- SAP SE (NYSE: SAP) reported a revenue decline of 6% year-on-year to €7.54 billion in the fourth quarter of FY20.
- The e-commerce solution exuded robust performance, more than doubling the cloud revenue due to their increased demand during the pandemic.
- The cloud revenue grew 8% year-on-year to €2.04 billion. It was negatively impacted by lower transactional revenue from Concur due to reduced business travel amidst the pandemic.
- The software license revenue declined 15% to €1.70 billion), and the cloud and software revenue declined 4% to €6.58 billion.
- The gross margin for cloud expanded 210 basis points to 67.2%.
- The operating profit rose 26% to €2.66 billion, with a margin expansion of 910 basis points to 35.2%.
- The adjusted EPS €1.69 was down 7% Y/Y, beating consensus by €0.13.
- Operating cash flow for fiscal 2020 almost doubled Y/Y to €7.2 billion.
- SAP’s expedited shift to the cloud will drive long-term, sustainable growth while significantly increasing the resiliency and predictability of our business,” said SAP CFO Luka Mucic.
- Outlook: SAP expects FY21 cloud revenue growth of 13% to 18%, cloud and software revenue growth of 0% to 2%, operating profit decline of 1% to 6%.
- The share of cloud revenue and software support revenue could expand by 300 basis points to 75%. The cash flow expectations stand lower at €6.0 billion in anticipation of discreetly lower profit, higher expected income tax payments, and adverse currency movement.
- Price action: SAP’s shares were down by 0.82% at $129.37 on the last check Friday.
SAPSAP SE
$270.35-%
Edge Rankings
Momentum90.48
Growth64.67
Quality65.42
Value10.12
Price Trend
Short
Medium
Long
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