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 feature State of IT jobs: Mixed signals, changes ahead Layoffs and salary plateaus in the wake of exuberant pandemic-era IT hiring has the IT talent market in flux. And while employers pay premiums for hard-to-find AI skills, IT pros seek the same for filling in-office openings. By Sarah K. White May 17, 2024 10 mins Salaries Hiring IT Jobs feature Project manager salary: 5 key tips to earn more Project managers need to know what their worth is — and make others know it, as well. Here’s a look at project manager compensation, skills that increase a project manager’s pay scale, and how to negotiate a more competitive project By Josh Fruhlinger May 17, 2024 14 mins Salaries Project Management Careers feature Cyber resilience: A business imperative CIOs must get right With ransomware at an all-time high, companies need to understand that being cyber resilient means going beyond compliance to considering all aspects of a business, from operational continuity to software supply chain security. By Andrada Fiscutean May 16, 2024 9 mins Regulation Incident Response Data and Information Security feature Shine a Spotlight on Your Team’s IT Excellence with CIO Awards Canada By Allice Shandler May 16, 2024 4 mins Events IT Leadership 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