SAP Q4 Profit Down; Sees Higher Adj. Profit In FY23, Backs FY25 View

(RTTNews) - German software major SAP AG (SAP) reported Thursday that its fourth-quarter profit after tax, on IFRS basis, fell 77 percent to 332 million euros from last year's 1.44 billion euros.

IFRS earnings per share decreased 62 percent to 0.47 euro from 1.23 euros a year ago.

Adjusted profit after tax was 1.03 billion euros or 1 euro per share, compared to prior year's 2.27 billion euros or 1.85 euros per share.

Total revenue increased 6 percent to 8.44 billion euros from last year's 7.98 billion euros. At constant currency rates, revenues grew 1 percent.

Looking ahead for fiscal 2023, the company projects accelerating topline and double-digit non-IFRS operating profit growth.

For the full-year 2023, SAP expects adjusted operating profit of 8.8 billion euros to 9.1 billion euros, up 10 percent to 13 percent at constant currencies.

The company also sees 15.3 billion euros to 15.7 billion euros cloud revenue, up 22 percent to 25 percent at constant currencies, and 28.2 billion euros to 28.7 billion euros cloud and software revenue, up 6 percent to 8 percent at constant currencies.

Further, by 2025, SAP continues to expect more than 11.5 billion euros adjusted operating profit, more than 22 billion euros cloud revenue, and more than 36 billion euros total revenue.

SAP expects to update its mid-term ambition in the first half of 2023.

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