SAP continues to grow thanks to the cloud despite the impact of its exit from Russia

Despite having left the Russian and Belarusian markets, SAP continues to grow, and during the first quarter of your fiscal year 2022 has obtained some income of 7,077 million euros, 11% more than during the same quarter of 2021, and earnings per share of 0.63 euros for each title. The company has also achieved profits of 1,050 million euros in the reported period, 10% more.

Revenue from its dedicated cloud division grew 31% year-on-year to $2.82 billion, and its free cash flow between January and March was $2.16 billion. And, as we have mentioned, the company has decided to completely exit the Russian market after stopping its sales in the country, as well as in Belarus, at the beginning of last March. That is why it has already begun to close its cloud operations in the country, in addition to being willing to end the support and maintenance of its products locally in Russia.

This step has already had some impact on the company’s accounts. Its revenue from the cloud has had an impact of 60 million euros due to the termination of existing cloud contracts. Its profits have also decreased by some 70 million euros, due to the reduction in income from sales of products in the premises, the depreciation of data center assets and capitalized sales commissions.

SAP expects that this decision will have an impact on its general income of 300 million euros, and from the company they point out that «Other impacts from this still rapidly evolving situation that could potentially relate to our business and lead to adverse consequences if the situation escalates beyond its current scope are currently unknown.«.

Meanwhile, SAP/4HANA has added 500 customers, up 18% from a year earlier, and now has 19,300 customers. In addition, the company has reported uncollected revenue in the cloud of 9,730 million dollars, 23% more. SAP S/4HANA cloud revenues improved 78%, and SAP S/4HANA deferred cloud expenses rose 86%.

SAP’s Applications, Technology and Services (AT&S) division reported revenue of 6.7 billion euros in the quarter, up 10%. Meanwhile, the division of Qualtrics entered 320 million euros, registering a year-on-year increase of 58%.

SAP forecasts for the current year are now, in terms of revenue from the cloud, between 11,550 and 11,850 million euros. It is estimated that the sum of the company’s software and cloud revenues this year will be between 25,000 and 25,500 million euros. SAP expects to have a profit of between 7,800 and 8,250 million euros.

Luka Mucic, CEO of SAPhas indicated that they are «off to a solid start to the year, and our forecasts remain strong. Despite the current macroeconomic environment, cloud revenue growth has accelerated further, driving total revenue growth. Current cloud deferred revenue has grown at a healthy pace, which continues to support our confidence in our long-term plans and annual forecasts.«.

The company, which turns 50 in 2022, is on the other hand resuming its face-to-face events, and has decided that SAP Sapphire for EMEA Southan event in which several of its main managers will participate, is held in Spain. Specifically, in Madrid, at the IFEMA Municipal Conference Center, next May 24.

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