SAP Scoffs At Brexit Threat In Q2

Brexit may have seemed like a mini economic apocalypse at the time, but as the markets settle down, businesses are beginning to determine the real impact of the U.K. referendum on their bottom lines.

For software giant SAP, Brexit seems to have not had any effect at all.

“Our software tends to be resilient in choppy waters,” CEO Bill McDermott said in an interview with Bloomberg TV on Wednesday (July 20), the same day the company released its Q2 2016 earnings report, which revealed better-than-expected figures. “We see a robust and increasing pipeline for our technology.”

The executive added that its business grew in the U.K., and Europe stands as its fastest-growing market. Q2 marks the thirteenth quarter in a row with at least 30 percent growth (without the effects of mergers and acquisitions activity), according to reports.

The second quarter saw SAP reporting $1.67 billion in operating profits, higher than the $1.6 billion estimated by Bloomberg. The firm also beat out sales expectations, marking $5.77 billion, surpassing the predicted $5.74 billion. Revenue from new software licenses increased 10 percent.

SAP highlighted its particular successes across Europe, despite anxieties of the Brexit vote, reporting double-digit growth in revenue from software licenses in some EU markets, including France, reports said. Cloud subscriptions and support revenue increased 41 percent.

McDermott said, in the wake of Brexit, SAP will focus on helping companies rethink their sales strategies and procurement processes.

“Any time there’s a pressure point where things are changing, business leaders are looking for a solution,” he told Bloomberg.

“I haven’t seen big global multinationals say, ‘I’ve changed my business strategy as a result of Brexit,'” he continued. “The good news about SAP is organically we’re growing very fast.” McDermott added that the company would seize opportunities for smaller acquisitions looking ahead.