Why Are SAP Shares Trading Higher Today? - SAP (NYSE:SAP)

SAP SE SAP announced its preliminary financial results for the third quarter ended September 30. Total revenue rose 5% year-on-year to €6.84 billion at constant currencies.
Cloud revenue increased 20% Y/Y to €2.39 billion at CC. S/4HANA cloud revenue grew 46% Y/Y to €276 million at CC.
Software licenses revenue declined 8% Y/Y to €0.66 billion at CC. Cloud and software revenue increased 6% Y/Y to €5.91 billion at CC.
Services revenue declined 6% Y/Y to €0.93 billion at CC. This revenue decline is primarily attributable to the November 2020 divestiture of SAP Digital Interconnect.
The current cloud backlog was up 22% year-on-year to €8.17 billion at CC. S/4HANA's current cloud backlog rose 58% Y/Y (Non-IFRS) to €1.28 billion at CC.
The non-IFRS operating margin contracted 90 bps to 30.7%. Non-IFRS EPS was €1.74.
Outlook: SAP raised cloud revenue at CC to €9.4 billion – €9.6 billion from the prior view of €9.3 billion – €9.5 billion.
SAP increased cloud and software revenue at CC to €23.8 billion – €24.2 billion from €23.6 billion – €24.0 billion.
Price Action: SAP shares traded higher by 5.00% at $141.36 in the premarket session on the last check Wednesday.