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Sap Announces Preliminary First Quarter 2016 Results

The following excerpt is from the company's SEC filing.

Cloud Revenue Up 33% IFRS EPS Up 37% Non-IFRS EPS Up 9% SAP Reiterates Outlook Reflecting Strong Pipeline

Following a record finish in 2015, solid growth in seasonally smallest quarter

Non-IFRS cloud and software revenue increased 5% to 3.85 billion (6% at constant currencies)

SAP S/4HANA momentum continues, now exceeding 3,200 customers

Growing operating profit amidst industry transformation in contrast to main peer

IFRS earnings per share up 37%, Non-IFRS earnings per share up 9% to 0.64

Second quarter off to a strong start with several software and cloud deals closing in early April

High visibility into strong second quarter and full year pipeline across all regions indicates increasing momentum as the year progresses SAP firmly reiterates outlook

SAPs fundamental growth drivers are rock solid from our best-in-class S/4HANA applications to our completeness of vision in the cloud, said Bill McDermott, CEO of SAP. We expect increasing momentum as the year progresses, fully consistent with our guidance for the full year. SAP continues to be a highly profitable growth company.

The first quarter is our seasonally smallest quarter. While EMEA and APJ showed solid execution, the Americas got off to a slower start. We successfully transformed our business in 2015, contributing to the strong rise in earnings per share, said Luka Mucic, CFO of SAP. With a robust pipeline across our entire portfolio we are on track to achieve our full year outlook.

SAP Announces Preliminary First Quarter 2016 Results

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WALLDORF, Germany April 8, 2016

After an initial review of its first quarter 2016 performance,


(NYSE: SAP) today announced its preliminary financial results for the first quarter ended March 31, 2016. All 2016 figures in this release are approximate due to the preliminary nature of the announcement.

SAP had strong growth in the cloud, ahead of its mid-term aspirations. First quarter non-IFRS cloud subscriptions and support revenue grew 33% year-over-year (33% at constant currencies) to 0.68 billion. New cloud bookings

grew a solid 22% (25% at constant currencies) in the first quarter and reached 0.14 billion.

The rapidly growing cloud business together with solid growth in support revenue drove a record share of more predictable revenue. The total of cloud subscriptions & support revenue and software support revenue reached 69% share of total revenue in the first quarter 2016.

The Company had a solid software revenue performance in EMEA and APJ. Continuing political and macroeconomic instability in Latin America, in particular in Brazil, weighed on first quarter performance. North America, coming off a very strong fourth quarter in 2015, had a slower than anticipated start to the year. SAPs pipeline remains strong across all regions.

SAP S/4HANA momentum continued in the first quarter as customers increasingly embrace the benefits of running simple and real time. SAP added more than 500 S/4HANA customers in the quarter, of which approximately 30% are net new SAP customers. The S/4HANA innovation cycle is contributing significantly to SAPs global pipeline.

IFRS operating profit was up 28% to 0.81 billion. Non-IFRS operating profit grew 5% to 1.1 billion (4% at constant currencies). IFRS earnings per share increased 37% to 0.48. Non-IFRS earnings per share increased 9% to 0.64.

New cloud bookings consist of order entry of a given period that is expected to be classified as cloud subscription and support revenue and results...