SAP Announces Second Quarter and Half-Year 2019 Results

WALLDORF, GermanySAP SE (NYSE: SAP) today announced its financial results for the second quarter ended June 30, 2019.

Double-Digit Growth Across the Board:

  • Cloud Revenue Growth Soars
  • Double-Digit Cloud & Software Revenue Growth
  • Double-Digit Total Revenue Growth

Cloud Gross Margin Up Sharply

SAP Reiterates Outlook

  • Cloud Revenue Up 40%
  • Cloud Gross Margin Up 4 Percentage Points
  • Cloud & Software Revenue and Total Revenue Up 11%
  • Qualtrics Experience Management Solutions Drive Fast Growth in Customer Experience and Employee Experience
  • SAP S/4HANA Momentum Continues, Growing to More Than 11,500 Customers
  • Operating Profit (IFRS) Down 21% Due to Ongoing Restructuring and Significant Share Price Increase
  • Operating Profit (Non-IFRS) Up 11% Benefitting from Operational Discipline and Increased Cloud Efficiency

SAP Q2 2019 Quarterly Statement

“SAP delivered double digit growth in total revenue, cloud revenue and non-IFRS operating income. Qualtrics is growing fast as the global standard in the Experience Management category. As shown by our rising cloud gross margins, we are progressing nicely on our ambition to be the Best-Run SAP. With XM driving the CEO digital transformation agenda, we resolutely reaffirm our full year guidance.”

Bill McDermott, CEO

I am pleased that our operational excellence measures are already showing effect. Our non-IFRS operating profit and margin performance is remarkable considering the margin headwinds from our latest acquisition and the recent short-term trade-related uncertainty in Asia that impacted our software revenue performance in the region. With continued strong customer demand and our tight focus on profitability we remain as confident in our 2019 outlook as we are in our mid-term ambition.

Luka Mucic, CFO

Read the Q2 2019 Quarterly Statement
Read the Half-Year Report