Walldorf’s SAP raises full-year outlook as more customers swing to cloud

German business software group SAP SE had raised its full-year profit outlook for fiscal 2021

by Sourav D
Walldorf’s SAP raises full-year outlook as more customers swing to cloud

SAP SE, the Walldorf-headquartered German multinational business software group, had raised its full-year profit outlook for the third time later this week, largely riding on the back of a strong consumers’ demand in third quarter as more customers were reportedly shifting IT operations into the cloud.

In a statement published this week, SAP was quoted saying that the German business software group had been expecting its cloud revenues to soar between 16 per cent and 19 per cent on fiscal 2021, while SAP SE’s overall revenue gains in cloud and software businesses were expected to charter between 2 per cent and 4 per cent.

On top of that, the 49-year-old business software developer, long-hailed for its ERP toolkits, had forecasted that its operating profit would be down by 2 per cent, much-better than a previous forecast of a decline of 4 per cent in operating profits.

SAP posts strong third-quarter growth

According to SAP SE’s preliminary quarterly earnings’ report for third quarter of its fiscal 2021 that ended on September 30, the German business software maker’s revenues rose by a 5.0 per cent to €6.68 billion on an adjusted basis, however, SAP is expected to reveal its full Q3, 2021 earnings’ result on October 21.

SAP SE, in tandem, said in a statement this week that the German multinational software corporation having had a workforce of over 100,000 employees, was expecting to generate between €23.8 billion and €24.2 billion in cloud and software revenues over fiscal 2021.

Meanwhile, addressing to a record growth in SAP’s cloud platform, SAP SE chief executive Christian Klein said in a separate statement, “We see record adoption of our applications and our platform. This has resulted in strong acceleration of our cloud growth”.