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Sap Announces Preliminary Third Quarter And Nine Months 2015 Results

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

Cloud Business Surges, Up 116% Record Third Quarter Non-IFRS Cloud and Software Revenue Non-IFRS Operating Profit Up 19%

Strong Growth in New Cloud Bookings: Up 102%

Non-IFRS Cloud and Software Revenue Up 19% to 4.12 Billion

Non-IFRS Operating Profit Increased 19% to 1.62 Billion

Reiterates Full Year 2015 Outlook

WALLDORF, Germany October 13, 2015

After an initial review of its third quarter 2015 performance,


(NYSE: SAP) today announced its preliminary financial results for the third quarter and nine months ended September 30, 2015. < br>
SAP again delivered strong growth in the cloud, outpacing most pure cloud competitors even without the contribution from the Concur acquisition. Third quarter non-IFRS cloud subscriptions and support revenue grew 116% year-over-year (90% at constant currencies) to 600 million.

New cloud bookings, the key measure for SAPs sales success in the cloud, increased 102% in the third quarter to 216 million.

The Company had very strong top and bottom line growth. Non-IFRS cloud and software revenue increased 19% (12% at constant currencies) to 4.12 billion. Non-IFRS operating profit increased 19% (15% at constant currencies) to 1.62 billion. Non-IFRS basic earnings per share was 0.98 (2014: 0.84), an increase of 16%.

SAP is uniquely positioned to help our customers become digital businesses. Our flagship S/4HANA is rapidly gaining market share. HANA is redefining the database industry as the standard real-time platform. Our cloud solutions for workforce engagement are best in class and our omni-channel customer experience solutions are growing faster than best of breed competitors. Our HANA Cloud Platform for the Internet of Things and Business Networks for inter-enterprise collaboration are redefining the business software industry. We are firmly reiterating our full year guidance, said SAP CEO Bill McDermott.

SAP CFO Luka Mucic said: Our strong double-digit growth in cloud and software revenue was mainly driven by excellent results in mature markets. SAPs global resilience helped us also sail through stormy

For the third quarter 2015, Concur contributed 149 million to SAPs Non-IFRS cloud subscriptions and support revenue at constant currencies.

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 network transaction fees are not reflected in the new cloud bookings metric. Amounts included in the measure are annualized. Concur contributed 59 million to SAPs new cloud bookings in the third quarter.

SAP Announces Third Quarter and Nine Months 2015 Results

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waters in emerging markets where we expect to continue to see volatility and economic challenges. Our surge in operating profit reflects our business transformations continued success and the improving profitability of our cloud offerings.


All 2015 figures in this release are approximate due to the preliminary nature of the announcement.

Third Quarter 2015

billion, unless otherwise stated

Q3 2015

Q3 2014


% change


Cloud subscriptions and support

Software licenses

Software support

Software licenses and support

Cloud and software

Total revenue

Operating profit

Operating margin (in %)


Basic earnings per share ()

All figures are unaudited.

For a detailed description of SAPs non-IFRS measures...