SAP posts 38 percent cloud revenue growth for third quarter

For its third quarter earnings, SAP posted a 38 percent growth of its global cloud revenue at $5.12 billion.

Closer to home in Asia Pacific and Japan (APJ), SAP grew cloud revenue to $640.1 million in Q3 2022, an increase of 27 percent over the same period in 2021.

Total APJ Q3 2022 revenue grew to $1.7 billion Euros, up 5 percent over the same period in 2021.

Paul Marriott, president, SAP APJ said, “Businesses are realising the value of our flexible, extendable, and innovative set of business tools in the cloud – building on SAP’s strength in connecting organisations and improving processes.

“Our cloud-centric strategy and best-in-suite portfolio are helping customers across APJ address their most pressing challenges, from cloud-based business transformation to bolstering supply chain resilience and building sustainability into the core of business.”

Christian Klein, CEO at SAP said the company’s cloud solutions are the answer.

“As customers turn to us to help them future-proof their businesses. This trust in SAP is reflected in our accelerating cloud momentum,” he said.

“With a recurring revenue share of more than 80 percent, it’s clear that our transformation has reached an important inflection point, paving the way for continued growth in the future.”

Luka Mucic, CFO at SAP said, “We have delivered a strong cloud quarter with accelerating momentum across all key cloud indicators. We’re at an important inflection point in our transformation which we anticipate will lead to accelerating revenue growth and double-digit operating profit growth in 2023.”

During Q3 SAP gained a number of new customers with its RISE with SAP, these included Ricoh, Fonterra, Nikon Corporation, and Dabur India.

Wipro and Birlasoft went live with RISE with SAP S/4HANA. Leading retail companies Chemist Warehouse and Trent selected cloud-native SAP SuccessFactors Human Experience Management Suite

APJ also reported momentum with new Qualtrics customers, including KB Kookmin Bank, Domino’s Pizza Enterprises, Solasto Corporation, VinFast, and Telkomsel. 

For the rest of 2022, SAP expects to hit its yearly guidance of a $17.9 - $18.5 billion cloud revenue, a growth of up to 26 percent.

The share of more predictable revenue (defined as the total cloud revenue and software support revenue) is expected to reach approximately 78 percent, it was 75 percent in 2021.