SAP To Post Revenue Higher Than $34 Billion In 2020?

by Trefis Team
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SAP (NYSE: SAP), will post revenues higher than $34 billion by the fiscal year 2020. The company has posted strong growth for the past few years with revenues up from $23 billion in 2015 to $28.3 billion in 2018. We expect the company to continue growing at nearly 10% for the next 2 years and cross the $34 billion mark by the end of fiscal year 2020.

Our price estimate for SAP is at $122. We have created an interactive dashboard How Large Will SAP’s Revenue Be In 2020? which outlines our forecasts for the company. You can modify our forecasts to see the impact any changes would have on the company’s revenue streams. In addition, here is more Information Technology Data.

 

The Cloud subscriptions and support segment has been boosting the company’s growth with an average growth of more than 30% in the past 3 years and reported a revenue of $5.7 billion in 2018.  The worldwide public cloud market is expected to continue growing at a tremendous pace and SAP is expected to continue to gain higher market share with its expanding products and consumer base. Consequently, we expect the segment to reach a revenue of $9.3 billion by the end of 2020.

Software licenses and Software Support segments have seen a fluctuating growth rate over the years. In 2018 there was a small decline in Software licenses while Software support was down due to the unfavorable Euro to Dollar conversion rate. We expect both the segments to have a moderate growth of 5% going forward with an expanding consumer base and market growth. Further, with Qualtrics joining SAP, the company is poised to revolutionize the business software industry with Experience Management. The company has been in the forefront of the industry for many years on the back of a strategy that is innovative, complete, and at the forefront of the experience economy.

 

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