SAP Second-Quarter Revenue Up on Cloud Business Results (stock up almost 10%)

SAP posted higher revenue in its latest quarter, but lowered its operating profit guidance for the current fiscal year citing a sequential deceleration in growth.

Reporting on a non-IFRS basis, the German business-software company said second-quarter revenue rose 9.4% to 9.88 billion euros ($11.24 billion) from a year earlier. Revenue from SAP’s cloud business increased 22% to 6.28 billion euros.

Analysts had forecast total revenue of 9.85 billion euros and cloud revenue of 6.26 billion euros, according to a non-IFRS consensus provided by the company.

Net income rose to 7.23 billion euros from 6.62 billion euros. Operating profit, a closely watched metric for software companies, rose to 2.64 billion euros from 2.46 billion euros.

Analysts had expected an operating profit of 2.88 billion euros, according to a non-IFRS consensus provided by the company.

*source:* [*https://www.wsj.com/business/earnings/sap-second-quarter-revenue-up-on-cloud-business-results-operating-profit-guidance-lowered-on-slowing-growth-926d4418*](https://www.wsj.com/business/earnings/sap-second-quarter-revenue-up-on-cloud-business-results-operating-profit-guidance-lowered-on-slowing-growth-926d4418)