How does SAP know business travel is back? Its spending software unit still breathes • The Registry
Business travel is back – sort of – said SAP as it filed results showing second calendar quarter total revenue down 1% year-on-year to â¬ 6.67 billion .
The reason for the German software giant’s optimism about small meals on board and misguided shopping at the airport was the performance of its Concur software business, which had been crippled by the pandemic.
SAP said it saw the “first signs of recovery in travel and expense management with the relaxation of global travel restrictions, which has led Concur to stabilize its sequential performance for the first time since the start of the pandemic.” .
In its second quarter results, SAP said cloud revenue increased 11% year-on-year to $ 2.28 billion. At the same time, revenue from software licenses fell 16% compared to the same period last year to 650 million euros.
Services revenue fell 11% year-on-year to â¬ 920 million, although the decline was due to the $ 250 million sale of SAP Digital Interconnect, the mobile communications division that helped around 80 million euros in the second quarter of 2020, the applications specialist said. .
SAP also said it has good news about its RISE with SAP product, which works with partners to help customers move and relocate existing on-premises systems to the cloud, and then migrate them to the latest SAP software.
Although the German-speaking SAP User Group (DSAG) said last month that the proposal has yet to prove its worth without concrete case studies, SAP itself has said it is winning over customers.
AMD, Coop Switzerland, Etihad Airways and Siemens Energy have all selected RISE with SAP, he said.
Likewise, approximately 600 customers purchased S / 4HANA, the company‘s most recent ERP platform, during the quarter. Total adoption reached 17,000 organizations, up 16% year-over-year, SAP said.
The slow adoption of S / 4HANA, the decisive platform in convincing users to upgrade and move to the cloud, was a main criticism of SAP’s strategy as users failed to hang on. to the business case.
In the fall of 2020, SAP stocks slumped 23% when it lowered its business outlook for the year.
In SAP Q2 2021 results, the company achieved operating profit of 980 million euros, down 23% from a year ago.
The company raised its outlook for the full year 2021, saying cloud and software revenues would be 23.6 billion to 24.0 billion euros, up between 2% and 3%. The previous range was 23.4 to 23.8 billion euros. Â®