Credit: Peter Sayer/IDG SAP announced its Q2 2022 results Thursday, reporting revenue of €7.5 billion (US$7.7 billion), which is up 12.7% year-on-year. However, it was not all good news for the German business software group. SAP’s IFRS operating profit was down 32% to €673 million and its non-IFRS profit was down 13% to €1.68 billion. In comments published alongside the results, SAP said this was mainly driven by “reduced contribution from software licenses revenue,” as well as “significant bad debt expenses related to the war in Ukraine.” Earlier this year, SAP estimated that the financial impact of the war in Ukraine would cause the company to take a revenue hit of around €300 million, due to pulling out of that market. In its Q2 statement, SAP said it still expects to see those losses. Strong segment growth While the geopolitical climate has had an impact on SAP’s overall revenue, the company’s two business segments performed strongly during the quarter. The Applications, Technology and Services segment was up 11% to €7.1 billion, mainly due to strong cloud revenue growth, driven by increased adoption of S/4HANA and double-digit growth across the SaaS and PaaS portfolio. Cloud revenue alone was up 34% to €3.1 billion, making it the vendor’s largest revenue stream. This is despite a decrease in traditional software licenses revenue due to the shift to the cloud, as more customers adopted the company’s RISE with SAP offering. SAP’s Qualtrics revenue was up 57% to €330 million year over year, driven by robust renewal rates and expansions. “Our transition to the cloud is ahead of schedule and we have exceeded topline expectations, with cloud revenue becoming SAP’s largest revenue stream,” SAP CEO, Christian Klein, said following the results. “Our pipeline is strong, and we are winning market share underpinned by the very strong 100% growth of S/4HANA current cloud backlog.” Related content brandpost Sponsored by TCS and Microsoft 5 keys to optimizing ROI on your Cloud Center of Excellence 5 keys to optimizing ROI on your Cloud Center of Excellence CoE adoption is on the rise – but success means evaluating relevance, staying connected, building a strong team, continuous innovation, and transforming culture. By Tata Consultancy Services May 02, 2024 2 mins Manufacturing Industry Cloud Computing brandpost Sponsored by TCS and Microsoft Best practice advice for improving productivity while maintaining security The modern “borderless workplace” requires a new strategy. Microsoft and TCS are answering the challenge with innovation solutions. By Tata Consultancy Services May 02, 2024 1 min Manufacturing Industry Microsoft Cloud Computing brandpost Sponsored by TCS and Microsoft Powering sustainability success with Microsoft Cloud Learn how investing in the right technology can create a greener future. By Tata Consultancy Services May 02, 2024 1 min Manufacturing Industry Green IT brandpost Sponsored by TCS and Microsoft Building ROI with cloud migration Read our guide to learn how to create a business case for modernizing legacy apps. By Tata Consultancy Services May 02, 2024 1 min Manufacturing Industry Cloud Computing PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe