SAP SAP SE

   By Marc Navarro Gonzalez 
 

SAP SE (SAP) on Tuesday raised its outlook for 2018 to reflect the acquisition of Callidus Software Inc. and a strong first-quarter operating performance.

The software company said first-quarter net profit was 708 million euros ($866.5 million), up 36% from EUR521 million in the year-earlier period. Total revenue was EUR5.26 billion, slightly down from EUR5.29 billion.

Germany's SAP said bookings for cloud services grew 25% in the three months, reaching EUR245 million. Revenue at its cloud business rose 18% to EUR1.07 billion.

The company raised its outlook for the year after closing the acquisition of California-based Callidus, which sells software used by sales and marketing teams, on April 5. It now expects non-IFRS operating profit to be between EUR7.35 billion and EUR7.50 billion at constant currencies, and non-IFRS total revenue of between EUR24.8 billion and EUR25.3 billion at constant currencies.

Callidus is expected to contribute about EUR200 million to total revenue, SAP said.

As of Jan. 1, SAP changed several of its accounting policies to apply the IFRS 15 standard, which sets out guidance for reporting revenue from contracts with customers. On-year revenue and profit growth in 2018 have consequently been impacted, SAP said.

Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com

(END) Dow Jones Newswires

April 24, 2018 01:35 ET (05:35 GMT)

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