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SAP Increased Net Profit in the First Quarter by 36 Percent

The German software manufacturer SAP reported on Tuesday a 36 percent increase in net profit in the first quarter of this year compared to the previous year and raised its profit and revenue estimates for 2018.

The net profit of this software giant reached 708 million euros in the first three months of this year. At the same time, its total revenues slightly decreased, slipping to 5.26 billion euros, down from 5.29 billion euros achieved in the same period last year, according to the business report of this German company, which has been present in Croatia for years.

>>>SAP Increased Revenue and Profit in 2017 Thanks to Cloud Services

SAP emphasizes that cloud service bookings increased by 25 percent in the first quarter, reaching 245 million euros. Revenues in the cloud business segment grew by 18 percent, reaching 1.07 billion euros.

This largest European technology company by market value also raised its profit and revenue estimates for 2018, which include the acquisition of the American software sales company Callidus. The acquisition, valued at 2.4 billion dollars, was announced in January of this year.

>>>SAP Completed the Acquisition Process of Callidus Software

SAP now forecasts an operating profit for this year in the range of 7.35 billion to 7.50 billion euros, expressed in constant currency rates. Total revenues are expected to be in the range of 24.8 billion to 25.3 billion euros.

– We are quickly gaining market shares and surpassing our fiercest competitors quite easily, said SAP’s CEO Bill McDermott to reporters during a conference call, describing the results as strong on both the revenue and net profit sides.

In the cloud business segment, SAP’s biggest competitors are Salesforce and Oracle.