SAP Q3 2019 Earnings Report — SAP SE Revenue & Financial Results | Market Cap Arena

Q3 2019 Earnings

Reported October 22, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2019	Q2 2019	Q3 2018	QoQ Change	YoY Change
Revenue	$7.9B	—	$7.0B	—	12.8%
Op. Income	$2.0B	—	$1.4B	—	35.8%
Gross Margin	70.3%	—	68.3%	—	2.0pp
Net Margin	18.3%	—	16.1%	—	2.2pp
EPS (Diluted)	$1.22	—	$0.95	—	28.4%
Free Cash Flow	$554M	—	$200M	—	177.2%

Revenue Flow

Item	Amount
REVENUE	$7.9B
Cost of Revenue	$2.4B
GROSS PROFIT	$5.6B
R&D Expenses	$1.1B
Selling & Marketing	$2.1B
General & Administrative	$378M
SG&A Expenses	$2.5B
Other Expenses	$27M
Operating Expenses	$3.6B
Cost & Expenses	$6.0B
OPERATING INCOME	$2.0B
Interest Income	$51M
Interest Expense	$132M
Other Income/Expenses	$27M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$518M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.5B
D&A	$554M
EBIT	$2.1B
EBITDA	$2.7B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$7.9B
Cost of Revenue	$2.4B
GROSS PROFIT	$5.6B
R&D Expenses	$1.1B
Selling & Marketing	$2.1B
General & Administrative	$378M
SG&A Expenses	$2.5B
Other Expenses	$27M
Operating Expenses	$3.6B
Cost & Expenses	$6.0B
OPERATING INCOME	$2.0B
Interest Income	$51M
Interest Expense	$132M
Other Income/Expenses	$27M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$518M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.5B
D&A	$554M
EBIT	$2.1B
EBITDA	$2.7B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.5B
Depreciation & Amortization	$554M
Stock-Based Compensation	$233M
Deferred Income Tax	$518M
Other Non-Cash Items	-$795M
Change in Working Capital	-$1.2B
OPERATING CASH FLOW	$746M
Capital Expenditure	-$192M
Acquisitions (Net)	-$46M
Purchases of Investments	-$228M
Sales/Maturities of Investments	$111M
Other Investing Activities	-$171M
NET CASH FROM INVESTING	-$333M
Net Debt Issuance	-$140M
Common Stock Repurchased	$0
Common Dividends Paid	$0
Other Financing Activities	-$5M
NET CASH FROM FINANCING	-$145M
FREE CASH FLOW	$554M
Net Change in Cash	$417M

Balance Sheet

Item	Amount
Cash & Equivalents	$6.5B
Short-Term Investments	$383M
Net Receivables	$8.1B
Inventory	$0
Other Current Assets	$1.5B
TOTAL CURRENT ASSETS	$16.5B
PP&E (Net)	$6.4B
Goodwill	$34.9B
Intangible Assets	$5.5B
Long-Term Investments	$2.9B
Tax Assets	$1.4B
Other Non-Current Assets	$2.4B
TOTAL NON-CURRENT ASSETS	$53.4B
TOTAL ASSETS	$69.9B
Account Payables	$1.8B
Short-Term Debt	$3.3B
Deferred Revenue	$5.1B
Other Current Liabilities	$6.1B
TOTAL CURRENT LIABILITIES	$16.2B
Long-Term Debt	$16.0B
Deferred Revenue NC	$109M
Deferred Tax Liabilities	$358M
Other Non-Current Liabilities	$1.9B
TOTAL NON-CURRENT LIABILITIES	$18.3B
TOTAL LIABILITIES	$34.6B
Common Stock	$1.4B
Additional Paid-In Capital	$638M
Retained Earnings	$31.8B
Treasury Stock	-$1.8B
Accum. Other Comp. Income	$3.2B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$35.3B
Minority Interest	$81M
TOTAL EQUITY	$35.3B
TOTAL LIABILITIES & EQUITY	$69.9B
Total Debt	$19.2B
Net Debt	$12.8B