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“We are seeing very strong order entry growth across our applications portfolio,” said CEO Christian Klein. SAP’s new business transformation product, Rise with SAP, was “rapidly becoming a massive accelerator”.
SAP confirmed its guidance after earlier this month nudging up expectations for cloud and software revenue to 23.4-23.8 billion euros ($28.15-$28.64 billion) this year, representing a rise of 1%-2% year on year.
Klein said SAP had “an absolute blowout in the cloud” in the first quarter, with the Rise initiative driving a 19% increase in its current cloud backlog – a management measure of incoming business – at constant currencies.
It also added 400 customers for S/4 HANA, its premium enterprise resource software platform, to bring the total to 16,400, of which 9,600 are live. Customer wins in the quarter included Google (NASDAQ:GOOGL) and Toshiba (OTC:TOSYY).
As already reported, total revenue including SAP’s traditional mainstays of license sales and service revenues, rose by 2% in the first quarter at constant currency to 6.35 billion euros.
Reported operating profit was depressed by executive share compensation, which SAP accounts for as a cash expense. After stripping out the effect of that, adjusted operating profit rose by 24% to 1.74 billion euros at constant currency.
