Germany-based business software company SAP reported revenue of €5.99 billion (+4 percent) with a profit of €720 million (+8 percent) in Q2 2018.
SAP said its Cloud and software revenue €4.94 billion in the second quarter.
SAP CEO Bill McDermott said: “SAP is presenting a clear strategy, customers are already validating it in Q2 and we are increasing guidance as a signal that a new wave of growth has been unleashed.”
SAP said new cloud bookings grew 24 percent to €421 million in the second quarter. Cloud subscriptions and support revenue grew 30 percent to €1.21 billion.
SAP said software revenue fell 9 percent to €996 million. New cloud and software license order entry grew 12 percent.
SAP said its expanding cloud business together with growth in support revenue continued to drive the share of more predictable revenue. The cloud subscriptions & support revenue and software support revenue as a percentage of total revenue grew 2 percentage points to 66 percent in the second quarter.
S/4HANA adoption grew to more than 8,900 customers, up 41 percent year over year. SAP added nearly 600 additional customers including approximately 40 percent new for S/4HANA.
McDonalds China, TechnipFMC, China Sports Lemon, and Spirit Airlines are the latest customers of S/4HANA Cloud.
SAP’s C/4HANA customer experience solutions achieved high double-digit year-over-year growth in new cloud bookings and total revenue in the SAP Customer Experience segment was up 65 percent to €242 million. Deutsche Telekom and Coty were among those that chose SAP’s C/4HANA solutions.
SAP SuccessFactors Employee Central, which is the flagship of SAP’s HCM offering, ended the quarter with more than 2,600 customers and scored numerous competitive wins including BMW, Telecom Argentina, and MG Motors India.
Porsche is among many companies that adopted SAP Leonardo solutions in the second quarter.
Revenue in the SAP Business Network segment rose 21 percent to €688 million. Bosch-Siemens Hausgerate, and Avianca chose SAP’s Business Network Solutions in the second quarter.