German software company SAP reports Q3 surge in cloud revenue

FRANKFURT, Oct. 22 (Xinhua) — The German software company SAP released its financial results for the third quarter (Q3) on Monday, reporting strong growth in its cloud revenue.
Cloud revenue surged 25 percent year-on-year in the July-September period, amounting to 4.35 billion euros (4.71 U.S. dollars). For the first nine months of the year, cloud revenue also rose by 25 percent to 12.43 billion euros, according to the company.
A key driver of this growth was SAP’s Cloud ERP Suite business, which generated 3.63 billion euros in revenue in Q3, a 34 percent year-on-year increase.
SAP’s adjusted profit before interest and taxes (EBIT) saw a rise of 28 percent year-on-year, reaching 2.24 billion euros. Meanwhile, total revenue for the quarter grew by nine percent, hitting 8.47 billion euros.
In addition to the robust cloud revenue performance, SAP CEO Christian Klein highlighted the company’s strong progress in business AI, citing innovations such as SAP Knowledge Graph. “A significant part of our cloud deals in Q3 included AI use cases,” Klein said.
Based on these strong results, SAP has raised its 2024 outlook for cloud and software revenue to between 29.5 billion and 29.8 billion euros, up from the previous forecast of 29 billion to 29.5 billion euros. (1 euro = 1.08 U.S. dollar) ■