SAP: better than expected thanks to license sales
(CercleFinance.com) - SAP, Europe's leading software company, reported better-than-expected Q3 results on Wednesday evening, thanks to resilient license revenues.
This enabled it to confirm its FY targets.
Operating profit, excluding non-recurrent items, rose by 10% to E2.28bn in the quarter, including a 16% increase at constant exchange rates.
Cloud sales rose by 16% to E3.47bn (+23% at constant exchange rates), while sales of software licenses - a business in decline - fell by only 17% to E335m.
These better-than-expected figures brought a sigh of relief for financial analysts.
The German group maintained its forecast for fY operating income of E8.65bn to E8.95bn, up 8% to 12% at constant exchange rates.
Cloud sales are still expected to be E14bn to E14.2bn, i.e. growth of 23% to 24% at constant exchange rates.
Following this publication, SAP shares were up 5% on Thursday morning, steaming ahead of a 2.2% fall in the European technology stock index.
The share price has therefore risen by over 32% YTD.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
This enabled it to confirm its FY targets.
Operating profit, excluding non-recurrent items, rose by 10% to E2.28bn in the quarter, including a 16% increase at constant exchange rates.
Cloud sales rose by 16% to E3.47bn (+23% at constant exchange rates), while sales of software licenses - a business in decline - fell by only 17% to E335m.
These better-than-expected figures brought a sigh of relief for financial analysts.
The German group maintained its forecast for fY operating income of E8.65bn to E8.95bn, up 8% to 12% at constant exchange rates.
Cloud sales are still expected to be E14bn to E14.2bn, i.e. growth of 23% to 24% at constant exchange rates.
Following this publication, SAP shares were up 5% on Thursday morning, steaming ahead of a 2.2% fall in the European technology stock index.
The share price has therefore risen by over 32% YTD.
Copyright (c) 2023 CercleFinance.com. All rights reserved.