SAP Q3 2021: the RISE program maintains its momentum, stronger prospects for the year


SAP reported strong third quarter results and confirmed an improving business outlook for the full year.

SAP benefits in Q3 2021 (declaration) (.PDF), closed on September 30, 2021, announces sales of 6.84 billion euros under IFRS, up 5% year-on-year (up 5% at constant exchange rates) with a basic earnings per share (EPS) of 1.19 € (IFRS), or 1.74 € non-IFRS.

In the second quarter of 2021, SAP achieved IFRS revenue of € 6.67 billion with basic EPS of € 1.15 (€ 1.75 non-IFRS).

SAP reported operating income of 1.25 billion euros under IFRS, down 15% year-on-year (excluding IFRS up 2% to 2.10 billion euros). The company’s operating margin decreased from 0.9% to 30.7%. Operating cash flow amounted to € 4.95 billion.

The vendor says the decline in operating income is mainly due to “higher stock-based compensation expense,” primarily related to Qualtrics.

Cloud revenue increased 20% year-over-year to 2.39 billion euros (IFRS) and 20% at constant currencies. In the second quarter, SAP reported IFRS cloud revenue of € 2.28 billion.

The RISE program secured 300 additional clients. Software license revenue decreased 8% year-on-year to € 0.66 billion (IFRS and non-IFRS) and 8% (at constant exchange rates).

“SAP is seeing strong demand and adoption for its ‘RISE with SAP’ offering, which customers of all sizes, including a growing number of large customers, are choosing to lead their business transformation. As more and more customers embrace this holistic subscription offering, software licensing revenue has declined as expected. ”SAP says.

Global cloud and software license revenue increased 7% year-on-year to € 5.91 billion (IFRS) and 6% at constant currencies.

SAP S / 4HANA added 500 more customers to the list in the third quarter of 2021, up 16% year-over-year. SAP S / 4HANA now has more than 17,500 customers, of which approximately 11,400 are now active.

A current cloud order book of 8.17 billion euros was recorded, with revenue up 22% at constant exchange rates. S / 4HANA cloud revenue increased 46% to € 276 million and 46% (at constant currencies), with backlog up 60% for the quarter.

SAP reports on three main business segments, “Applications, Technology and Services”, “Qualtrics” and “Services”.

Applications, technologies and services revenue was up 5% to 5.76 billion euros year-on-year, or up 5% at constant currencies.

Qualtrics’ revenue was 233 million euros, an increase of 38% year-over-year, or 39% at constant currencies.

Read more: IBM, SAP partner to migrate financial institutions to hybrid cloud | SAP acquires machine learning technology company SwoopTalent | Google Cloud joins the SAP RISE program

The Services segment, including digital transformation and the Intelligence team, recorded revenue of € 803 million, down 1% year-on-year and 1% (at a rate of constant changes).


SAP’s annual outlook has also been revised with improved figures. The company now expects non-IFRS cloud revenue to reach between € 9.4 billion and € 9.6 billion (up from € 9.3 – 9.5 billion) at exchange rate constant. Cloud and non-IFRS software revenue, at constant exchange rates, is now estimated between 23.8 and 24.2 billion euros.

“This quarter has been excellent for all key financial indicators,” commented Luka Mucic, CFO of SAP. “We are seeing continued and solid progress in the transformation of SAP. Our cloud business is growing at an accelerated pace and has led to an improved outlook for the full year. ”

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