SAP Maintains Full-Year Guidance

German technology major SAP (SAP) reiterated its full-year guidance on Thursday as it posted revenue and adjusted earnings per share for its second quarter that fell short of analysts’ estimates, despite being up year-on-year.

The Waldorf, Germany-headquartered company generated revenue of 6.66 billion euros ($7.47 billion) on a non-IFRS basis in the three months ended June 30, compared with 6.01 billion euros in the corresponding quarter of the prior year. This fell short of the consensus estimate of analysts polled by Capital IQ for 6.71 billion euros.

The result was supported by 6% growth in revenue within the company’s applications, technology and services segment to 5.38 billion euros. Revenue at the intelligent spend group segment was up 22% at 786 million euros and revenue at customer and experience management was 365 million euros, up 81% from a year earlier.

Cloud revenue was 1.72 billion euros, up from 1.23 billion euros a year earlier and revenue at software licenses and support services unit was 3.8 billion, up from 3.73 billion euros a year earlier.

Adjusted earnings per share came in at 1.09 euros, up from 1.08 euros a year earlier but nevertheless below the 1.11 euros forecast by analysts.

“SAP delivered double-digit growth in total revenue, cloud revenue and non-IFRS operating income,” Bill McDermott, chief executive of SAP, said. “Qualtrics is growing fast as the global standard in the Experience Management category. As shown by our rising cloud gross margins, we are progressing nicely on our ambition to be the Best-Run SAP.”

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