=SAP (SAP) reported earnings on Tue 30 January 2018 (BMO)

SAP SE beats by $0.22, reports revs in-line; guides FY18 revs in-line 

• Reports Q4 (Dec) earnings of 1.77 per share, 0.22 better than the Capital IQ Consensus of 1.55; revenues rose 1.2% year/year to 6.8 bln vs the 6.85 bln Capital IQ Consensus.
  • New cloud bookings grew by 22% (31% at constant currencies) in the fourth quarter and reached 591 million, delivering on the promise made in October to reaccelerate new cloud bookings.
  • Cloud subscriptions and support revenue grew 20% year over year to 995 million or 28% (non-IFRS at constant currencies).
  • Software revenue was 2.06 billion, down 5% year over year or 1% (non-IFRS at constant currencies).
• Co issues in-line guidance for FY18, sees FY18 revs of 24.6-25.1 bln vs. 24.82 bln Capital IQ Consensus Estimate.
  • The Company expects full-year 2018 non-IFRS operating profit to be in a range of 7.3 -7.5 billion at constant currencies (2017: 6.77 billion). This range represents a growth rate of 8% -- 11% at constant currencies.

Callidus Software (CALD) to be acquired by SAP for $36.00 per share 

• SAP SE (SAP) and Callidus Software (CALD) announced that SAP America has entered into an agreement to acquire CallidusCloud, the leader in cloud-based Lead to Money (Quote-to-Cash) solutions.
• The CallidusCloud board of directors has unanimously approved the transaction. The per share purchase price of $36.00 represents a 21% premium over the 30-day volume weighted average price per share and a 28% premium over CallidusCloud's 90-day volume weighted average price per share.
  • The per share price represents an enterprise value of approximately $2.4 billion.
  • SAP has elected to fund the transaction with existing cash balances and an acquisition term loan.
  • The transaction is expected to close in the second quarter of 2018, subject to approval from CallidusCloud stockholders, clearances by the relevant regulatory authorities, and other customary closing conditions.
  • The transaction is expected to be essentially neutral to SAP's non-IFRS earnings per share for fiscal 2018 and accretive to SAP's non-IFRS earnings per share for fiscal 2019.