Beating Targets, Raising Ambitions

SAP beats 2015 targets and raises 2017 midterm ambitions

SAP has revealed its financial results for the fourth quarter and full year ended December 31, 2015.

SAP gained momentum in the fourth quarter with fast growth in cloud and double-digit growth in its core license business. For the full year, non-IFRS cloud and software revenue grew by 20% or 12% at constant currencies and exceeded the outlook of 8% – 10% growth at constant currencies. New cloud bookings, the key measure for SAP’s sales success in the cloud, increased 103% in the full year to €883 million and 75% in the fourth quarter to €344 million.

“Our strength in 2015 shows that the SAP S/4HANA innovation cycle is well underway,” said Bill McDermott, CEO of SAP. “Our completeness of vision in the cloud has distinguished SAP from both legacy players and point solution providers. We beat on cloud and software, we beat on operating income, and we are ever confident that SAP will remain a profitable growth business well into the future.”

“Our tremendous 2015 results validate our strategy of innovating across the core, the cloud, and business networks to help our customers become true digital enterprises,” said Luka Mucic, CFO of SAP. “We have transformed our company and made it leaner by shifting investments from noncore activities to strategic growth areas, enabling us to capture the tremendous growth opportunities in the market. This puts us on a strong path for the future, reflected in an increase of our 2017 ambition.”