The company’s total revenue for the reported quarter ended 31 March 2022 was up by 11% to €7.07bn
SAP headquarters in Walldorf, Germany. (Credit: SAP AG / Stephan Daub)
SAP has reported a profit after tax of €632m for the first quarter of 2022, a decrease of 41%, compared to a profit after tax of €1.07bn made in the same quarter of 2021.
The diluted earnings per share of the Germany-based software major in Q1 2022 was down by 29% to €0.63 from €0.88 reported in Q1 2021.
SAP’s total revenue for the reported quarter ended 31 March 2022 increased by 11% to €7.07bn compared to €6.35bn earned in Q1 2021.
The company said that its business during the reported quarter was affected by the war in Ukraine. In early March, SAP ceased all new sales in Russia and Belarus.
Besides, the German firm said that it started to close its cloud operations and plans to stop the support and maintenance of its on-premise products in Russia.
The company said that its present cloud backlog was reduced by nearly €60m because of the cancellation of existing cloud engagements, and operating profit by around €70m owing to decreased on-premise revenues, and expedited depreciation of data centre assets as well as capitalised sales commissions.
SAP’s cloud revenue for Q1 2022 was up by 31% year-over-year (YoY) to €2.82bn, compared to €2.14bn in Q1 2021.
SAP S/4HANA’s cloud revenue for the reported quarter was up by 78% YoY to €404m.
The company’s revenue from software licenses and support in Q1 2022 was €3.24bn, which is 1% less than €3.28bn earned in the same quarter of the previous year.
SAP CEO Christian Klein said: “Customers powered another quarter of strong cloud growth as they turned to us for solutions to make their businesses more sustainable, their supply chains more resilient, and their enterprises more future-proof.
“Our signature ERP offering SAP S/4HANA grew at record levels demonstrating the confidence customers place in us to support their business transformations.”
Earlier this year, the German software company signed a deal to purchase a majority stake in Taulia, a US-based provider of working capital management solutions.