SAP’s profit misses expectations after it sells more cloud products
Frankfurt — SAP, Europe’s largest software company, reported slightly lower than expected first-quarter core profit as it sold more of its cloud products, which are less profitable. First-quarter operating profit, excluding special items, for the German software maker rose 8% to €1.198bn, the company said in a statement on Tuesday. That was slightly below the average of €1.229bn in a Reuters poll of 13 analysts, with individual estimates ranging from €1.183bn-€1.298bn. Revenue rose 12% to €5.285bn, which was above average expectations of €5.179bn. SAP’s customer base moved further to newer cloud-based and less profitable internet platforms from classic high-margin packaged software products it has sold for decades. New cloud bookings jumped 49% to €215m during the first quarter. "We continued our rapid expansion in cloud," SAP finance chief Luka Mucic said in a statement. "We’re off to a good start to reach our full-year targets and we are confident that we will grow our profitabili...
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