SAP Posts Gain in Cloud Revenue, Raises Full-Year Forecast

(Bloomberg) — SAP SE, which briefly lost its crown as Germany’s most valuable company, said first-quarter cloud revenue increased 7% and it raised the lower end of its full-year forecast for cloud sales in a sign that customers are beginning to pick up information technology spending after cutting back amid the pandemic.Adjusted cloud revenue was 2.15 billion euros ($2.57 billion) in the period ended March 31, the Walldorf, Germany-based software company said Tuesday in a statement. Cloud and software sales increased 1% to 5.43 billion euros from a year earlier, the company said in releasing preliminary results. SAP was scheduled to report quarterly earnings on April 22.Key ItemsFull-year adjusted cloud sales will be 9.2 billion to 9.5 billion euros, based on “the strong new cloud business performance” the company said in the statement. The new forecast raises the lower end of the guidance from the previous 9.1 billion euros.Concur, its expenses unit, continued to struggle due to the lack of business travel.First-quarter adjusted operating profit increased 17% to 1.74 billion euros.Get MoreChief Executive Officer Christian Klein is attempting to overhaul SAP, focusing on making is easier for customers to move to a newer suite of products and ramping up competition with rivals such as Inc.The European firm has also been pushing to integrate its products with other tech platforms, to allow clients to run programs on Microsoft Corp.’s Azure or Inc.’s AWS.SAP said on Tuesday it was moving its businesses for the financial services industry into a venture with Dediq GmbH.Read MoreSAP CEO’s Comeback Plan Rankles Investors of European Tech GiantSAP Recovery Seems Far as Clients Cut Spending: Company OutlookFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.