SAP Announces Preliminary Fourth Quarter and Full Year 2015 Results

SAP Outpaces Market with Record 2015 Cloud and Software Revenue, Up 20% - SAP S/4HANA Adoption Soaring

News provided by

Jan 11, 2016, 06:36 ET

SAP Logo.

WALLDORF, Germany, Jan. 11, 2016 /PRNewswire/ --

Full Year Non-IFRS Cloud and Software Revenue Up 20% (12% at Constant Currencies, Beating Company Guidance)
SAP S/4HANA Adoption Surges – More Than Doubling the Number of Customers in the Fourth Quarter, Now Exceeding 2,700 Customers
Tremendous Momentum in New Cloud Bookings – Up 103% in the Full Year, Up 75% in the Fourth Quarter
Full Year Non-IFRS Cloud Subscription and Support Revenue Up 109% to €2.30 Billion (€2.00 Billion at Constant Currencies, Achieving Company Guidance)
Full Year Non-IFRS Operating Profit Up 13% to €6.35 Billion (€5.902 Billion at Constant Currencies, Beating Company Guidance)

After an initial review of its fourth quarter 2015 performance, SAP SE (NYSE: SAP) today announced its preliminary financial results for the fourth quarter and full year ended December 31, 2015. All 2015 figures in this release are approximate due to the preliminary nature of the announcement.

SAP had exceptional momentum with fast growth in cloud and double-digit growth in its core license business in the fourth quarter. For the full year, non-IFRS cloud and software revenue grew by 20% or 12% at constant currencies and exceeded the outlook of 8% - 10% growth at constant currencies. New cloud bookings, the key measure for SAP's sales success in the cloud, increased 103% in the full year 2015 to €0.89 billion and 75% in the fourth quarter to €0.35 billion¹. Non-IFRS cloud subscriptions and support revenue was €2.30 billion (€2.00 billion² at constant currencies, achieving the outlook of €1.95 to €2.05 billion at constant currencies) for the full year. Non-IFRS operating profit was €6.35 billion (€5.902 billion at constant currencies, beating the full year outlook of €5.6 - €5.9 billion at constant currencies).

Customer adoption of SAP S/4HANA continues to accelerate sharply, with more than 2,700 customers across all regions at the end of 2015, more than doubling quarter over quarter. SAP S/4HANA, built on SAP HANA, the most advanced in-memory platform available today, provides the digital core that companies need to reduce complexity, digitize their business and connect every part of their enterprise.

"We decisively beat our full year guidance for cloud and software revenue," said Bill McDermott, CEO of SAP. "SAP gained significant share against core and best of breed competitors. Across markets and industries SAP is extending its lead as the trusted innovator in the business software industry. Our completeness of vision in the cloud and soaring adoption of S/4HANA gives us tremendous confidence in our business in 2016 and beyond."

Luka Mucic, CFO of SAP, said: "SAP is unique in combining a growing core and a rapidly expanding cloud business. In particular, S/4HANA is boosting broad customer adoption of our entire innovation portfolio. With our strong top line and the success of our business transformation we generated the highest non-IFRS operating profit in SAP's history."

BUSINESS OUTLOOK

The Company is providing the following 2016 outlook:

Based on the continued strong momentum in SAP's cloud business the Company expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of €2.95 - €3.05 billion at constant currencies (2015: €2.30 billion). The upper end of this range represents a growth rate of 33% at constant currencies.
The Company expects full year 2016 non-IFRS cloud and software revenue to increase by 6% - 8% at constant currencies (2015: €17.23 billion).
The Company expects full-year 2016 non-IFRS operating profit to be in a range of €6.4 billion - €6.7 billion at constant currencies (2015: €6.35 billion).

SAP will report detailed preliminary fourth quarter and full year 2015 results on January 22^nd.

FINANCIAL HIGHLIGHTS

FOURTH QUARTER 2015

	Fourth Quarter 2015¹⁾
	IFRS			Non-IFRS²⁾
€ billion, unless otherwise stated	Q4 2015	Q4 2014	% change	Q4 2015	Q4 2014	% change	% change const. curr.

Cloud subscriptions and support	0.63	0.35	81%	0.63	0.36	76%	60%
Software licenses	2.15	1.87	15%	2.15	1.87	15%	11%
Software support	2.60	2.34	11%	2.60	2.34	11%	6%
Software licenses and support	4.75	4.21	13%	4.75	4.21	13%	9%
Cloud and software	5.38	4.56	18%	5.38	4.57	18%	13%
Total revenue	6.35	5.46	16%	6.35	5.47	16%	11%
Operating profit	1.70	1.75	–3%	2.28	2.13	7%	3%
Operating margin (in %)	26.8	32.1	–5.3pp	35.9	38.9	–3.0pp	–2.6pp

1) All figures are preliminary and unaudited.

2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online.

IFRS cloud subscriptions and support revenue was €0.63 billion (2014: €0.35 billion), an increase of 81%. Non-IFRS cloud subscriptions and support revenue was €0.63 billion (2014: €0.36 billion), an increase of 76% (60% at constant currencies). IFRS software licenses revenue was €2.15 billion (2014: €1.87 billion), an increase of 15%. Non-IFRS software licenses revenue was €2.15 billion (2014: €1.87 billion), an increase of 15% (11% at constant currencies). IFRS software licenses and support revenue was €4.75 billion (2014: €4.21 billion), an increase of 13%. Non-IFRS software licenses and support revenue was €4.75 billion (2014: €4.21 billion), an increase of 13% (9% at constant currencies). IFRS cloud and software revenue was €5.38 billion (2014: €4.56 billion), an increase of 18%. Non-IFRS cloud and software revenue was €5.38 billion (2014: €4.57 billion), an increase of 18% (13% at constant currencies). IFRS total revenue was €6.35 billion (2014: €5.46 billion), an increase of 16%. Non-IFRS total revenue was €6.35 billion (2014: €5.47 billion), an increase of 16% (11% at constant currencies).

IFRS operating profit was €1.70 billion (2014: €1.75 billion), a decrease of 3%. Non-IFRS operating profit was €2.28 billion (2014: €2.13 billion), an increase of 7% (3% at constant currencies). IFRS operating margin was 26.8% (2014: 32.1%), a decrease of 5.3 percentage points. Non-IFRS operating margin was 35.9% (2014: 38.9%), a decrease of 3.0 percentage points (2.6 percentage points at constant currencies).

FULL YEAR 2015

	Full Year 2015¹⁾
	IFRS			Non-IFRS²⁾
€ billion, unless otherwise stated	FY 2015	FY 2014	% change	FY 2015	FY 2014	% change	% change const. curr.

Cloud subscriptions and support	2.29	1.09	110%	2.30	1.10	109%	82%
Software licenses	4.84	4.40	10%	4.84	4.40	10%	4%
Software support	10.09	8.83	14%	10.09	8.83	14%	7%
Software licenses and support	14.93	13.23	13%	14.93	13.23	13%	6%
Cloud and software	17.22	14.32	20%	17.23	14.33	20%	12%
Total revenue	20.80	17.56	18%	20.81	17.58	18%	10%
Operating profit	4.25	4.33	–2%	6.35	5.64	13%	5%
Operating margin (in %)	20.4	24.7	–4.2pp	30.5	32.1	–1.6pp	–1.5pp

1) All figures are preliminary and unaudited.

2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online.

IFRS cloud subscriptions and support revenue was €2.29 billion (2014: €1.09 billion), an increase of 110%. Non-IFRS cloud subscriptions and support revenue was €2.30 billion (2014: €1.10 billion), an increase of 109% (82% at constant currencies). IFRS software licenses revenue was €4.84 billion (2014: €4.40 billion), an increase of 10%. Non-IFRS software licenses revenue was €4.84 billion (2014: €4.40 billion), an increase of 10% (4% at constant currencies). IFRS software licenses and support revenue was €14.93 billion (2014: €13.23 billion), an increase of 13%. Non-IFRS software licenses and support revenue was €14.93 billion (2014: €13.23 billion), an increase of 13% (6% at constant currencies). IFRS cloud and software revenue was €17.22 billion (2014: €14.32 billion), an increase of 20%. Non-IFRS cloud and software revenue was €17.23 billion (2014: €14.33 billion), an increase of 20% (12% at constant currencies). IFRS total revenue was €20.80 billion (2014: €17.56 billion), an increase of 18%. Non-IFRS total revenue was €20.81 billion (2014: €17.58 billion), an increase of 18% (10% at constant currencies).

IFRS operating profit was €4.25 billion (2014: €4.33 billion), a decrease of 2%. Non-IFRS operating profit was €6.35 billion (2014: €5.64 billion), an increase of 13% (5% at constant currencies). IFRS operating margin was 20.4% (2014: 24.7%), a decrease of 4.2 percentage points. Non-IFRS operating margin was 30.5% (2014: 32.1%), a decrease of 1.6 percentage points (1.5 percentage points at constant currencies).

Additional Information

2015 revenue and profit figures include the full revenue and profit from Concur and Fieldglass. The comparative numbers for 2014 include Concur and Fieldglass starting December 4 and May 2, respectively.

For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 304,500 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Follow SAP Investor Relations on Twitter at @sapinvestor.

For more information, financial community only:
Stefan Gruber	+49 (6227) 7-44872	[email protected], CET

Follow SAP Investor Relations on Twitter at @sapinvestor.

For more information, press only:
Nicola Leske	+49 (6227) 7-50852	[email protected], CET
Daniel Reinhardt	+49 (6227) 7-40201	[email protected], CET
Andy Kendzie	+1 (202) 312-3919	[email protected], ET

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)

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE. The information contained herein may be changed without prior notice.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

____________________________

¹ New cloud bookings consist of all order entry of a given period that is expected to be classified as cloud subscription and support revenue and results from purchases by new customers and from incremental purchases by existing customers. The order amount must be contractually committed (i.e. variable amounts from pay-per-use and similar arrangements are not included). Consequently, due to their uncommitted pay-per-use nature Ariba and Fieldglass transaction-based fees are not reflected in the new cloud bookings metric. Amounts included in the measure are annualized. Concur contributed approximately €0.04 billion to SAP's new cloud bookings in the fourth quarter 2015.

² For the fourth quarter 2015, Concur contributed approximately €0.16 billion to SAP's Non-IFRS cloud subscriptions and support revenue at constant currencies. The Concur acquisition was closed on December 4^th, 2014.

Logo - http://photos.prnewswire.com/prnh/20110126/AQ34470LOGO

SOURCE SAP SE