SAP reports 41% jump in cloud revenue in quarter but shares fall
New cloud bookings rose 37% in the third quarter at constant currencies
Frankfurt — German software company SAP reported a 41% jump in cloud revenues in the third quarter as its business transformation gathers pace, enabling management to raise guidance for revenues and profits this year. However, its shares fell 3.5% in early Thursday trading, as traders expressed some disappointment about margins. At Wednesday's close, the stock was up 7.4% year-to-date. Europe's most valuable tech company is ramping up sales and installations of its cloud-based S/4HANA business suite, which is superseding its mainstay Business Suite enterprise software that is sold under licence and runs at on-site servers. New cloud bookings, an order entry metric, rose 37% in the third quarter at constant currencies. That underpinned the firm lifting its 2018 growth forecast for cloud revenues to 36.5%-39% from 34%-38% previously. "The future has never been brighter at SAP — we're fired up and ready to go," CEO Bill McDermott told journalists on a conference call, highlighting a fu...
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