SAP Raises 2018 Outlook on Callidus Deal, Strong 1Q Momentum
April 24 2018 - 12:50AM
Dow Jones News
By Marc Navarro Gonzalez
SAP SE (SAP) on Tuesday raised its outlook for 2018 to reflect
the acquisition of Callidus Software Inc. and a strong
first-quarter operating performance.
The software company said first-quarter net profit was 708
million euros ($866.5 million), up 36% from EUR521 million in the
year-earlier period. Total revenue was EUR5.26 billion, slightly
down from EUR5.29 billion.
Germany's SAP said bookings for cloud services grew 25% in the
three months, reaching EUR245 million. Revenue at its cloud
business rose 18% to EUR1.07 billion.
The company raised its outlook for the year after closing the
acquisition of California-based Callidus, which sells software used
by sales and marketing teams, on April 5. It now expects non-IFRS
operating profit to be between EUR7.35 billion and EUR7.50 billion
at constant currencies, and non-IFRS total revenue of between
EUR24.8 billion and EUR25.3 billion at constant currencies.
Callidus is expected to contribute about EUR200 million to total
revenue, SAP said.
As of Jan. 1, SAP changed several of its accounting policies to
apply the IFRS 15 standard, which sets out guidance for reporting
revenue from contracts with customers. On-year revenue and profit
growth in 2018 have consequently been impacted, SAP said.
Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com
(END) Dow Jones Newswires
April 24, 2018 01:35 ET (05:35 GMT)
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