SAP - SAP tumbles after unveiling Q2 results tweaking 2023 outlook
2023-07-20 12:27:51 ET
German software maker SAP ( NYSE: SAP ) fell more than 4% on Thursday after the company released second-quarter results and lowered the high-end of its revenue forecast for the rest of the year.
For the period ending June 30, SAP ( SAP ) said it generated $7.55B in revenue, with earnings per share at €0.62, up from €0.54 in the year-ago quarter.
Boosting the quarterly results was a 19% year-over-year (or 22% in constant currency) climb in cloud-related revenue. SAP ( SAP ) added that its current cloud backlog is up 21% and 35% in constant currencies.
The software maker also updated its revenue and operating profit outlook for the rest of the year, as it now expects €14.0 to €14.2B in cloud revenue, up from €11.43B in 2022. It previously forecast €14.0 to €14.4B.
Cloud and software sales are forecast to be between €27.0 to €27.4B, compared to a previous forecast of €26.9B to €27.4B.
It expects operating profit to be between €8.65B and €8.95B, up slightly from the prior view of €8.6B and €8.9B.
SAP ( SAP ) also expects its share of "more predictable revenue" to be roughly 82% this year, up from 79% last year, along with €4.9B in free cash flow, up from €4.4B last year.
Following the results, shares of enterprise software makers fell, including Oracle ( ORCL ), ServiceNow ( NOW ) and Snowflake ( SNOW ), among others.
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SAP tumbles after unveiling Q2 results, tweaking 2023 outlook