Business travel is back – kind of – said SAP as it released results that show total revenue for the second quarter rose 1 percent year over year to $ 6.67 billion.
The reason the German software giant became optimistic about tiny on-board meals and misdirected airport purchases was the performance of its Concur software business, which had been shaken by the pandemic.
SAP said it had “seen the first signs of recovery in travel and expense management with the relaxation of global travel restrictions, leading Concur to stabilize its sequential performance for the first time since the pandemic began.”
In the Q2 results, SAP said that cloud revenues were up 11 percent year-on-year to 2.28 billion euros. Revenue from software licenses fell by 16 percent to 650 million euros compared to the same period in the previous year.
The service turnover fell compared to the previous year by 11 percent to 920 million the $ 250 million sale of SAP Digital Interconnect, the mobile communications division that contributed around 80 million euros in the second quarter of 2020, said the application specialist.
SAP also claimed that it had good news about its RISE with SAP product, which is working with partners to help customers move older on-prem systems to the cloud and then migrate them to the latest SAP software .
Although the German-speaking SAP user group (DSAG) said last month that the proposal has yet to prove itself without specific case studiessaid SAP itself to attract customers.
AMD, Coop Switzerland, Etihad Airways and Siemens Energy have all opted for RISE with SAP, it said.
Around 600 customers also bought S / 4HANA, the company’s latest ERP platform, in the quarter. Overall acceptance was up to 17,000 companies and increased by 16 percent year-on-year, according to SAP.
The slow roll-out of S / 4HANA, the make-or-break platform to convince users to upgrade and move to the cloud, was a major criticism of SAP’s strategy since Users couldn’t hold on to the business case.
In autumn 2020, SAP shares plummeted 23 percent when it downgraded its business outlook for the year.
In the results of SAP Q2 2021, the company achieved an operating profit of 980 million euros, 23 percent less than in the previous year.
The company raised its full-year outlook for 2021, saying that cloud and software revenue would be € 23.6 billion to € 24.0 billion, an increase of between 2 and 3 percent. The previous range was between 23.4 and 23.8 billion euros. ®