SAP announced first quarter operating profits of €1.2 billion (£1 billion), up eight percent but coming in just below analyst expectations.
The German software maker also reported continued momentum in its cloud division, with new cloud bookings up 49 percent, accounting for €215 million (£183 million) in earnings. Total cloud subscriptions and support revenue grew 34 percent year-over-year to €905 million (£769 million).
S/4HANA adoption also grew again in Q1 2017, with the company adding approximately 400 new customers, almost 50 percent of which were net new to SAP. It now counts more than 5,800 customers using its next generation ERP platform.
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Traditional software and support still dominates the balance sheet though, accounting for revenues of €3.4 billion (£2.9 billion) in Q1, up eight percent year-on-year.
CEO Bill McDermott said: "SAP's outstanding first quarter results are a decisive follow-on to our record setting 2016. Led by S/4HANA, we are seeing mass customer adoption of our solutions globally."
Business outlook
SAP reiterated its annual outlook following the announcement of full-year 2017 non-IFRS operating profit to be in a range of €6.8 billion (£5.8 billion) to €7.0 billion (£5.9 billion) at constant currencies.
These Q1 results follow a strong close to 2016 posted in January, after a slow start to that financial year. The company eventually met its annual targets comfortably with total operating profits up four percent to €6.6 billion.
SAP finished 2016 with cloud subscriptions and support revenue up 30 percent to €2.9 billion for the full year. Classic software licences and support revenue was only up a modest three percent for the year to €15.4 billion.
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