SAP Introduces New Metric in Its Financial Reporting: Current Cloud Backlog

WALLDORF — Starting in Q1 2020, SAP SE (NYSE: SAP) is disclosing a new metric to better report on the growth momentum of its cloud business. The new metric “Current Cloud Backlog” replaces the previously disclosed “New Cloud Bookings.”

The Current Cloud Backlog represents the contractually committed cloud revenue SAP expects to recognize over the upcoming 12 months, based on the existing cloud subscription contracts as they are in place as of the reporting date. Its expansion between two reporting dates is an indicator for the net cloud business volume added over that period, considering new business as well as renewed versus lost business.

The Current Cloud Backlog is a subcomponent of the “Remaining Performance Obligations” metric that is required to be disclosed under the new revenue standards. It is a subcomponent in that it is limited to cloud revenue and only includes the expected revenue of the next 12 months.

For more details on the metric, please refer to the videos and presentation:

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