SAP Posts Higher 2Q Revenue, Operating Profit

By Sabela Ojea

SAP posted higher revenue and operating profit in the second quarter.

Reporting on a non-IFRS basis, the German business-software company said total revenue rose to EUR8.29 billion euros (US $9.02 billion) from EUR7.55 billion in last year's second quarter. Revenue from cloud and software climbed to EUR7.18 billion from EUR6.51 billion.

Profit after tax dropped to EUR1.28 billion from EUR2.44 billion. Operating profit--more closely watched for software companies--rose to EUR1.94 billion from EUR1.46 billion.

Analysts had forecast total revenue of EUR8.25 billion and an operating profit of EUR1.81 billion, according to a non-IFRS consensus provided by the company.

SAP, like other European software companies, presents its figures as two sets of numbers. One set is based on the International Financial Reporting Standards--an international accounting method that seeks to provide a global reporting standard--though analysts and investors tend to follow SAP's non-IFRS numbers, which exclude restructuring expenses and acquisition-related charges.

For the year, SAP continues to expect non-IFRS operating profit at constant currencies between EUR7.6 billion and EUR7.9 billion, cloud revenue at constant currencies between EUR17 billion and EUR17.3 billion and free cash flow of roughly EUR3.5 billion.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

July 22, 2024 17:05 ET (21:05 GMT)

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