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published in Blogs
Apr 25, 2022
SAP (SAP, $102.99) beats Q1 revenue estimates, misses earnings expectations

SAP (SAP, $102.99) beats Q1 revenue estimates, misses earnings expectations

German company SAP posted a first-quarter revenue that surpassed analysts’ expectations. Earnings, however, missed estimates.

The software company’s revenue rose + 11% from the year-ago quarter to 7.08 billion euros at constant currency, topping analysts’ expectations of 6.87 billion euros, according to a Refinitiv poll.

Revenue from the cloud and software segment increased 12% to 6.06 billion euros.

Current cloud backlog, which gauges incoming business, climbed +28% at 9.73 billion euros. The war in Ukraine subtracted the backlog growth at constant currency rates by 0.8 percentage points.

The company’s adjusted earnings came in at €1.00, falling  short of Wall Street expectations of €1.16.

SAP is anticipating a negative revenue impact of around -€300 million in 2022 from a lack of new contracts and the ending of existing business. It projects operating profit to likely fall by -€350 million in turn, with the decrease in profit steeper than the fall in sales due to winding down operations and a bad debt expense.

Related Tickers: SAP