had strong double-digit software revenue growth in Germany, Russia and the Middle East & North Africa (MENA) region.
The Company is raising its outlook for the full year 2017: Based on the strong momentum in SAP's cloud business, the Company continues to expect full year 2017 non-IFRS cloud subscriptions and support revenue to be in a range of €3.8bn to €4.0bn at constant currencies (2016: €2.99bn).