Research Desk Line-up: Proofpoint Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 25, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on SAP SE (NYSE: SAP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SAP, following the Company's announcement of its third quarter fiscal 2017 operating results on October 19, 2017. The business software maker's revenue grew 4% on y-o-y basis, and new cloud bookings advanced 14%. The Company also raised its FY17 guidance for cloud & software revenue, total revenue, and operating profit. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Application Software industry. Pro-TD has currently selected Proofpoint, Inc. (NASDAQ: PFPT) for due-diligence and potential coverage as the Company announced on October 19, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Proofpoint when we publish it.
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For the third quarter 2017 ended September 30, 2017, SAP's total revenue grew 4% to €5.59 billion compared to revenue of €5.38 billion in Q3 2016.
During Q3 2017, SAP's IFRS operating profit jumped 19% to €1.31billion versus operating profit of €1.10. The Company's non-IFRS operating profit was flat at €1.64 billion.
For Q3 2017, SAP's IFRS earnings per share surged 35% to €0.82 compared to €0.61 in Q3 2016. The Company's non-IFRS earnings per share increased 10% to €1.01 versus €0.91 in the prior year's same quarter.
SAP's Segment Results
During Q3 2017, new cloud bookings grew by 14% reaching €302 million. The Company's IFRS cloud subscriptions and support revenue grew 22% on a y-o-y basis to €937 million and non-IFRS cloud subscriptions and support revenue gained 22% to €938 million y-o-y.
For Q3 2017, IFRS and non-IFRS software revenue was €1.03 billion, almost flat on a y-o-y basis. The Company's new cloud and software license order entry grew by 15% y-o-y for the reported quarter. SAP's IFRS and non-IFRS cloud and software revenue was €4.66 billion, an increase of 5% on a y-o-y basis, while the Company's "predictable revenue", i.e. the total of cloud subscriptions & support revenue and software support revenue, was 65% of total revenue, up 1% compared to the year-ago comparable period.
SAP stated that is S/4HANA adoption grew to more than 6,900 customers, up around 70% on a y-o-y basis. In the reported quarter, approximately 600 additional customers signed up of which more than 40% were net new. Total revenue in the SAP Business Network segment was up 19% in the reported quarter to €578 million at constant currencies.
During Q3 2017, SAP had a strong performance in the Europe, Middle-East, and Africa (EMEA) region with cloud and software revenue increasing 8% on a y-o-y basis. The Company's Cloud subscriptions and support revenue surged by 42% on a y-o-y basis with an especially strong quarter in Germany and Spain. In addition, SAP had strong double-digit software revenue growth in Germany, Russia, and the Middle-East and North Africa (MENA) region.
SAP stated that the Company had solid growth in the Americas region, despite the natural disasters that plagued both the United States and Mexico. Cloud and software revenue grew by 2% on a y-o-y basis and 7% on a non-IFRS constant currencies basis. The Company's Cloud subscriptions and support revenue increased by 13% compared to the year-ago same period.
In the Asia/Pacific and Japan (APJ) region, SAP's Cloud and software revenue grew 2% on a y-o-y basis and 9% on a non-IFRS constant currencies basis. The Company's Cloud subscriptions and support revenue surged 30% from the year-ago period.
SAP's operating cash flow for the first nine months was €4.13 billion, reflecting an increase of 14% on a y-o-y basis. The Company's free cash flow increased 7% y-o-y to €3.16 billion. At the reported quarter end, SAP's net debt was €1.71 billion, representing an improvement of €2 billion on a y-o-y basis. The Company noted that it is on track to buy back €500 million in shares. As of the end of the reported quarter, SAP has bought back €288 million in shares.
Based on the strong momentum in SAP's cloud business, the Company re-affirmed its full-year 2017 non-IFRS cloud subscriptions and support revenue forecast to be in a range of €3.8 billion to €4.0 billion at constant currencies.
SAP is now expecting full year 2017 non-IFRS cloud & software revenue to increase by 7.0% to 8.5% at constant currencies. The lower-end of the range was previously 6.5%. The Company now expects full year 2017 non-IFRS total revenue in a range of €23.4 billion to €23.8 billion at constant currencies compared to the previous range of €23.3 billion to €23.7 billion at constant currencies.
SAP is estimating FY17 non-IFRS operating profit to be in a range of €6.85 billion to €7.0 billion at constant currencies. The lower-end of the range was previously €6.8 billion.
At the closing bell, on Tuesday, October 24, 2017, SAP SE's stock was slightly down 0.02%, ending the trading session at $112.30. A total volume of 560.26 thousand shares have exchanged hands. The Company's stock price surged 6.69% in the last three months, 12.02% in the past six months, and 27.14% in the previous twelve months. Moreover, the stock rallied 29.93% since the start of the year. The stock is trading at a PE ratio of 30.71 and has a dividend yield of 1.18%. The stock currently has a market cap of $138.77 billion.
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