Cloud Solutions ‘Double-Digit’ Boosted SAP Revenues in Croatia

SAP has presented its financial results for the first quarter of 2018. During this period, new bookings for cloud solutions increased by 14 percent (25 percent at constant currency) to 245 million euros.

Revenue from subscriptions to cloud solutions and maintenance grew by 18 percent compared to last year, reaching 1.07 billion euros (according to IFRS), or 31 percent (according to non-IFRS and constant currency). Software revenue decreased by 10 percent compared to last year, amounting to 625 million euros (according to IFRS), or 2 percent (according to non-IFRS and constant currency). In the first quarter, the number of new incoming orders for licenses for cloud solutions and software increased by 10 percent at constant currency compared to last year.

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Revenue from cloud solutions and software increased by 1 percent compared to last year, totaling 4.35 billion euros (according to IFRS), or 9 percent (according to non-IFRS and constant currency). Total revenue remained unchanged compared to last year, amounting to 5.26 billion euros (according to IFRS), or increased by 9 percent (according to non-IFRS and constant currency). SAP’s rapidly growing revenue from cloud solutions and stable growth in maintenance revenue remained the most significant part of revenue. The total amount of revenue from subscriptions to cloud solutions and maintenance, as a percentage of total revenue, increased by 2 percentage points to 71 percent in the first quarter, thus exceeding 70 percent for the first time.

Operating profit in the first quarter increased by 52 percent compared to last year, reaching 1.03 billion euros (according to IFRS) or 14 percent (according to non-IFRS and constant currency). As announced in January this year, the company expects a positive impact on revenue and profit due to the introduction of IFRS 15 standards during 2018. In the first quarter, this positive impact on SAP’s operating profit amounted to approximately 44 million euros.

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Cash flow from operating activities in the first quarter amounted to 2.58 billion euros, decreasing by 10 percent compared to last year. Free cash flow decreased by 17 percent compared to last year, amounting to 2.15 billion euros. The reasons for the decline in free cash flow are primarily attributed to increased tax expenses and unfavorable currency movements, as well as increased financial investments compared to last year. At the end of the first quarter, net liquidity amounted to 546 million euros, an improvement of 1 billion euros compared to last year.

In Croatia, growth of cloud solutions; interest in GDPR compliance solutions

SAP also achieved impressive results in the EMEA region, with revenues from cloud solutions and software increasing by 6 percent (IFRS), or 9 percent (according to non-IFRS and constant currency). Subscriptions to cloud solutions and maintenance revenues grew by a strong 40 percent (IFRS) and 45 percent (according to non-IFRS and constant currency), with a particular emphasis on results in Germany. The company also achieved double-digit growth in software revenue in the United Kingdom.

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– In Croatia, sales of cloud solutions achieved double-digit growth in the first quarter of 2018. Not only have we expanded the number of solutions with existing customers, but we continue to enable new customers to start and accelerate the digital transformation of their business. Many companies are beginning their digitalization by rethinking their marketing and seeking an integrated end-to-end approach that SAP can provide. Additionally, there has been an increase in demand for business solutions that help companies comply with GDPR, said Sonja Popović, director of SAP.

Growth in the number of SAP S/4HANA users; Coca-Cola and Unilever use SAP’s customer experience management solutions

The results in the first quarter at the company level were largely due to the next-generation ERP – S/4HANA. The number of S/4HANA implementations increased to 8,300 users, which is 43 percent more than last year. In the first quarter, the number of users grew by approximately 400 additional users, of which 40 percent are completely new. Among the companies that implemented S/4HANA in the first quarter of this year are Swiss Post, while MacMahon Holdings and Detecon International GmbH implemented S/4HANA in the cloud.

SAP’s next-generation customer experience management solutions are suitable for companies that collaborate either with end consumers or with other businesses across a wide range of industries. Among them, SAP offers Gigya, leading market solutions for user identity and access management, which is particularly significant in the context of increasing concerns about data protection, as well as CallidusCloud for sales performance management and configure-price-quote (CPQ).

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In the first quarter, SAP’s customer experience management solutions achieved triple-digit growth compared to last year, with companies such as Jaguar Land Rover, Coca-Cola, and Unilever opting for them.

It is also worth mentioning SAP SuccessFactors and SAP Fieldglass, through which SAP offers comprehensive human resource management in the context of permanent employees as well as temporary workers. The SAP SuccessFactors package is localized for 91 countries and 42 languages. The SAP SuccessFactors Employee Central solution, which is the cornerstone of SAP’s HCM (Human Capital Management) portfolio, concluded the quarter with over 2,400 users and gained numerous significant clients, such as CaixaBank, Reckitt Benckiser Group plc, HiPP, San Francisco Unified School District, and Intesa Sanpaolo.

Companies Airbus and Thyssenkrupp implemented SAP Leonardo

The SAP Leonardo solution combines deep processes and industry expertise, advanced Design Thinking methods, and cutting-edge software capabilities such as the Internet of Things, Big Data, machine learning, analytics, and blockchain technologies. Companies Airbus and DBS Informatik implemented SAP Leonardo solutions in the first quarter to redefine their business and become intelligent enterprises.

Migros and Ralph Lauren use SAP Business Network solutions

With over 1.9 trillion dollars in global trade annually, with transactions in over 180 countries, SAP Business Network is the largest trading platform in the world. Utilizing collaborative trading capabilities with the SAP Ariba solution, flexible workforce management capabilities with SAP Fieldglass, simple processing of travel orders and expenses with SAP Concur, and real-time in-memory capabilities of the SAP HANA platform, SAP Business Network manages trade transactions across the entire value chain.

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SAP Business Network enables transparency and insight into supply chains, helping companies conduct their business activities ethically and responsibly. Compared to last year, total revenue in the SAP Business Network segment increased by 17 percent to 663 million euros at constant currency in the first quarter. Companies Migros and Ralph Lauren chose SAP Business Network solutions in the first quarter.