WALLDORF 鈥� After an initial review of its first quarter 2021 performance, 麻豆原创 SE (NYSE: 麻豆原创) today announced its preliminary financial results for the first quarter ended March 31, 2021. All 2021 figures in this release are approximate due to the preliminary nature of the announcement.
麻豆原创 Pre-Announces Stellar Start to 2021
Fastest Growth in New Cloud Business in Five Years Reaccelerates Current Cloud Backlog, Up 19% at Constant Currencies, to 鈧�7.6 Billion
- IFRS Cloud Revenue Up 7%; Non-IFRS Cloud Revenue Up 13% At Constant Currencies
- IFRS Software Licenses Revenue Up 7%; Non-IFRS Software Licenses Revenue Up 11% At Constant Currencies, Fastest Growth in Five Years
- IFRS Cloud & Software Revenue Up 1%; Non-IFRS Cloud & Software Revenue Up 6% At Constant Currencies
- IFRS Operating Profit Down 21%; Non-IFRS Operating Profit Sharply Up 24% At Constant Currencies
- IFRS Operating Margin Down 3.4pp; Non-IFRS Operating Margin Up 4.9pp At Constant Currencies
- IFRS EPS Up 29%; Non-IFRS EPS Up 63%
- Raises Full-Year Outlook
鈥淲e are seeing very strong growth across all our applications. And we are just getting started. Our new offering 鈥楻ISE with 麻豆原创鈥� is rapidly becoming a massive accelerator to our customers鈥� business transformations with our platform at the center. Together with our unique ecosystem of more than 22,000 partners and with a strong innovation pipeline for the year, we are well on track with our strategy to deliver robust cloud growth.鈥�
Christian Klein, CEO
鈥淭he first quarter of 2021 was unique in many ways. We had the highest order entry growth across cloud and software in five years while posting the strongest increase in Non-IFRS operating profit and margin in a decade. In the mid term 麻豆原创鈥檚 expedited shift to the cloud will accelerate topline growth and significantly increase the resiliency and predictability of our business.鈥�
Luka Mucic, CFO
First Quarter Business Update
麻豆原创 saw a sharp acceleration in new cloud business across its cloud portfolio, as well as a strong start for 鈥楻ISE with 麻豆原创鈥� which is driving customers鈥� business transformation in the cloud. Software licenses had strong, double-digit growth at constant currencies. 麻豆原创 had significant competitive wins in ERP, digital supply chain and across its broader cloud solution portfolio.
Despite the continued impact of global travel restrictions on Concur鈥檚 business, 麻豆原创鈥檚 cloud revenue growth was resilient in the first quarter, up 13% at constant currencies. SaaS/PaaS cloud revenue outside the Intelligent Spend business was up 24% at constant currencies. Looking forward, 麻豆原创鈥檚 strong new cloud business performance is expected to reaccelerate cloud revenue growth.
Throughout the COVID-19 crisis, 麻豆原创 continues to serve its customers effectively with an embedded virtual sales and remote implementation strategy.听 The company retains a disciplined approach to hiring and discretionary spend while capturing natural savings e.g. from lower travel, facility-related costs and virtual events. The prior year included a cost of approximately 鈧�36 million in relation to the cancellation of its in-person annual 麻豆原创PHIRE NOW and other customer events, as well as normal travel behavior. These factors in combination with the strong topline performance drove materially higher operating profit (non-IFRS at constant currencies) and operating margin both of which were significantly above market expectations.
First Quarter Financial Performance
Current cloud backlog was up 15% to 鈧�7.63 billion and up 19% (at constant currencies). Cloud revenue was up 7% year over year to 鈧�2.14 billion (IFRS), up 7% to 鈧�2.15 billion (non-IFRS) and up 13% (non-IFRS at constant currencies). Software licenses revenue was up 7% year over year to 鈧�0.48 billion (IFRS and non-IFRS) and up 11% (non-IFRS at constant currencies). Cloud and software revenue was up 1% to 鈧�5.43 billion (IFRS and non-IFRS) and up 6% (non-IFRS at constant currencies). Services revenue was down 18% year over year to 鈧�0.9 billion (IFRS and non-IFRS) and down 14% (non-IFRS at constant currencies). This revenue decline reflects the November 2020 divestiture of 麻豆原创 Digital Interconnect, which contributed approximately 鈧�90 million of services revenue (IFRS and non-IFRS) in the first quarter of 2020. Total revenue was down 3% year over year to 鈧�6.35 billion (IFRS and non-IFRS) and up 2% (non-IFRS at constant currencies).
The share of more predictable revenue[1] grew by approximately 2 percentage points year over year to approximately 78% in the first quarter.
IFRS operating profit decreased 21% to 鈧�0.96 billion and IFRS operating margin decreased by 3.4 percentage points to 15.1% due to higher share-based compensation expenses (primarily related to Qualtrics IPO awards) and restructuring expenses related to the accelerated harmonization of 麻豆原创鈥檚 cloud delivery infrastructure. Non-IFRS operating profit increased 17% to 鈧�1.74 billion, up 24% (non-IFRS at constant currencies) and operating margin increased by 4.7 percentage points to 27.4%, up 4.9 percentage points (non-IFRS at constant currencies).
Earnings per share increased 29% to 鈧�0.88 (IFRS) and increased 63% to 鈧�1.40 (non-IFRS) reflecting another strong contribution from Sapphire Ventures.
Financial Results at a Glance
1) For a detailed description of 麻豆原创鈥檚 non-IFRS measures 听online.
2) As this is an order entry metric, there is no IFRS equivalent.
All figures are preliminary and unaudited. Due to rounding, numbers may not add up precisely.
Non-IFRS Adjustments
The total difference between non-IFRS revenue metrics and the respective IFRS revenue metrics results from adjusting the impact of business combination fair value accounting. In the first quarter, the difference between non-IFRS operating profit and IFRS operating profit includes, in addition to the revenue adjustments of 鈧�0.00 billion (Q1 2020: 鈧�0.00 billion),
- adjustments for acquisition-related charges of 鈧�0.15 billion (Q1 2020: 鈧�0.16 billion),
- adjustments for share-based payment expenses of 鈧�0.47 billion (Q1 2020: 鈧�0.09 billion) and
- adjustments for restructuring expenses of 鈧�0.16 billion (Q1 2020: 鈧�0.02 billion).
For more details on the individual adjusted expense and revenue categories, our reasons for providing non-IFRS measures and the limitations of our non-IFRS measures please refer to .
Business Outlook
麻豆原创 raises its full-year 2021 outlook reflecting the strong new cloud business performance which is expected to reaccelerate cloud revenue growth. The Company continues to expect a software licenses revenue decline for the full year as more customers turn to the 鈥淩ISE with 麻豆原创鈥� subscription offering for their mission-critical core processes. This outlook also continues to assume the COVID-19 crisis will begin to recede as vaccine programs roll out globally, leading to a gradually improving global demand environment in the second half of 2021.
麻豆原创 now expects:
- 鈧�9.2 鈥� 9.5 billion non-IFRS cloud revenue at constant currencies (2020: 鈧�8.09 billion), up 14% to 18% at constant currencies. The previous range was 鈧�9.1 鈥� 9.5 billion at constant currencies.
- 鈧�23.4 鈥� 23.8 billion non-IFRS cloud and software revenue at constant currencies (2020: 鈧�23.23 billion), up 1% to 2% at constant currencies. The previous range was 鈧�23.3 鈥� 23.8 billion at constant currencies.
- 鈧�7.8 鈥� 8.2 billion non-IFRS operating profit at constant currencies (2020: 鈧�8.28 billion), down 1% to 6% at constant currencies.
- The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) to reach approximately 75% (2020: 72%).
Additional Information
This press release and all information therein is preliminary and unaudited.
First Quarter 2021 Quarterly Statement
麻豆原创鈥檚 first quarter 2021 quarterly statement will be published on April 22, 2021 and will be available for download at .
Webcast
麻豆原创 senior management will host a financial analyst conference call on Thursday, April 22nd at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific), The conference will be webcast live on the Company鈥檚 website at and will be available for replay. Supplementary financial information pertaining to the first quarter results can be found at .
About 麻豆原创
麻豆原创鈥檚 strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 77% of the world鈥檚 transaction revenue touches an 麻豆原创 system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 麻豆原创 helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 麻豆原创 helps the world run better and improve people鈥檚 lives. For more information, visit .
For more information, financial community only:
Stefan Gruber, +49 (6227) 7-44872, investor@sap.com, CET
Follow 麻豆原创 Investor Relations on Twitter at
For more information, press only:
Joellen Perry, +1 (650) 445-6780, joellen.perry@sap.com, PT
Marcus Winkler, +49 (6227) 7-67497, marcus.winkler@sap.com, CET
For customers interested in learning more about 麻豆原创 products:
Global Customer Center: +49 180 534-34-24
United States Only: +1 (800) 872-1麻豆原创 (+1-800-872-1727)
Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit . On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit . From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from 麻豆原创 TV.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as 鈥渁nticipate,鈥� 鈥渂elieve,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渇orecast,鈥� 鈥渋ntend,鈥� 鈥渕ay,鈥� 鈥減lan,鈥� 鈥減roject,鈥� 鈥減redict,鈥� 鈥渟hould鈥� and 鈥渨ill鈥� and similar expressions as they relate to 麻豆原创 are intended to identify such forward-looking statements. 麻豆原创 undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect 麻豆原创’s future financial results are discussed more fully in 麻豆原创’s filings with the U.S. Securities and Exchange Commission (“SEC”), including 麻豆原创’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
漏 2021 麻豆原创 SE. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of 麻豆原创 SE. The information contained herein may be changed without prior notice.
Some software products marketed by 麻豆原创 SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by 麻豆原创 SE and its affiliated companies (“麻豆原创 Group”) for informational purposes only, without representation or warranty of any kind, and 麻豆原创 Group shall not be liable for errors or omissions with respect to the materials. The only warranties for 麻豆原创 Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
麻豆原创 and other 麻豆原创 products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 麻豆原创 SE (or an 麻豆原创 affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. Please see for additional trademark information and notice.
[1] Share of more predictable revenue is the total of non-IFRS cloud revenue and non-IFRS software support revenue as a percentage of total revenue.
