SAP raises FY outlook due to cloud revenue growth
By Jenny McCall
07:36, 21 October 2021
SAP SE, a German multinational software company has increased its full year outlook for 2021, according to a third quarter statement on Thursday.
SAP, a leader in business applications, cloud, IT, analytics and SaaS solutions, raised its 2021 outlook, after a strong business performance. The company “is expected to continue to accelerate cloud revenue growth.”
The software company has reported strong growth across its cloud portfolio and now expects €9.4 – 9.6 bn (£7.9-8bn) Non-IFRS cloud revenue at constant currencies (2020: €8.09 bn). This represents an increase of 16%-19% at constant currencies.
Christian Klein, SAP's CEO said: “Our strategy is clearly working. Customers are choosing SAP for their business transformation in the cloud. We see record adoption of our applications and our platform. This has resulted in strong acceleration of our cloud growth.”
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Luka Mucic, CFO said: “This has been an excellent quarter across all key financial metrics. We are seeing sustained, strong progress in SAP's transformation. Our cloud business is growing at an accelerating pace and has led to our improved full year outlook.”
SAP, which has key customers such as Adidas, E.ON and Siemens Energy, said businesses are now re-evaluating models and there is an increased urgency due to the pandemic to focus on digital transformation.
SAP’s stock price was up 1.32% in early morning trading today.
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