SAP Q2 shows double digit revenue growth

SAP has shown double digit growth in the second quarter thanks to cloud and software revenue.

"This strong quarter is the latest in SAP's 8-year run of consistent, profitable growth. Our winning strategy is again validated by fast adoption of S/4HANA and our full portfolio of cloud solutions. We expect continuing momentum in the second half and confidently raise our guidance for the full year. SAP has never been better positioned,” Bill McDermott, CEO, SAP.

“Our fantastic momentum continued with double-digit growth in total revenue. Our cloud and software revenue growth rate in the first half of the year is at the upper end of our full-year guidance range. Based on our strong growth and cash generation we are pleased to share SAP’s success with our shareholders by initiating a share buyback of up to €500 million in the second half,” Luka Mucic, CFO, SAP.

New cloud bookings grew by 33% in the second quarter and reached €340 million. New cloud and software license order entry grew by more than 20% year-over-year in the second quarter.

Operating cash flow for the first six months was €3.51 billion, an increase of 20% year-over-year and free cash flow increased 15% year-over-year to €2.90 billion.

After evaluating the expected cash flow development for the second half of 2017 and consistent with the company’s capital allocation priorities, SAP has decided on a share buyback of up to €500 million in 2017. The share buyback will start shortly and will be executed in several tranches.

Based on the continued strong momentum in SAP’s cloud business, the company expects full year 2017 non-IFRS cloud subscriptions and support revenue to be in a range of €3.8 billion to €4.0 billion at constant currencies (2016: €2.99 billion). The upper end of this range represents a growth rate of 34% at constant currencies.

The company now expects full year 2017 non-IFRS total revenue in a range of €23.3 billion to €23.7 billion at constant currencies (2016: €22.07 billion).

Tags: SAP Q2, double digit revenue growth, sap double digit revenue growth, sap software revenue, Bill McDermott CEO SAP, Luka Mucic CFO SAP