German tech group SAP last Tuesday increased its revenue outlook for 2021 after reporting encouraging first-quarter results, with gains derived from cloud sales following the launch of a new business transformation initiative.
The Walldorf-based company presented its stellar first quarter results that showed CEO Christian Klein’s new focus on selling business transformation as a service through its Rise with SAP package which has been steadily picking up.
SAP expects their cloud and software services to pull in revenue of $28 billion at constant currency, a 1-2% rise from last year’s earnings.
New cloud business rose 19% in the first quarter – the fastest in five years – while adjusted cloud revenue moved up 13% at constant currency.
Total company revenue rose by 2% in the quarter at constant currency to 6.35 billion Euros. After removing operating profit which was depressed by executive share compensation, profit increased by 24% to 1.74 billion Euros.
SAP will report its full quarterly results on April 22.
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