SAP 1Q Revenue Rose; Revises 2020 Outlook on Pandemic Hit
April 09 2020 - 2:23AM
Dow Jones News
By Giulia Petroni
SAP SE said late Wednesday that revenue for the first quarter
rose and adjusted its full-year guidance due to the effect of the
coronavirus pandemic on its business.
The German software company said preliminary results showed
total revenue rose 7% on year to 6.52 billion euros ($7.08
billion). Revenue in the cloud business segment grew 29% on year to
EUR2.01 billion, while software licenses revenue was down 31% to
EUR450 million.
"Business activity in the first two months of the quarter was
healthy. As the impact of the Covid-19 crisis rapidly intensified
towards the end of the quarter, a significant amount of new
business was postponed," the company said.
Operating profit in the first quarter increased to EUR1.21
billion on year, SAP said, mainly due to a lessened hit from
restructuring expenses and share-based compensation expenses.
The company said it had revised the outlook for the full-year to
reflect the estimated impact of the coronavirus crisis on the
second quarter.
On an adjusted basis, total revenue is now expected to be in a
range of between EUR27.8 billion and EUR28.5 billion at constant
exchange currencies from previous estimates of between EUR29.2
billion and EUR29.7 billion. Adjusted revenue in the cloud and
software segments is estimated to be between EUR23.4 billion and
EUR24 billion from a previously estimated range of EUR24.7 billion
to EUR25.1 billion.
The company is scheduled to release first-quarter results on
April 21.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
April 09, 2020 02:08 ET (06:08 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Sap (TG:SAP)
Historical Stock Chart
From Apr 2024 to May 2024
Sap (TG:SAP)
Historical Stock Chart
From May 2023 to May 2024