SAP SE (SAP) reported earnings on Mon 26 Oct 20 (b/o)

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** charts after earnings **

 

SAP SE beats by 0.40, misses on revs; lowers FY20 outlook 

Reports Q3 (Sep) earnings of 1.70 per share, 0.40 better than the S&P Capital IQ Consensus of 1.30; revenues fell 3.9% year/year to 6.54 bln vs the 6.85 bln S&P Capital IQ Consensus.

Co issues downside guidance for FY20, sees FY20 revs of 27.2 -- 27.8 bln vs. 28.22 bln S&P Capital IQ Consensus, and below prior guidance of 27.8 -- 28.5 billion )

• Co sees 8.1 -- 8.5 billion operating profit compared to previously guidance of 8.1 -- 8.7 billion

Updated Mid-Term Ambition - SAP's previous mid-term ambition was issued on April 24th, 2019, before the COVID-19 crisis. The company is now updating its mid-term ambition to reflect the following factors

• The most recent currency exchange rates (October 2020) which translates to a negative 3 to 4 percent effect on revenue and operating profit since April 2019. 
• The COVID-19 pandemic which is expected to impact the demand environment, particularly in hard hit industries, through at least the first half of 2021 pushing out the achievement of key metrics such as non-IFRS cloud revenue, total revenue, and operating profit, by 1 to 2 years.
• The acceleration of customers' move to the cloud and subsequent business transformations which drive the new ambition's cloud revenue target of more than 22 billion by 2025. SAP expects this to negatively impact the 2023 operating margin by approximately 4 to 5 percentage points relative to the previous mid-term ambition.
• The accelerated harmonization of SAP cloud delivery which is expected to require an incremental investment in 2021 and 2022 and to drive the non-IFRS cloud gross margin to approximately 80% by 2025.

By 2025, this trajectory is expected to take SAP to:

• More than 22 billion non-IFRS cloud revenue
• More than 36 billion non-IFRS total revenue
• More than 11.5 billion non-IFRS operating profit
• A significant expansion of the Company's more predictable revenue share to approximately 85%

-=SAP SE (SAP) reported earnings on Tue 24 Apr 2018 (b/o)

SAP SE reports EPS in-line, revs in-line; raises FY18 revs above consensus 

• Reports Q1 (Mar) earnings of 0.73 per share, in-line with the Capital IQ Consensus of 0.73; revenues fell 0.5% year/year to 5.26 bln vs the 5.3 bln Capital IQ Consensus.

Business Outlook 2018

• Co issues upside guidance for FY18, sees FY18 revs of 24.8-25.3 bln vs. 24.3 bln Capital IQ Consensus Estimate.
• SAP is raising its outlook to reflect the closing of the Callidus acquisition on April 5, 2018 as well as the strong operating profit performance in the first quarter. For the full year 2018, the Company now expects:
  • Non-IFRS cloud subscriptions and support revenue to be in a range of 4.95 billion - 5.15 billion at constant currencies (2017: 3.77 billion), up 31% -- 36.5% at constant currencies. The previous range was 4.8 - 5.0 billion. Callidus is expected to contribute approximately 150 million.
  • Non-IFRS cloud and software revenue to be in a range of 20.85 -- 21.25 billion at constant currencies (2017: 19.55 billion), up 6.5% -- 8.5% at constant currencies. The previous range was 20.7 -- 21.1 billion. Callidus is expected to contribute approximately 150 million.
  • Non-IFRS operating profit to be in a range of 7.35 billion - 7.50 billion at constant currencies (2017: 6.77 billion), up 8.5% -- 11% at constant currencies. The previous range was 7.3 -- 7.5 billion. Callidus is expected to contribute approximately 10 million.

=SAP (SAP) reported earnings on Tue 30 January 2018 (BMO)

SAP SE beats by $0.22, reports revs in-line; guides FY18 revs in-line 

• Reports Q4 (Dec) earnings of 1.77 per share, 0.22 better than the Capital IQ Consensus of 1.55; revenues rose 1.2% year/year to 6.8 bln vs the 6.85 bln Capital IQ Consensus.
  • New cloud bookings grew by 22% (31% at constant currencies) in the fourth quarter and reached 591 million, delivering on the promise made in October to reaccelerate new cloud bookings.
  • Cloud subscriptions and support revenue grew 20% year over year to 995 million or 28% (non-IFRS at constant currencies).
  • Software revenue was 2.06 billion, down 5% year over year or 1% (non-IFRS at constant currencies).
• Co issues in-line guidance for FY18, sees FY18 revs of 24.6-25.1 bln vs. 24.82 bln Capital IQ Consensus Estimate.
  • The Company expects full-year 2018 non-IFRS operating profit to be in a range of 7.3 -7.5 billion at constant currencies (2017: 6.77 billion). This range represents a growth rate of 8% -- 11% at constant currencies.

Callidus Software (CALD) to be acquired by SAP for $36.00 per share 

• SAP SE (SAP) and Callidus Software (CALD) announced that SAP America has entered into an agreement to acquire CallidusCloud, the leader in cloud-based Lead to Money (Quote-to-Cash) solutions.
• The CallidusCloud board of directors has unanimously approved the transaction. The per share purchase price of $36.00 represents a 21% premium over the 30-day volume weighted average price per share and a 28% premium over CallidusCloud's 90-day volume weighted average price per share.
  • The per share price represents an enterprise value of approximately $2.4 billion.
  • SAP has elected to fund the transaction with existing cash balances and an acquisition term loan.
  • The transaction is expected to close in the second quarter of 2018, subject to approval from CallidusCloud stockholders, clearances by the relevant regulatory authorities, and other customary closing conditions.
  • The transaction is expected to be essentially neutral to SAP's non-IFRS earnings per share for fiscal 2018 and accretive to SAP's non-IFRS earnings per share for fiscal 2019.

-=SAP reported earnings on Wed 20 Jul 2016 (b/o)

SAP beats by EUR0.01; beats on revs; reaffirms FY16 outlook  :

Reports Q2 GAAP EPS of EUR0.68 vs EUR0.67 Capital IQ consensus; revs increased 5% YoY to EUR5.24 bln vs EUR5.22 bln consensus

• Cloud and software revenue up 7% (:IFRS) and up 11% (non-IFRS at constant currencies)
• Cloud revenue up 30% (:IFRS) and up 33% (non-IFRS at constant currencies)

Regional Performance

• The Company had a strong performance in the EMEA region, successfully navigating through the post UK referendum uncertainty, with an increase in cloud and software revenue of 7% (:IFRS) and 11% (non-IFRS at constant currencies). Cloud subscriptions and support revenue grew 38% (:IFRS) and 41% (non-IFRS at constant currencies). In EMEA, SAP had strong double-digit software licenses revenue growth in France, the Netherlands, Switzerland, across Southern Europe and again a solid performance in Germany. Russia and Germany had very strong double-digit growth in cloud subscriptions and support revenue.
• In the Americas region, the Company grew cloud and software revenue by 8% (:IFRS) and 11% (non-IFRS at constant currencies) and cloud subscriptions and support revenue by 26% (:IFRS) and 29% (non-IFRS at constant currencies). North America delivered a solid second quarter and is back on track with its half year performance. In Latin America, the political and macroeconomic instability continued. However, SAP had strong double-digit growth in software licenses revenue in Brazil and Mexico.