Software maker SAP’s quarterly results fall short of expectations

Third quarter brings slower than expected revenue growth and a drop in profits

SAP said a lower contribution from software licences revenue as well as investments in growth led to results that failed to meet expectations.

Tue Oct 25 2022 - 07:49

Business software maker SAP reported slower than expected revenue growth and a drop in profits for the third quarter, citing lower contribution from software licences revenue as well as investments in growth.

Total revenue grew by 5 per cent in currency-adjusted terms to €7.84 billion, SAP said on Tuesday, missing analyst consensus for a jump to €8.49 billion.

Non-IFRS operating profit came to €2.094 billion in the three months through September, an 8 per cent drop at constant currencies. Earnings per share of €1.12 fell short of consensus for €1.62.

SAP stuck with a forecast for full-year operating profit to come to €7.6 billion to €7.9 billion, which it had cut from €7.8 billion-€8.25 billion in July. - Reuters