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SAP CEO Bill McDermott has expressed confidence in the sales software market.
SAP, Europe's largest technology company in terms of market capitalization, also raised its medium-term forecast for its cloud operations after 40% growth in segment revenue at constant exchange rates in the second quarter.
"We are increasing the guidelines as a signal that a new wave of growth has been unleashed," McDermott told reporters during a conference call.
SAP has embarked on a fundamental shift towards commercial subscription software services hosted on remote servers, far from its traditional on-premise model that has generated significant initial licensing fees.
SAP recorded operating profit of 12% in the second quarter, at constant exchange rates, on a turnover up 10% – a result well above expectations in a Reuters poll of 14 badysts.
He raised the lower range of his forecast ranges for annual revenue growth and operating profit by half a percentage point to 6-7.5% and 9-11% , respectively.
Cloud subscriptions and support have now increased from 34% to 38%, up from 31% to 36.5% previously.
For 2020, SAP now expects cloud subscriptions and support revenues to be between 8.2 billion and 8.7 billion euros, compared to 8 billion to 8.5 billion euros Euros, before.
The company left the other mid-term guidelines unchanged.
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