Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SAP SE. We currently have 16 research reports from 1 professional analysts.
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Merry-go-round on the management board
18 Apr 17
In the latest press release, SAP promoted proven leaders to strengthen the company. The company has expanded the responsibilities of the key executives Robert Enslin and Bernd Leukert. Their responsibilities will be shifted and expanded. Robert Enslin will become president of the new Cloud Business Group and Bernd Leukert will expand his portfolio to accelerate SAP’s platform and digital transformation strategy. In addition, the supervisory board has promoted Adaire Fox-Martin and Jennifer Morgan to the executive board. All changes are effective from 1 May. Steve Singh, the former CEO of Concur Technologies, has resigned and is planning to focus on other entrepreneurial interests outside SAP. We had expected this move to happen earlier. The former CEO Lars Dalgaard of Success Factors (acquired by SAP) joined the management board in April 2012 and left after twelve months. Steve Singh joined SAP in 2014 when Concur Technologies was taken over. In April 2016, he was appointed executive board member only to leave twelve months later. His term was to have expired in 2019.
Just another partnership!
09 Mar 17
SAP and Google have announced a cloud partnership. SAP HANA will run on Google Cloud Platform (GCP) to deliver real-time insights on a scalable and secure cloud infrastructure. The Google partnership will give SAP’s customers another option to use the cloud infrastructure efficiently. SAP will remain custodian of the data which will remove barriers of entry. SAP’s strategy is to get HANA distributed on as many platforms as possible. For Google, SAP and also other well-known partners are necessary to scale the business.
Solid results and guidance for 2020 raised!
24 Jan 17
The company reported solid results in Q4 16. Revenues increased 6% to €6.72bn. Cloud subscriptions and support revenues increased 30.9% to €827m, licence revenues 1.4% to €2.18bn and maintenance and support revenues 6% to €2.76bn. EBITDA increased 42.1% to €2.2bn and the EBITDA margin improved from 24.6% to 33%. Real EBIT jumped 52.2% to €1.88bn and the EBIT margin increased from 19.5% in Q4 15 to 28%. Net income jumped 79.4% to €1.5bn. In the financial year 2016, revenues grew 6.1% to €22.06bn. Cloud subscriptions and support revenues increased 30.9% to €2.99bn and the gross margin improved from 70% to 70.2%. Real EBIT grew 22.3% to €4.89bn and the EBIT margin improved from 19.2% to 22.1%.
In line with expectations but costs are out of control
21 Oct 16
The company reported third quarter results. Total revenues increased 7.8% to €5.38bn. Cloud subscription & support revenues grew 28.4% to €769m. We estimated an increase of 31.2% to €786m and the market around €787m. New cloud bookings (order entry) increased 24% to €265m. Software licence revenues grew 2% to €1.04bn (our estimate +3.5% to €1.04bn). Maintenance revenues increased surprisingly strong by 5.7% to €2.65bn (estimate: 2.2% to €2.56bn). EBIT, however, dropped by 9% to €1.1bn. We expected an EBIT increase of 10.5% to €1.3bn. Net income dropped 19% to €730m (estimate: +6.3% to €955m). Cloud subscription and support revenues grew 34% from €136m to €182m in the EMEA region, and were especially strong in Germany, France and the UK. In the Americas, cloud revenues increased 24% to €508m, and in Asia Pacific around 52% to €78m. In the third quarter, the company added 400 new SAP S/4 HANA customers (+40%). Around 4,100 customers are now using this cloud platform.
No read-through for SAP
01 Sep 16
Salesforce reported second quarter results ending in July. Revenues increased 25% to US$2.04bn. EBIT jumped 64.2% to US$32.5m and the EBIT margin improved from 1.2% to 1.6%. From an earnings perspective, the company is not really visible. Net income, however, jumped from a small loss to US$229.3m. Around US$205.3m was related to a tax benefit as a result of the release of a portion of the valuation allowance related to the acquisition of Demandware. Salesforce.com acquired Demandware for a total of US$2.6bn and was also bidding for Linkedin which was bought by Microsoft for a total of US$26.2bn. GAAP income turned from a loss of US$0.85m to a profit of US$229.6m. Non-GAAP related income increased 32.9% to US$170.4m or US$0.24 per share. This includes amortisation of purchased intangibles, share-based compensation and other unpleasant cost items. Business in the Americas contributed 73% to revenues, Europe 17% and Asia Pacific 10%. Management experienced some weaker demand at the end of the second quarter but still raised the full-year revenue guidance range to between US$8,275m and US$8,325m.
The world is not enough!
20 Jul 16
SAP reported a strong operating performance in Q2 16. Total revenues increased 5.4% to €5.2bn (our estimate: €5.3bn). Cloud revenues grew by 30.4% to €720m (our estimate: €722m). EBIT jumped 79.2% to €1.16bn which was also in line with our expectations. Our EBIT definition, however, differs from the company’s reported EBIT. We use IFRS numbers and include other operating expenses/income which is not part of the SAP calculation. Despite the strong cloud business, licence revenues grew by 6.2% to €1.04bn and maintenance revenues 2.6% to €2.6bn.
Earnings upgrade following acquisition
17 Apr 17
Following the recent acquisition of Ingresso we upgrade our estimates by c10% in 2017. Ingresso owns and operates a software platform which enables sales through global third party distribution channels. This looks another smart acquisition by ACSO who continue to create a more efficient flow in the extremely fragmented leisure and ticketing industry. We increase our T/P to 2000p and upgrade to BUY.
N+1 Singer - Servelec Group - Calling the bottom
20 Apr 17
We are increasingly confident that Servelec’s travails are behind it and the business is returning to growth. Recent share price weakness looks unwarranted in this context and the valuation now looks compelling. Our forecasts are essentially unchanged, but we see medium term upside as the group’s markets improve. Servelec remains a key idea for 2017 and we reiterate our Buy recommendation and 325p Target Price.
N+1 Singer - Morning Song 24-04-2017
24 Apr 17
First Derivatives (FDP LN) FY slightly ahead as strong trading momentum continues | Goals Soccer Centres (GOAL LN) A potentially exciting corporate development | mporium Group (MPM LN) 2016 results: course set for exciting 2017 | Vectura Group (VEC LN) VR315 risk outweighs longer-term potential
Pickup in H2 organic growth as expected
20 Apr 17
Headline revenue growth of 19% reflects a full half contribution of ID Scan and a pickup in organic growth to 12% across the year driven by the excellent performance from the higher margin international services. The mix effects of this growth resulted in EBIT of £17m, 4% ahead of our forecasts, and a 1.1pp improvement in the operating margin.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)