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LICENSES, CONCUR DULL SAP’S 2020 Featured

SAP held its loss in revenue for 2020 to 1 percent despite a 20-percent drop in license revenue, and 6-percent drop in income from its Concur travel business. Of course the story was growth in the cloud revenue, which increased 17 percent in the year ended December 31.

There was a healthy dose of negative currency impact as license revenue was off 17 percent in constant currencies The giant software company reported after profit tax of roughly $6.41 billion for the most recently ended, a 57-percent increase from 2019. Overall revenue fell to approximately $33.2 billion with license revenue falling to about $4.42 billion. Income from software support was essentially unchanged at nearly $14 billion while services revenue fell 9 percent to slightly less than $5 billion. SAP said cloud and software revenue in the Americas was up 1 percent and cloud revenue rose by 13 percent in Canada, but did not separately report that statistic for other countries in the America. “The United States, Brazil and Mexico held up well in software licenses revenue,” CEO Christian Klein said during this week’s earnings webcast  Concur also did damage to the overall growth in cloud revenue taking 4 percent points of that category. SAP said it had 25,000 net new customers and added almost 1,000 S/4 Hana customers with about 40 percent of them new. There are now about 16,000 customers for that platform, an increase of 16 percent over the prior year.  Despite the hit Concur took, the performance apparently is stronger than SAP anticipated. “They will come back strong.” Klein said. “And actually, I'm still surprised that we are still doing business with this solution these days.”

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