SAP SE Shares Up After Earnings Report Despite Pandemic Setbacks | Financial Buzz

SAP SE Shares Up After Earnings Report Despite Pandemic Setbacks

SAP SE (NYSE: SAP) shares climbed more than 3%, financial results for the second quarter and the first half-year ended June 30, 2020.

SAP’s strategy is to help every business run as an intelligent enterprise. As the market leader in enterprise application software, the Company helps companies of all sizes and in all industries run at their best: 77% of the world’s transaction revenue touches an SAP® system. SAP’s machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises.

In the second quarter, current cloud backlog was up 20% to €6.65 billion (21% at constant currencies) with continued high demand for digital supply chain, e-commerce, cloud platform and Qualtrics solutions. Cloud revenue was impacted by lower pay-as-you-go transactional revenue as a result of the COVID-19 crisis and grew 21% year over year to €2.04 billion (IFRS), up 19% to €2.04 billion (non-IFRS) and up 18% (non-IFRS at constant currencies). 

“This quarter demonstrated that our Intelligent Enterprise strategy clearly resonates with customers around the world. More than ever, the pandemic has proven that digitalization is no longer an option but a must-have to withstand challenging times and to achieve desired business outcomes. We will continue to invest in innovative offerings for our customers to drive business transformations and run complex business processes. We also aim to expand the ecosystem on our business technology platform to complement our solutions and foster growth.”
Christian Klein, CEO.

As for software licenses revenue was down 18% year over year to €0.77 billion (IFRS and non-IFRS) and down 18% (non-IFRS at constant currencies), a strong sequential improvement compared to the first quarter. Cloud and software revenue grew 4% year over year to €5.71 billion (IFRS), up 3% to €5.71 billion (non-IFRS) and up 3% (non-IFRS at constant currencies).