Business software major SAP said fourth-quarter revenue from its cloud computing business surged 28 percent as more customers shift their IT operations to its cloud business database.
Cloud revenue climbed to 2.61 billion euros ($2.99 billion) in the fourth quarter ended Dec. 31, the company reported in a preliminary earnings statement.
SAP is targeting cloud revenue growth of up to 26 percent in 2022, helping its overall cloud and software revenue rise 4-6 percent.
SAP is expected to release full results on Jan. 27.
“More and more companies are choosing SAP to help build supply chains and become sustainable enterprises as they move to the cloud,” SAP Chief Executive Officer Christian Klein said in a statement.
SAP achieved 6 percent year-on-year increase in total revenue for the quarter ended December to 7.98 billion euros.
Business Outlook 2022
For 2022, SAP expects its cloud growth to continue to accelerate. The pace and scale of SAP’s cloud momentum places the company well on track towards its mid-term ambition.
For the full year 2022, SAP expects:
€11.55 – 11.85 billion non-IFRS cloud revenue at constant currencies (2021: €9.42 billion), up 23 percent to 26 percent at constant currencies.
€25.0 – 25.5 billion non-IFRS cloud and software revenue at constant currencies (2021: €24.08 billion), up 4 percent to 6 percent at constant currencies.
€7.8 – 8.25 billion non-IFRS operating profit at constant currencies (2021: €8.23 billion), flat to down 5 percent at constant currencies.
The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) is expected to reach approximately 78 percent (2021: 75 percent).