SAP shares up after raising full-year outlook
10:29, 13 October 2021
Shares in software firm SAP were up 4.60% on Wednesday morning after it raised its full-year outlook for a third time following a strong third quarter.
The German multinational said in a statement late on Tuesday that it now expects cloud revenue to grow by 16%–19% to €9.4bn–€9.6bn in the full year, as more customers shift their IT operations to the cloud.
The growth will help its overall cloud and software revenue to gain by 2% to 4%. Operating profit is expected to be flat to down 2% for the year to €8.1bn–€8.3bn, an improvement from its earlier forecast of unchanged to down 4%.
The company also reported in a preliminary earnings statement on Tuesday that the cloud backlog for flagship database S/4HANA was up 58%, and current cloud backlog – a measure of incoming business – reported 22% growth during the third quarter.
SAP also reported that adjusted revenue rose 5% to €6.68bn for the third quarter ended 30 September.
The company, which is moving to subscription-based cloud services from software licences with up-front fees, launched Rise with SAP, an all-in-one digital transformation package, in January.
“We see record adoption of our applications and our platform,” chief executive Christian Klein said in a statement. “This has resulted in strong acceleration of our cloud growth,” he added.
The company is expected to release full Q3 results on 21 October.
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