Security News > 2021 > July > SAP unveils its financial results and increases revenue, profit outlook
SAP announced its financial results for the second quarter ended June 30, 2021.
"We're seeing strong adoption of our cloud portfolio as customers select SAP for their business transformation. Our strategy is working; This is the third straight quarter of strong execution, and we continue to deliver unparalleled customer value through the strength of our platform and applications," said Christian Klein, CEO. "This has been another strong quarter with accelerating growth for SAP's cloud portfolio. We saw excellent customer momentum and adoption and are raising our outlook for revenue and profit," said Luka Mucic, CFO. Business update second quarter 2021.
Current cloud backlog was up 17% to €7.77 billion and up 20%. Cloud revenue was up 11% to €2.28 billion and up 17%. SaaS/PaaS cloud revenue outside the Intelligent Spend business was up 20% and up 25%. Software licenses revenue was down 16% year over year to €0.65 billion and down 13%. Cloud and software revenue was up 1% to €5.75 billion and up 5%. Services revenue was down 11% year over year to €0.92 billion and down 7%. This revenue decline is primarily attributable to the November 2020 divestiture of SAP Digital Interconnect, which contributed approximately €80 million of services revenue in the second quarter of 2020.
Services: Services segment revenue was down 7% to €796 million year over year, down 3%. While SAP continues to see solid growth in its Premium Engagement revenue on the back of a very resilient business model, consulting revenue declined year over year due to a strong prior year comparison.
SAP continues to expect the share of more predictable revenue to reach approximately 75%. SAP continues to expect operating cash flow of approximately €6.0 billion and free cash flow above €4.5 billion.
SAP now expects a full-year 2021 effective tax rate of 21.5% to 23.0% and an effective tax rate of 20.0% to 21.5%. While SAP's full-year 2021 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year.
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