SAP SHOWS DOUBLE-DIGIT REV GROWTH

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Bob Scott reporting in his weekly Insights column.

Spurred by a 116-percent increase in IFRS cloud subscription and support revenue, SAP produced a 17-percent increase in revenue for the third quarter ended September 30. The numbers released reflect preliminary results with the final figures coming on October 20. The preliminary results do not include net income. For the most recently ended quarter, revenue was roughly $5.7 billion. That was up 10 percent in constant currencies and also 17 percent on a non-IFRS basis. Operating income reached about $1.37 billion an increase of 5 percent over last year’s corresponding period. Software support revenue for the most recently ended quarter was approximately $2.85 billion, up about 12 percent over the prior year. Non-IFRS operating profit was up 19 percent, 15 percent in constant currencies. CEO Bill McDermott said the company was reiterating its full-year guidance. It expects a cloud-revenue growth rate of 86 percent at constant currencies and non-IFRS cloud and software revenue to increase by 8 percent to 10 percent at constant currencies over 2014 results.