SAP (SAPG.DE) reported strong first-quarter revenue growth and cut its guidance on Friday owing to the divestiture of Qualtrics.
SAP reported a 10% sales increase in the first three months of 2023, to 7.44 billion euros ($8.15 billion), exceeding the corporate consensus of 7%.
SAP’s current earnings report excludes last month’s sold Qualtrics profits. This is because the sale money hasn’t been included yet.
The computer giant now predicts non-IFRS operating profit of 8.6-8.9 billion euros, down 200 million euros. In addition, it now targets 14–14.4 billion euros in cloud revenue, down 1.3 billion euros from previous guidance.
SAP’s profitable cloud business climbed 24% year-over-year, in line with the company’s consensus, but IFRS operating profit decreased 45%, mostly due to share-based compensation.
SAP’s cost-cutting program’s restructuring charges also harmed the IFRS operating result. As a result, 12% more than expected, and non-IFRS net profit was 1.9 billion euros.
