Menu
SAP reports strong revenue growth from HANA and cloud

SAP reports strong revenue growth from HANA and cloud

The company's software revenue, however, dipped 5 percent

SAP reported strong revenue growth in its HANA in-memory database and cloud businesses, but also saw revenue from software decline in the third quarter.

The company said Monday that its revenue in the quarter was up 2 percent year-on-year to €4 billion (US$5.4 billion), according to IFRS (international financial reporting standards). Profit soared 23 percent to €762 million.

Software revenue, however, fell 5 percent from the same quarter last year to €975 million, even as cloud subscriptions and support grew by a whopping 203 percent to €191 million. Support revenue grew by 4 percent to a little over €2 billion, while overall software and software-related service revenue grew 5 percent year-on-year to about €3.4 billion.

SAP said it is well on its way to reach €1 billion in HANA software revenue since market launch about two years ago. In the quarter, HANA software revenue was up 79 percent at actual currencies to €149 million, and over 2,100 customers. Competitor Oracle announced in September an upcoming in-memory option for its recently released 12c database.

The business software company also said it had reached a run-rate of over €1 billion in annual cloud revenue, with about 33 million cloud users. Non-IFRS "deferred cloud subscription and support revenue" was €382 million at the end of the quarter, a year-over-year increase of 79 percent, the company said. Deferred cloud subscription and support revenue includes committed future cloud subscription and support revenue already paid by the customer for subsequent quarters of the year.

The business from cloud-based e-commerce vendor Ariba that SAP acquired last October is also doing well with the Web-based business trading community now connecting 1.2 million companies, SAP said.

In the Americas region, the company saw third quarter non-IFRS software and cloud subscription revenue grow 17 percent year-over-year at constant currencies, helped by software revenue growth in Latin America and strong non-IFRS cloud subscription and support revenue growth in North America.

The company's non-IFRS software and cloud subscription revenue in the Asia Pacific Japan region returned to growth with "solid single-digit growth" at constant currencies, backed by a strong performance in China. SAP's non-IFRS software and cloud subscription revenue in the region declined 7 percent in the second quarter.

The 2013 revenue and profit figures include the revenue and profits from Ariba, SuccessFactors and Hybris, a commerce technology company SAP acquired in August. The comparative numbers for 2012 do not include SuccessFactors, Ariba and Hybris for varying periods.

SAP has maintained its guidance for the full year 2013 that it announced last quarter, when it forecast, for example, at least 10 percent growth in non-IFRS software and software-related service revenue at constant currencies for the year. The company, however, cautioned that exchange rates could negatively impact the company in the fourth quarter and full year by up to 5 percentage points in non-IFRS software and software-related service revenue growth rate, and by 7 percentage points in non-IFRS operating profit growth.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags enterprise resource planningbusiness issuesData managementbusiness intelligencesoftwareapplicationsSAPCustomer Relationship Managementfinancial results

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments