SAP Rises on 1Q Results, Raised 2021 Outlook
By Maria Armental
SAP SE raised financial projections for the year, following a
stronger-than-expected performance in the latest period driven by
the fastest growth in new cloud business in five years, the company
ADRs closed at $134.43, up 1.5% for the day, and rose 4% to $140
in extended trading on the raised outlook and first-quarter
The German software company now expects EUR9.2 billion to EUR9.5
billion in adjusted cloud revenue and EUR23.4 billion to EUR23.8
billion adjusted cloud and software revenue, compared with its
earlier view of EUR9.1 billion to EUR9.5 billion and EUR23.3
billion to EUR23.8 billion, respectively.
SAP reports on a IFRS basis and its forecast is based on
The company said it still expects software licenses revenue to
decline as customers turn to the "RISE with SAP" subscription
offering and expects global demand to improve in the second half of
the year as the pandemic recedes with the vaccine rollout.
Chief Executive Christian Klein said SAP in the March quarter
saw the highest order entry growth across cloud and software in
five years and posted the strongest increase in Non-IFRS operating
profit and margin in a decade.
"In the mid term SAP's expedited shift to the cloud will
accelerate topline growth and significantly increase the resiliency
and predictability of our business," Mr. Klein said.
First-quarter profit, on a per-share basis, rose to EUR0.88
cents, or EUR1.40 as adjusted, reflecting strong contribution from
Sapphire Ventures, SAP said.
Revenue, meanwhile, fell to EUR6.35 billion, from EUR6.52
billion a year earlier.
The results beat Wall Street expectations, according to
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires
April 13, 2021 17:53 ET (21:53 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.