The German tech major’s total revenue for the reported quarter ended 31 March 2023 increased by 10% to €7.44bn, compared to €6.77bn earned in Q1 2022
SAP headquarters in Walldorf, Germany. (Credit: SAP SE)
SAP has reported a profit after tax of €509m for the first quarter of 2023, a decrease of 19%, compared to a profit after tax of €632m made in the same quarter of 2022.
The diluted earnings per share of the Germany-based software company in Q1 2023 was down by 35% to €0.41 from €0.63 reported in Q1 2022.
SAP’s total revenue for the reported quarter ended 31 March 2023 increased by 10% to €7.44bn, compared to €6.77bn earned in the first quarter of the previous year.
The company’s cloud revenue for Q1 2023 was up by 24% year-over-year (YoY) to €3.18bn, compared to €2.56bn in Q1 2022.
SAP S/4HANA’s cloud revenue for the reported quarter was up by 77% YoY to €716m.
The company’s revenue from software licenses and support in Q1 2023 was €3.18bn, which is 2% lower than €3.24bn earned in the same quarter of the previous year.
SAP CEO Christian Klein said: “We have entered a powerful new phase in our strategic transformation, with topline and bottom-line results clearly demonstrating the tipping point we passed in the fourth quarter 2022.
“Our cloud momentum continues at a fast pace which is contributing to our strong revenue and double-digit non-IFRS operating profit growth this quarter.”
The German firm revealed that it has nearly completed the wind-down of its business activities in Russia and Belarus. If the conditions deteriorate beyond the present scope, then business could possibly face materially adverse consequences, said SAP.
Last month, SAP agreed to sell the 423 million shares it holds in experience management software company Qualtrics International for around $7.7bn. The German firm is the majority owner of the Nasdaq-listed Qualtrics, which is being taken private by Silver Lake and Canada Pension Plan Investment Board (CPP Investments) in a deal worth around $12.5bn.