Germany-based business software supplier SAP said it expects revenue impact of €250 million in 2022 from discontinuation of business in Russia and Belarus.
In the first nine months, SAP’s business was impacted by the war in Ukraine and SAP’s decision to wind down its business operations in Russia and Belarus.
At the end of the third quarter current cloud backlog was €64 million lower due to the termination of cloud engagements in Russia and Belarus, reducing current cloud backlog growth by approximately 1 percentage point.
The impact on third quarter operating profit was €20 million (first nine months: €370 million) and approximately €20 million (first nine months: €250 million) on non-IFRS operating profit, mainly due to reduced revenues.
In 2022, SAP continues to expect:
€11.55 – 11.85 billion cloud revenue (2021: €9.42 billion), up 23 percent to 26 percent
€25.0 – 25.5 billion cloud and software revenue (2021: €24.08 billion), up 4 percent to 6 percent
€7.6 – 7.9 billion operating profit (2021: €8.23 billion), down 4 percent to 8 percent
SAP reported 15 percent increase in revenue to €7.84 billion for the third quarter ended September 30, 2022.
SAP CEO Christian Klein said: “The trust in SAP is reflected in our accelerating cloud momentum. With a recurring revenue share of more than 80 percent, it’s clear that our transformation has reached an important inflection point, paving the way for continued growth in the future.”
Q3
Customers chose RISE with SAP to drive business transformation, including Alpargatas, Assai Atacadista, Center for Pandemic Vaccines and Therapeutics (ZEPAI) at the Paul-Ehrlich-Institut, Dabur India, Fonterra, HELLENiQ ENERGY, Nikon Corporation, Prada, RICOH, Roborock, Salzburg, Schneider Electric, Wistron and 11teamsports.
BioNTech, Birlasoft, Bosch BASF Smart Farming, Dufry International, NBA, Petrobras and Wipro went live on SAP S/4HANA Cloud in the third quarter.
Key customer wins across SAP’s solution portfolio included: Allianz Technology, Cognizant, DB Schenker, Domino’s Pizza Enterprises, Endress+Hauser, Fujitsu, Grupo Energia Bogota, Gustavo Gusto, Hapag-Lloyd, L.L.Bean, Salzgitter, Schiphol Nederland, Siemens Energy, The Pennsylvania State University, The State of Missouri, Trent Limited and Valio.
