(Reuters) – Business software maker SAP on Friday reported better-than-expected first-quarter revenue growth, though it lowered its outlook slightly due to the sale of its Qualtrics unit.
SAP reported a 10% increase in revenue in the first three months of 2023 to reach €7.44 billion ($8.15 billion).
SAP has already discounted the profit of its subsidiary Qualtrics, which it sold last month, from its current earnings report. However, sales proceeds are not yet included.
The technology giant now expects non-IFRS operating profit in the range of €8.6bn to €8.9bn, €200m less than previously. For cloud revenue, he is now targeting between €1.4 billion and €14.4 billion, a reduction of €1.3 billion from his previous guidance.
Revenue from SAP’s profitable cloud business grew 24% year-over-year, broadly in line with consensus provided by the company. By contrast, IFRS operating profit was down 45%, primarily due to higher share-based payments in the prior-year quarter.
In addition, IFRS operating results were impacted by restructuring charges related to SAP’s recent cost reduction programs. Non-IFRS net income increased 12% to €1.9 billion, also above expectations.
($1 = 0.9126 Euro)
(Reporting by Andrey Sychev, Editing by Miranda Murray)