SAP has reported strong financial results in the second quarter of 2018 and has raised the firm's financial outlook for the year. SAP announced its financial results for the second quarter and half-year results ending 30 June 2018 on Thursday (statement). In Q2 2018, total revenue was reported as €5.99 billion ($6.95bn), or €6.014bn non-IFRS, up four percent year-over-year or 10 percent non-IFRS at constant currencies. SAP reported earnings per share of €0.60 IFRS, an increase of eight percent year-over-year, or €0.98 non-IFRS. SAP beat Wall Street earning expectations of €5.86 billion.
SAP has reported strong financial results in the third quarter of 2018 and has once again raised the firm's financial outlook for the year. SAP announced its financial results for the third quarter on Thursday (statement). In Q3 2018, total revenue was reported as €6.02 billion IFRS, or €6.031 billion non-IFRS, up eight percent year-over-year or 10 percent non-IFRS at constant currencies. SAP reported earnings per share of €0.82 IFRS, a decrease of one percent, and increased by 13 percent to €1.14 non-IFRS, beating analyst expectations as polled by Reuters. New cloud bookings increased by 36 percent over the quarter -- 37 percent at constant currencies -- whilst cloud subscriptions and support revenue surged by 39 percent year-over-year, earning SAP €1.30 billion IFRS, or up 41 percent non-IFRS at constant currencies.
Public cloud services expenditure in Australia is predicted to reach AU$5 billion by the end of the year, a 17.1 percent increase from AU$4.3 billion in 2016, according to technology analyst firm Gartner. Software-as-a-service (SaaS) revenue is expected to rise 25.1 percent from AU$1.5 billion in 2016 to AU$1.9 billion in 2017, while platform-as-a-service (PaaS) revenue is forecast to reach AU$262 million, a 28.4 percent uplift from AU$204 million in 2016 to AU$262 million in 2017. Gartner expects a slighter increase of 14.5 percent in infrastructure-as-a-service revenue from AU$415 million last year to AU$475 million this year, while business process-as-a-service (BPaaS) will grow 6.5 percent year on year from AU$814 million to AU$867 million in Australia. Cloud management and security services revenue will similarly go up, reaching AU$814 million in 2017 compared to AU$867 million in 2016, which marks a 22.1 percent increase, according to Gartner. Cloud advertising expenditure is also expected to rise by 11.1 percent from AU$2.6 billion in 2016 to AU$2.9 billion in 2017.
SAP has revealed as part of the firm's 2018 financial results that it will take a charge of 950 million euros ($1 billion) with restructuring on the horizon due to early retirement and staff shifts to shore up slowing business units. SAP's Q4 2018 earnings (statement) reveal revenues of €7.43bn IFRS or €7.34 billion non-IFRS, up nine percent year-over-year with basic earnings per share of €1.41, a drop of eight percent IFRS or 15 percent non-IFRS. In comparison, in Q3 2018, SAP reported revenues of €6.02 billion IFRS or €6.031 billion non-IFRS. Operating profit increased by 22 percent year-over-year to €2.4 billion IFRS. New cloud bookings were up 25 percent -- 23 percent at constant currencies -- to €736 million, while cloud subscriptions and support revenue grew 41 percent year-over-year to €1.41 billion IFRS.