DGAP-Adhoc: SAP SE: SAP Announces Preliminary Fourth Quarter 2020 Results and 2021 Business OutlookSource: EQS
SAP Pre-Announces Strong Fourth Quarter and Full-Year 2020 Results
Fourth Quarter Business Update
After an initial review of its fourth-quarter 2020 performance,
SAP's business performance sequentially improved in the fourth quarter even as the COVID-19 crisis persisted and lockdowns were reintroduced in many regions. Cloud revenue in the fourth quarter continued to be impacted by lower pay-as-you-go transactional revenue, mainly Concur business travel related. However, continued high demand for e-commerce, Business Technology Platform, and Qualtrics solutions along with several competitive wins - particularly for SuccessFactors Human Experience Management - produced a strong finish to the year for SAP's cloud business. SAP also saw strong early take up of its new holistic business transformation offering among pilot customers, contributing to the cloud performance in the quarter. Both
Throughout the COVID-19 crisis, SAP continues to serve its customers effectively with an embedded virtual sales and remote implementation strategy. 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. In combination with the strong topline performance these actions drove higher operating profit (IFRS and non-IFRS at constant currencies) and operating margin despite the challenging macro environment.
Fourth-Quarter and Full-Year Financial Performance
In the fourth quarter, current cloud backlog was up 7% to
The share of more predictable revenue grew by approximately 4 percentage points year over year to approximately 65% in the fourth quarter.
In the fourth quarter, IFRS operating profit and operating margin were positively impacted by lower share-based compensation expenses compared to the prior year period. Operating profit increased by 26% year over year to
Operating cash flow for the full year is expected to be at around
SAP provides the following full-year 2021 outlook reflecting its solid business momentum and best estimates concerning the timing and pace of recovery from the COVID-19 crisis. This outlook assumes the COVID-19 crisis will begin to recede as vaccine programs roll out globally, leading to a gradually improving demand environment in the second half of 2021.
While SAP's full-year 2021 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year. See the table below for the Q1 and FY 2021 expected currency impacts.
Information and Explanation of the Issuer to this News:
'The world's leading companies are turning to SAP to become intelligent enterprises. We are reinventing how businesses run by accelerating our customers' transformation in the cloud. Our strong finish to the year and the upcoming launch of our new holistic business transformation offering position us well to meet our new outlook targets.'
'In a uniquely challenging environment, 2020 was a record year for cash flow in every single quarter and the full year. Our better-than-anticipated top line performance combined with our quick response on the cost side drove strong operating profit. SAP's expedited shift to the cloud will drive long-term, sustainable growth while significantly increasing the resiliency and predictability of our business.'
For the full year, cloud revenue grew 17% year over year to
For the full year, the share of more predictable revenue grew by approximately 5 percentage points year over year to approximately 72%.
For the full year, IFRS operating profit and operating margin were positively impacted by significantly lower restructuring charges as well as lower share-based compensation expenses compared to 2019. Operating profit increased by 48% year over year to
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 fourth quarter, the difference between non-IFRS operating profit and IFRS operating profit includes, in addition to the revenue adjustments of significantly less than
For the full-year 2020, the difference between non-IFRS operating profit and IFRS operating profit includes, in addition to the revenue adjustments of significantly less than
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 Explanation of Non-IFRS Measures.
SAP also confirms its mid-term ambition which was previously published in its Q3 2020 Quarterly Statement.
The 2019 comparative numbers for full year only include Qualtrics revenues and profits from acquisition date of
This press release and all information therein is preliminary and unaudited.
Fourth Quarter 2020 Quarterly Statement
SAP's fourth quarter 2020 quarterly statement will be published on
SAP senior management will host a virtual press conference on
Virtual Launch Event
SAP will hold a virtual event to launch its new holistic business transformation offering 'RISE with SAP' on
SAP's 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's transaction revenue touches an SAP(R) system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers' businesses into intelligent enterprises. SAP 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 - 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, SAP helps the world run better and improve people's lives. For more information, visit http://www.sap.com.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the
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