SAP Hits A 52-Week High -

SAP Hits A 52-Week High

Oct 23, 2017Jeremy ParkinsonFinance0

The MarTech space is getting bigger and bigger. About 5,000 companies are a part of the MarTech landscape from just 150 in 2011. With its latest acquisition of Gigya, SAP is getting deeper into the space.

SAP’s Financials

SAP’s third quarter revenues grew 8% over the year to €5.59 billion ($6.6 billion) compared with the market’s forecast of €5.71 billion. Core profit grew by 4% to €1.64 billion ($1.94 billion), missing analyst estimates of €1.69 billion.

During the quarter, Cloud subscriptions and support revenue increased 27% to €938 million ($1.1 billion), but fell short of the market’s forecast increase of 29%. Revenues from the Cloud and Software business increased 8% to €4.7 billion ($5.5 billion). New cloud bookings increased 19% to €302 million (~$357 million).

Based on the strong momentum in SAP’s cloud business, the company continues to expect full year 2017 non-IFRS cloud subscriptions and support revenue to be in a range of €3.8 to €4.0 billion compared to €2.99 billion in 2016. Due to increasing adoption of S/4HANA and its Digital Business Platform the Company now expects full year 2017 non-IFRS cloud & software revenue to increase by 7% to 8.5%.

It now expects full year 2017 non-IFRS total revenue in a range of €23.4 to €23.8 billion ($27.6 to $28.1 billion). It expects full-year 2017 non-IFRS operating profit to be in a range of €6.85 to €7.0 billion ($8.1 to $8.25 billion).

SAP’s Offerings

S/4HANA adoption grew to over 6900 customers, up over 70% and it added clients like Shell and China International Marine Containers.

Hanon Systems (Korea) and Citco Technology Management (USA) among many others adopted SAP Leonardo solutions, which bring together cutting edge software capabilities such as IoT, Big Data, Machine Learning, Analytics, and Blockchain.

Its core HCM offering SuccessFactors Employee Central had more than 2,000 customers at the end of the third quarter. With SuccessFactors and Fieldglass, SAP delivers total workforce management across both permanent and contingent labor, localized for 84 countries and 42 languages.