Revenue was up 11 percent in the second quarter for software giant SAP, despite uncertainties over the U.S.-China trade wars, writes Michelle Caffrey for the Philadelphia Business Journal.
SAP North America is headquartered in Newtown Square.
CEO Bill McDermott, in a conference call last week with analysts, said “software license overall was good, even with the minor headwinds in Asia due to trade uncertainties, which did postpone some deals.”
The trade war delivered Q2 results below analysts’ expectations.
McDermott acknowledged that its new cloud bookings grew more slowly than in past quarters, but emphasized that “SAP continued to grow fast in the cloud and it was driven by experienced management as the real, real catalyst.”
Its focus on experience management is driven by its recent $8 billion acquisition of Qualtrics, which McDermott said “created the category” of experience management.
McDermott also cited increasing revenue from cloud partnerships with Amazon and Google as a positive sign.
In November, executives are expected to lay out a plan to boost cloud gross margins by 1 percentage point a year from now until 2023.
CFO Luka Mucic told Bloomberg that “profitability in the cloud is steeply increasing.”
Read more about SAP’s second quarter earnings here.
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