SAP Registers 5% Revenue Growth Aided By Cloud, Software Momentum

SAP SE (NYSE: SAP) reported third-quarter FY22 revenue growth of 5% year-on-year to €7.84 billion at constant currencies.
Cloud revenue increased 25% Y/Y to €3.29 billion at CC, driven by double-digit growth across the SaaS and PaaS portfolios.
Software licenses and support revenue declined 9% Y/Y to €3.42 billion at CC.
Cloud and software revenue increased 5% Y/Y to €6.71 billion at CC.
The current cloud backlog was up 26% Y/Y to €11.27 billion at CC.
The non-IFRS cloud gross margin was up 230 bps to 71.7%, driven by a substantial increase in the SaaS margin.
The non-IFRS operating margin contracted 400 bps to 26.7%, driven by reduced contribution from software license revenue. Non-IFRS EPS was €1.12.
Outlook: SAP reaffirmed the 2022 outlook for revenue.
SAP sees FY22 cloud revenue at CC of €11.55 billion – €11.85 billion.
SAP expects FY22 cloud and software revenue at CC of €25 billion – €25.5 billion.
Price Action: SAP shares closed higher by 0.14% at $91.01 on Monday.

Earnings Calendar