SAP Rising: Cloud Subscriptions Soar, “Core” Holds Up
April 21, 2015
Grazed from Barrons. Author: Tiernan Ray.
Shares of SAP AG (SAP) are up $1.86, or almost 3%, at $74.18, after the company this morning reported Q1 revenue that topped analysts’ expectations but missed on the bottom line, and reiterated its outlook for this year’s growth in cloud computing and software revenue and for operating profit.
Revenue in the three months ended in March rose 22%, year over year, to €4.5 billion, yielding EPS of €0.58. Analysts had been modeling €4.3 billion and 63 cents. SAP emphasized the success of its subscription revenue for cloud computing, which rose 131% to $509 million. That amount was boosted by the rising dollar, inflating the return in euros, as growth on a constant-currency basis was 95%…
The company said its margin on such software declined 5 points to 66%, as it spent more to support its “Hana” database product…
Read more from the source @ http://blogs.barrons.com/techtraderdaily/2015/04/21/sap-rising-cloud-subscriptions-soar-core-holds-up/