Europe's largest software manufacturer SAP earned significantly more than expected in the past third quarter and is increasing the business outlook. Adjusted for special effects and before interest and taxes, the operating result rose surprisingly by 2 percent to 2.10 billion euros, according to preliminary figures, as the Dax company announced on Tuesday evening in Walldorf. Thanks to the cloud business, which is growing by a fifth, sales increased by 5 percent to 6.84 billion euros compared to the weak previous quarter. Analysts had previously expected a significantly weaker increase. The bottom line was, at 1.42 billion euros, 14 percent less net profit than a year ago. Most importantly, more money was needed for share-based compensation for employees.
After the surprisingly good performance, SAP boss Christian Klein increased the financial forecast for the current year slightly. In the third quarter, the software for use via the network (cloud software) was again the growth driver, now the Walldorf-based company is expecting a currency-adjusted increase in sales of 16 to 19 percent in 2021. Most recently, an increase of 15 to 18 percent was planned. Adjusted operating profit is now expected to decrease by a maximum of 2 percent after adjusting for currency effects instead of 4 percent. In the better case, SAP continues to consider a value as in the previous year to be possible at constant exchange rates.
Investors rewarded the positive results and the good outlook on Wednesday morning.
The price of the SAP share rose after the opening of the stock exchange by around 5 percent to 122.38 euros.
Analysts from Berenberg Bank, Baader Bank and Warburg Research left it at their buy recommendation for the share as a result of the quarterly figures and stuck to their price targets of between 135 and 144 euros.
"We are experiencing a record demand for our applications and our platform," said Klein, according to the announcement.
"This has led to a significant acceleration in our cloud growth." The cloud business is growing faster and faster and has led to the increased outlook for the full year, said CFO Luka Mucic.