SAP SE has raised its 2017 revenue outlook to €23.4 billion – €23.8 billion, based on Q3 revenue performance across all regions, and has raised its 2017 operating profit outlook to €6.85 billion – €7.0 billion.
SAP also reports that it is on track to execute a €500 million share buyback by year end, with €288 million bought back in Q3.
Although the outlook increases are cautious, SAP CEO Bill McDermott is confident about how the company will finish the year.
“Led by S/4HANA, we are delivering intelligent business applications built on the most data-rich architecture ever created. We see growth in every corner of the business, which is why we are again raising our guidance for the full year,” said McDermott.
The company reported that its digital core business has experienced 70 per cent growth year-over-year to more than 6,900 SAP S/4 HANA customers. In the third quarter, the company added more than 600 SAP S/4 HANA customers, 40 per cent of which were net new.
For the third quarter, cloud and software revenue increased 8 per cent to €4.66 billion while cloud subscriptions and support revenue grew 27 per cent to €938 million. In APJ, cloud and software revenue rose 9 per cent while cloud subscriptions and support revenue increased by 37 per cent.
Japan and Australia were very strong in cloud subscriptions and support revenue. In software revenue, Australia experienced triple-digit growth while China experienced strong double-digit growth. At the same time, EMEA cloud and software revenue also rose 9 per cent while cloud subscriptions and support revenue increased by 46 per cent and in the Americas cloud and software revenue rose 7 per cent while cloud subscriptions and support revenue increased 19 per cent.
“I am very pleased that we continue to have excellent software revenue and that non-IFRS earnings per share are up again double-digit,” said Luca Mucic, CFO, SAP.
At the end of Q3, SAP reported 87,874 employees, an increase of more than 5000 from a year earlier.