Solid numbers for Q2: SAP defies corona crisis

Despite the corona crisis, SAP holds out the prospect of a solid balance sheet for the second quarter of 2020. According to preliminary results, sales between April and June of this year amounted to 6.74 billion euros – two percent more than in the same period last year. Once again, the cloud business saved the German software group’s balance sheet. Cloud revenues increased in the second quarter by 21 percent year on year to a good two billion euros.

In contrast, the software license business slumped again – by 18 percent to 770 million euros. At this point, the SAP managers spoke of a significant improvement compared to the first quarter of 2020. At the beginning of the year, Walldorf residents had still complained about a 30 percent decline in the licensing business. SAP’s operating profit increased eight percent year-on-year in the second quarter to EUR 1.96 billion (non-IFRS). The operating margin improved by 1.8 percentage points year-on-year to 29.1 percent (non-IFRS).

In view of the corona crisis, analysts had been waiting eagerly for the SAP figures and responded with relief. In view of the difficult general conditions, the second quarter went well for SAP, the general tenor. The software company has proven to be resistant to the economic effects of the pandemic.

The SAP management was also visibly pleased with the numbers. “I am very proud that our teams have successfully mastered the very difficult environment and achieved a better quarterly result than expected,” said CEO Christian Klein. It has been shown that customers rely on SAP’s strategy for the intelligent company. “Our portfolio therefore also plays a decisive role when it comes to enabling our customers to do the digital transformation they want,” said the SAP boss. This could help user companies emerge from the crisis stronger.