UPDATE: SAP Posts Drop In Q2 Profit

SAP SE

reported a 23% drop in its second-quarter profit and lifted its full-year revenue forecast for cloud applications. For the full year, SAP now expects revenue for cloud subscriptions and support of 1.00 billion to 1.05 billion euros, versus its prior forecast of EUR950 million to EUR1 billion. The Walldorf, Germany-based company posted a quarterly net profit of EUR557 million, down from a year-ago profit of EUR725 million. Its revenue climbed 2.2% to EUR4.15 billion. SAP's revenue from cloud subscriptions and support jumped 52% to EUR241 million. SAP's non-IFRS cloud subscriptions and support revenue jumped 39% at constant currencies. In EMEA, non-IFRS software and software-related service revenue jumped 8% y/y, while non-IFRS software and software-related service revenue rose 6% in the America. In the APJ region, software and software-related service revenue surged 12%. Bill McDermott, CEO of SAP said, "We are successfully executing our shift to the cloud helping customers run simple – from total workforce management in the cloud to frictionless commerce through the world's largest business network.” SAP shares gained 1.95% to close at $79.64 yesterday.