SAP Announces First Quarter 2020 Results

WALLDORF SAP SE (NYSE: SAP) today announced its financial results for the first quarter ended March 31, 2020.

Solid Start to 2020 Amidst COVID-19 Crisis – Total Revenue and Operating Profit Up – Free Cash Flow Up 9%

    • IFRS Cloud Revenue Up 29%; Non-IFRS Cloud Revenue Up 27%
    • IFRS Cloud Gross Margin Up 5pp; Non-IFRS Cloud Gross Margin Up 3pp
    • Current Cloud Backlog Up 25%
    • Total Revenue Up 7%
    • IFRS Operating Profit Increased Strongly To €1.2bn; Non-IFRS Operating Profit At €1.5bn, Up 1%
    • IFRS Operating Margin Up 20.8pp; Non-IFRS Operating Margin Down 1.3pp
    • IFRS EPS Increased Strongly To €0.68; Non-IFRS EPS At €0.85, Down 5%
    • Operating Cash Flow Up 6%, Free Cash Flow Up 9%

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.

Christian Klein, CEO

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.

Luka Mucic, CFO

Read the Q1 2020 Quarterly Statement