SAP reports Q2 cloud revenue up 40%, with cloud gross margin up 4 percentage points
Cloud & software revenue and total revenue were up 11% in total as the software company had a solid performance in the EMEA region with cloud and software revenue increasing 9% (IFRS) and 8% (non-IFRS at constant currencies). Cloud revenue increased 46% (IFRS) and 44% (non-IFRS at constant currencies) with Germany and Spain being highlights. In addition, Germany had a solid quarter in software license revenue. France and Italy had a strong quarter in software license revenue.
“SAP delivered double digit growth in total revenue, cloud revenue and non-IFRS operating income. Qualtrics is growing fast as the global standard in the Experience Management category. As shown by our rising cloud gross margins, we are progressing nicely on our ambition to be the Best-Run SAP. With XM driving the CEO digital transformation agenda, we resolutely reaffirm our full year guidance,” says Bill McDermott, CEO.
Looking forward beyond 2019, SAP says it continues to expect:
- · €8.6 − €9.1 billion non-IFRS cloud revenue
- · €28.6 − €29.2 billion non-IFRS total revenue
- · The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) in a range of 70% − 75%
- · €8.8 – €9.1 billion non-IFRS operating profit