The software group SAP presented preliminary figures for the fourth quarter of 2020 on Friday. “The business development of SAP improved in the fourth quarter compared to the previous quarter, although the Corona crisis continued and in some regions public and economic life was again restricted,” reports the company. The news is well received on the stock market, the SAP share is currently in the black.
According to its own information, SAP has increased the Current Cloud Backlog by 7 percent to 7.15 billion euros. The company reports an 8 percent increase in cloud revenues to EUR 2.04 billion. In contrast, software license revenues fell by 15 percent to 1.7 billion euros. Overall, SAP reports a 6 percent decline in sales to EUR 7.54 billion in the fourth quarter of 2020. “The operating result (IFRS) and the operating margin (IFRS) were positively influenced in the fourth quarter by lower expenses for share-based payment programs than in the same period of the previous year”, the DAX-listed software group continues. On an IFRS basis, SAP reports an increase in operating profit of 26 percent to 2.65 billion euros. According to preliminary figures, the operating cash flow is estimated at 7 billion euros.
For 2021, SAP is forecasting an increase in cloud revenues to 9.1 billion euros to 9.5 billion euros, while cloud and software revenues are expected to be between 23.3 billion euros and 23.8 billion euros. For the operating result, the Walldorfers forecast a profit of between 7.8 billion euros and 8.2 billion euros.