SAP has reported third-quarter earnings results revealing reduced income and COVID-19's impact on the company's cloud business.
SAP's Q3 2020 earnings (statement[1]) (.PDF), ending September 2020, reveal revenues of €6.54 billion IFRS, down 4% year-over-year (or flat non-IFRS and at constant currencies) with basic earnings per share of €1.32 (€1.70 non-IFRS).
In Q2 2020[2], SAP reported €6.74 billion IFRS revenue.
SAP reported an operating profit of €1.47 billion IFRS, down 12% year-over-year and 1% to €2.07 billion non-IFRS and up 4% non-IFRS at constant currencies.
SAP says this reduction in operating profit is "primarily due to higher share-based compensation expenses compared to the prior year period."
Operating cash flow for the first nine months of the year was €5.09 billion, up 54% year-over-year due to "lower restructuring-related payments and lower income tax payments."
A cloud backlog of €6.6 billion has been recorded, while cloud revenue grew by 11% year-over-year, to €1.98 billion (IFRS), up 10% non-IFRS and up 14% non-IFRS at constant currencies. Software licenses revenue decreased by 23% year-over-year to €0.71 billion (IFRS and non-IFRS) and down 19% (non-IFRS at constant currencies).
Overall cloud and software revenue reduced by 2% year-over-year to €5.54 billion (IFRS) and up 2% non-IFRS at constant currencies.
SAP S/4HANA added an additional 500 customers to the roster in Q3 2020, up 20% year-over-year. SAP S/4HANA now accounts for over 15,100 customers, of which approximately 8,100 are now live.
The four main business segments SAP reports on, "Applications, Technology & Services," "Qualtrics," "Concur" and "Services" also felt the ongoing impact of the pandemic over the third quarter of 2020.
Applications, Technology & Services revenue decreased by 2% to €5.17 billion year-over-year.
Concur, the firm's travel, expense, and invoice management solutions