SAP SE / Key word(s): Final Results/Preliminary Results
12.01.2015 16:06
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.
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SAP Announces Preliminary Fourth Quarter and Full Year 2014 Results
- Cloud Business Surges - Non-IFRS Cloud Subscription and Support Revenue
Accelerated to 72% in Fourth Quarter, Increased 45% in Full Year,
Achieving Guidance
- Strong Cloud Billings - Non-IFRS Calculated Cloud Billings Increased
115% in Fourth Quarter
- Higher Revenue Share from More Predictable Cloud & Support Revenue
- Software and Software-Related Service Revenue Guidance Achieved Despite
the Accelerated Shift from Upfront to More Ratable Revenue
- Operating Profit Guidance Achieved Even While Significantly Expanding
the Company's Cloud Delivery Capabilities
- Concur Close Expands World's Largest Business Network into US$1.2
Trillion Corporate Travel Market
WALLDORF, Germany - January 12, 2015 - After an initial review of its
fourth quarter 2014 performance, SAP SE (NYSE: SAP) today announced its
preliminary financial results for the fourth quarter and full year ended
December 31, 2014.
For the full year 2014, SAP delivered exceptionally strong growth in the
cloud and continues to lead in this industry-wide transformation. Achieving
guidance, full year non-IFRS cloud subscriptions and support revenue
increased 45% at actual and constant currencies to EUR1.10 billion [1]. The
company also showed solid software and software-related service revenue
performance despite the accelerated shift from upfront to more ratable
revenue. Non-IFRS software and software-related service revenue grew 7% at
constant currencies (6% at actual currencies to EUR14.87 billion) achieving
the full year target for 6% - 8% growth at constant currencies. Non-IFRS
operating profit increased by 3% at constant currencies to EUR5.63 billion
(3% at actual currencies to EUR5.64 billion), achieving the full year
outlook of EUR5.6 - EUR5.8 billion at constant currencies.
With fourth quarter non-IFRS cloud subscriptions and support revenue
increasing 59% year-over-year at constant currencies (72% at actual
currencies), SAP is the fastest growing enterprise cloud company at scale
[2]. The annual cloud revenue run rate now exceeds EUR1.7 billion [3] or
$2.0 billion [4]. Non-IFRS calculated cloud billings increased 115% (87% at
constant currencies) in the fourth quarter. Non-IFRS deferred cloud
subscriptions and support revenue was EUR729 million as of December 31,
2014, a year-over-year increase of 63% (45% at constant currencies) [5].
SAP HANA, the platform for real-time business applications, had another
great quarter and continues to be a major growth engine for SAP. Customer
adoption this quarter was once again a highlight.
FINANCIAL HIGHLIGHTS - Fourth Quarter 2014
All 2014 figures in this release are approximate due to the preliminary
nature of the announcement.
<pre>
Fourth Quarter 2014(1)
</pre>
<pre>
IFRS Non-IFRS (2)
</pre>
<pre>
EUR billion, unless Q4 Q4 % Q4 Q4 % % change
otherwise stated 2014 2013 cha- 2014 2013 cha- const.
nge nge curr.
Cloud subscriptions and
support 0.35 0.21 68% 0.36 0.21 72% 59%
Software 1.87 1.90 -2% 1.87 1.90 -2% -5%
Support 2.51 2.27 11% 2.51 2.27 10% 8%
Software and support 4.37 4.17 5% 4.37 4.18 5% 2%
Software and software-
related service revenue 4.72 4.38 8% 4.73 4.39 8% 5%
Total revenue 5.46 5.11 7% 5.47 5.11 7% 4%
Operating profit 1.75 1.80 -3% 2.13 2.10 1% -2%
Operating margin (in %) 32.1 35.3 -3.2pp 38.9 41.0 -2.1pp -2.3pp
</pre>
(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
FINANCIAL HIGHLIGHTS - Full Year 2014
<pre>
Full Year 2014(1)
</pre>
<pre>
IFRS Non-IFRS(2)
</pre>
<pre>
EUR billion, unless FY FY % FY FY % % change
otherwise stated 2014 2013 cha- 2014 2013 cha- const.
nge nge curr.
Cloud subscriptions and
support 1.09 0.70 56% 1.10 0.76 45% 45%
Software 4.40 4.52 -3% 4.40 4.52 -3% -3%
Support 9.37 8.74 7% 9.37 8.76 7% 8%
Software and support 13.77 13.25 4% 13.77 13.28 4% 5%
Software and software-
related service revenue 14.85 13.95 6% 14.87 14.03 6% 7%
Total revenue 17.56 16.82 4% 17.58 16.90 4% 5%
Operating profit 4.33 4.48 -3% 5.64 5.48 3% 3%
Operating margin (%) 24.7 26.6 -2.0pp 32.1 32.4 -0.4pp -0.7pp
</pre>
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.
The company will report its fourth quarter and full year 2014 results on
January 20th, including the outlook for 2015.
[1] For the full year 2014, Fieldglass contributed EUR50 million and Concur
contributed EUR45 million to SAP's Non-IFRS cloud subscriptions and support
revenue at constant currencies, representing a 13 pp contribution to SAP's
respective full year 2014 growth rate.
[2] Compared to SAP's peer group companies with an enterprise software
annual cloud revenue run rate above EUR1 billion.
[3] The annual revenue run rate is the fourth quarter 2014 non-IFRS cloud
subscriptions and support revenue (EUR360 million) plus non-IFRS
cloud-related professional services and other service revenue (EUR69
million) multiplied by 4.
[4] Translated into USD for reader's convenience based on $/EUR exchange
rate of $1.21/EUR1.00 at the end of the fourth quarter 2014.
[5] Calculated billings is the total of a period's cloud subscriptions and
support revenue and of the respective period's change in the deferred cloud
subscription and support revenue balance. In the fourth quarter 2014
Fieldglass contributed EUR19 million and Concur contributed EUR45 million
to SAP's Non-IFRS cloud subscription and support revenue at constant
currencies. The contribution from Concur to Non-IFRS deferred cloud
subscription and support revenue at December 4th, 2014, the closing of
Concur, was EUR61 million (IFRS: EUR 42 million) and at December 31st, 2014
was EUR71 million (IFRS: EUR 62 million).
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Information and Explaination of the Issuer to this News:
Additional Information
'In 2014 we continued to deliver on our winning growth strategy. We are the
fastest growing enterprise cloud business at scale with the most users in
the world. SAP HANA is delivering massive simplification for our
customers,' said Bill McDermott, CEO of SAP. 'With the wide-spread adoption
of the SAP HANA platform, 2015 is all about accelerating the introduction
of next generation applications on HANA and scaling the world's largest
Business Network. The roadmap for our customers and ever expanding
ecosystem to Run Simple couldn't be more clear.'
'In 2014, we achieved a solid 7% growth in non-IFRS software and
software-related service revenue at constant currencies - in line with our
full-year outlook range despite less upfront and significantly more ratable
new business,' said Luka Mucic, CFO of SAP. 'Operating profit also
increased year over year even as we stepped up investments in the cloud in
response to higher than expected demand for our new cloud offerings. With
the powerful shift to the cloud and our growing support revenues we are
building a larger, more predictable business over the long term.'
CALCULATED CLOUD BILLINGS
The following table presents the calculated cloud billings metric which we
define as the total of a period's cloud subscription and support revenue
and of the respective period's change in the deferred cloud subscription
and support revenue balance. The table also reconciles the non-IFRS
calculated cloud billings metric (including our non-IFRS at constant
currency metric) to the respective IFRS based calculated cloud billings
metric.'
For the three months ended December 31
<pre>
EUR millions, unless
otherwise stated 2014
Non-IFRS
Cur- Constant
rency Currency
IFRS Adj.* Non-IFRS* Impact** **
Cloud subscriptions and
support 349 10 360 -26 334
Closing balance deferred
cloud subscriptions and
support 719 10 729 -65 664
Opening balance deferred
cloud subscriptions and
support 498 0 498 -32 466
Change in deferred cloud
subscriptions and support 222 10 231 -34 198
Calculated cloud billings 571 20 591 -59 532
Year-over-year changes
(2014 vs. 2013, in %) 107% 115% 87%
</pre>
<pre>
2013
Non-IFRS
Currency Constant
IFRS Adj.* Non-IFRS* Impact** Currency**
208 1 210 0 210
443 4 447 9 457
376 6 382 0 382
68 -2 66 9 75
276 0 276 9 285
</pre>
* Adjustments in the revenue and deferred revenue line items are for cloud
subscriptions and support revenue, and other similarly recurring revenues
that entities acquired by SAP would have recognized had they remained
stand-alone entities but that SAP is not permitted to recognize as revenue
under IFRS as a result of business combination accounting rules.
** Constant currency revenue figures are calculated by translating revenue
of the current period using the average exchange rates from the previous
year's respective period instead of the current period. Constant currency
deferred revenue balances are calculated by translating the current
period's opening and closing deferred revenue balances as well as the
comparative period's closing deferred revenue balance using the opening
exchange rates of the comparative period.
Due to rounding, numbers may not add up precisely.
2014 revenue and profit figures include the full revenue and profit from
hybris and the revenue and profit from Concur and Fieldglass since their
acquisition dates of December 4 and May 2, respectively. The comparative
numbers for 2013 do not include Concur or Fieldglass and hybris was
included from August 1, 2013.
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 263,000 customers to operate profitably,
adapt continuously, and grow sustainably. For more information, visit
www.sap.com.
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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.
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Language: English
Company: SAP SE
Dietmar-Hopp-Allee 16
69190 Walldorf
Germany
Phone: +49 (0)6227 - 74 74 74
Fax: +49 (0)6227 - 75 75 75
E-mail: investor@sap.com
Internet: www.sap.com
ISIN: DE0007164600
WKN: 716460
Indices: DAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Stuttgart; Freiverkehr in Düsseldorf, Hamburg, Hannover,
München; Terminbörse EUREX; NYSE
End of Announcement DGAP News-Service
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DGAP-Adhoc: SAP SE: SAP Leading the Transition to Cloud with 72% Revenue Growth in Fourth Quarter and 45% in Full Year
| Source: EQS Group AG