This was much bigger than the cocaine nose jobs of Wall Street predicted and has created a bit of a stir.
SAP said third quarter operating profit, excluding special items, rose to $1.84 billion.
SAP’s Chief Financial Officer Luka Mucic said it was expecting to make an operating profit of 5.6 – 5.9 billion euro at constant currencies. This is flat growth to a rise of as much as 5 percent from 5.6 billion euros last year. Not great but better than Wall Street predicted.
Mucic said that the double digit growth in cloud and software revenue was mainly driven by excellent results in mature markets. We guess teenage markets are too interested in slouching around the house with their mates to buy SAP and pre-school markets don’t have a chequebook.
SAP’s Chief Financial Officer Luka Mucic said in a statement, adding that he expected continued volatility and economic challenges in emerging markets. Markets which hide in shrubberies and emerge are always more tricky than those who stand in the middle of the square and shout “look at me”.
SAP, whose customers include the world’s biggest multinationals, specialises in business applications ranging from accounting to human resources to supply-chain management.
The outfit has to take on fast-growing newer competitors such as Workday and Amazon.com’s web software unit.
SAP said its cloud subscriptions and support revenue more than doubled to 600 million euro in the third quarter.
Third-quarter total revenue of 4.98 billion euros was slightly ahead of the average expectation of 4.93 billion.