SAP New Zealand’s revenue lifted sharply from $123 million in 2018 to $158 million in 2019, an increase of 28 per cent, the company reported over night.
The $35 million increase for the year ended 31 December was supported by improved revenues across all product and service categories.
Software and support revenue increased 19 per cent to $81 million, while services lifted 31 per cent to $46 million.
It was cloud, however, that provided the highest rates of growth, 60 per cent to reach $32 million.
The company also received revenue in the form of a $2.5 million government R&D grant to support innovation in the New Zealand market.
Net profit after tax was $14 million, double that recorded in the previous year.
SAP New Zealand managing director Phil Cameron said the New Zealand business was in good shape and continued to grow:
“The cloud business has grown significantly over the previous year and we’re confident we can continue our strong momentum,” he said.
SAP has a wide range of local customers across both the government and private sectors including Mercury Energy, Frucor Suntory, and Zespri.
“We’re proud to work with some of New Zealand’s biggest companies, with digital transformation more important than ever as we deal with unprecedented disruption,” Cameron said.
“Our revenue from cloud customers exceeds revenue from licensing customers, but we’d like to do more to help New Zealand businesses run in the cloud, as recent events have demonstrated the benefit of flexible and agile access to critical business information from wherever you are working.”
The company’s accounts also confirm an Inland Revenue audit of the New Zealand business for the years 2014 to 2016 is ongoing.
This article first appeared on Reseller News.