SAP Q2 2021: earnings down 1%, 600 unique S/4 Hana signups
SAP has reported 2d-quarter 2021 earnings of €6.669m, down 1% on the same Twelve months-ago quarter. Cloud earnings has increased by 11% to €2.276bn, appropriate over one-third of the total, and 250 customers claimed for unique Upward push with SAP bundle in the quarter
SAP has reported 2d-quarter 2021 earnings of €6.669m, down 1% on the same Twelve months-ago quarter. Its cloud earnings for the quarter has increased by 11% to €2.276bn, representing 34% of the total.
Its flagship venture handy resource planning (ERP) product S/4 Hana attracted 600 unique customers, bringing complete adoption to 17,000 customers, of which 10,100 are dwell, based mostly utterly mostly on the supplier’s earnings assertion. In quarter one, it added 400 unique customers, and improve in quarter two is cited as 16% Twelve months over Twelve months (YoY).
SAP flagged Nationwide Building Society and Wales & West Utilities as customer wins in the quarter.
Christian Klein, CEO of SAP, said: “We’re seeing sturdy adoption of our cloud portfolio as customers employ SAP for their alternate transformation. Our technique is working. This is the third straight quarter of strong execution, and we continue to deliver unparalleled customer payment by the energy of our platform and capabilities.”
CFO Luka Mucic added: “This has been one other sturdy quarter with accelerating improve for SAP’s cloud portfolio. We noticed incredible customer momentum and adoption and are raising our outlook for earnings and earnings”.
The prior quarter noticed the open of the Upward push with SAP bundle, which is a subscription service that packages managed cloud infrastructure and managed providers and products in one contract. It’s one procedure of bundling the total facets that procure up what SAP has been calling “incandescent venture” for the previous few years and making them on hand as a service.
Within the 2d-quarter outcomes assertion, the supplier acknowledged it “closed affords with more than 250 customers … Huge customers similar to AMD, Coop Switzerland, Etihad Airways, and Siemens Energy chosen Upward push with SAP”. Dixons Carphone used to be among the many unique Upward push customers.
The SAP Industry Know-how Platform (SAP BTP) is additionally highlighted in the assertion, and described as “the foundation of the Radiant Venture, offering a single platform for integration and extensibility all over the SAP portfolio and non-SAP choices, as neatly as deriving insights from recordsdata”. The platform teams SAP merchandise into one foundation for developers, and used to be publicised at the supplier’s 2020 customer convention Sapphire in 2020.
The supplier said it has over 8,000 BTP customers and more than 4,000 companions. It reported that Hilti, Lenovo, NEC, and Renault selected SAP BTP choices in the 2d quarter.
SAP’s first-quarter acquisition Signavio is additionally highlighted in the assertion. A process mining tool supplier whose acquisition used to be bracketed with the open of Upward push with SAP in January 2021, Signavio used to be said to maintain had “an prominent first corpulent quarter as share of SAP’s Industry Path of Intelligence (BPI) segment”.
SAP is raising its corpulent-Twelve months 2021 outlook and it expects tool licenses earnings decline for the corpulent Twelve months as more customers turn to the Upward push with SAP subscription offering. The outlook assumes the Covid-19 disaster will initiate up to travel as vaccine programs roll out globally, resulting in extra enhancements in global quiz in the 2d half of of 2021.
It acknowledged that it expects to procure €9.3bn to 9.5bn in cloud earnings, up 15% to 18%. The outdated differ used to be €9.2bn to 9.5bn.
It additionally drew attention to momentum in what it describes as “backlog improve” for S/4 Hana delivered over the cloud. “In explicit in the US, SAP expects S/4Hana cloud earnings improve to vastly urge in the 2d half of of 2021,” it said.
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