SAP has announced its Q1 results with cloud revenue growing 29 percent year over year to €2.01bn (IFRS), up 27 percent (non-IFRS) and 25 percent (non-IFRS at constant currencies). Total revenue grew seven percent year on year to €6.52bn (IFRS).
Towards the end of Q1, as the impact of the COVID-19 crisis increased, a significant amount of new business was postponed. This is reflected in the year on year decrease in software licence revenue, which was down 31 percent year on year to €451m.
Christian Klein, SAP CEO, said: “Building on last year’s momentum, SAP started the first two months of the quarter with strong momentum and healthy growth. For nearly five decades, SAP has been synonymous with mission critical business operations. As the unprecedented global challenges presented by COVID-19 emerged, we benefited from the inherent resilience of our business model and sustainable relevance of our portfolio. Our emphasis on increasing our base of more predictable revenue and the geographic and sector diversity of our business has strongly positioned us to weather the period ahead and emerge stronger in the new normal that will follow.”
Luka Mucic, SAP CFO, added: “Our first quarter results highlight the durability of our business. We will continue to balance disciplined expense management with investment in innovation to ensure we maintain and enhance our competitive advantages. Our balance sheet stability and revenue predictability allow us to continuously deliver long-term value for our shareholders.”