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SAP Reports Strong Growth in Cloud Amid Slow Overall Revenue Growth

25 Apr 2014, Posted by Rayboy Insider Search in Blog

SAP reported a strong growth in cloud revenue and fast adoption of its HANA platform in the first quarter, while its software revenue dipped from the same quarter in the previous year.

Cloud-Market-GrowthThe business software company said Thursday its revenue grew 3 percent to a!3.7 billion (US$5 billion), while its cloud subscriptions and support revenue grew 60 percent to a!219 million in the quarter under IFRS (International Financial Reporting Standards).

Its net profit grew 3 percent to a!534 million in the quarter.

SAP’s annual cloud revenue run rate is now approaching a!1.1 billion, and subscribers of its cloud applications now exceed 36 million, the company said.

Reflecting the transition in the market from on-premises software and services to applications delivered through the cloud on a subscription model, SAP’s software revenue in the quarter fell 5 percent to a!623 million. Its support revenue was up 5 percent to a!2.2 billion.

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