SAP AG (NYSE:SAP) is expecting to increase their total revenues to at least ?22 billion (US$30 billion) by 2017, largely driven by their cloud business. SAP is expecting their cloud business to hit ?3.5 billion by 2017.
Today SAP reported total revenues for 2013 at ?16.8 billion, which is up 4% from the previous year. Revenue from their HANA in-memory database is up 69% at constant currencies to ?664 million from 3,000 customers.
SAP is expecting their cloud business to offer more predictable and recurring revenue as they move closer towards 2017. But SAP is now expecting their 2015 goal of hitting a non-IFRS (International Financial Reporting Standards) operating margin of 35% to be now delayed to 2017 in order to spend on growth opportunities.
SAP reported revenues of ?5.1 billion for the fourth quarter, which is up 2% from the same quarter last year. The net profit grew 20% to ?1.3 billion under IFRS. SAP saw a 2% drop in software revenue to around ?1.9 billion. SAP’s cloud subscriptions grew 66% to ?209 million.
SAP has plans to increase their total revenues to at least ?20 billion and revenue from their cloud business, including cloud-related professional services to around ?2 billion by 2015.
[Source: PC World]