Credit: Peter Sayer/IDG SAP announced its Q2 2022 results Thursday, reporting revenue of €7.5 billion (US$7.7 billion), which is up 12.7% year-on-year. However, it was not all good news for the German business software group. SAP’s IFRS operating profit was down 32% to €673 million and its non-IFRS profit was down 13% to €1.68 billion. In comments published alongside the results, SAP said this was mainly driven by “reduced contribution from software licenses revenue,” as well as “significant bad debt expenses related to the war in Ukraine.” Earlier this year, SAP estimated that the financial impact of the war in Ukraine would cause the company to take a revenue hit of around €300 million, due to pulling out of that market. In its Q2 statement, SAP said it still expects to see those losses. Strong segment growth While the geopolitical climate has had an impact on SAP’s overall revenue, the company’s two business segments performed strongly during the quarter. The Applications, Technology and Services segment was up 11% to €7.1 billion, mainly due to strong cloud revenue growth, driven by increased adoption of S/4HANA and double-digit growth across the SaaS and PaaS portfolio. Cloud revenue alone was up 34% to €3.1 billion, making it the vendor’s largest revenue stream. This is despite a decrease in traditional software licenses revenue due to the shift to the cloud, as more customers adopted the company’s RISE with SAP offering. SAP’s Qualtrics revenue was up 57% to €330 million year over year, driven by robust renewal rates and expansions. “Our transition to the cloud is ahead of schedule and we have exceeded topline expectations, with cloud revenue becoming SAP’s largest revenue stream,” SAP CEO, Christian Klein, said following the results. “Our pipeline is strong, and we are winning market share underpinned by the very strong 100% growth of S/4HANA current cloud backlog.” Related content news OpenAI sets up new safety body in wake of staff departures After losing a number of senior staff over disputes about oversight of its technology, OpenAI is creating new governance structures as it embarks on the development of its next-generation AI model. By Elizabeth Montalbano May 28, 2024 5 mins Generative AI IT Governance brandpost Sponsored by Randstad How CIOs can use internal mobility and redeployment for successful digital transformation The role of your people is key a factor in the success of digital transformation. Find out how redeployment and talent transition experts, Randstad RiseSmart, can help organizations at all stages of the digital transformation journey. By Neal Weinberg May 28, 2024 5 mins Digital Transformation opinion Navigating the Cybersecurity Threat Landscape in the UAE: Strategies for CISOs By Andrea Benito May 28, 2024 4 mins feature 10 most difficult-to-fill IT roles — and how to address the gap With AI, cybersecurity, and data analytics talent in short supply, IT leaders are upskilling, recruiting from the business, highlighting culture, and relying on contractors to secure the talent they need. By Stephanie Overby May 28, 2024 11 mins Hiring Staff Management PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe