Read How SAP Fared In Q2

SAP SE SAP reported second-quarter FY22 revenue growth of 5% year-on-year to €7.52 billion at constant currencies.
Cloud revenue increased 24% Y/Y to €3.06 billion, driven by double-digit growth across the SaaS and PaaS portfolios.
Software licenses and support revenue declined 7% Y/Y to €3.4 billion.
Cloud and software revenue increased 5% Y/Y to €6.5 billion.
The current cloud backlog was up 25% Y/Y to €10.4 billion.
The non-IFRS cloud gross margin was up 230 bps to 71.9%, driven by a substantial increase in the SaaS margin.
The non-IFRS operating margin contracted 580 bps at CC to 22.4%, driven by reduced contribution from software license revenue. Non-IFRS EPS was €0.96.
Buyback: On July 21, SAP announced a share buyback program of €500 million.
Christian Klein, CEO: "As our Q2 results demonstrate, SAP's portfolio is more relevant than ever. Our transition to the cloud is ahead of schedule, and we have exceeded topline expectations, with cloud revenue becoming SAP's largest revenue stream. Our pipeline is strong, and we are winning market share underpinned by the very strong 100% growth of S/4HANA current cloud backlog."
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.
SAP slashed its adjusted profit outlook to €7.6 billion - €7.9 billion, from the previously expected €7.8 billion - €8.25 billion.
Price Action: SAP shares closed lower by 0.01% at $92.33 on Wednesday.

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