SAP Clocks 3% Revenue Growth In Q4 Backed By Cloud Strength; Issues Robust FY22 Outlook; Aims To Acquire Taulia

SAP SE SAP reported fourth-quarter FY21 revenue growth of 3% year-on-year to €7.98 billion at constant currencies.

• Cloud revenue increased 24% Y/Y to €2.61 billion at CC. S/4HANA cloud revenue grew 61% Y/Y to €329 million at CC.
• Software licenses revenue declined 17% Y/Y to €1.46 billion at CC. Cloud and software revenue increased 3% Y/Y to €6.99 billion at CC. Services revenue was flat Y/Y at €0.99 billion at CC. 
• The current cloud backlog was up 26% year-on-year to €9.45 billion at CC. S/4HANA's current cloud backlog rose 76% Y/Y to €1.71 billion at CC.
• The non-IFRS operating margin contracted 540 bps to 30.9% at CC. Non-IFRS EPS was €1.86.
• Outlook: SAP sees FY22 cloud revenue at CC of €11.55 billion – €11.85 billion.
• SAP sees FY22 cloud and software revenue at CC of €25 billion – €25.5 billion.
• Luka Mucic, CFO: "After three-quarters of home runs with our cloud momentum, we hit it out of the park this quarter. We are confident that we will continue our Q4 current cloud backlog growth in 2022. This is reflected in our accelerated cloud guidance for 2022 as we make great progress towards our mid-term ambition."
• Acquisition: SAP intends to acquire a majority stake of Taulia, a working capital management solutions provider. The financial terms of the transaction remain undisclosed.
• The move aims to offer companies better access to liquidity and improve their cash flows. 
• The acquisition further expands SAP's Business Network and strengthens SAP's solutions for the CFO office. Taulia will operate as an independent company with its brand in the SAP Group; Cédric Bru will remain CEO of Taulia, SAP CFO Luka Mucic will become Chairman.
• Mucic said, "By combining the deep working capital management expertise of Taulia with SAP's broad CFO solution portfolio and the integration into our core business software and Business Network solutions, we are well-positioned to become a leader in working capital management. We will offer these capabilities at scale to help businesses improve their financial position and seize growth opportunities."
• Price Action: SAP shares closed lower by 0.03% at $132.28 on Wednesday.