SAP posts strong Q1 earnings on strong cloud subscriptions

SAP

SAP, the largest enterprise software company said its total revenue for the quarter of the year rose to EUR5.2 billion compared to EUR4,7 billion posted on 2016.

On a year on year basis, SAP said total revenue grew by 12%.

Commenting on the result, Bill McDermott, CEO, said “SAP’s outstanding first quarter results are a decisive follow-on to our record setting 2016. Led by S/4HANA, we are seeing mass customer adoption of our solutions globally. Our inspired workforce is firmly committed to staying focused on the success of our customers and shareholders.”

Also, Luka Mucic, CFO, said: “We continued our rapid expansion in cloud, accelerating to 49% growth in new cloud bookings. This outstanding achievement further validates our investment decisions to drive future growth. We’re off to a good start to reach our full year targets and we are confident that we will grow our profitability in 2018 and beyond.”

However, first quarter profit was a miss to EUR530 million from EUR570 million reported in 2016.

The company disclosed that it has about 350,000 business and public sector customers it service wit its SAP cloud and server based applications.