SAP Shares Slump After Cloud Business Growth Disappoints

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By Mauro Orru Shares of German business-software company SAP plunged in Friday morning trading after the group posted cloud revenue growth below analysts'...

By Mauro Orru Shares of German business-software company SAP plunged in Friday morning trading after the group posted cloud revenue growth below analysts' expectations for the second quarter, prompting SAP to cut its cloud revenue projection for the year.Reporting on a non-IFRS basis, the Walldorf, Germany-based company said Thursday that total revenue had climbed to 7.55 billion euros from EUR7.21 billion in last year's second quarter, with cloud revenue up 19% to EUR3.

The group said its cloud business had delivered a strong performance across all regions in the quarter, citing"outstanding" growth in Germany, Brazil and India. Analysts had forecast total revenue of EUR7.60 billion and cloud revenue of EUR3.40 billion on operating profit of EUR1.93 billion and a 25.6% operating margin, according to a company-provided consensus on a non-IFRS basis.

 

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