SAP, the German software company, published its financial results for Q1 ending 31st March 2019, highlighting strong growth across both its cloud and core businesses.
SAP declared that cloud revenue exceeded €1.5 billion (£1.2bn) for the first time in a quarter, with cloud and software orders up by 17% compared to Q1 in 2018.
Cloud revenue grew 45% year-over-year, while total revenue at the company increased by 16%.
“SAP’s results are another illustration that we are a rarity in the enterprise applications software industry,” said Bill McDermott, CEO at SAP, in the firm’s report.
“We have a strong core business, the fastest growing cloud at scale in enterprise software and impressive non-IFRS operating profit growth. We are focused on leading a best-run SAP so we can drive significant margin expansion in the quarters ahead.”
The company said that it is now a market leader in experience management due to its acquisition of Qualtrics in 2018.
“I am extremely pleased that we delivered rapid growth in the cloud and a rock-solid core,” said Luka Mucic, CFO at SAP.
“Non-IFRS operating profit growth saw the biggest improvement in more than three years, with both cloud gross margin and operating margin beating our expectations. This gives us the confidence to further extend our commitment to mid-term margin improvements and stronger shareholder returns as announced today.”