Travel and expense technology firm Concur, which SAP acquired last December, during the first quarter of 2015 accounted for €153
million (US$164.7 million)—€128 million at constant currency—of its new parent
company's cloud subscriptions and support revenue, based on calculations
outside internationally accepted financial reporting standards, according to an
interim report, released Tuesday by SAP.
"In its full first quarter as part of SAP, Concur is
already seeing the benefits of operating at global scale with the support of
the SAP field," SAP CEO Bill McDermott told analysts during a Tuesday
earnings call. "New customers included Whirlpool Asia and Politico."
SAP's Business Network, which houses Concur, procurement-management
firm Ariba and vendor-management system Fieldglass, reported a 207 percent
year-over-year revenue increase to €368 million, or a 157 percent increase to
€308 million at constant currency, based on the nonstandard reporting. SAP's
report attributed the jump primarily to "a strong increase in cloud
subscriptions and support revenue."
Concur CEO Steve Singh, who heads the Business Network, said
Concur accounted for cloud subscription revenue differently from SAP but that
total revenue was "exactly in line with what we expected." He added,
"We're very, very happy with the results. We're seeing that pipeline to be
very strong for future bookings growth across Concur and the rest of the
Business Network asset.”
During the first quarter, Concur additionally contributed
€10 million of "transactional network fee revenues" and €35 million
of "new cloud bookings," a metric SAP implemented this quarter to
indicate "cloud-related sales success in a given period and for secured
future cloud subscription revenue," as well as "purchases by new
customers and from incremental purchases by existing customers," according
to SAP.
For calendar year 2015, SAP expects nonstandard-reporting cloud
subscriptions and support revenue to increase by as much as 85 percent to €2.05
billion in constant currency, with Concur and Fieldglass expected to contribute
"approximately 50 percentage points to this growth."
Due to projected "fast growth" in its cloud
business, SAP increased its 2017 projections to between €3.5 billion and €3.6
billion for cloud subscriptions and support revenue. It also expects operating
profit to reach as much as €7 billion. "The changes to the 2017 goals
reflect the impact of the Concur acquisition and anticipated faster customer
adoption of SAP's managed cloud offering," according to the report.
SAP’s first-quarter profit after tax was €414 million, down 23 percent year over year. SAP also reported nonstandard profit after tax of €697 million, which amounted to a 5 percent increase year over year.