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SAP SE (SAP) Posts Y/Y Earnings and Revenue Growth in Q4

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SAP SE SAP delivered fourth-quarter 2021 non-IFRS earnings of €1.86 per share ($2.13), up 10% from the year-ago quarter’s levels. The upside can be attributed to strong contribution from Sapphire Ventures.

Total revenues, on a non-IFRS basis, were €7.981 billion ($9.128 billion), rising 6% year over year (up 3% at constant currency or cc).

Cloud Results

Current cloud backlog — a key indicator of go-to-market success in cloud business — increased 32% (up 26% at cc) to €9.447 billion.

On a non-IFRS basis, the Cloud and software business (87.6% of total revenues) registered revenues of €6.99 billion, up 6% year over year (up 3% at cc).

Cloud revenues were €2.611 billion, up 28% year over year on a non-IFRS basis (up 24% at cc).

SAP SE Price, Consensus and EPS Surprise

SAP SE Price, Consensus and EPS Surprise
SAP SE Price, Consensus and EPS Surprise

SAP SE price-consensus-eps-surprise-chart | SAP SE Quote

Software licenses and support revenues totaled €4.379 billion, down 4% (down 6% at cc) year over year. The company further noted that non-IFRS software licenses revenues of €1.46 billion declined 14% (down 17% at cc) year over year.

On a non-IFRS basis, cloud revenues — related to Software as a Service (SaaS)/Platform as a Service (PaaS) — increased 25% at cc to €2.297 billion.

Cloud revenues — related to Infrastructure as a Service (IaaS) — rose 10% year over year at cc to €235 million.

Services business (12.4% of total revenues) delivered revenues of €0.99 billion, up 3% from the year-ago quarter’s levels (flat at cc).

The company has three reportable segments — Applications, Technology & Support (AT&S), Qualtrics and Services. In the beginning of 2021, the Concur segment was dissolved and integrated into the AT&S segment and the Services segment.

AT&S revenues were up 5% year over year (up 2% at cc) to €6.81 billion. Qualtrics segment revenues rallied 56% (up 49% at cc) to €284 million. Revenues in the Services segment increased 3% (up 1% at cc) to €835 million on a year-over-year basis.

Expanding Clientele Bodes Well

Rise with SAP solution witnessed the addition of more than 650 new clients, including Adobe, Panasonic Corporation, International Business Machines, Mahindra & Mahindra, Fresenius SE, Allianz Technology and Samsung SDS among others in the quarter under review. SAP launched Rise With SAP offering in first-quarter 2021 and now has a 1300-strong customer base since roll out.

S/4HANA adoption rallied more than 18% (or 1300 new clients) year over year to around 18,800 customers. In the reported quarter, net new customers comprised 50% of additional S/4HANA customers. More companies have begun deploying the S/4HANA solution in part or entirely in the cloud. SAP S/4HANA Cloud revenues increased 65% (up 61% at cc) to €329 million.

SAP’s clientele continues to expand with the addition of Petronas, Goodyear, Unilever, Hitachi High-Tech, Dr. Martens, SCOTT Sports, Computacenter AG, among others.