SAP saw its revenues climb 17% year-on-year to €3.95 billion in the quarter ending September 30.
Unlike rival Oracle, whose recent financial results were adversely affected by the weakness of the Euro, German company SAP benefited from exchange rates. In constant currency, the company’s revenues grew 12% year-on-year.
The company said that demand for its key innovation areas – cloud, mobile and in-memory database platform HANA – was strong in all regions.
Cloud services in particular gained momentum during the third quarter, the Walldorf-based corporation said, with new cloud billings increasing 116% during the past 12 months. SuccessFactors, the cloud-based human capital management (HCM) provider that SAP acquired for $3.4 billion last year, saw billings grow 92%.
SAP’s mobile revenue was €48 million for the third quarter, putting the company on track to meet its full-year expectations of at least €220 million. Revenue for SAP’s in-memory database technology HANA reached €83 million and was also on track to meet expectations.
Due to its strong third quarter, in addition to the acquisition of German cloud computing company Ariba for $4.3 billion in October, SAP now expects revenue from its software and software-related services division to grow between 10.5% and 12.5% this year, up from the 10% to 12% outlook it gave in July.
While SAP’s profit for the quarter was down 51% year-on-year to €618 million, that compares back to last year’s third quarter, when a judge reduced damages in a lawsuit brought by Oracle regarding its TomorrowNow litigation.
“Our innovation strategy continues to deliver world-class value and market leading performance,” said Bill McDermott and Jim Hagemann Snabe, SAP co-CEOs. “With SAP, businesses are innovating, achieving operational excellence and driving growth. We are proud of our relentless customer focus and confident that we’ll continue to outperform the competition.”
“I am pleased with SAP’s overall performance in the third quarter. This is the 11th consecutive quarter of double-digit non-IFRS software and software related service revenue growth for SAP,” said Werner Brandt, CFO of SAP. “We continued to invest in our cloud business in the third quarter. We remain focused on operating discipline and remain confident in our full-year outlook.”