SAP makes billions of euros with cloud


SAP makes billions of euros with cloud

SAP makes billions of euros with cloud and Qualtrics IPO
SAP has presented its annual figures for 2020. The ERP manufacturer was able to significantly increase its operating result compared to the previous year despite Corona. 

The numbers show that the cloud is becoming increasingly important for SAP. The IPO of the US subsidiary Qualtrics, which flushed billions into SAP's coffers, also played a large part in the successful financial year.

SAP has announced its final quarterly and annual figures for the 2020 fiscal year. The figures show a turbulent year for the German software manufacturer.

Compared to the previous year, total sales fell by one percent to around 27.3 billion euros according to IFRS (International Financial Reporting Standards). On the other hand, the ERP provider was able to increase its operating result by 48 percent to over 6.6 billion euros according to IFRS. Net profit after tax is 5.28 billion euros - 57 percent more than in 2019.

Cloud services significantly more important

SAP owes almost a third of its sales to cloud revenues. According to the announcement, these grew to 8.8 billion euros according to IFRS, an increase of 17 percent compared to the previous year. Last year, cloud revenues accounted for around a quarter of sales.

The corona crisis is likely to be partly responsible for this, which triggered a real digitization boom and accelerated cloud migrations. According to the annual report for 2021, SAP expects the division's growth trend to continue. 

According to the company's five-year plan, non-IFRS cloud revenue is expected to triple from 2018 to 2023. The newly launched " Rise with SAP " program, with which the company wants to support customers in the digital transformation, is intended to help with this.

Successful IPO for subsidiary Qualtrics

The interaction of several factors is responsible for the good operating result. In 2019, for example, SAP spent large sums on job cuts , which had a corresponding effect on the annual result. 

The main actor, however, is likely to be the successful IPO of the SAP subsidiary Qualtrics. SAP bought the data platform in 2018 for around 8 billion US dollars. Following the IPO on Jan. 28, the company is valued at nearly $16 billion. According to "N-TV ", SAP secured proceeds of around 2.4 billion euros through the sale of shares.

The new fiscal year is already off to a good start for SAP. The Walldorf ERP manufacturer secured a 133 million order from the federal government.