SAP SE announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2015. For the quarter, on IFRS basis, the company reported total revenue of €6,346 million against €5,458 million a year ago. Operating profit was €1,699 million against €1,753 million a year ago. Profit before tax was €1,646 million against €1,733 million a year ago. Profit attributable to owners of parent was €1,286 million or €1.07 per diluted share against €1,309 million or €1.09 per diluted share a year ago. Net cash flows from operating activities were €398 million against €416 million a year ago.

For the full year, on IFRS basis, the company reported total revenue of €20,797 million against €17,560 million a year ago. Operating profit was €4,251 million against €4,331 million a year ago. Profit before tax was €3,990 million against €4,355 million a year ago. Profit attributable to owners of parent was €3,069 million or €2.56 per diluted share against €3,280 million or €2.74 per diluted share a year ago. Net cash flows from operating activities were €3,639 million against €3,499 million a year ago. Purchase of intangible assets and property, plant, and equipment was €637 million against €737 million a year ago.

For the quarter, on non-IFRS basis, the company reported total revenue of €6,347 million against €5,469 million a year ago. Operating profit was €2,280 million against €2,127 million a year ago. Profit before tax was €2,226 million against €2,108 million a year ago. Profit attributable to owners of parent was €1,677 million or €1.40 per basic share against €1,569 million or €1.31 per basic share a year ago.

For the full year, on non-IFRS basis, the company reported total revenue of €20,809 million against €17,580 million a year ago. Operating profit was €6,346 million against €5,638 million a year ago. Profit before tax was €6,085 million against €5,662 million a year ago. Profit attributable to owners of parent was €4,513 million or €3.77 per basic share against €4,182 million or €3.50 per basic share a year ago.

The company is providing the guidance for the full year 2016. Based on the continued strong momentum in SAP's cloud business the Company expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of €2.95 - €3.05 billion at constant currencies compared to €2.30 billion in 2015. The upper end of this range represents a growth rate of 33% at constant currencies. The Company expects full year 2016 non-IFRS cloud and software revenue to increase by 6% - 8% at constant currencies compared to €17.23 billion in 2015. The Company expects full-year 2016 non-IFRS operating profit to be in a range of €6.4 billion - €6.7 billion at constant currencies compared to €6.35 billion in 2015.

Looking beyond 2016, SAP is raising its 2017 ambition to reflect both the current exchange rate environment and excellent business momentum. Assuming a stable exchange rate environment going forward SAP now expects non-IFRS cloud subscriptions and support revenue in a range of €3.8 - €4.0 billion in 2017. The upper end of this range represents a 2015 to 2017 CAGR of 32%. Non-IFRS total revenue is now expected to be in a range of €23.0 - €23.5 billion in 2017. The Company now expects its 2017 non-IFRS operating profit to be in a range of €6.7 - €7.0 billion. SAP continues to anticipate that the fast-growing cloud business along with growth in support revenue will drive a higher share of more predictable revenue. Given the current software license revenue momentum the Company now expects the total of cloud subscriptions & support revenue and software support revenue to be in a range of 63% - 65% of total revenue in 2017.

The Company is not adjusting its long term, high level 2020 ambition at this time. The Company's 2020 ambition communicated in 2015 was: €7.5 billion to €8.0 billion non-IFRS cloud subscriptions and support revenue; €26 billion to €28 billion non-IFRS total revenue; €8.0 billion to €9.0 billion non-IFRS operating profit; 70% to 75% share of more predictable revenue (defined as the total of cloud subscriptions & support revenue and software support revenue).