SAP SE (NYSE: SAP) shares are sliding following the release of its financial results for the second quarter ended June 30, 2023.

Cloud revenue increased 22% Y/Y to €3.32 billion at CC. 

Software licenses and support revenue declined 4% Y/Y to €3.19 billion at CC. 

Cloud and software revenue grew 8% Y/Y to €6.51 billion at CC.

Current Cloud backlog was up 25% Y/Y to €11.54 billion at CC. 

Non-IFRS cloud gross margin was up 110 bps to 72.2% at CC, driven by completion of SAP's next-generation cloud delivery program.

Non-IFRS operating profit was up 28% to €2.06 billion at CC, led by higher cloud revenue, efficiency gains, and finalization of the next-generation cloud delivery program. 

Non-IFRS EPS (basic) from continuing operations was €1.07.

Dominik Asam, CFO, said, "We are very pleased with our first half results. The revenue growth and increased profitability, combined with sustained growth of our cloud backlog, demonstrate the strength of our business model. Q2 performance puts us on the right trajectory and allows us to raise our cloud and software revenue, as well as the operating profit outlook for the year."

In Q2, SAP successfully concluded the migration of its cloud customer base to its state-of-the-art, harmonized cloud infrastructure, with over 20,000 customers migrated as part of the program. 

Price Action: SAP shares traded lower by 4.42% at $136.68 on the last check Thursday.