Revenue was up 11% to €3.35bn, helped by the SuccessFactors acquisition (which is expected to add 2% to SAP’s revenue line during 2012). Software revenue growth was modest at 4%, delivering €637m. This highlights the need for SAP to open up new revenues streams, hence its heavy cloud, mobile and HANA emphasis. Software and software-related service revenue was up 13% to €2.62bn. That is highly creditable but as we noted in SAP margins slip in Q1, the operating margin was down from 19.7% to 18.8% and operating profit rose just 6%, which is lower than normal. US problems and increasing headcount were prime causes.
The number that most stood out was revenue from cloud subscriptions and support, which ballooned 625%. With a number like that you know the starting base has to be tiny and so it is. Q1 2011 revenue was a miniscule €4m, rising to just €29m in Q1 2012. The number confirms SAP’s ongoing struggle to get to grips with the subscription-based business model. This figure will rise during 2012, but largely due to SuccesFactors.